Q1 2025 Brinker International Inc Earnings Call Transcript
Key Points
- Chili's delivered a 14% sales growth with a 6.5% increase in traffic, indicating strong consumer demand.
- Brinker International Inc (EAT) reported a year-over-year restaurant operating margin improvement of 310 basis points.
- The company's marketing strategies, including the Big Smasher campaign and social media initiatives, have been effective in driving traffic and sales.
- The introduction of new menu items like the Nashville Hot Mozz Sticks and the expansion of the Triple Dipper have been successful, with the Triple Dipper now representing 11% of the business.
- Brinker International Inc (EAT) raised its fiscal 2025 full-year guidance, reflecting confidence in continued growth and profitability.
- Maggiano's reported a negative 8.7% traffic, indicating challenges in attracting customers despite other positive metrics.
- The company is experiencing normal challenges associated with the transition to a new Oracle ERP system, which could impact operations if not managed carefully.
- Despite strong sales growth, the mix of the 3 for Me offering only increased by 1%, suggesting limited upsell success.
- The removal of the $6 take-home pasta offerings at Maggiano's is expected to result in a 1% drag on top-line sales and traffic.
- Advertising costs are expected to increase in the coming quarters, which could impact margins if not offset by sales growth.
Good day, and welcome to Brinker's first-quarter fiscal year 2025 earnings call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours.
Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, President and Chief Executive Officer; and Michaela Ware, Chief Financial Officer.
Results for our first quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.
Before beginning our comments, I would like to remind everyone of our Safe Harbor regarding forward-looking statements. During our call, management may discuss certain items, which are not based entirely on historical facts. Any such
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