Brinker International, Inc. (NYSE:EAT) stock rose 5.92% (As on August 15, 11:25:16 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 24. Comparable restaurant sales increased 13.5%, with an increase in comparable restaurant sales of 14.8% for Chili’s and 2.5% for Maggiano’s. The comparable restaurant sales increase at Chili’s was primarily due to increased menu pricing and higher traffic. The launch of the “Big Smasher” burger and the strength of Chili’s advertising highlighting value drove traffic during the fourth quarter. Additionally, the Chili’s traffic increase of 5.9% includes a negative impact of approximately 2.3% from the strategic decision to de-emphasize virtual brands. Higher Company sales resulted in operating income margin increasing to 6.1% for the fourth quarter. Moreover, Maggiano’s brand has reported 2.5% positive comp sales for the quarter, driven by 9.2% of price and positive 2.2% of mix, offset by negative 8.9% traffic. The Company continued to invest in the business during the fourth quarter, increasing restaurant staffing and repairs and maintenance expense. The Company ended fiscal 2024 with no outstanding borrowings on its $900.0 million revolving credit facility and $64.6 million of cash on hand. The funded debt-to-EBITDA ratio improved to 1.64x at quarter end.

EAT in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.61, missing the analysts’ estimates for the adjusted earnings per share of $1.65, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.21 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $1.16 billion. Restaurant operating margin for the quarter was 15.2%, an impressive 180 basis points improvement year-over-year, primarily driven by sales leverage from top line growth. This resulted in favorable food and beverage and labor costs, partially offset by a 90 basis points increase in restaurant expense. Food and beverage costs for the quarter was favorable 140 basis points year-over-year, benefiting from higher price, partially offset by commodity inflation. Advertising for the quarter increased approximately $14 million versus last year. Capital expenditures for the quarter were approximately $58 million. Fourth quarter adjusted EBITDA was $142 million, a 24% increase from prior year.

Brinker International expects full-year 2025 earnings to be in the range of $4.35 to $4.75 per share, with revenue to be in the range of $4.55 billion to $4.62 billion. FY 25 Capital expenditures are expected to be in the range of $195 million – $215 million.