EATMEDIUM SIGNALOPPORTUNITY10-K

Brinker International (Chili's) delivered strong revenue growth and meaningfully improved operational performance in fiscal 2025.

The company demonstrated robust operational execution with revenue growth of 22% while substantially expanding operating cash flow generation. Higher menu prices and increased per-restaurant productivity indicate successful positioning in the competitive casual dining market, though the significant cash position reduction warrants monitoring.

Comparing 2025-08-15 vs 2024-08-21View on EDGAR →
FINANCIAL ANALYSIS

Brinker showed strong top-line momentum with revenue growing 22% to $5.4B, supported by meaningfully higher operating cash flow generation. The company invested substantially more in capital expenditures while taking on additional debt, and cash reserves declined significantly to $18.9M from $64.6M. The operational metrics reveal improved restaurant-level performance with higher average sales per location ($4.5M vs $3.6M) and increased revenue per guest, suggesting effective pricing strategies and customer traffic management.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-70.7%
$64.6M$18.9M

Cash declined 70.7% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Cash Flow
Cash Flow
+60.9%
$421.9M$679.0M

Operating cash flow surged 60.9% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+33.4%
$198.9M$265.3M

Capital expenditure jumped 33.4% — major investment cycle underway; assess returns on deployment.

Revenue
P&L
+21.9%
$4.4B$5.4B

Revenue growing 21.9% — solid top-line momentum, watch margins for quality of growth.

Accounts Receivable
Balance Sheet
+21.1%
$60.6M$73.4M

Receivables grew 21.1% — monitor days sales outstanding for collection efficiency.

Total Debt
Balance Sheet
+19.7%
$1.1B$1.3B

Debt rose 19.7% — additional borrowing for investment or operations; monitor coverage ratios.

Current Assets
Balance Sheet
-11.6%
$234.1M$207.0M

Current assets declined 11.6% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2025-08-15
PRIOR — 2024-08-21
ADDED
References to fiscal or fiscal year are to the fiscal year ended of the applicable year.
For example, fiscal 2025 refers to the fiscal year ended June 25, 2025.
Our menu features bold, Southwest inspired American favorites, and Chili s has built a reputation for big mouth burgers, sizzling fajitas, crispy Chicken Crispers , hand-shaken margaritas, and the social-media-famous Triple Dipper.
In fiscal 2025, entr e selections at our Company-owned restaurants ranged in average menu price from $10.76 to $30.26.
Our average annual net sales per Company-owned Chili s restaurant during fiscal 2025 was $4.5 million, and the average revenue per meal, including alcoholic beverages, was approximately $21.90 per guest.
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REMOVED
The Company was organized under the laws of the State of Delaware in 1983 to succeed to the business operated by Chili s, Inc., a Texas corporation, which was organized in 1977.
For example, fiscal 2024 refers to the fiscal year ended June 26, 2024.
Our menu features bold, Southwest inspired American favorites and Chili s has built a reputation for big mouth burgers, full-on sizzling fajitas, crispy Chicken Crispers and hand-shaken margaritas.
In fiscal 2024, entr e selections at our Company-owned restaurants ranged in average menu price from $10.19 to $24.06.
Our average annual net sales per Company-owned Chili s restaurant during fiscal 2024 was $3.6 million, and the average revenue per meal, including alcoholic beverages, was approximately $20.28 per guest.
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