Brinker International Inc (NYSE:EAT) shares fell on Tuesday after it reported third-quarter FY25 earnings. The company owns and operates brands like Chili's Grill & Bar and Maggiano's Little Italy.

The company reported third-quarter revenue growth of 27.2% year-on-year to $1.43 billion, beating the analyst consensus estimate of $1.39 billion. Adjusted EPS of $2.66 beat the analyst consensus of $2.57.

Brinker's comparable restaurant sales rose 28.2%, Chili's rose 31.6%, and Maggiano's by 0.4%.

Operating margin expanded 480 basis points to 11%, and operating income more than doubled to $156.9 million for the quarter.

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The restaurant operating margin for the quarter was 18.9%, compared to 14.2% last year.

As of March 26, 2025, the company held $17.5 million in cash and equivalents. Operating cash flow for the nine months totaled $493 million.

Adjusted EBITDA of $220.6 million improved by 80% Y/Y.

"Our continued progress on the fundamentals of great food, great service in a fun, friendly atmosphere is clearly winning with guests," said Kevin Hochman, President & CEO.

On the earnings call, Brinker said that roughly 20% of its food and beverage purchases are imported. The tariffs on imported goods could raise input costs and hurt margins.

Outlook: Brinker raised its FY25 revenue outlook from $5.15 billion—$5.25 billion to $5.33 billion—$5.35 billion, versus the consensus of $5.25 billion.

The company raised FY25 Adjusted EPS guidance from $7.50 – $8.00 to $8.50 – $8.75, against the consensus of $8.48.

Price Action: EAT shares closed lower by 14.80% to $136.89 on Tuesday.

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