Brinker International Inc (EAT)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.41% | 14.21% | 12.10% | 13.12% | 15.08% |
| Operating profit margin | 10.29% | 5.20% | 3.49% | 4.19% | 5.97% |
| Pretax margin | 8.54% | 3.73% | 2.20% | 3.03% | 4.35% |
| Net profit margin | 7.12% | 3.52% | 2.48% | 3.09% | 3.94% |
The analysis of Brinker International Inc.'s profitability ratios over the period from June 30, 2021, to June 30, 2025, reveals several notable trends.
The gross profit margin exhibited a decline from 15.08% in 2021 to a low of 12.10% in 2023, indicating a decreasing efficiency in converting sales into gross profit during this period. However, there was a recovery thereafter, reaching 14.21% in 2024 and slightly improving to 14.41% in 2025, suggesting an improvement in cost management or pricing strategies.
Operating profit margins followed a similar downward trend from 5.97% in 2021 to a nadir of 3.49% in 2023. This contraction reflects pressures on operational efficiency or rising operating costs. Nonetheless, a significant rebound occurred in 2024 and 2025, with margins increasing to 5.20% and then sharply rising to 10.29%, indicating enhanced operational performance and better control over operating expenses.
Pretax margins declined from 4.35% in 2021 to 2.20% in 2023, mirroring the overall profitability deterioration during that period. The subsequent improvement, reaching 3.73% in 2024 and further to 8.54% in 2025, underscores a substantial recovery in pre-tax profitability, possibly driven by improved revenue streams or cost efficiencies.
Similarly, net profit margins experienced a decline from 3.94% in 2021 to 2.48% in 2023, reflecting reduced bottom-line profitability attributable to factors affecting gross or operating profits. The upward trend observed in 2024 and 2025, reaching 3.52% and then substantially increasing to 7.12%, indicates a significant enhancement in net profitability, potentially driven by improved operational results, cost controls, or favorable tax conditions.
Overall, while the company faced profitability pressures between 2021 and 2023, characterized by declining margins across all measures, subsequent periods demonstrated a marked improvement, especially in 2025, reflecting a strengthening profitability position.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.67% | 8.85% | 5.81% | 6.42% | 8.76% |
| Return on assets (ROA) | 14.30% | 5.99% | 4.13% | 4.73% | 5.78% |
| Return on total capital | 137.34% | 583.50% | — | — | — |
| Return on equity (ROE) | 103.29% | 394.16% | — | — | — |
The profitability ratios of Brinker International Inc. over the period from June 30, 2021, to June 30, 2025, reveal notable fluctuations and trends in the company's ability to generate earnings relative to its assets, capital, and equity.
Starting with the Operating Return on Assets (Operating ROA), the data indicate a decline from 8.76% in 2021 to a low of 5.81% in 2023. This suggests a reduction in operational efficiency and profitability relative to the company's assets during this period. However, a significant rebound is observed in 2024, with the Operating ROA increasing sharply to 8.85%, surpassing previous levels. By 2025, the ratio further escalates to 20.67%, signaling a substantial improvement in operational performance and the company's ability to generate income from its assets.
The Return on Assets (ROA), which encompasses both operating and non-operating income streams, exhibits a similar trend. It decreases from 5.78% in 2021 to 4.13% in 2023, reflecting a decline in overall asset efficiency. The ratio then increases to 5.99% in 2024, and markedly jumps to 14.30% in 2025, indicating a significant enhancement in the company's overall profitability relative to its total assets.
Data regarding the Return on Total Capital (ROTC) and Return on Equity (ROE) are available only from 2024 onward. In 2024, the ROTC is reported at an extremely high 583.50%, and it slightly decreases to 137.34% in 2025. Such elevated figures suggest exceptional returns relative to the company's total capital, potentially attributable to leverage effects or extraordinary earning events. Similarly, the ROE demonstrates a dramatic rise from zero (or non-available data) in prior years to 394.16% in 2024, followed by a decrease to 103.29% in 2025. These ratios point toward highly favorable equity returns in 2024, which diminish somewhat in 2025 but remain substantially elevated.
Overall, the data portray a company that experienced a dip in operational and overall asset profitability during 2022 and 2023, followed by a remarkable recovery in 2024 and 2025. The extraordinary ratios observed in 2024 and 2025 suggest periods of exceptional performance, possibly influenced by strategic initiatives, operational efficiencies, or extraordinary income. However, the exceptionally high returns raise considerations about the underlying factors, such as increased leverage or one-time gains, that should be further analyzed to fully understand the sustainability of these profitability levels.