Brinker International Inc (EAT)

Gross profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Gross profit	US$ in thousands	775,800	627,300	500,100	499,200	503,300
Revenue	US$ in thousands	5,384,200	4,415,100	4,133,200	3,804,100	3,337,800
Gross profit margin		14.41%	14.21%	12.10%	13.12%	15.08%

June 30, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $775,800K ÷ $5,384,200K
= 14.41%

The gross profit margin of Brinker International Inc. over the period from June 30, 2021, to June 30, 2025, exhibits notable fluctuations that warrant a detailed examination. At the end of fiscal year 2021, the gross profit margin stood at 15.08%, indicating the proportion of revenue remaining after deducting direct costs associated with the goods sold. This initial figure suggests relatively favorable gross profitability during that period.

In the subsequent fiscal year, 2022, the gross profit margin experienced a decline to 13.12%. This reduction reflects a contraction of approximately 2 percentage points, which could be attributed to increased cost of goods sold, pricing pressures, or shifts in product mix. Such a decrease signals potential challenges in maintaining margin stability amid competitive or operational factors.

The downward trend persisted into fiscal year 2023, with the gross profit margin decreasing further to 12.10%. This ongoing decline underscores a possible continuation of pressures impacting profitability, potentially linked to inflationary increases in food and labor costs, or other operational headwinds affecting cost control.

However, a positive shift is observed in fiscal year 2024, with the gross profit margin rebounding to 14.21%. This recovery suggests an improvement in cost management, strategic pricing adjustments, or favorable changes in sales mix that enhanced gross profitability. The margin increase indicates a potential stabilization or strategic response to past margin erosion.

Continuing this trend, the gross profit margin further improved to 14.41% in fiscal year 2025. This incremental increase demonstrates a sustained effort in managing costs and optimizing revenue streams, contributing to a more robust gross profitability position compared to prior years.

Overall, the gross profit margin data reflects a period of decline from 2021 through 2023, followed by a recovery and upward trend from 2024 onward. The pattern indicates that Brinker International Inc. experienced challenges impacting gross profitability but appears to have implemented measures leading to margin expansion in the recent fiscal years.