Brinker International Inc (EAT)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 23, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 14.41% | 32.22% | 14.65% | 12.95% | 12.22% | 12.71% | 13.47% | 13.09% | 12.10% | 10.81% | 10.67% | 10.78% | 12.04% | 14.47% | 14.82% | 13.70% | 25.67% | 25.03% | 37.46% | 39.66% |
| Operating profit margin | 10.29% | 9.08% | 7.86% | 6.29% | 5.74% | 5.04% | 4.95% | 4.50% | 3.49% | 3.53% | 3.25% | 3.30% | 4.57% | 5.68% | 6.00% | 5.77% | 5.87% | 3.91% | 3.10% | 0.63% |
| Pretax margin | 8.54% | 7.52% | 6.13% | 4.40% | 3.73% | 3.54% | 3.50% | 3.10% | 2.20% | 1.96% | 1.71% | 1.81% | 3.03% | 4.47% | 4.65% | 4.27% | 4.26% | 2.10% | 1.23% | -1.41% |
| Net profit margin | 7.12% | 6.50% | 5.45% | 4.11% | 3.52% | 3.55% | 3.63% | 3.34% | 2.48% | 2.17% | 1.87% | 1.91% | 3.09% | 4.02% | 4.11% | 3.86% | 3.96% | 2.22% | 1.51% | -0.56% |
The profitability ratios for Brinker International Inc., specifically gross profit margin, operating profit margin, pretax margin, and net profit margin, demonstrate notable trends over the specified periods.
Gross Profit Margin:
The gross profit margin exhibits considerable fluctuations spanning from 37.46% at the end of 2020 to a peak of 39.66% earlier in December 2020. After this initial period, a downward trend is evident, reaching a trough of approximately 10.67% in December 2022, and staying in low double digits through 2023. A gradual recovery begins in late 2023, with the margin rising to 13.47% by the end of 2023, and further climbing into 2024, culminating at 14.65%. Notably, there is a significant spike projected for 2025, with the forecasted value reaching 32.22%, indicating expectations of substantial improvement in gross profitability.
Operating Profit Margin:
Operating profit margins reflect a similar decline, starting modestly at 3.10% at the end of 2020, and experiencing fluctuations but maintaining generally low levels through 2023. Key observations include a trough below 3% in late 2022 and 2023. From late 2023 onward, an upward trajectory is projected, with margins climbing steadily to approximately 10.29% by mid-2025. This trend suggests a more optimistic outlook on operational efficiency and profitability.
Pretax Margin:
The pretax margin dynamics reveal initial instability, with negative values (-1.41%) recorded in December 2020, followed by recovery into positive territory. Subsequently, there is a gradual, consistent improvement, especially post-2023, where margins progress from around 1.71% to over 8.5% by June 2025. The forecasted figures indicate expectations for enhanced pre-tax profitability, approaching double digits.
Net Profit Margin:
The net profit margin mirrors the trend of the other ratios, beginning below 1% in late 2020 and gradually recovering to over 3% by late 2023. The margins continue to improve, with projected values exceeding 6% in 2025. This ascending trend indicates anticipated improvements in the company's overall profitability after accounting for all expenses and taxes.
Overall Assessment:
Brinker International’s profitability ratios depict a period of significant challenge, especially between 2021 and 2022, with margins declining substantially. However, recent data and forecasts suggest a trajectory of recovery and growth in profitability metrics. The anticipated sharp increase in gross profit margin in 2025 highlights expectations of operational improvements or strategic changes leading to enhanced margin realization. The consistent upward trends in operating, pretax, and net profit margins further reinforce an optimistic outlook on Brinker’s future profitability potential.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 23, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.67% | 18.12% | 14.81% | 11.27% | 9.77% | 8.65% | 8.37% | 7.61% | 5.81% | 5.81% | 5.13% | 5.14% | 6.99% | 8.76% | 8.88% | 8.57% | 8.66% | 5.23% | 3.94% | 0.75% |
| Return on assets (ROA) | 14.30% | 12.96% | 10.27% | 7.37% | 5.99% | 6.10% | 6.14% | 5.66% | 4.13% | 3.58% | 2.96% | 2.98% | 4.73% | 6.20% | 6.09% | 5.73% | 5.84% | 2.97% | 1.93% | -0.67% |
| Return on total capital | 138.34% | 180.23% | 288.90% | 2,251.97% | 643.65% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | 103.29% | 128.73% | 200.00% | 1,469.29% | 394.16% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The profitability ratios of Brinker International Inc display notable fluctuations over the observed periods, reflecting evolving operational efficiency and financial performance.
The Operating Return on Assets (Operating ROA) experienced a significant decline at the end of 2020, dropping from 3.94% to a low of 0.75% in December 2020, indicating a diminished efficiency in generating operating profit from assets during that period. Subsequently, there was a steady improvement through 2021 and late 2022, with Operating ROA reaching a high of 8.88% in December 2021 and maintaining relatively elevated levels into mid-2022 before declining again towards September 2022. This ratio stabilized around 5% to 8% from late 2022 to mid-2023, with a gradual increase approaching 8.37% by the end of 2023. The most notable development occurs post-2023, where the Operating ROA shows a pronounced upward trajectory, reaching 14.81% as of December 2024, and accelerating further to 18.12% and 20.67% in the subsequent two quarters, reflecting enhanced operational productivity.
The Return on Assets (ROA) similarly experienced downward pressure amid the early part of the period, dipping slightly into negative territory at -0.67% in December 2020. It recovered swiftly afterward, reaching 6% by mid-2021 and subsequently stabilizing between approximately 2.98% and 6.14% through late 2022 and 2023. The expansion in ROA becomes evident after 2023, with marked increases, culminating at 12.96% and 14.30% in mid-2025, highlighting improved asset efficiency and profitability.
The Return on Total Capital, while data is largely unavailable until mid-2024, exhibits extraordinary fluctuations, with exceptionally high values of over 2,000% observed in late 2024 and mid-2025. These figures likely reflect extraordinary items, restructuring effects, or leverage impacts, rather than purely operational performance, given their magnitude.
Return on Equity (ROE) data commences only in 2024, where it shows an initial high at 394.16% in June 2024, escalating to 1,469.29% in September 2024, then tapering to 200% by December 2024. The ratios continue at substantial levels into 2025, suggesting highly leveraged or earnings-effective scenarios, although the exceptionally high values should be interpreted with caution due to potential distortions such as issuance of preferred stock, significant leverage, or extraordinary accounting items.
Overall, the trend indicates initial challenges in profitability during the early pandemic period, followed by a recovery phase, and ultimately a strong upward trajectory from late 2023 onward. The recent substantial increases in profitability ratios suggest improved operational efficiency, earnings leverage, or strategic initiatives that have significantly enhanced shareholder returns and asset utilization.