Dallas-based casual dining restaurant operator Brinker International Inc. reduced S&P Global Ratings-adjusted debt to EBITDA to 2.0x for the 12 months ended March 26, 2025, compared to 3.4x for the same prior year period through strong sales growth, EBITDA margin expansion, and debt reduction. We forecast the company will improve S&P Global Ratings-adjusted leverage to below 2x by the end of fiscal 2025 amid further sales growth and strong EBITDA margins, despite soft industry conditions. Therefore, we upgraded Brinker two notches to 'BB+' from 'BB-' Concurrent with the upgrade, we raised the issue-level rating on its $350 million notes due 2030 to 'BB+'; the recovery rating remains ?4?, indicating our expectations for average (30%-50%: 40% rounded estimate) recovery in the
