Brinker Fiscal Q4 2026 Earnings: Chili’s Drives Revenue and Profit Growth

Brinker International (NYSE: EAT) reported fiscal Q4 2026 total revenue of $1.5358 billion, up 5.1% from $1.4619 billion a year earlier, while diluted GAAP EPS increased 30.0% to $2.99 from $2.30. Chili’s positive traffic and pricing supported sales and margin expansion, but lower traffic and restaurant closures weakened Maggiano’s results. The 13-week quarter ended June 24, 2026, and the results were released on August 12, 2026.

Core financial results

Company sales increased 5.0% to $1.5212 billion, while franchise revenue rose to $14.6 million from $13.0 million. Operating income and net income grew faster than revenue, with the operating margin expanding by 110 basis points.

EPS growth exceeded net-income growth partly because diluted weighted-average shares declined by approximately 5.6% to 43.9 million. At the restaurant level, however, non-GAAP margin expansion was narrower at 20 basis points as higher food, labor, advertising, and delivery-related costs offset some of the benefit from higher sales.

Lower other charges also supported GAAP profitability: these charges declined to $5.1 million from $11.8 million. The effective tax rate was 17.3%, below the 21.0% statutory rate primarily because of the FICA tip credit.

Chili’s growth outweighed Maggiano’s contraction

The two restaurant brands moved in opposite directions. Chili’s generated higher sales, positive customer traffic, and wider margins, while Maggiano’s experienced lower traffic, declining sales, and substantial operating deleverage.

Chili’s comparable-sales increase consisted of a 4.3% pricing contribution and a 1.5% traffic increase, partly offset by a 0.2% unfavorable mix shift. Its restaurant expense ratio declined to 81.4% from 81.8% because of sales leverage and lower manager bonuses. Higher beef and produce costs, hourly labor, advertising, delivery fees, to-go supplies, and manager salaries limited the improvement.

Maggiano’s comparable sales fell as a 5.3% traffic decline more than offset 2.9% pricing. Restaurant closures also reduced company sales. Its restaurant expense ratio rose by 300 basis points to 89.7%, reflecting sales deleverage, unfavorable food costs, and higher pre-opening expenses.

Cash flow, balance sheet, and capital allocation

Brinker did not provide quarterly cash-flow figures, but full-year operating cash flow increased approximately 16.3% to $789.4 million from $679.0 million. Fiscal 2026 capital spending was $231.9 million, and cash and cash equivalents ended the year at $110.0 million, up from $18.9 million.

Long-term debt and finance leases were $419.7 million at June 24, 2026, compared with $426.0 million a year earlier. After fiscal year-end, Brinker redeemed $350.0 million of 8.25% notes using borrowings under its revolving credit facility, shifting the funding source rather than using year-end cash for the redemption.

The company said it used operating cash flow to repurchase $400.0 million of common stock during fiscal 2026. Effective August 10, the board authorized a total of $750.0 million under the existing repurchase program. Brinker also agreed to acquire 12 franchised Chili’s restaurants in Alabama and Mississippi, including the real estate for six locations, with closing expected on August 27, 2026.

Fiscal 2027 guidance

Brinker introduced fiscal 2027 guidance for a 53-week operating year. The additional week will fall in the fourth quarter and is expected to add approximately 2.0% to total revenue and $0.70 to adjusted diluted EPS, making the calendar effect important when comparing fiscal 2027 with the 52-week fiscal 2026.

The company did not provide a GAAP reconciliation for its adjusted EPS guidance because it said special items could not be reliably forecast without unreasonable effort.

Management perspective

Management attributed Chili’s performance to its value positioning, menu innovation, marketing, restaurant investments, and improvements in food quality, service, and atmosphere. CEO Kevin Hochman noted that fiscal Q4 completed five consecutive years of Chili’s comparable-sales growth, representing a cumulative increase of 71% over that period.

Management also said Chili’s momentum accelerated in July, supported by the Big Crispy chicken sandwich and other brand initiatives. No quantified July sales figure was provided.

Recent insider transactions

Across the reported six-month summary, insiders purchased 7,118 shares in 19 transactions and sold 5,846 shares in five transactions, resulting in net purchases of 1,272 shares, or 0.30% of total insider holdings. The latest ten reported records consisted of four sales by director Frances L. Allen and six separate stock-award grants to directors.

The six grant recipients were Ramona Hood, Frank D. Liberio, Joseph Michael DePinto, Frances L. Allen, Cindy L. Davis, and Timothy A. Johnson. These records describe the transactions but do not establish the insiders’ views about the company’s outlook.

Risks investors need to watch

• Food and operating costs: Higher beef and temporary produce costs, along with hourly labor, advertising, delivery fees, supplies, and manager salaries, limited restaurant-level margin expansion despite higher sales.
• Maggiano’s traffic and operating leverage: A 5.3% traffic decline and restaurant closures reduced sales, while its GAAP operating margin fell to 0.9%. Continued weakness could remain a drag on consolidated profitability.
• Slower Chili’s comparable-sales growth: Chili’s remained positive at 5.6%, including positive traffic, but growth moderated from 23.7% in the prior-year quarter. Maintaining traffic gains is important because Chili’s supplied the company’s overall growth.
• Capital demands and calendar effects: Repurchases, higher planned capital expenditures, the acquisition of 12 restaurants, and revolver-funded note redemption all require capital. Separately, the 53rd week will benefit reported fiscal 2027 revenue and EPS, so underlying performance should be assessed apart from that benefit.

Summary

Brinker’s fiscal Q4 2026 growth came from Chili’s, where positive traffic, pricing, and sales leverage supported higher revenue and margins. Those gains outweighed Maggiano’s sales decline, while a lower share count and reduced other charges helped EPS grow faster than revenue. The main issues to monitor in fiscal 2027 are whether Chili’s can sustain traffic growth, whether Maggiano’s can stabilize, how food and labor costs affect restaurant margins, and how results look after separating the benefit of the additional operating week.