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In the latest close session, Brinker International (EAT - Free Report) was down 3.06% at $197.89. This move lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 1.11%.

Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 3.78% lagged the Retail-Wholesale sector's gain of 3.83% and outpaced the S&P 500's gain of 1.46%.

The upcoming earnings release of Brinker International will be of great interest to investors. The company's earnings report is expected on October 28, 2026. In that report, analysts expect Brinker International to post earnings of $2.49 per share. This would mark year-over-year growth of 29.02%. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, up 7.19% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.18 per share and revenue of $6.28 billion, indicating changes of +22.72% and +8.05%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.41% higher. As of now, Brinker International holds a Zacks Rank of #3 (Hold).

In terms of valuation, Brinker International is currently trading at a Forward P/E ratio of 15.49. Its industry sports an average Forward P/E of 20.65, so one might conclude that Brinker International is trading at a discount comparatively.

Investors should also note that EAT has a PEG ratio of 1.06 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry currently had an average PEG ratio of 1.8 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Key Takeaways Brinker is making chicken, kids' offerings and desserts key parts of Chili's fiscal 2027 strategy.EAT plans to keep marketing its Big Crispy Chicken Sandwich as a key traffic driver.Chili's posted its 21st straight quarter of same-store sales growth in Q4 fiscal 2026. Brinker International, Inc. (EAT - Free Report) is broadening the menu strategy at Chili’s as it seeks to extend the brand’s recent traffic and sales momentum. Management highlighted chicken, kids’ offerings and desserts as key areas of focus for fiscal 2027.

The Big Crispy Chicken Sandwich remains central to the strategy. Brinker plans to continue marketing the sandwich throughout fiscal 2027 while reinforcing execution at restaurants. Management said chicken sandwiches sold per restaurant per day had risen sharply since the launch, making the platform an important traffic driver.

Chili’s is also revamping its kids’ menu to attract more families. The updated lineup includes grilled chicken tenders, with mini Moltens and cheese quesadillas planned, alongside upgraded ice cream and a kids’ mocktail.

Desserts represent another potential sales opportunity. Chili’s has upgraded its skillet cookies and ice cream, introduced the social-media-driven Molten-over-cookie combination and plans to bring back cheesecake. Brinker is also testing ways to prioritize dessert orders in the kitchen to encourage servers to sell them during busy periods.

The broader backdrop remains constructive, with Chili’s reporting its 21st consecutive quarter of same-store sales growth in fourth-quarter fiscal 2026. However, sustaining traffic gains while managing inflation and protecting value will remain important as EAT moves through fiscal 2027.

Darden Restaurants and Bloomin’ Brands Add Competitive PressureTwo relevant competitors are Darden Restaurants (DRI - Free Report) and Bloomin’ Brands (BLMN - Free Report) as Brinker leans further into menu innovation, value and family-oriented dining. Darden’s portfolio includes Olive Garden and LongHorn Steakhouse, giving it exposure to casual dining occasions that compete with Chili’s. Olive Garden’s broad menu, family appeal and value-oriented promotions can overlap with Chili’s efforts to attract larger groups and younger families.

Bloomin’ Brands, the parent of Outback Steakhouse, also competes for consumers seeking casual dining and differentiated food offerings. Outback’s emphasis on steaks, chicken dishes and desserts provides a broad menu proposition similar to the categories Brinker is strengthening.

For EAT, the key differentiator is Chili’s continued focus on traffic-driving food platforms, particularly its chicken sandwich, while simultaneously refreshing kids’ offerings and desserts. Brinker is also working on restaurant throughput and guest experience, aiming to convert higher traffic into sustained sales and margin growth.

EAT’s Price Performance, Valuation and EstimatesBrinker’s shares have gained 51.5% over the past six months against the industry’s 13.2% decline.

EAT Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 15.42, down from the industry average of 19.97.

EAT’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2027 earnings per share has increased, as shown in the chart. Moreover, the estimate for EAT’s fiscal 2027 earnings per share implies a year-over-year uptick of 22.7%.

Image Source: Zacks Investment Research

EAT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When a customer sits down at a neighborhood Chili's for a meal, they are participating in a massive, real-time experiment in efficiency. Brinker International (EAT -1.64%) has transformed itself from a struggling restaurant operator into a precision-engineered machine that uses data to squeeze every ounce of value from its menu. With a recent stock price of $210.28 as of Sept. 16, 2026, the company has seen its market value surge 46% over the past year, reflecting a market that is finally buying into its back-to-basics turnaround.

Our proprietary Hidden Gems scoring system assigns Brinker International an overall Superscore of 77 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39).

A score of 77 puts the company in the Top ~10% of all companies we score. This article pairs the drivers of that high score with the structural constraints that keep it from climbing higher, serving as a starting point for your own deeper investigation.

Why EAT Has an 77 SuperscoreExceptional revenue growth: The company achieved 8% revenue growth in fiscal 2026 (ending in June), signaling that its strategic focus on core menu items and improved digital throughput is successfully capturing market share.Operational margin expansion: Operating margins reached 11% in fiscal 2026 because management simplified the kitchen workflow and successfully navigated inflationary pressures that sidelined smaller competitors.Data-driven execution: The rollout of new ERP systems and handheld ordering tablets allows the company to make real-time decisions on labor scheduling and menu pricing, converting higher traffic directly into bottom-line growth.Disciplined capital allocation: Management focuses on a 10% annual fleet reimage cadence while simultaneously reducing debt and executing $400 million in share repurchases during fiscal 2026, creating a clear path for sustainable shareholder returns.Why Is EAT's Superscore Not Higher?Casual dining headwinds: The sector remains highly fragmented and vulnerable to shifts in consumer spending, and the company's dependence on in-store foot traffic makes it sensitive to broader macroeconomic cycles, such as rising food and labor costs.Performance at Maggiano's: The secondary brand continues to face structural challenges that drag on the flagship Chili's brand's overall momentum and profitability.Limited AI integration: As a traditional restaurant operator, the company lacks proprietary data sets or agentic AI assets, leaving it unable to differentiate itself through advanced technological innovation in the way software-native companies can.Hidden Gems Database Scores at a GlanceScoreScore (out of 100)RankSupporting Data PointProduct (1Y)82Top ~10%Revenue growth of 22% and consistent same-store sales gains validate the recent operational shift.Product (5Y)63Top ~36%The 5-year period reflects a difficult strategic reset followed by a successful pivot to menu simplification.Financial (1Y)77Top ~5%Fiscal 2025 net income reached $383 million, marking a major inflection point in profitability.Financial (5Y)63Top ~21%Steady 13% revenue CAGR from 2021 to 2025 reflects resilient brand recovery after pandemic volatility.Leaders89Top ~6%Management provides precise guidance and demonstrates a disciplined approach to capital allocation and debt reduction.AI13Bottom ~27%The company lacks AI-native growth drivers, relying on standard operational software for inventory and logistics.Valuation Risk71Top ~6%The stock trades at a trailing P/E of 19, reflecting recent growth without signs of extreme overvaluation.Is EAT Right For Your Portfolio?This stock warrants a closer look if...

You are looking for exposure to consumer discretionary stocks that have successfully turned around their operations through menu and technology simplification.You value a company that prioritizes aggressive share repurchases and debt reduction alongside consistent same-store sales growth.You may want to keep researching before buying if...

You are concerned that high labor and commodity costs in the casual dining sector will compress margins during an economic slowdown.You prefer companies that hold a structural competitive moat built on proprietary technology rather than brand loyalty and scale.The Superscore is just one data point, and you should weigh it against your own financial goals and risk tolerance before making any investment decisions.

My 5-year prediction for EAT stockThe stock has already had a strong run and trades at a fair P/E of 19. There could still be upside for this restaurant stock, given recent execution and momentum at Chili's.

Fourth-quarter Chili's same-store sales grew 6% year over year, marking the 21st consecutive quarter of growth. Chili's is the company's strongest brand and continues to gain market share in a challenging consumer spending environment.

Meanwhile, Maggiano's has a more inconsistent operating history. In fiscal 2026, Maggiano's same-store sales fell 4% year over year, while Chili's posted a 9% increase in same-store sales over the same period.

But the growth engine is Chili's. This brand was the No. 1 casual dining brand by traffic in fiscal 2026. Brinker is compounding the value from Chili's with solid execution that is driving higher restaurant efficiency and margins, which is fueling solid earnings growth.

Analysts expect the company's earnings to grow at an annualized rate of 15% in the next several years. With a reasonable valuation, the stock should deliver a return comparable to earnings performance in the next five years.

The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.

Key Takeaways Brinker is revamping Chili's kids menu to attract young families and strengthen traffic.EAT's Chili's posted 5.6% Q4 comparable sales growth, including 1.5% traffic growth.New kids offerings include grilled chicken tenders, mini Moltens, quesadillas, floats and mocktails. Brinker International, Inc. (EAT - Free Report) is expanding Chili’s growth strategy beyond its highly successful chicken sandwich platform by targeting a valuable customer group: young families. Management said the company has launched a revamped kids menu to attract more families, responding partly to growing social-media interest in Chili’s among children and youth groups.

The updated menu brings back Grilled Chicken Tenders, which management described as a parent-and-kid favorite. Chili’s also plans to add mini Moltens and cheese quesadillas, while new floats featuring Blue Bell ice cream and a kid-focused Shirley Temple mocktail broaden the offering.

This initiative comes as Chili’s already has strong traffic momentum. Fourth-quarter fiscal 2026 comparable sales rose 5.6%, including 1.5% traffic growth, while July sales and traffic accelerated further. The brand also ended fiscal 2026 with its 21st consecutive quarter of same-store sales growth.

For EAT, the kids menu could become a longer-term traffic engine if families return frequently and children develop an affinity for the brand. However, management has not quantified the expected sales contribution, making execution and sustained customer adoption key factors to watch.

Overall, the move fits Chili’s broader strategy of bringing in new guests and giving them more reasons to return, potentially strengthening the brand’s traffic trajectory beyond its current menu-led momentum.

Family Dining Competition: Can EAT Keep Its Traffic Edge?As Chili’s looks to strengthen its appeal among families, Darden Restaurants (DRI - Free Report) and Bloomin’ Brands (BLMN - Free Report) are two relevant competitors. Darden Restaurants operates family-oriented casual dining concepts, including Olive Garden, which competes for occasions where value, broad menus and family appeal influence restaurant choice. Its scale and established brand recognition could make Darden Restaurants a formidable rival for family traffic.

Bloomin’ Brands, through Outback Steakhouse and other concepts, also competes for casual family dining occasions. Outback’s broad menu and group-oriented dining experience provide another alternative for households seeking an affordable sit-down meal.

For EAT, the revamped kids menu adds another lever to differentiate Chili’s while complementing its value positioning. Management’s focus on attracting young families could help generate repeat visits if children become familiar with and enthusiastic about the brand. Still, sustained traffic gains will depend on menu execution, value and the broader guest experience rather than the kids offering alone.

EAT’s Price Performance, Valuation and EstimatesBrinker’s shares have gained 47.5% over the past six months, against the industry’s 13.6% decrease.

Price Performance
Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 15.85, down from the industry average of 21.33.

P/E (F12M)
Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2026 earnings per share has increased, as shown in the chart.
 

Image Source: Zacks Investment Research

EAT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Brinker expanded restaurant operating margins to 18% as sales leverage offset higher costs.Chili's comparable sales rose 5.6%, with traffic up 1.5% and July momentum accelerating.EAT expects 20-40 basis points of margin expansion in fiscal 2027, with more upside possible. Brinker International, Inc. (EAT - Free Report) demonstrated resilience in fiscal 2026, expanding profitability despite persistent inflationary pressures. The company reported fiscal fourth-quarter restaurant operating margins of 18%, up 20 basis points year over year. Sales leverage was the primary driver, helping offset higher food, advertising and insurance costs. Food and beverage expenses increased 80 basis points amid 4.4% commodity inflation, while labor costs benefited from strong sales growth despite roughly 3.1% wage inflation.

The momentum was particularly notable at Chili’s. Fiscal fourth-quarter comparable sales increased 5.6%, supported by 1.5% traffic growth. Management also said July sales and traffic accelerated meaningfully, suggesting the brand entered fiscal 2027 with solid momentum. The Big Crispy Chicken Sandwich, everyday value offerings and operational improvements are helping attract and retain guests.

There could be further room for margin expansion. Management expects 20-40 basis points of restaurant-level margin improvement on a 52-week basis in fiscal 2027, potentially reaching 50 basis points with the benefit of the 53rd week. Importantly, the company has built relatively conservative inflation assumptions into its outlook, leaving potential upside if sales outperform or costs moderate.

EAT also believes its restaurants retain capacity to accommodate more traffic, while higher average unit volumes could support additional leverage. However, management plans to reinvest part of the gains into guest experience rather than maximize near-term flow-through.

With fiscal 2027 guidance of $12.60-$13.40 per share and continued sales momentum, EAT appears positioned for further earnings growth if execution remains strong.

Darden and Texas Roadhouse Also Show Margin ResilienceDarden Restaurants (DRI - Free Report) and Texas Roadhouse (TXRH - Free Report) are two notable casual-dining peers that provide useful benchmarks for Brinker as investors assess margin expansion amid inflation. The company’s diversified portfolio and scale provide an advantage in managing labor, food and operating costs. Darden’s trailing operating margin stood at about 12.2%, above EAT’s 10.8%, highlighting its strong profitability profile.

Texas Roadhouse, meanwhile, has demonstrated resilience despite exposure to beef and other commodity costs. With an operating margin of about 7.9%, Texas Roadhouse’s revenue growth remained strong, reflecting continued consumer demand.

For EAT, the key differentiator is its improving margin trajectory. Management expects restaurant-level margin expansion in fiscal 2027 despite incorporating low-single-digit commodity and wage inflation. If sales momentum remains strong and inflation eases faster than anticipated, EAT could potentially outperform its margin outlook.

EAT’s Price Performance, Valuation and EstimatesBrinker’s shares have gained 67.4% over the past six months, against the industry’s 11.7% decrease.

Price Performance
Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 17.25, down from the industry average of 22.14.

P/E (F12M)
Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2026 earnings per share has increased, as shown in the chart.

Image Source: Zacks Investment Research

EAT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Daniel S. Fuller, chief legal officer of Brinker International, Inc. (EAT +1.92%), disposed of 13,481 shares of common stock on August 13 and August 17 in a transaction valued at about $3.3 million, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold11,281Shares gifted2,200Transaction value~$3.3 millionPost-transaction shares42,098Post-transaction shares (directly held)42,046Post-transaction shares (indirectly held)52Post-transaction value$10.18 millionTransaction value based on SEC Form 4 weighted average sale price ($243.31); post-transaction value based on the August 17 market close ($241.71).

Key questionsWhat portion of the reported activity was non-discretionary?
A total of 5,480 shares were withheld to satisfy tax obligations associated with the vesting of 15,440 shares on August 13, representing a routine component of the insider's equity compensation management.What is the composition of the remaining equity stake?
Fuller maintains a direct position of 42,046 shares alongside an indirect holding of 52 shares through the company 401(k) plan, resulting in a total ownership stake of 0.1% of the firm.How does the current disposition relate to the stock's performance?
The weighted average execution price of $243.31 occurred after the shares delivered a roughly 50% total return over the 12 months preceding the August 17 transaction date.Were any derivative securities involved in this filing?
While the filing detailed the disposal of common stock, it also noted the acquisition of 15,440 shares through an award vesting, though no outstanding derivative security counts were reported in the specific transaction tables.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$237.15Market Capitalization$10.2 billionRevenue (TTM)$5.7 billionNet Income (TTM)$462.9 millionCompany SnapshotBrinker International operates and franchises casual dining restaurants under two primary brands: Chili's Grill & Bar and Maggiano's Little Italy, generating revenue through restaurant operations, food and beverage sales, and franchise licensing fees across domestic and international markets.The company operates a franchise-based business model that combines company-owned and managed locations with franchised establishments, enabling capital-efficient expansion while maintaining brand consistency and operational control across its portfolio.Brinker International targets middle-market consumers seeking casual dining experiences, with a primary customer base comprising families and social diners in North America and select international markets.Brinker International is a leading casual dining operator with a market capitalization of $10.2 billion and TTM revenues of $5.7 billion, operating over 1,600 restaurants globally. The company has demonstrated strong operational momentum, with its stock appreciating 50% over the past year, reflecting investor confidence in its brand portfolio and execution strategy. Brinker's competitive advantages include established brand recognition, an efficient franchise model, and a diversified geographic footprint that positions it favorably within the casual dining segment.

What this transaction means for investorsFuller is just one of several Brinker executives to sell in the same short window, and the trend is clear enough that the individual filing barely matters. Several leaders had stock vest on the same August date, and each sold part while the rest went to taxes, all with Chili's shares near a high.

What that clustered selling sits on top of is a company heading into its hardest comparison in years. Brinker just closed fiscal 2026 having grown Chili's same-store sales for a fifth straight year, a run the company pegs at a cumulative 71%, with fourth-quarter company sales of $1.52 billion. The natural question is what fiscal 2027 looks like against that, and management has been cautious. On the earnings call, CFO Mika Ware described building "a little bit of upside for July" into the outlook while assuming a tougher road after, signaling guidance the company hopes to beat rather than merely meet. That framing is more notable than any of these insider sales. Brinker is setting expectations it can clear, which suggests confidence, but lapping a 71% surge means fiscal 2027 is where the market and the consumer decide whether Chili's momentum has staying power.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways EAT expects fiscal 2027 revenue of $6.15-$6.27B and adjusted EPS of $12.60-$13.40.The 53rd week is expected to add about 2% to revenue and 70 cents to adjusted EPS.Brinker plans 60-80 Chili's reimages while managing inflation and pricing to protect its value proposition. Brinker International, Inc. (EAT - Free Report) expects another year of revenue and earnings growth in fiscal 2027, helped by an unusual 53rd operating week. The calendar benefit is meaningful, but it is only one part of the outlook.

Investors still have to weigh Chili's traffic assumptions, restaurant reinvestment and cost pressures to judge how much of the projected growth reflects underlying operating progress.

Brinker's Fiscal 2027 Guidance Extends MomentumBrinker expects fiscal 2027 revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. Management built the outlook around mid-single-digit Chili's same-store sales growth and positive traffic for the remainder of the year.

That keeps Chili's execution at the center of the forecast. Darden Restaurants, Inc. (DRI - Free Report) , with brands including Olive Garden and LongHorn Steakhouse, provides another large full-service dining benchmark. Texas Roadhouse, Inc. (TXRH - Free Report) operates predominantly in casual dining, making traffic and restaurant-level execution important points of comparison across the category.

EAT Gets a 53rd-Week Earnings TailwindThe extra operating week is expected to add about 2% to fiscal 2027 revenues and 70 cents to adjusted earnings per share. Because that contribution comes from the calendar, it should be separated from the company's underlying sales and margin progress.

The distinction matters when comparing fiscal 2027 with fiscal 2026. Growth supported by a 53rd week is real for the reported year, but Chili's comparable sales, traffic and restaurant economics will provide a cleaner read on operating momentum.

Brinker's Reimage Plan Adds a Longer Growth LeverBrinker completed 11 Chili's reimages in fiscal 2026 and plans another 60-80 in fiscal 2027. The program expands a growth lever that is separate from near-term comparable-sales gains and is intended to refresh more of the restaurant base.

Fiscal 2027 guidance also assumes three net new company-owned restaurant openings. Brinker plans to acquire 12 franchised Chili's restaurants in Alabama and Mississippi, while management expects a larger new-unit development ramp beginning in later fiscal years.

EAT Still Has to Manage Inflation and PricingCommodity inflation is expected to ease through fiscal 2027, from about 4% in the first quarter to 3% in the second, 2% in the third and 1% in the fourth. Beef remains the main commodity pressure after contributing to higher food costs in the most recent quarter.

Brinker also plans to keep pricing near the lower end of its 3-5% range to protect Chili's value proposition. That approach supports traffic goals but reduces the pricing cushion available if commodity or other restaurant costs prove more persistent.

Brinker's Maggiano's Turnaround Remains a DragMaggiano's recovery remains slower than planned. Management has incorporated that slower turnaround into fiscal 2027 guidance and modeled roughly flat revenues and profits for the brand.

The brand's smaller contribution limits its effect on consolidated results, but execution still matters. Fiscal 2026 comparable sales fell 3.9%, traffic declined 9.3% and restaurant operating margin dropped to 10.1% from 16.3%, leaving little room for further deterioration.

EAT's Growth Scores Back the Outlook With CaveatsThe bottom line is that the 53rd week gives fiscal 2027 a clear earnings and revenue lift, while Chili's traffic, reimages and unit actions provide the more durable operating tests. Inflation, pricing discipline and Maggiano's weakness remain offsets.

EAT currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of A and VGM Score of A. Its Value Score is C. The Style Scores point to favorable growth and momentum characteristics, but they are designed to complement the Zacks Rank. With a #3 Rank rather than a #1 or #2, the combination supports a measured stance instead of an unqualified buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Brinker International, Inc. (EAT) Q4 2026 Earnings Call August 12, 2026 10:00 AM EDT

Company Participants

Kim Sanders - Vice President of Investor & Government Relations
Kevin Hochman - President, CEO & Director
Mika Ware - Executive VP & CFO

Conference Call Participants

Dennis Geiger - UBS Investment Bank, Research Division
David Palmer - Evercore ISI Institutional Equities, Research Division
Jeffrey Farmer - Gordon Haskett Research Advisors
Andrew Strelzik - BMO Capital Markets Equity Research
John Ivankoe - JPMorgan Chase & Co, Research Division
Brian Harbour - Morgan Stanley, Research Division
Brian Vaccaro - CGS International
Andrew Charles - TD Cowen, Research Division
Sara Senatore - BofA Securities, Research Division
Christopher Carril - KeyBanc Capital Markets Inc., Research Division
Jon Tower - Citigroup Inc. Exchange Research
Margaret-May Binshtok - Wolfe Research, LLC

Presentation

Operator

Good day, and welcome to the Brinker Q4 F '26 Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours.

Kim Sanders
Vice President of Investor & Government Relations

Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, Chief Executive Officer and President of Brinker International and President of Chili's; and Mika Ware, Chief Financial Officer.

Results for our fourth quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.

Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items, which are not based entirely on historical facts. Any such items should be considered forward-looking statements within the meaning of the Private Securities

, /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today announced its financial results for the fourth quarter and fiscal year ended June 24, 2026 and provided guidance for fiscal 2027.

Fourth Quarter and Full Year Fiscal 2026 Financial Highlights

"Q4 2026 completes five consecutive years of Chili's same-store sales growth, delivering an unprecedented 71% cumulative increase over that time," said Kevin Hochman, President and CEO of Brinker International. "Our strong brand relevance, industry-leading value proposition, streamlined operations, and significant restaurant investments have created a competitive moat that positions Chili's to deliver sustainable, profitable growth."

In the fourth quarter of fiscal 2026, Company sales were $1,521.2 million compared to $1,448.9 million in the fourth quarter of fiscal 2025. Company comparable restaurant sales increased 5.0% in the fourth quarter of fiscal 2026, including 5.6% for Chili's, as the brand drove positive traffic and continued outperformance against the casual dining industry. Chili's sustained strong performance reflects disciplined execution across the business. Continued investments in food quality, service, atmosphere, menu innovation, everyday value, and high-impact marketing reinforced the strength of the brand and attracted new guests, reinforcing the Company's confidence in its ability to deliver sustainable long-term growth. Chili's momentum accelerated in July with the sustained success of the Big Crispy chicken sandwich and other brand initiatives. Net income per diluted share and Net income per diluted share, excluding special items, non-GAAP, increased 30.0% and 23.3%, respectively, for the fourth quarter of fiscal 2026 compared to the fourth quarter of fiscal 2025.

During fiscal 2026, the Company utilized operational cash flow to repurchase $400.0 million of the Company's common stock. Effective August 10, 2026, our Board of Directors authorized a total of $750.0 million under our existing share repurchase program.

Financial results for the fourth quarter and full year of fiscal 2026 and fiscal 2025 were as follows (in millions, except per share amounts and percentages):

Fourth Quarter

Fiscal Year

2026

2025

Variance

2026

2025

Variance

Company sales

$  1,521.2

$  1,448.9

$      72.3

$  5,750.9

$  5,335.3

$     415.6

Total revenues

$  1,535.8

$  1,461.9

$      73.9

$  5,807.4

$  5,384.2

$     423.2

Operating income

$     167.0

$     142.7

$      24.3

$     619.9

$     512.0

$     107.9

Operating income as a % of Total revenues

10.9 %

9.8 %

1.1 %

10.7 %

9.5 %

1.2 %

Restaurant operating margin, non-GAAP(1)

$     273.4

$     258.2

$      15.2

$  1,026.4

$     933.5

$       92.9

Restaurant operating margin as a % of
Company sales, non-GAAP(1)

18.0 %

17.8 %

0.2 %

17.8 %

17.5 %

0.3 %

Net income

$     131.1

$     107.0

$      24.1

$     487.0

$     383.1

$     103.9

Adjusted EBITDA, non-GAAP(1)

$     227.6

$     212.4

$      15.2

$     847.2

$     760.4

$       86.8

Net income per diluted share

$       2.99

$       2.30

$      0.69

$     10.87

$       8.32

$       2.55

Net income per diluted share, excluding
special items, non-GAAP(1)

$       3.07

$       2.49

$      0.58

$     10.74

$       8.90

$       1.84

Comparable Restaurant Sales(2)

Q4:26 vs 25

FY:26 vs 25

Brinker

5.0 %

8.1 %

Chili's

5.6 %

9.2 %

Maggiano's

(2.5) %

(3.9) %

(1)

See Non-GAAP Information and Reconciliations section below for more details.

(2)

Comparable Restaurant Sales include restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed for 14 days or more are excluded from comparable restaurant sales. Percentage amounts are calculated based on the comparable periods year-over-year.

Subsequent to the end of the fiscal year, on July 16, 2026, the Company redeemed the outstanding $350.0 million 8.25% notes, and the payoff was funded with borrowings from the revolving credit facility. During the fourth quarter of fiscal 2026, the Company executed an agreement with a franchisee for the acquisition of 12 Chili's restaurants located in Alabama and Mississippi, including the real estate for six of the locations, and the transaction is expected to close on August 27, 2026.

Full Year Fiscal 2027 Guidance

We are providing the following select financial guidance for fiscal 2027 which includes a 53rd operating week in the fourth quarter. We estimate the impact of the additional operating week to be an increase of approximately 2.0% in Total revenues and $0.70 in Net income per diluted share, excluding special items, non-GAAP:

Total revenues

$6.15 billion - $6.27 billion

Net income per diluted share, excluding special items, non-GAAP

$12.60 - $13.40

Capital expenditures

$265.0 million - $285.0 million

Diluted weighted average shares

42.0 million - 43.0 million

The risks outlined in the Forward-Looking Statements paragraph of this press release, among other risks, could cause actual results to differ materially from forecasted results. We are unable to reliably forecast special items without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.

Fourth Quarter of Fiscal 2026 Operating Performance

Segment Performance

The table below presents selected financial information (in millions, except as noted) related to our segments' operational performance for the thirteen week periods ended June 24, 2026 and June 25, 2025:

Chili's

Maggiano's

Fourth Quarter

Variance

Fourth Quarter

Variance

2026

2025

2026

2025

Company sales

$   1,408.6

$   1,326.8

$       81.8

$     112.6

$     122.1

$       (9.5)

Franchise revenues

14.4

12.8

1.6

0.2

0.2

—

Total revenues

$   1,423.0

$   1,339.6

$       83.4

$     112.8

$     122.3

$       (9.5)

Company restaurant expenses(1)

$   1,146.7

$   1,085.4

$       61.3

$     101.0

$     105.8

$       (4.8)

Company restaurant expenses as a % of
Company sales

81.4 %

81.8 %

(0.4) %

89.7 %

86.7 %

3.0 %

Operating income - GAAP

$      214.2

$      177.3

$       36.9

$         1.0

$       13.4

$     (12.4)

Operating income (loss) as a % of Total
revenues

15.1 %

13.2 %

1.9 %

0.9 %

11.0 %

(10.1) %

Restaurant operating margin, non-
GAAP(2)

$      261.9

$      241.4

$       20.5

$       11.6

$       16.3

$       (4.7)

Restaurant operating margin as a % of
Company sales, non-GAAP(2)

18.6 %

18.2 %

0.4 %

10.3 %

13.3 %

(3.0) %

(1)

Company restaurant expenses includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges.

(2)

See Non-GAAP Information and Reconciliations section below for more details.

Chili's

Chili's Company sales increased primarily due to favorable comparable restaurant sales driven by menu pricing and higher traffic. Chili's Company restaurant expenses, as a percentage of Company sales, decreased primarily due to sales leverage and lower manager bonus, partially offset by unfavorable Food and beverage costs, higher advertising, hourly labor, delivery fees and to-go supplies, manager salaries, and other restaurant expenses. Food and beverage costs were negatively impacted by higher beef costs and a temporary increase in produce costs due to a late freeze in Florida. Chili's franchisees generated sales of approximately $301.2 million for the fourth quarter of fiscal 2026 compared to $262.3 million for the fourth quarter of fiscal 2025. Maggiano's

Maggiano's Company sales decreased primarily due to lower traffic and restaurant closures, partially offset by menu pricing. Maggiano's Company restaurant expenses, as a percentage of Company sales, increased primarily due to sales deleverage, unfavorable Food and beverage costs, higher pre-opening costs, partially offset by lower worker's compensation and general liability insurance, repairs and maintenance, and advertising. Corporate

On a GAAP basis, the effective income tax rate was 17.3% in the fourth quarter of fiscal 2026. The effective income tax rate is lower than the statutory rate of 21.0% primarily due to leverage of the FICA tip credit. Excluding the impact of special items, the effective income tax rate was an expense of 17.6% in the fourth quarter of fiscal 2026. Webcast Information

Investors and interested parties are invited to listen to today's conference call, as management will provide further details of the quarter and business updates. A real-time audio webcast of the presentation can be accessed via the Events and Presentations section of the Brinker Investor Relations page. The call will be broadcast live today, August 12, 2026 at 9 a.m. CDT:

https://investors.brinker.com/events-and-presentations/

For those who are unable to listen to the live broadcast, a replay of the call will be available shortly thereafter.

Additional financial information, including statements of income which detail operations excluding special items, and comparable restaurant sales trends by brand, is also available on Brinker's website under the Financial Information section of the Investor tab.

Forward Calendar

SEC Form 10-K for the year of fiscal 2026 filing on or before August 24, 2026 Earnings release call for the first quarter of fiscal 2027 on October 28, 2026 Non-GAAP Measures

Brinker management uses certain non-GAAP measures in analyzing operating performance and believes that the presentation of these measures in this release provides investors with information that is beneficial to gaining an understanding of the Company's financial results. Non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in the tables below.

About Brinker

Brinker International, Inc. is one of the world's leading casual dining restaurant companies and home of Chili's® Grill & Bar, and Maggiano's Little Italy.® Founded in 1975 in Dallas, Texas, we've ventured far from home, but stayed true to our roots. Brinker owns, operates or franchises more than 1,600 restaurants in the United States, 28 other countries and two U.S. territories. Our passion is making everyone feel special, and we hope you feel that passion each time you visit one of our restaurants or invite us into your home through takeout or delivery. Learn more about Brinker and its brands at brinker.com.

Forward-Looking Statements

The statements and tables contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only based on our current plans and expectations as of the date such statements are made, and we undertake no obligation to update forward-looking statements to reflect events or circumstances arising after the date such statements are made. Forward-looking statements are neither predictions nor guarantees of future events or performance and are subject to risks and uncertainties which could cause actual results to differ materially from our historical results or from those projected in forward-looking statements. Such risks and uncertainties include, among other things, the impact of general economic conditions, including inflation, on economic activity and on our operations; disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, operations, technology and assets, and our financial performance; the impact of current and potential tariffs and trade barriers; the impact of competition, including competitors employing our same strategies or discounting their offerings; changes in consumer preferences, including shifts in their brand preferences; food-borne illness outbreaks; consumer perception of food safety; reduced consumer discretionary spending; governmental regulations; the effectiveness of the Company's business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management and team members; increasing regulation surrounding wage inflation and competitive labor markets; the impact of social media, including the potential governmental ban of platforms used by the Company in its marketing initiatives; reputational damage or unfavorable publicity for our brands, which may result from actions of franchisees not within our control; reliance on technology and third party delivery providers; failure to protect the security of data of our guests and team members; product availability and supply chain disruptions; regional business and economic conditions; volatility in consumer, commodity, transportation, labor, currency and capital markets; litigation; franchisee success; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; downgrades in credit ratings; changes in estimates regarding our assets; actions of activist shareholders; our pursuit of or failure to comply with new environmental and sustainability requirements; our pursuit of or failure to achieve any goals, targets or objectives with respect to sustainability matters; adverse weather conditions; terrorist acts; cybersecurity, artificial intelligence and phishing threats; health epidemics or pandemics; tax reform; inadequate insurance coverage; and limitations imposed by our credit agreements as well as the risks and uncertainties described in "Risk Factors" in our Annual Report on Form 10-K and future filings with the Securities and Exchange Commission.

BRINKER INTERNATIONAL, INC.

Consolidated Statements of Comprehensive Income (Unaudited)

(In millions, except per share amounts)

Thirteen Week Periods Ended

Fifty-Two Week Periods Ended

June 24, 2026

June 25, 2025

June 24, 2026

June 25, 2025

Revenues

Company sales

$      1,521.2

$      1,448.9

$      5,750.9

$      5,335.3

Franchise revenues

14.6

13.0

56.5

48.9

Total revenues

1,535.8

1,461.9

5,807.4

5,384.2

Operating costs and expenses

Food and beverage costs

399.4

369.3

1,487.6

1,350.6

Restaurant labor

476.4

466.7

1,810.2

1,717.3

Restaurant expenses

372.0

354.7

1,426.7

1,333.9

Depreciation and amortization

55.5

57.9

218.7

206.6

General and administrative

60.4

58.8

235.7

222.0

Other (gains) and charges(1)

5.1

11.8

8.6

41.8

Total operating costs and expenses

1,368.8

1,319.2

5,187.5

4,872.2

Operating income

167.0

142.7

619.9

512.0

Interest expenses

9.2

10.9

40.5

53.1

Other income, net

(0.7)

(0.4)

(1.5)

(1.1)

Income before income taxes

158.5

132.2

580.9

460.0

Provision for income taxes

27.4

25.2

93.9

76.9

Net income

$         131.1

$         107.0

$         487.0

$         383.1

Basic net income per share

$           3.08

$           2.41

$         11.16

$           8.60

Diluted net income per share

$           2.99

$           2.30

$         10.87

$           8.32

Basic weighted average shares outstanding

42.6

44.5

43.6

44.6

Diluted weighted average shares outstanding

43.9

46.5

44.8

46.1

Other comprehensive income (loss)

Foreign currency translation adjustment

$           (0.2)

$             0.2

$           (0.3)

$           (0.1)

Comprehensive income

$         130.9

$         107.2

$         486.7

$         383.0

(1)

Other (gains) and charges included in the Consolidated Statements of Comprehensive Income (Unaudited):

Thirteen Week Periods Ended

Fifty-Two Week Periods Ended

June 24, 2026

June 25, 2025

June 24, 2026

June 25, 2025

Restaurant-level impairment charges

$          5.7

$            4.6

$            5.7

$            4.6

Litigation & claims, net

1.0

11.3

3.4

22.4

Restaurant closure asset write-offs and charges

0.5

1.8

2.7

4.1

Severance and other benefit charges

—

0.1

1.7

2.4

Enterprise system implementation costs

—

2.1

—

14.1

Lease contingencies

—

0.2

—

1.7

Lease modification gain, net

(1.1)

(3.9)

(3.7)

(5.1)

Loss from natural disasters, net (of insurance
recoveries)

(0.2)

(4.4)

(2.2)

(3.7)

Other, net

(0.8)

—

1.0

1.3

Total other (gains) and charges

$          5.1

$           11.8

$            8.6

$           41.8

BRINKER INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets (Unaudited)

(In millions)

June 24,
2026

June 25,
2025

ASSETS

Total current assets

$          307.7

$          207.0

Net property and equipment

967.4

952.7

Operating lease assets

1,205.9

1,149.1

Deferred income taxes, net

69.1

101.4

Other assets

264.9

268.4

Total assets

$       2,815.0

$       2,678.6

LIABILITIES AND SHAREHOLDERS' EQUITY

Total current liabilities

$          676.7

$          675.6

Long-term debt and finance leases, less current installments

419.7

426.0

Long-term operating lease liabilities, less current portion

1,194.3

1,135.3

Other liabilities

80.6

70.8

Total shareholders' equity

443.7

370.9

Total liabilities and shareholders' equity

$       2,815.0

$       2,678.6

BRINKER INTERNATIONAL, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

Fifty-Two Week Periods Ended

June 24, 2026

June 25, 2025

Cash flows from operating activities

Net income

$         487.0

$         383.1

Adjustments to reconcile Net income to Net cash provided by operating activities:

Depreciation and amortization

218.7

206.6

Deferred income taxes, net

32.2

12.6

Non-cash other (gains) and charges

12.1

25.7

Stock-based compensation

32.2

31.4

Net loss on disposal of assets

10.3

11.7

Other

1.8

2.6

Changes in assets and liabilities

(4.9)

5.3

  Net cash provided by operating activities

789.4

679.0

Cash flows from investing activities

Payments for property and equipment

(231.9)

(265.3)

Proceeds from sale of assets

0.4

1.0

Insurance recoveries

0.5

0.9

Net cash used in investing activities

(231.0)

(263.4)

Cash flows from financing activities

Borrowings on revolving credit facility

650.0

885.0

Payments on revolving credit facility

(650.0)

(885.0)

Purchases of treasury stock

(443.9)

(90.2)

Payments on long-term debt

(24.1)

(375.8)

Proceeds from issuance of treasury stock

0.7

8.3

Payments for debt issuance costs

—

(3.6)

Net cash used in financing activities

(467.3)

(461.3)

Net change in cash and cash equivalents

91.1

(45.7)

Cash and cash equivalents at beginning of period

18.9

64.6

Cash and cash equivalents at end of period

$         110.0

$           18.9

BRINKER INTERNATIONAL, INC.

Restaurant Summary

Fiscal 2026 New Openings

Total Restaurants
Open at June 24,
2026

Total Restaurants
Open at June 25,
2025

Fourth Quarter
Openings

Fiscal Year
Openings

Company-owned restaurants

Chili's domestic

1,110

1,109

1

6

Chili's international

4

4

—

—

Maggiano's domestic

49

49

—

—

Total Company-owned

1,163

1,162

1

6

Franchise restaurants

Chili's domestic

99

99

1

4

Chili's international

370

364

6

23

Maggiano's domestic

3

3

—

—

Total franchise

472

466

7

27

Total Company-owned and franchise

Chili's domestic

1,209

1,208

2

10

Chili's international

374

368

6

23

Maggiano's domestic

52

52

—

—

Total

1,635

1,628

8

33

NON-GAAP INFORMATION AND RECONCILIATIONS

Comparable Restaurant Sales

Q4 26 and Q4 25

Comparable Restaurant
Sales(1)

Price Impact

Mix-Shift Impact(2)

Traffic Impact

Q4:26 vs 25

Q4:25 vs 24

Q4:26 vs 25

Q4:25 vs 24

Q4:26 vs 25

Q4:25 vs 24

Q4:26 vs 25

Q4:25 vs 24

Company-owned

5.0 %

21.3 %

4.2 %

3.0 %

(0.2) %

4.5 %

1.0 %

13.8 %

Chili's

5.6 %

23.7 %

4.3 %

2.7 %

(0.2) %

4.7 %

1.5 %

16.3 %

Maggiano's

(2.5) %

(0.4) %

2.9 %

7.0 %

(0.1) %

1.5 %

(5.3) %

(8.9) %

Franchise(3)

5.6 %

11.4 %

U.S.

8.3 %

15.5 %

International

4.0 %

9.0 %

Chili's domestic(4)

5.9 %

23.2 %

System-wide(5)

5.1 %

19.8 %

FY 26 and FY 25

Comparable Restaurant
Sales(1)

Price Impact

Mix-Shift Impact(2)

Traffic Impact

FY:26 vs 25

FY:25 vs 24

FY:26 vs 25

FY:25 vs 24

FY:26 vs 25

FY:25 vs 24

FY:26 vs 25

FY:25 vs 24

Company-owned

8.1 %

22.7 %

4.4 %

4.8 %

1.2 %

4.4 %

2.5 %

13.5 %

Chili's

9.2 %

25.3 %

4.4 %

4.5 %

1.2 %

4.8 %

3.6 %

16.0 %

Maggiano's

(3.9) %

1.5 %

5.0 %

7.8 %

0.4 %

1.2 %

(9.3) %

(7.5) %

Franchise(3)

8.6 %

11.7 %

U.S.

10.6 %

19.9 %

International

7.3 %

6.8 %

Chili's domestic(4)

9.4 %

25.0 %

System-wide(5)

8.2 %

21.0 %

(1)

Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year.

(2)

Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests.

(3)

Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income (Unaudited); however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance.

(4)

Chili's domestic Comparable Restaurant Sales percentages are derived from sales generated by Company-owned and franchise-operated Chili's restaurants in the United States.

(5)

System-wide Comparable Restaurant Sales are derived from sales generated by Chili's and Maggiano's Company-owned and franchise-operated restaurants.

Reconciliation of Net Income Excluding Special Items (in millions, except per share amounts)

Brinker believes excluding special items from its financial results provides investors with a clearer perspective of the Company's ongoing operating performance and a more relevant comparison to prior period results.

Fourth Quarter

Fiscal Year

Q4 26

EPS Q4
26

Q4 25

EPS Q4
25

FY 26

EPS FY
26

FY 25

EPS FY
25

Net income, GAAP

$  131.1

$   2.99

$  107.0

$   2.30

$  487.0

$  10.87

$  383.1

$   8.32

Special items - Other (gains) and
charges(1)

5.1

0.11

11.8

0.25

8.6

0.19

41.8

0.91

Income tax effect related to
special items(2)

(1.2)

(0.03)

(2.6)

(0.05)

(2.1)

(0.04)

(10.1)

(0.22)

Special items, net of taxes

3.9

0.08

9.2

0.20

6.5

0.15

31.7

0.69

Adjustment for special tax items(3)

(0.1)

—

(0.3)

(0.01)

(12.4)

(0.28)

(4.8)

(0.11)

Net income, excluding special items,
non-GAAP

$  134.9

$   3.07

$  115.9

$   2.49

$  481.1

$  10.74

$  410.0

$   8.90

(1)

See footnote (1) to the Consolidated Statements of Comprehensive Income (Unaudited) for additional details on the composition of Other (gains) and charges.

(2)

Income tax effect related to special items is based on the statutory tax rate in effect at the end of each period.

(3)

Adjustment for special tax items primarily represents excess tax benefits associated with stock-based compensation. 

Reconciliation of Restaurant Operating Margin (in millions, except percentages)

Q4 26 and Q4 25

Chili's

Maggiano's

Brinker

Q4 26

Q4 25

Q4 26

Q4 25

Q4 26

Q4 25

Operating income - GAAP

$   214.2

$   177.3

$      1.0

$    13.4

$   167.0

$   142.7

Operating income as a % of Total revenues

15.1 %

13.2 %

0.9 %

11.0 %

10.9 %

9.8 %

Operating income - GAAP

$   214.2

$   177.3

$      1.0

$    13.4

$   167.0

$   142.7

Less:  Franchise revenues

(14.4)

(12.8)

(0.2)

(0.2)

(14.6)

(13.0)

Plus:  Depreciation and amortization

48.1

51.3

4.7

4.3

55.5

57.9

           General and administrative

13.6

13.7

1.7

1.8

60.4

58.8

           Other (gains) and charges

0.4

11.9

4.4

(3.0)

5.1

11.8

Restaurant operating margin, non-GAAP

$   261.9

$   241.4

$    11.6

$    16.3

$   273.4

$   258.2

Restaurant operating margin as a % of Company sales,
non-GAAP

18.6 %

18.2 %

10.3 %

13.3 %

18.0 %

17.8 %

FY 26 and FY 25

Chili's

Maggiano's

Brinker

FY 26

FY 25

FY 26

FY 25

FY 26

FY 25

Operating income, GAAP

$   792.6

$   644.0

$    16.5

$    60.1

$   619.9

$   512.0

Operating income as a % of Total revenues

14.8 %

13.2 %

3.6 %

12.0 %

10.7 %

9.5 %

Operating income, GAAP

$   792.6

$   644.0

$    16.5

$    60.1

$   619.9

$   512.0

Less:  Franchise revenues

(55.6)

(48.1)

(0.9)

(0.8)

(56.5)

(48.9)

Plus:  Depreciation and amortization

189.9

182.5

17.8

14.6

218.7

206.6

           General and administrative

54.1

50.4

6.7

9.7

235.7

222.0

           Other (gains) and charges

0.5

23.7

5.7

(1.8)

8.6

41.8

Restaurant operating margin, non-GAAP

$   981.5

$   852.5

$    45.8

$    81.8

$ 1,026.4

$   933.5

Restaurant operating margin as a % of Company sales,
non-GAAP

18.5 %

17.6 %

10.1 %

16.3 %

17.8 %

17.5 %

Restaurant operating margin is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to operating income as an indicator of financial performance. Restaurant operating margin is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations. This non-GAAP measure is not indicative of overall Company performance and profitability because this measure does not directly accrue benefit to the shareholders due to the nature of costs excluded.

We define Restaurant operating margin as Company sales less Food and beverage costs, Restaurant labor and Restaurant expenses. We believe this metric provides a more useful comparison between periods and enables investors to focus on the performance of restaurant-level operations by excluding revenues not related to Company-owned restaurants, corporate General and administrative expenses, Depreciation and amortization, and Other (gains) and charges. Restaurant operating margin as presented may not be comparable to other similarly titled measures of other companies in our industry.

Reconciliation of Adjusted EBITDA (in millions)

Adjusted EBITDA is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to net income as an indicator of financial performance. Brinker believes presenting Adjusted EBITDA provides a useful measure of our operating performance, excluding the impacts of financing costs, capital expenditures and special items. We define Adjusted EBITDA as Net income before Provision for income taxes, Other income, net, Interest expenses, Depreciation and amortization and Other (gains) and charges.

Quarter

Year-to-Date

Q4 26

Q4 25

Q4 26

Q4 25

Net income - GAAP

$         131.1

$         107.0

$         487.0

$         383.1

Provision for income taxes

27.4

25.2

93.9

76.9

Other income, net

(0.7)

(0.4)

(1.5)

(1.1)

Interest expenses

9.2

10.9

40.5

53.1

Depreciation and amortization

55.5

57.9

218.7

206.6

Other (gains) and charges

5.1

11.8

8.6

41.8

Adjusted EBITDA, non-GAAP

$         227.6

$         212.4

$         847.2

$         760.4

SOURCE Brinker International Payroll Company, L.P.

Key Takeaways Chili's Q4 revenues are modeled to rise 5.1% as traffic, value and chicken sandwiches support sales.Maggiano's Q4 revenues are modeled to fall 0.4%, with negative comps and traffic still weighing on growth.Brinker may gain from sales leverage and labor efficiencies, while commodity inflation pressures costs. Brinker International, Inc. (EAT - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 12, before the opening bell.

EAT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.8%.

Trend in the Estimate Revision of EATThe Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) is pegged at $3.07, indicating a rise of 23.3% from $2.49 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $1.53 billion. The metric suggests a rise of 4.6% from the year-ago quarter’s figure.

Let us take a look at how things might have shaped up in the quarter to be reported.

Factors Likely to Shape EAT’s Quarterly ResultsBrinker’s fiscal fourth-quarter performance is likely to have benefited from continued momentum at Chili’s, supported by positive traffic, strong value positioning and improvements in the overall guest experience. Management stated that April started the quarter with mid-single-digit sales growth and positive traffic and expressed confidence that Chili’s would deliver mid-single-digit sales growth and positive traffic for the quarter to be reported.

The chicken sandwich platform is likely to have been a key contributor to Chili’s sales and traffic in the to-be-reported quarter. The platform was launched on April 14, with the Big Crispy and Spicy Big Crispy included at the $10.99 opening price point of the 3 for Me platform. The launch was backed by the Better Than Fast Food campaign, emphasizing portion size and value relative to fast-food alternatives.

Chili’s continued focus on everyday value, food, service and atmosphere is also expected to have aided customer engagement. Management has emphasized maintaining a compelling value proposition while attracting new guests through marketing and menu innovation. Its operational strategy has centered on simplifying restaurant processes and improving cycle times to support higher throughput. The company noted that its higher-volume “north of 6” restaurants serve 20% to 80% more guests than the current average restaurant, indicating additional capacity for traffic growth over time. Our model predicts fiscal fourth-quarter revenues from Chili’s to rise 5.1% year over year to $1.41 billion.

Meanwhile, Maggiano’s is likely to have remained a headwind to consolidated revenue growth. The brand continued to experience negative comparable sales and traffic trends in the previous quarter. However, management noted sequential improvement after adjusting for weather and calendar effects, supported by more abundant portions, enhanced family-style offerings and the return of classic menu items. Improving value scores are encouraging, although management expects the turnaround to remain gradual. Our model predicts fiscal fourth-quarter revenues from Maggiano's to decline 0.4% year over year to $121.9 million.

On the earnings front, Brinker is likely to have benefited from sales leverage and labor efficiencies. Management expects continued top-line momentum to provide operating leverage, with labor expected to offset some of the pressure from higher food and beverage costs. Improved restaurant productivity is also likely to have supported profitability. The company also anticipates restaurant margin growth to resume on a year-over-year basis in the fiscal fourth quarter. Our model predicts Food and Beverage Costs to rise 3.6% year over year to $382.5 million.

However, higher commodity costs are likely to have tempered earnings growth. Management expects commodity inflation to run in the mid-single digits during the fiscal fourth quarter, with beef remaining a key source of pressure. The company also indicated that food and beverage costs could increase sequentially following the expiration of a beef contract.

What Our Model Says About EAT StockOur proven model predicts an earnings beat for Brinker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

Earnings ESP for EAT: Brinker has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Brinker’s Zacks Rank: The company currently has a Zacks Rank #3.

Other Stocks With the Favorable CombinationHere are a few other stocks from the Zacks Retail-Wholesale sector, which, according to our model, also have the right combination of elements to post an earnings beat this reporting cycle.

Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. SG’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +12.00% and a Zacks Rank of 3.

In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.

Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently has an Earnings ESP of +133.33% and a Zacks Rank of 3.

In the to-be-reported quarter, Cracker Barrel’s earnings are expected to register an 83.8% year-over-year decline. Cracker Barrel’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 128.6%.