Fourth Quarter and Full Year Fiscal 2026
Filed Aug 12, 2026Brinker reported fourth-quarter fiscal 2026 total revenues of $1,535.8 million and provided fiscal 2027 total-revenue guidance of $6.15 billion - $6.27 billion.
Fourth-quarter Company sales, total revenues, operating income, net income, and both GAAP and non-GAAP diluted EPS increased from fiscal 2025. Chili’s comparable restaurant sales increased 5.6%, while Maggiano’s comparable restaurant sales declined (2.5)%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth Quarter Company salesGAAP | $1,521.2 million | – | $72.3 million |
| Fourth Quarter Total revenuesGAAP | $1,535.8 million | – | $73.9 million |
| Fourth Quarter Operating incomeGAAP | $167.0 million | – | $24.3 million |
| Fourth Quarter Operating income as a % of Total revenuesGAAP | 10.9 % | – | 1.1 % |
| Fourth Quarter Restaurant operating marginnon-GAAP | $273.4 million | – | $15.2 million |
| Fourth Quarter Restaurant operating margin as a % of Company salesnon-GAAP | 18.0 % | – | 0.2 % |
| Fourth Quarter Net incomeGAAP | $131.1 million | – | $24.1 million |
| Fourth Quarter Adjusted EBITDAnon-GAAP | $227.6 million | – | $15.2 million |
| Fourth Quarter Net income per diluted shareGAAP | $2.99 | – | $0.69 |
| Fourth Quarter Net income per diluted share, excluding special itemsnon-GAAP | $3.07 | – | $0.58 |
| Fourth Quarter Company comparable restaurant salesother | 5.0 % | – | – |
| Fourth Quarter Chili’s comparable restaurant salesother | 5.6 % | – | – |
| Fourth Quarter Maggiano’s comparable restaurant salesother | (2.5) % | – | – |
| Fourth Quarter GAAP effective income tax rateGAAP | 17.3% | – | – |
| Fourth Quarter effective income tax rate excluding special itemsnon-GAAP | 17.6% | – | – |
| Fiscal 2026 Company salesGAAP | $5,750.9 million | – | $415.6 million |
| Fiscal 2026 Total revenuesGAAP | $5,807.4 million | – | $423.2 million |
| Fiscal 2026 Operating incomeGAAP | $619.9 million | – | $107.9 million |
| Fiscal 2026 Operating income as a % of Total revenuesGAAP | 10.7 % | – | 1.2 % |
| Fiscal 2026 Restaurant operating marginnon-GAAP | $1,026.4 million | – | $92.9 million |
| Fiscal 2026 Restaurant operating margin as a % of Company salesnon-GAAP | 17.8 % | – | 0.3 % |
| Fiscal 2026 Net incomeGAAP | $487.0 million | – | $103.9 million |
| Fiscal 2026 Adjusted EBITDAnon-GAAP | $847.2 million | – | $86.8 million |
| Fiscal 2026 Net income per diluted shareGAAP | $10.87 | – | $2.55 |
| Fiscal 2026 Net income per diluted share, excluding special itemsnon-GAAP | $10.74 | – | $1.84 |
| Fiscal 2026 Company comparable restaurant salesother | 8.1 % | – | – |
| Fiscal 2026 Chili’s comparable restaurant salesother | 9.2 % | – | – |
| Fiscal 2026 Maggiano’s comparable restaurant salesother | (3.9) % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Chili’sChili’s Company sales increased primarily due to favorable comparable restaurant sales driven by menu pricing and higher traffic. | $1,423.0 million | – | $83.4 million |
| Maggiano’sMaggiano’s Company sales decreased primarily due to lower traffic and restaurant closures, partially offset by menu pricing. | $112.8 million | – | $(9.5) million |
Fiscal 2027 outlook
- Revenue$6.15 billion - $6.27 billion
- NoteNet income per diluted share, excluding special items, non-GAAP $12.60 - $13.40
- NoteCapital expenditures $265.0 million - $285.0 million
- NoteDiluted weighted average shares 42.0 million - 43.0 million
- NoteIncludes a 53 rd operating week in the fourth quarter
- NoteWe 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
Capital returns
- 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.
What drove it
- Chili’s comparable restaurant sales increased 5.6% in the fourth quarter of fiscal 2026, driven by positive traffic.
- Chili’s Company restaurant expenses as a percentage of Company sales decreased primarily due to sales leverage and lower manager bonus.
- 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.
- Chili’s momentum accelerated in July with the sustained success of the Big Crispy chicken sandwich and other brand initiatives.
Concerns
- Maggiano’s comparable restaurant sales declined (2.5)% in the fourth quarter and (3.9)% for fiscal 2026.
- Maggiano’s Company restaurant expenses as a percentage of Company sales increased primarily due to sales deleverage, unfavorable Food and beverage costs, and higher pre-opening costs.
- Chili’s 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 expense benefits from sales leverage and lower manager bonus were partially offset by higher advertising, hourly labor, delivery fees and to-go supplies, manager salaries, and other restaurant expenses.
What to watch
- Chili’s traffic and the sustained success of the Big Crispy chicken sandwich and other brand initiatives.
- Maggiano’s traffic, restaurant closures, and Company restaurant expense performance.
- The impact of higher beef costs and produce costs on Chili’s Food and beverage costs.
- Fiscal 2027 results in a year that includes a 53 rd operating week in the fourth quarter.
- Closing of the acquisition of 12 Chili’s restaurants, expected on August 27, 2026.
Balance sheet and cash flow
- 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.
Analysis
Brinker delivered broad fourth-quarter growth. Company sales were $1,521.2 million versus $1,448.9 million, total revenues were $1,535.8 million versus $1,461.9 million, and GAAP operating income was $167.0 million versus $142.7 million. GAAP net income was $131.1 million versus $107.0 million, while GAAP diluted EPS was $2.99 versus $2.30 and non-GAAP diluted EPS excluding special items was $3.07 versus $2.49.
Chili’s remained the central demand driver. Its comparable restaurant sales increased 5.6%, and management attributed Company sales growth to menu pricing and higher traffic. Chili’s total revenues were $1,423.0 million versus $1,339.6 million. Franchisee sales were approximately $301.2 million versus $262.3 million. By contrast, Maggiano’s total revenues were $112.8 million versus $122.3 million, and management cited lower traffic and restaurant closures as the primary causes of lower Company sales.
Margins improved at the consolidated level and at Chili’s. Fourth-quarter GAAP operating income as a percentage of total revenues was 10.9 % versus 9.8 %, and non-GAAP restaurant operating margin as a percentage of Company sales was 18.0 % versus 17.8 %. Chili’s restaurant operating margin as a percentage of Company sales was 18.6 % versus 18.2 %, supported by sales leverage and lower manager bonus. Maggiano’s restaurant operating margin as a percentage of Company sales was 10.3 % versus 13.3 %, reflecting sales deleverage, unfavorable Food and beverage costs, and higher pre-opening costs.
For fiscal 2026, total revenues were $5,807.4 million versus $5,384.2 million, GAAP operating income was $619.9 million versus $512.0 million, and GAAP net income was $487.0 million versus $383.1 million. The Company repurchased $400.0 million of common stock during fiscal 2026, and the Board authorized a total of $750.0 million under the existing repurchase program effective August 10, 2026. Subsequent to fiscal year-end, Brinker redeemed the outstanding $350.0 million 8.25% notes using revolving credit facility borrowings.
Fiscal 2027 guidance calls for total revenues of $6.15 billion - $6.27 billion and non-GAAP net income per diluted share excluding special items of $12.60 - $13.40. The outlook includes a 53 rd operating week in the fourth quarter, which the Company estimates will increase Total revenues by approximately 2.0% and non-GAAP net income per diluted share excluding special items by $0.70. Capital expenditures are guided to $265.0 million - $285.0 million, and diluted weighted average shares are guided to 42.0 million - 43.0 million.
Management, verbatim
Q4 2026 completes five consecutive years of Chili’s same-store sales growth, delivering an unprecedented 71% cumulative increase over that time.
Kevin Hochman, President and CEO of Brinker International
Not in the filing
stated, not guessed- Fourth-quarter and fiscal-year GAAP gross margin
- Fourth-quarter and fiscal-year non-GAAP gross margin
- Fourth-quarter and fiscal-year operating cash flow amount
- Fourth-quarter and fiscal-year free cash flow
- Cash balance
- Total debt balance
- Dividend amount
- Prior-quarter comparisons for reported financial metrics
- Fiscal 2027 gross-margin guidance
- Fiscal 2027 operating-expense guidance
- Fiscal 2027 tax-rate guidance
- Previous-quarter outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.