Brinker International (NYSE: EAT) closed fiscal 2026 with Chili's same-store sales up 5.6% in the fourth quarter and 9.2% for the full year, extending what management described as five consecutive years of comp growth that has compounded to a 71% cumulative increase over that span. Total company sales reached $1.52 billion in Q4 alone, against $1.45 billion in the prior-year period, while full-year company sales climbed to $5.75 billion from $5.34 billion — a $415.6 million year-over-year gain. The results came in against a backdrop of persistent consumer-spending caution in casual dining, a segment that has broadly struggled to sustain traffic gains as menu price elasticity narrows.
The Numbers
Full-year net income rose to $487.0 million from $383.1 million, with diluted EPS of $10.87 — up from $8.32 in fiscal 2025. On a non-GAAP basis, excluding special items, diluted EPS landed at $10.74 versus $8.90 a year ago, a 20.7% improvement. Restaurant operating margin (non-GAAP) held at 18.0% of company sales for the quarter and 17.8% for the full year, up from 17.5% in fiscal 2025, reflecting sales leverage that partially offset higher beef costs, elevated delivery fees, and increased advertising spend. Adjusted EBITDA for fiscal 2026 reached $847.2 million, compared with $760.4 million the prior year. Maggiano's Little Italy remained a drag: full-year comps fell 3.9%, with traffic down 9.3%, as the fine-casual concept navigated closures and consumer trade-down pressure.
Capital Deployment & Development
During fiscal 2026, Brinker deployed $400.0 million in operational cash flow toward share repurchases. The board subsequently authorized a total of $750.0 million under the existing repurchase program. On the debt side, the company redeemed $350.0 million in 8.25% notes on July 16, 2026, refinancing the payoff through its revolving credit facility — a move that meaningfully reduces interest expense going into fiscal 2027, where interest costs of $40.5 million for fiscal 2026 already trended below the prior year's $53.1 million. Unit growth at Chili's was modest domestically — six company-owned openings for the full year — but the international franchise footprint added 23 units, bringing the international count to 374. A pending area development agreement will add 12 Chili's locations in Alabama and Mississippi, including owned real estate on six sites, with the transaction expected to close August 27, 2026. The system ended the fiscal year at 1,635 total units across both brands.
What's Next
For fiscal 2027, Brinker guided total revenues to $6.15–$6.27 billion, a range that includes the lift of a 53rd operating week in Q4, which the company estimates will add roughly 2.0% to revenues and approximately $0.70 to non-GAAP diluted EPS. Full-year non-GAAP diluted EPS guidance is set at $12.60–$13.40. Capital expenditures are projected at $265.0–$285.0 million. Chili's July momentum appeared intact — management cited the sustained performance of the Big Crispy chicken sandwich LTO as a key traffic driver heading into the new fiscal year. For casual dining operators and franchisees watching the segment, the Chili's trajectory represents one of the few sustained traffic-positive stories in full-service foodservice, a segment where peer chains have leaned heavily on discounting and LTOs to hold share amid softening consumer discretionary spending.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
