Brinker International, the Dallas-based parent of Chili's Grill & Bar and Maggiano's Little Italy, closed fiscal 2026 with full-year company sales of $5.75 billion, up $415.6 million from $5.34 billion a year earlier, and net income of $487.0 million compared with $383.1 million in fiscal 2025—a 27.1% increase. Diluted earnings per share rose to $10.87 from $8.32, while the non-GAAP figure, excluding special items, reached $10.74 versus $8.90 in the prior year.

The Numbers

Fourth-quarter company sales came in at $1.52 billion against $1.45 billion in the year-ago period, a gain of $72.3 million. Quarterly operating income advanced to $167.0 million from $142.7 million, lifting the operating margin to 10.9% of total revenues from 9.8%. Adjusted EBITDA for the quarter reached $227.6 million, up from $212.4 million, and the company-level restaurant operating margin (non-GAAP) widened 20 basis points to 18.0% of company sales. Full-year adjusted EBITDA was $847.2 million, up $86.8 million year over year. Net income per diluted share and the non-GAAP equivalent rose 30.0% and 23.3%, respectively, in the quarter.

Chili's was the primary growth engine. The brand posted comparable restaurant sales of 5.6% in the fourth quarter and 9.2% for the full fiscal year, completing what management described as five consecutive years of same-store sales gains totalling a cumulative 71.0% increase. Comparable traffic remained positive at the brand level in Q4, with the 5.6% comp composed of 4.3% menu pricing, a slight negative mix-shift of -0.2%, and 1.5% traffic growth. Chili's domestic system-wide comp, combining company-owned and franchise locations, reached 5.9% in the quarter. Franchisee-generated Chili's sales totalled approximately $301.2 million in Q4 2026 versus $262.3 million in the year-ago quarter. Maggiano's, by contrast, posted a comparable restaurant sales decline of 2.5% in Q4 and -3.9% for the full year, dragged by lower traffic and restaurant closures, with company restaurant expenses as a percentage of sales widening 300 basis points to 89.7%.

Capital Allocation and M&A

Brinker International deployed $400.0 million in share repurchases during fiscal 2026, funded through operating cash flow, which totalled $789.4 million for the year—up from $679.0 million in fiscal 2025. The board authorised a total of $750.0 million under the existing repurchase programme effective August 10, 2026. On the debt side, the company redeemed $350.0 million of 8.25% notes on July 16, 2026, using its revolving credit facility. Separately, Brinker executed a franchisee acquisition agreement covering 12 Chili's restaurants in Alabama and Mississippi, including the real estate for six of those locations; the transaction is expected to close August 27, 2026. The deal illustrates a broader trend across the casual dining sector of operators selectively reacquiring franchised units to assert tighter control over the guest experience and capture unit-level economics directly.

Fiscal 2027 Guidance

For fiscal 2027, which includes a 53rd operating week in the fourth quarter, management guided total revenues of $6.15 billion to $6.27 billion and non-GAAP diluted EPS of $12.60 to $13.40. The extra week alone is estimated to contribute approximately 2.0% to total revenues and $0.70 to adjusted EPS. Capital expenditures are projected at $265.0 million to $285.0 million, with diluted weighted average shares of 42.0 million to 43.0 million. The guidance range implies revenue growth of roughly 5.9% to 7.9% above fiscal 2026's $5.81 billion total, excluding the calendar tailwind—a signal that management expects the Chili's momentum documented by Food & Beverage Magazine to persist rather than moderate. Beef cost headwinds and a temporary produce cost spike caused by a late freeze in Florida were cited as near-term food cost pressures, relevant to operators and food supply chain professionals monitoring commodity exposure across the casual dining segment. Kevin Hochman, President and CEO of Brinker International, credited disciplined execution and investments in food quality, service, atmosphere, and marketing for sustaining the brand's competitive position.

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.