BRINKER INTERNATIONAL REPORTS SECOND QUARTER OF FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 GUIDANCE

Rhea-AI Summary

Brinker International (NYSE: EAT) reported Q2 fiscal 2026 results: total revenues $1,452.2M, net income $128.5M, and EPS $2.86. Company comparable restaurant sales rose 7.5% (Chili's +8.6%, Maggiano's -2.4%). The company repurchased $100.0M of stock and raised full-year guidance: revenues $5.76B–$5.83B, EPS excl. special items $10.45–$10.85. Winter Storm Fern reduced revenues by ~$20.0M and lowered EPS by $0.15, per the company.

Positive

• Company comparable sales +7.5% in Q2
• Chili's comp sales +8.6% with 19 consecutive quarters of growth
• Net income increased to $128.5M (+$10.0M YoY)
• $100.0M share repurchase completed in the quarter
• Fiscal 2026 guidance raised to $5.76B–$5.83B revenue and $10.45–$10.85 EPS (ex-special)

Negative

• Maggiano's comparable sales down 2.4% in Q2
• Maggiano's restaurant operating margin fell 6.7 percentage points as a percent of Company sales
• Winter Storm Fern caused ~ $20.0M reduced revenues and a $0.15 EPS headwind

Key Figures

Q2 2026 Company sales: $1,438.8M Q2 2026 Total revenues: $1,452.2M Q2 2026 Net income: $128.5M +5 more

8 metrics

Q2 2026 Company sales $1,438.8M Second quarter fiscal 2026

Q2 2026 Total revenues $1,452.2M Second quarter fiscal 2026

Q2 2026 Net income $128.5M Second quarter fiscal 2026

Q2 2026 Diluted EPS $2.86 Net income per diluted share, GAAP

Q2 2026 Adj. EPS $2.87 Net income per diluted share, excluding special items, non-GAAP

Chili’s comps 8.6% Q2 FY26 comparable restaurant sales vs Q2 FY25

FY26 revenue guidance $5.76B–$5.83B Updated total revenues guidance for fiscal 2026

Share repurchase $100.0M Common stock repurchased during Q2 FY26

Market Reality Check

Price: $157.29 Vol: Volume 1,686,892 is above...

high vol

$157.29 Last Close

Volume Volume 1,686,892 is above the 20-day average of 1,056,007, indicating elevated interest around the release. high

Technical Shares at $157.29 are trading above the 200-day MA of $149.12, reflecting a sustained uptrend into the print.

Peers on Argus

Pre-news, EAT was roughly flat (-0.07%) while key restaurant peers like SHAK, WI...

Pre-news, EAT was roughly flat (-0.07%) while key restaurant peers like SHAK, WING, CAVA, and TXRH showed modest declines, suggesting the setup was more stock-specific than driven by a broad restaurants move.

Historical Context

5 past events · Latest: Jan 14 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 14	Earnings call announcement	Neutral	+0.7%	Scheduled Q2 FY26 earnings call and webcast details before results.
Jan 13	Marketing partnership	Positive	-0.8%	Multi-year renewal of Chili’s primary sponsorship with Spire Motorsports.
Oct 29	Quarterly earnings	Positive	-7.5%	Q1 FY26 beat with strong Chili’s comps and reiterated full-year guidance.
Oct 15	Earnings call announcement	Neutral	-1.9%	Announcement of Q1 FY26 earnings call timing and webcast access.
Oct 02	Product launch	Positive	+2.1%	Nationwide launch of Southwestern Queso and promotional offers to members.

Pattern Detected

Recent history shows occasional sell-offs on positive operational news (notably earnings and partnership updates), with selective positive reactions to product-focused announcements.

Recent Company History

Over the past six months, Brinker has highlighted strong momentum at Chili’s and mixed trends at Maggiano’s. In Q1 FY26, the company reported $1.335B in sales, robust Chili’s comps and reiterated full-year guidance, yet the stock fell 7.47%. A product launch for Southwestern Queso on Oct 7, 2025 coincided with a modest gain. The latest Q2 FY26 release continues the theme of Chili’s strength, guidance refinement, and ongoing capital returns via buybacks.

Market Pulse Summary

This announcement highlights another strong quarter for Brinker, with Q2 FY26 revenues of $1,452.2M,...

Analysis

This announcement highlights another strong quarter for Brinker, with Q2 FY26 revenues of $1,452.2M, solid Chili’s comps of 8.6%, and raised fiscal 2026 guidance to $5.76B–$5.83B in revenue and $10.45–$10.85 in adjusted EPS. The company also repurchased $100.0M of stock. Investors may watch execution at Maggiano’s, the impact of Winter Storm Fern, and whether Chili’s can sustain comparable sales growth alongside margin performance.

Key Terms

non-gaap, adjusted ebitda, comparable restaurant sales, capital expenditures, +3 more

7 terms

non-gaap financial

"Restaurant operating margin, non-GAAP (1) | $ 269.8 | | $ 256.8..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

adjusted ebitda financial

"Adjusted EBITDA, non-GAAP (1) | $ 223.5 | | $ 215.8 | | $ 7.7"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

comparable restaurant sales financial

"Company comparable restaurant sales increased 7.5% in the second quarter..."

Comparable restaurant sales measure how much revenue changed at locations that were open for a set prior period, excluding new or closed outlets, so it shows like-for-like sales performance. Investors use it as an 'apples-to-apples' gauge of customer demand, pricing power and operational health—rising comparable sales suggest stronger underlying business, while declines can signal weakening traffic or pricing issues even if overall revenue grows due to new openings.

capital expenditures financial

"Capital expenditures | $250.0 million - $260.0 million | | $270.0 million..."

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

effective income tax rate financial

"On a GAAP basis, the effective income tax rate was 18.7% in the second quarter..."

The effective income tax rate is the share of a company’s pre-tax profit that it actually pays in income taxes, calculated by dividing total tax expense by pre-tax income. For investors, it shows how much tax reduces a company’s earnings — like knowing the difference between a car’s sticker price and what you actually pay after fees and discounts — and helps compare profitability and cash available for growth or dividends.

form 4 regulatory

"The SVP and Chief Legal Officer reported a Form 4 transaction dated December 9, 2025..."

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

schedule 13g/a regulatory

"FMR LLC and Abigail P. Johnson report significant ownership... in a SCHEDULE 13G/A filing."

A Schedule 13G/A is an amended public filing with the U.S. securities regulator that updates a previous Schedule 13G, disclosing when an individual or group holds a substantial (typically over 5%) stake in a company and is claiming a passive, non‑controlling intent. Investors monitor these updates because rising or falling holdings can signal changing confidence, potential future moves, or shifts in voting power — like watching a public ledger where large shareholders quietly adjust their positions.

AI-generated analysis. Not financial advice.

DALLAS, Jan. 28, 2026 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today announced its financial results for the second quarter ended December 24, 2025.

Second Quarter Fiscal 2026 Financial Highlights

"Chili's delivered another strong quarter with industry-leading growth of +9%, rolling the industry-leading growth from last year for a 2-year comp sales growth of +43%," said Kevin Hochman, President & CEO of Brinker International. "With 19 consecutive quarters of same-store sales growth, Chili's turnaround, led by guest experience improvements, is sustaining over the long-term."

Company comparable restaurant sales increased 7.5% in the second quarter of fiscal 2026, including 8.6% for Chili's. Chili's strong performance in the quarter was the result of growth in its customer base, ongoing innovation in the business, and disciplined execution. Menu enhancements and competitive pricing, coupled with ongoing advertising initiatives, continued to strengthen the Company's value proposition and attract new guests, while improved restaurant operations remained a driver of repeat visits. Leveraging higher sales, the Company improved margins at Chili's, supported ongoing investments in the business and repurchased $100.0 million of the Company's common stock during the quarter. At Maggiano's, the focus is executing to improve performance and operations through the Company's Back to Maggiano's strategy. The strategy includes in-flight initiatives across food, service, and atmosphere with the aim of revitalizing the brand's core, serving Italian American favorites with warm and attentive service.

Financial results for the second quarter of fiscal 2026 and fiscal 2025 were as follows:

	Second Quarter
	2026		2025		Variance
Company sales	$ 1,438.8		$ 1,346.1		$      92.7
Total revenues	$ 1,452.2		$ 1,358.2		$      94.0
Operating income	$    168.4		$    156.0		$      12.4
Operating income as a % of Total revenues	11.6 %		11.5 %		0.1 %
Restaurant operating margin, non-GAAP(1)	$    269.8		$    256.8		$      13.0
Restaurant operating margin as a % of Company sales, non-GAAP(1)	18.8 %		19.1 %		(0.3) %
Net income	$    128.5		$    118.5		$      10.0
Adjusted EBITDA, non-GAAP(1)	$    223.5		$    215.8		$        7.7
Net income per diluted share	$      2.86		$      2.61		$      0.25
Net income per diluted share, excluding special items, non-GAAP(1)	$      2.87		$      2.80		$      0.07

Comparable Restaurant Sales⁽²⁾

	Q2:26 vs 25
Brinker	7.5 %
Chili's	8.6 %
Maggiano's	(2.4) %

(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.

Full Year Fiscal 2026 Guidance, including impact of Winter Storm Fern

We are raising our guidance to reflect a stronger sales and profit outlook for Chili's through the end of the fiscal year. This upward revision includes the negative impact from closures and reduced operating hours caused by Winter Storm Fern – which includes approximately $20.0 million in reduced revenues and a decrease of $0.15 in Net income per diluted share, excluding special items, non-GAAP, as of January 27, 2026. 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.

The following table provides select financial guidance for fiscal 2026:

	Updated Fiscal 2026 Guidance		Previous Fiscal 2026 Guidance
Total revenues	$5.76 billion - $5.83 billion		$5.60 billion - $5.70 billion
Net income per diluted share, excluding special items, non-GAAP	$10.45 - $10.85		$9.90 - $10.50
Capital expenditures	$250.0 million - $260.0 million		$270.0 million - $290.0 million
Weighted average shares	44.7 million - 45.2 million		45.0 million - 46.0 million

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.

Second 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 December 24, 2025 and December 25, 2024:

	Chili's						Maggiano's
	Second Quarter				Variance		Second Quarter				Variance
	2026		2025				2026		2025
Company sales	$  1,304.1		$  1,196.9		$     107.2		$     134.7		$     149.2		$     (14.5)
Franchise revenues	13.2		11.9		1.3		0.2		0.2		—
Total revenues	$  1,317.3		$  1,208.8		$     108.5		$     134.9		$     149.4		$     (14.5)
Company restaurant expenses(1)	$  1,055.6		$     973.5		$       82.1		$     113.2		$     115.4		$        (2.2)
Company restaurant expenses as a % of Company sales	80.9 %		81.3 %		(0.4) %		84.0 %		77.3 %		6.7 %
Operating income - GAAP	$     200.0		$     175.1		$       24.9		$       15.0		$       28.2		$     (13.2)
Operating income (loss) as a % of Total revenues	15.2 %		14.5 %		0.7 %		11.1 %		18.9 %		(7.8) %
Restaurant operating margin, non-GAAP(2)	$     248.5		$     223.4		$       25.1		$       21.5		$       33.8		$     (12.3)
Restaurant operating margin as a % of Company sales, non-GAAP(2)	19.1 %		18.7 %		0.4 %		16.0 %		22.7 %		(6.7) %

(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, higher traffic, and favorable sales mix.
• Chili's Company restaurant expenses, as a percentage of Company sales, decreased primarily due to sales leverage, partially offset by unfavorable menu item mix, higher hourly labor and manager salaries, advertising, repairs and maintenance, and other restaurant expense.
• Chili's franchisees generated sales of approximately $271.9 million for the second quarter of fiscal 2026 compared to $232.3 million for the second quarter of fiscal 2025.

Maggiano's

• Maggiano's Company sales decreased primarily due to unfavorable comparable restaurant sales driven by lower traffic, partially offset by menu pricing.
• Maggiano's Company restaurant expenses, as a percentage of Company sales, increased primarily due to unfavorable menu item mix and commodity costs, sales deleverage, higher delivery fees and to-go supplies, worker's compensation and general liability insurance, and other restaurant expenses, partially offset by lower manager bonus.

Corporate

• On a GAAP basis, the effective income tax rate was 18.7% in the second 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 18.8% in the second 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, January 28, 2026 at 9 a.m. CT:

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-Q for the second quarter of fiscal 2026 filing on or before February 2, 2026
• Earnings release call for the third quarter of fiscal 2026 on April 29, 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, 27 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; 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				Twenty-Six Week Periods Ended
	December 24, 2025		December 25, 2024		December 24, 2025		December 25, 2024
Revenues
Company sales	$            1,438.8		$            1,346.1		$            2,774.2		$            2,473.4
Franchise revenues	13.4		12.1		27.2		23.8
Total revenues	1,452.2		1,358.2		2,801.4		2,497.2
Operating costs and expenses
Food and beverage costs	370.5		343.9		715.1		628.2
Restaurant labor	446.4		421.0		877.4		798.4
Restaurant expenses	352.1		324.4		696.1		638.3
Depreciation and amortization	54.6		47.7		108.2		94.0
General and administrative	59.7		53.1		116.9		104.9
Other (gains) and charges(1)	0.5		12.1		1.4		21.0
Total operating costs and expenses	1,283.8		1,202.2		2,515.1		2,284.8
Operating income	168.4		156.0		286.3		212.4
Interest expenses	10.7		14.7		21.2		29.0
Other income, net	(0.4)		(0.4)		(0.6)		(0.6)
Income before income taxes	158.1		141.7		265.7		184.0
Provision for income taxes	29.6		23.2		37.7		27.0
Net income	$               128.5		$               118.5		$               228.0		$               157.0
Basic net income per share	$                 2.92		$                 2.67		$                 5.14		$                 3.52
Diluted net income per share	$                 2.86		$                 2.61		$                 5.03		$                 3.44
Basic weighted average shares outstanding	44.0		44.4		44.4		44.7
Diluted weighted average shares outstanding	44.9		45.5		45.4		45.7
Other comprehensive income (loss)
Foreign currency translation adjustment	$                   0.1		$                 (0.5)		$                    —		$                 (0.4)
Comprehensive income	$               128.6		$               118.0		$               228.0		$               156.6

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

	Thirteen Week Periods Ended				Twenty-Six Week Periods Ended
	December 24, 2025		December 25, 2024		December 24, 2025		December 25, 2024
Restaurant closure asset write-offs and charges	$                1.5		$                   0.8		$                   2.1		$                   1.5
Litigation & claims, net	0.8		6.1		1.5		8.6
Severance and other benefit charges	0.2		—		1.7		0.3
Loss from natural disasters, net (of insurance recoveries)	—		0.7		(2.3)		0.7
Enterprise system implementation costs	—		5.2		—		9.6
Lease modification gain, net	(2.5)		(0.7)		(2.5)		(1.0)
Other	0.5		—		0.9		1.3
Total other (gains) and charges	$                0.5		$                 12.1		$                   1.4		$                 21.0

 

BRINKER INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
	December 24, 2025		June 25, 2025
ASSETS
Total current assets	$               240.9		$               207.0
Net property and equipment	971.7		952.7
Operating lease assets	1,183.4		1,149.1
Deferred income taxes, net	88.6		101.4
Other assets	264.6		268.4
Total assets	$            2,749.2		$            2,678.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities	$               669.7		$               675.6
Long-term debt and finance leases, less current installments	451.3		426.0
Long-term operating lease liabilities, less current portion	1,172.8		1,135.3
Other liabilities	76.1		70.8
Total shareholders' equity	379.3		370.9
Total liabilities and shareholders' equity	$            2,749.2		$            2,678.6

 

BRINKER INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
	Twenty-Six Week Periods Ended
	December 24, 2025		December 25, 2024
Cash flows from operating activities
Net income	$               228.0		$               157.0
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	108.2		94.0
Stock-based compensation	16.0		14.3
Deferred income taxes, net	12.8		8.3
Non-cash other (gains) and charges	2.2		7.9
Net loss on disposal of assets	4.2		6.1
Other	0.9		1.3
Changes in assets and liabilities	(32.6)		(7.9)
Net cash provided by operating activities	339.7		281.0
Cash flows from investing activities
Payments for property and equipment	(122.3)		(105.8)
Proceeds from sale of assets	0.2		—
Insurance recoveries	0.5		—
Net cash used in investing activities	(121.6)		(105.8)
Cash flows from financing activities
Borrowings on revolving credit facility	475.0		515.0
Payments on revolving credit facility	(455.0)		(300.0)
Payments on long-term debt	(7.2)		(362.1)
Purchases of treasury stock	(235.0)		(85.2)
Proceeds from issuance of treasury stock	0.2		7.4
Payments for debt issuance costs	—		(0.1)
Net cash used in financing activities	(222.0)		(225.0)
Net change in cash and cash equivalents	(3.9)		(49.8)
Cash and cash equivalents at beginning of period	18.9		64.6
Cash and cash equivalents at end of period	$                 15.0		$                 14.8

 

BRINKER INTERNATIONAL, INC.
Restaurant Summary
					Fiscal 2026 New Openings
	Total Restaurants Open at December 24, 2025		Total Restaurants Open at December 25, 2024		Second Quarter Openings		Fiscal Year Openings		Full Year Projected Openings
Company-owned restaurants
Chili's domestic	1,108		1,110		1		3		6
Chili's international	4		4		—		—		—
Maggiano's domestic	48		50		—		—		—
Total Company-owned	1,160		1,164		1		3		6
Franchise restaurants
Chili's domestic	98		99		—		—		2-4
Chili's international	366		358		5		10		24-28
Maggiano's domestic	3		3		—		—		—
Total franchise	467		460		5		10		26-32
Total Company-owned and franchise
Chili's domestic	1,206		1,209		1		3		8-10
Chili's international	370		362		5		10		24-28
Maggiano's domestic	51		53		—		—		—
Total	1,627		1,624		6		13		32-38

 

NON-GAAP INFORMATION AND RECONCILIATIONS
Comparable Restaurant Sales
	Comparable Restaurant Sales(1)				Price Impact				Mix-Shift Impact(2)				Traffic Impact
	Q2:26 vs 25		Q2:25 vs 24		Q2:26 vs 25		Q2:25 vs 24		Q2:26 vs 25		Q2:25 vs 24		Q2:26 vs 25		Q2:25 vs 24
Company-owned	7.5 %		27.4 %		4.6 %		5.0 %		1.5 %		5.9 %		1.4 %		16.5 %
Chili's	8.6 %		31.4 %		4.4 %		4.9 %		1.5 %		6.6 %		2.7 %		19.9 %
Maggiano's	(2.4) %		1.8 %		6.0 %		6.4 %		0.4 %		0.3 %		(8.8) %		(4.9) %
Franchise(3)	7.3 %		6.8 %
U.S.	9.2 %		21.1 %
International	6.2 %		(1.0) %
Chili's domestic(4)	8.7 %		30.8 %
System-wide(5)	7.5 %		24.2 %

(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.

	Q2 26		EPS Q2 26		Q2 25		EPS Q2 25
Net income, GAAP	$              128.5		$                2.86		$              118.5		$                2.61
Special items - Other (gains) and charges(1)	0.5		0.01		12.1		0.27
Income tax effect related to special items(2)	(0.1)		—		(3.0)		(0.07)
Special items, net of taxes	0.4		0.01		9.1		0.20
Adjustment for special tax items(3)	(0.2)		—		(0.3)		(0.01)
Net income, excluding special items, non-GAAP	$              128.7		$                2.87		$              127.3		$                2.80

(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)
	Chili's				Maggiano's				Brinker
	Q2 26		Q2 25		Q2 26		Q2 25		Q2 26		Q2 25
Operating income - GAAP	$ 200.0		$ 175.1		$   15.0		$   28.2		$ 168.4		$ 156.0
Operating income as a % of Total revenues	15.2 %		14.5 %		11.1 %		18.9 %		11.6 %		11.5 %
Operating income - GAAP	$ 200.0		$ 175.1		$   15.0		$   28.2		$ 168.4		$ 156.0
Less:  Franchise revenues	(13.2)		(11.9)		(0.2)		(0.2)		(13.4)		(12.1)
Plus:  Depreciation and amortization	47.5		41.8		4.3		3.4		54.6		47.7
General and administrative	14.6		12.2		2.1		2.4		59.7		53.1
Other (gains) and charges	(0.4)		6.2		0.3		—		0.5		12.1
Restaurant operating margin, non-GAAP	$ 248.5		$ 223.4		$   21.5		$   33.8		$ 269.8		$ 256.8
Restaurant operating margin as a % of Company sales, non-GAAP	19.1 %		18.7 %		16.0 %		22.7 %		18.8 %		19.1 %

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
	Q2 26		Q2 25		Q2 26		Q2 25
Net income - GAAP	$               128.5		$               118.5		$               228.0		$               157.0
Provision for income taxes	29.6		23.2		37.7		27.0
Other income, net	(0.4)		(0.4)		(0.6)		(0.6)
Interest expenses	10.7		14.7		21.2		29.0
Depreciation and amortization	54.6		47.7		108.2		94.0
Other (gains) and charges	0.5		12.1		1.4		21.0
Adjusted EBITDA, non-GAAP	$               223.5		$               215.8		$               395.9		$               327.4

 

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SOURCE Brinker International Payroll Company, L.P.

FAQ

What were Brinker (EAT) Q2 fiscal 2026 revenues and EPS on January 28, 2026?

Brinker reported total revenues of $1,452.2M and EPS of $2.86 for Q2 fiscal 2026. According to the company, net income was $128.5M and adjusted EBITDA was $223.5M in the quarter.

How did Chili's performance affect Brinker (EAT) Q2 results on Jan 28, 2026?

Chili's comps grew 8.6%, driving company comps of 7.5% in Q2. According to the company, higher traffic, menu pricing, and sales mix improved margins and supported share repurchases.

What guidance update did Brinker (EAT) announce for fiscal 2026 on Jan 28, 2026?

Brinker raised fiscal 2026 guidance to $5.76B–$5.83B in revenues and $10.45–$10.85 EPS (ex-special items). According to the company, the update reflects stronger Chili's outlook despite storm impacts.

How much stock did Brinker (EAT) repurchase in Q2 fiscal 2026?

The company repurchased $100.0M of common stock during the quarter. According to the company, the buyback was funded while maintaining investments in the business and operations.

What impact did Winter Storm Fern have on Brinker (EAT) results for fiscal 2026?

Winter Storm Fern reduced revenues by about $20.0M and lowered EPS by $0.15 (ex-special items). According to the company, closures and reduced hours caused the estimated impact as of Jan 27, 2026.

Why did Maggiano's affect Brinker (EAT) Q2 results on Jan 28, 2026?

Maggiano's comps declined 2.4% and its restaurant operating margin fell by 6.7 percentage points. According to the company, lower traffic and unfavorable mix drove the weaker Maggiano's performance.