BRINKER INTERNATIONAL REPORTS THIRD QUARTER OF FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 GUIDANCE
Rhea-AI Summary
Brinker International (NYSE: EAT) reported third quarter fiscal 2026 results for the period ended March 25, 2026. Company sales were $1,455.5M, total revenues $1,470.2M, net income $127.9M and diluted EPS $2.87. Company comparable restaurant sales rose 3.3% (Chili's +4.0%, Maggiano's -4.6%). The company repurchased $108.0M of common stock and paid down its revolver. Updated fiscal 2026 guidance narrows total revenues to $5.78B–$5.82B and raises EPS (ex-special items) to $10.60–$10.85.
Positive
- Repurchased $108.0M of common stock during Q3
- Company comparable restaurant sales +3.3% in Q3
- Chili's comparable restaurant sales +4.0% in Q3
- Updated fiscal 2026 EPS (ex-special items) to $10.60–$10.85
Negative
- Maggiano's comparable restaurant sales down 4.6% in Q3
- Restaurant operating margin as % of company sales down 0.5%
- Chili's restaurant operating margin as % of sales down 0.3%
News Market Reaction – EAT
In the Apr 29 session, EAT gained 14.45%, reflecting a significant positive market reaction. Argus tracked a peak move of +14.5% during that session. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.5x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 15 | Earnings call notice | Neutral | -3.9% | Scheduled timing for Q3 FY26 earnings call and webcast details. |
| Apr 14 | Menu promotion | Positive | +3.3% | Chili’s expands $10.99 3 For Me menu with new chicken sandwiches. |
| Mar 18 | Menu / pricing move | Positive | -1.9% | Maggiano’s increases portion sizes and expands Family Style offering at no extra cost. |
| Mar 16 | Brand partnership | Positive | +0.8% | Chili’s and Spire Motorsports launch themed NASCAR activation and merch drop. |
| Mar 02 | Executive promotion | Positive | -1.0% | George Felix promoted to EVP, CMO overseeing Chili’s and Maggiano’s marketing. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent brand and marketing headlines have produced mixed, often modest price reactions, with no consistent pattern of strong follow-through on news.
Over the past few months, Brinker news has focused on brand promotions, marketing leadership, and investor communications. A March promotion at Maggiano’s on Mar 18, 2026 and Chili’s menu initiatives drove only modest stock moves. The announcement of George Felix’s promotion to EVP, CMO on Mar 2, 2026 coincided with a slightly negative reaction, while an earnings-call scheduling notice on Apr 15, 2026 saw a -3.91% move. Against this backdrop, today’s detailed Q3 results and guidance update represent a more fundamental financial checkpoint than recent marketing-oriented releases.
Key Terms
non-gaap financial
adjusted ebitda financial
comparable restaurant sales financial
effective income tax rate financial
fica tip credit financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third Quarter Fiscal 2026 Financial Highlights
"Chili's delivered its 20th consecutive quarter of same-store sales growth, up
Company sales were
Chili's continued strong performance is driven by a disciplined strategy focused on improving the fundamentals of food, service, and atmosphere, supported by ongoing menu innovation, everyday value, and attention‑capturing media and advertising that reinforce the Company's value proposition, drive trial among new guests, and strengthen loyalty. During the quarter, the Company utilized operational cash flow to pay the outstanding amount on the company's revolver and repurchased
Financial results for the third quarter of fiscal 2026 and fiscal 2025 were as follows (in millions, except per share amounts and percentages):
Third Quarter | |||||
2026 | 2025 | Variance | |||
Company sales | $ 42.5 | ||||
Total revenues | $ 45.1 | ||||
Operating income | $ 166.6 | $ 156.9 | $ 9.7 | ||
Operating income as a % of Total revenues | 11.3 % | 11.0 % | 0.3 % | ||
Restaurant operating margin, non-GAAP(1) | $ 267.4 | $ 266.8 | $ 0.6 | ||
Restaurant operating margin as a % of Company sales, non-GAAP(1) | 18.4 % | 18.9 % | (0.5) % | ||
Net income | $ 127.9 | $ 119.1 | $ 8.8 | ||
Adjusted EBITDA, non-GAAP(1) | $ 223.7 | $ 220.6 | $ 3.1 | ||
Net income per diluted share | $ 2.87 | $ 2.56 | $ 0.31 | ||
Net income per diluted share, excluding special items, non-GAAP(1) | $ 2.90 | $ 2.66 | $ 0.24 | ||
Comparable Restaurant Sales(2)
Q3:26 vs 25 | |
Brinker | 3.3 % |
Chili's | 4.0 % |
Maggiano's | (4.6) % |
(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. |
Updates to Full Year Fiscal 2026 Guidance
We are providing the following updated select financial guidance for fiscal 2026:
Updated Fiscal 2026 Guidance | Previous Fiscal 2026 Guidance | ||
Total revenues | |||
Net income per diluted share, excluding special items, non-GAAP | |||
Capital expenditures | |||
Diluted weighted average shares | 44.7 million - 45.0 million | 44.7 million - 45.2 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.
Third 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 March 25, 2026 and March 26, 2025:
Chili's | Maggiano's | ||||||||||
Third Quarter | Variance | Third Quarter | Variance | ||||||||
2026 | 2025 | 2026 | 2025 | ||||||||
Company sales | $ 55.9 | $ 107.4 | $ 120.8 | $ (13.4) | |||||||
Franchise revenues | 14.5 | 11.9 | 2.6 | 0.2 | 0.2 | — | |||||
Total revenues | $ 58.5 | $ 107.6 | $ 121.0 | $ (13.4) | |||||||
Company restaurant expenses(1) | $ 48.5 | $ 97.1 | $ 103.5 | $ (6.4) | |||||||
Company restaurant expenses as a % of Company sales | 80.9 % | 80.6 % | 0.3 % | 90.4 % | 85.7 % | 4.7 % | |||||
Operating income - GAAP | $ 209.4 | $ 197.7 | $ 11.7 | $ 4.6 | $ 10.7 | $ (6.1) | |||||
Operating income (loss) as a % of Total revenues | 15.4 % | 15.2 % | 0.2 % | 4.3 % | 8.8 % | (4.5) % | |||||
Restaurant operating margin, non-GAAP(2) | $ 257.5 | $ 250.1 | $ 7.4 | $ 10.3 | $ 17.3 | $ (7.0) | |||||
Restaurant operating margin as a % of Company sales, non-GAAP(2) | 19.1 % | 19.4 % | (0.3) % | 9.6 % | 14.3 % | (4.7) % | |||||
(1) | Company restaurant expenses includes Food and beverage costs, Restaurant labor and Restaurant expenses, |
(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, partially offset by lower traffic.
- Chili's Company restaurant expenses, as a percentage of Company sales, increased primarily due to unfavorable commodity costs and menu item mix, higher manager salaries, repairs and maintenance, delivery fees and to-go supplies, and other restaurant expenses partially offset by sales leverage.
- Chili's franchisees generated sales of approximately
$274.1 million $237.4 million
Maggiano's
- Maggiano's Company sales decreased primarily due to unfavorable comparable restaurant sales and unfavorable impact of restaurant closures. Unfavorable comparable restaurant sales were driven by lower traffic, partially offset by menu pricing.
- Maggiano's Company restaurant expenses, as a percentage of Company sales, increased primarily due to sales deleverage, unfavorable menu item mix and commodity costs, higher delivery fees and to-go supplies, and other restaurant expenses, partially offset by lower hourly labor, manager bonus, and worker's compensation and general liability insurance.
Corporate
- On a GAAP basis, the effective income tax rate was
18.4% in the third quarter of fiscal 2026. The effective income tax rate is lower than the statutory rate of21.0% primarily due to leverage of the FICA tip credit. Excluding the impact of special items, the effective income tax rate was an expense of18.7% in the third 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, April 29, 2026 at 8 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-Q for the third quarter of fiscal 2026 filing on or before May 4, 2026
- Earnings release call for the fourth quarter of fiscal 2026 on August 12, 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
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.
| |||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | ||||||
March 25, 2026 | March 26, 2025 | March 25, 2026 | March 26, 2025 | ||||
Revenues | |||||||
Company sales | $ 1,455.5 | $ 1,413.0 | $ 4,229.7 | $ 3,886.4 | |||
Franchise revenues | 14.7 | 12.1 | 41.9 | 35.9 | |||
Total revenues | 1,470.2 | 1,425.1 | 4,271.6 | 3,922.3 | |||
Operating costs and expenses | |||||||
Food and beverage costs | 373.1 | 353.1 | 1,088.2 | 981.3 | |||
Restaurant labor | 456.4 | 452.2 | 1,333.8 | 1,250.6 | |||
Restaurant expenses | 358.6 | 340.9 | 1,054.7 | 979.2 | |||
Depreciation and amortization | 55.0 | 54.7 | 163.2 | 148.7 | |||
General and administrative | 58.4 | 58.3 | 175.3 | 163.2 | |||
Other (gains) and charges(1) | 2.1 | 9.0 | 3.5 | 30.0 | |||
Total operating costs and expenses | 1,303.6 | 1,268.2 | 3,818.7 | 3,553.0 | |||
Operating income | 166.6 | 156.9 | 452.9 | 369.3 | |||
Interest expenses | 10.1 | 13.2 | 31.3 | 42.2 | |||
Other income, net | (0.2) | (0.1) | (0.8) | (0.7) | |||
Income before income taxes | 156.7 | 143.8 | 422.4 | 327.8 | |||
Provision for income taxes | 28.8 | 24.7 | 66.5 | 51.7 | |||
Net income | $ 127.9 | $ 119.1 | $ 355.9 | $ 276.1 | |||
Basic net income per share | $ 2.96 | $ 2.68 | $ 8.09 | $ 6.19 | |||
Diluted net income per share | $ 2.87 | $ 2.56 | $ 7.90 | $ 5.96 | |||
Basic weighted average shares outstanding | 43.2 | 44.4 | 44.0 | 44.6 | |||
Diluted weighted average shares outstanding | 44.5 | 46.4 | 45.1 | 46.4 | |||
Other comprehensive income (loss) | |||||||
Foreign currency translation adjustment | $ (0.1) | $ 0.1 | $ (0.1) | $ (0.3) | |||
Comprehensive income | $ 127.8 | $ 119.2 | $ 355.8 | $ 275.8 | |||
(1) | Other (gains) and charges included in the Consolidated Statements of Comprehensive Income (Unaudited): |
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | ||||||
March 25, 2026 | March 26, 2025 | March 25, 2026 | March 26, 2025 | ||||
Litigation & claims, net | $ 0.9 | $ 2.5 | $ 2.4 | $ 11.1 | |||
Loss from natural disasters, net (of insurance recoveries) | 0.3 | — | (2.0) | 0.7 | |||
Restaurant closure asset write-offs and charges | 0.1 | 0.8 | 2.2 | 2.3 | |||
Enterprise system implementation costs | — | 2.4 | — | 12.0 | |||
Severance and other benefit charges | — | 2.0 | 1.7 | 2.3 | |||
Lease contingencies | — | 1.5 | — | 1.5 | |||
Lease modification gain, net | (0.1) | (0.2) | (2.6) | (1.2) | |||
Other | 0.9 | — | 1.8 | 1.3 | |||
Total other (gains) and charges | $ 2.1 | $ 9.0 | $ 3.5 | $ 30.0 | |||
BRINKER INTERNATIONAL, INC.
| |||
March 25, | June 25, | ||
ASSETS | |||
Total current assets | $ 270.5 | $ 207.0 | |
Net property and equipment | 966.4 | 952.7 | |
Operating lease assets | 1,193.3 | 1,149.1 | |
Deferred income taxes, net | 76.9 | 101.4 | |
Other assets | 265.2 | 268.4 | |
Total assets | $ 2,772.3 | $ 2,678.6 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Total current liabilities | $ 681.4 | $ 675.6 | |
Long-term debt and finance leases, less current installments | 424.4 | 426.0 | |
Long-term operating lease liabilities, less current portion | 1,182.8 | 1,135.3 | |
Other liabilities | 77.7 | 70.8 | |
Total shareholders' equity | 406.0 | 370.9 | |
Total liabilities and shareholders' equity | $ 2,772.3 | $ 2,678.6 | |
BRINKER INTERNATIONAL, INC.
| |||
Thirty-Nine Week Periods Ended | |||
March 25, 2026 | March 26, 2025 | ||
Cash flows from operating activities | |||
Net income | $ 355.9 | $ 276.1 | |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 163.2 | 148.7 | |
Stock-based compensation | 24.0 | 23.1 | |
Deferred income taxes, net | 24.5 | 12.6 | |
Non-cash other (gains) and charges | 6.7 | 11.6 | |
Net loss on disposal of assets | 6.5 | 8.6 | |
Other | 1.4 | 1.9 | |
Changes in assets and liabilities | (10.4) | 10.4 | |
Net cash provided by operating activities | 571.8 | 493.0 | |
Cash flows from investing activities | |||
Payments for property and equipment | (173.5) | (185.4) | |
Proceeds from sale of assets | 0.3 | — | |
Insurance recoveries | 0.5 | — | |
Net cash used in investing activities | (172.7) | (185.4) | |
Cash flows from financing activities | |||
Borrowings on revolving credit facility | 650.0 | 670.0 | |
Payments on revolving credit facility | (650.0) | (580.0) | |
Payments on long-term debt | (18.1) | (366.3) | |
Purchases of treasury stock | (343.4) | (86.3) | |
Proceeds from issuance of treasury stock | 0.6 | 8.0 | |
Payments for debt issuance costs | — | (0.1) | |
Net cash used in financing activities | (360.9) | (354.7) | |
Net change in cash and cash equivalents | 38.2 | (47.1) | |
Cash and cash equivalents at beginning of period | 18.9 | 64.6 | |
Cash and cash equivalents at end of period | $ 57.1 | $ 17.5 | |
BRINKER INTERNATIONAL, INC. | |||||||||
Fiscal 2026 New Openings | |||||||||
Total Restaurants | Total Restaurants | Third Quarter | Fiscal Year | Full Year | |||||
Company-owned restaurants | |||||||||
Chili's domestic | 1,110 | 1,109 | 2 | 5 | 6 | ||||
Chili's international | 4 | 4 | — | — | — | ||||
Maggiano's domestic | 48 | 50 | — | — | — | ||||
Total Company-owned | 1,162 | 1,163 | 2 | 5 | 6 | ||||
Franchise restaurants | |||||||||
Chili's domestic | 100 | 99 | 3 | 3 | 3 | ||||
Chili's international | 367 | 361 | 7 | 17 | 24-27 | ||||
Maggiano's domestic | 3 | 3 | — | — | — | ||||
Total franchise | 470 | 463 | 10 | 20 | 27-30 | ||||
Total Company-owned and franchise | |||||||||
Chili's domestic | 1,210 | 1,208 | 5 | 8 | 9 | ||||
Chili's international | 371 | 365 | 7 | 17 | 24-27 | ||||
Maggiano's domestic | 51 | 53 | — | — | — | ||||
Total | 1,632 | 1,626 | 12 | 25 | 33-36 | ||||
NON-GAAP INFORMATION AND RECONCILIATIONS
Comparable Restaurant Sales
| |||||||||||||||
Comparable Restaurant | Price Impact | Mix-Shift Impact(2) | Traffic Impact | ||||||||||||
Q3:26 vs 25 | Q3:25 vs 24 | Q3:26 vs 25 | Q3:25 vs 24 | Q3:26 vs 25 | Q3:25 vs 24 | Q3:26 vs 25 | Q3:25 vs 24 | ||||||||
Company-owned | 3.3 % | 28.2 % | 4.7 % | 4.6 % | 0.6 % | 5.9 % | (2.0) % | 17.7 % | |||||||
Chili's | 4.0 % | 31.6 % | 4.6 % | 4.4 % | 0.6 % | 6.3 % | (1.2) % | 20.9 % | |||||||
Maggiano's | (4.6) % | 0.4 % | 5.2 % | 7.3 % | 0.6 % | 1.3 % | (10.4) % | (8.2) % | |||||||
Franchise(3) | 5.7 % | 12.8 % | |||||||||||||
5.6 % | 24.1 % | ||||||||||||||
International | 5.7 % | 5.8 % | |||||||||||||
Chili's domestic(4) | 4.1 % | 31.1 % | |||||||||||||
System-wide(5) | 3.6 % | 25.9 % | |||||||||||||
(1) | Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full |
(2) | Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change |
(3) | Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements |
(4) | Chili's domestic Comparable Restaurant Sales percentages are derived from sales generated by Company- |
(5) | System-wide Comparable Restaurant Sales are derived from sales generated by Chili's and Maggiano's |
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.
Q3 26 | EPS Q3 26 | Q3 25 | EPS Q3 25 | ||||
Net income, GAAP | $ 127.9 | $ 2.87 | $ 119.1 | $ 2.56 | |||
Special items - Other (gains) and charges(1) | 2.1 | 0.05 | 9.0 | 0.19 | |||
Income tax effect related to special items(2) | (0.6) | (0.01) | (2.3) | (0.05) | |||
Special items, net of taxes | 1.5 | 0.04 | 6.7 | 0.14 | |||
Adjustment for special tax items(3) | (0.4) | (0.01) | (2.5) | (0.04) | |||
Net income, excluding special items, non-GAAP | $ 129.0 | $ 2.90 | $ 123.3 | $ 2.66 |
(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 | |||||||||
Q3 26 | Q3 25 | Q3 26 | Q3 25 | Q3 26 | Q3 25 | ||||||
Operating income - GAAP | $ 4.6 | $ 10.7 | |||||||||
Operating income as a % of Total revenues | 15.4 % | 15.2 % | 4.3 % | 8.8 % | 11.3 % | 11.0 % | |||||
Operating income - GAAP | $ 4.6 | $ 10.7 | |||||||||
Less: Franchise revenues | (14.5) | (11.9) | (0.2) | (0.2) | (14.7) | (12.1) | |||||
Plus: Depreciation and amortization | 47.6 | 48.9 | 4.6 | 3.5 | 55.0 | 54.7 | |||||
General and administrative | 13.2 | 12.7 | 1.3 | 2.5 | 58.4 | 58.3 | |||||
Other (gains) and charges | 1.8 | 2.7 | — | 0.8 | 2.1 | 9.0 | |||||
Restaurant operating margin, non-GAAP | $ 10.3 | $ 17.3 | |||||||||
Restaurant operating margin as a % of Company sales, non-GAAP | 19.1 % | 19.4 % | 9.6 % | 14.3 % | 18.4 % | 18.9 % | |||||
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 | ||||||
Q3 26 | Q3 25 | Q3 26 | Q3 25 | ||||
Net income - GAAP | $ 127.9 | $ 119.1 | $ 355.9 | $ 276.1 | |||
Provision for income taxes | 28.8 | 24.7 | 66.5 | 51.7 | |||
Other income, net | (0.2) | (0.1) | (0.8) | (0.7) | |||
Interest expenses | 10.1 | 13.2 | 31.3 | 42.2 | |||
Depreciation and amortization | 55.0 | 54.7 | 163.2 | 148.7 | |||
Other (gains) and charges | 2.1 | 9.0 | 3.5 | 30.0 | |||
Adjusted EBITDA, non-GAAP | $ 223.7 | $ 220.6 | $ 619.6 | $ 548.0 | |||
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