Brinker (NYSE: EAT) posts Q3 2026 growth and updates 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Brinker International reported higher results for the third quarter of fiscal 2026 and updated its full‑year outlook. Total revenues reached $1,470.2 million versus $1,425.1 million a year earlier, with net income of $127.9 million versus $119.1 million and diluted EPS of $2.87 versus $2.56.
Company comparable restaurant sales rose 3.3%, led by Chili’s at 4.0%, while Maggiano’s declined 4.6%. Chili’s delivered its 20th consecutive quarter of same‑store sales growth, helped by menu pricing and strong February and March traffic, partially offset by January weather impacts.
The company used operating cash flow to fully pay down its revolver and repurchased $108.0 million of stock in the quarter. For fiscal 2026, Brinker now guides total revenues to $5.78–$5.82 billion, non‑GAAP net income per diluted share to $10.60–$10.85, and expects capital expenditures of $240–$250 million.
Positive
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8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenues: $1,470.2 million
Net income: $127.9 million
Diluted EPS: $2.87
+5 more
8 metrics
Total revenues
$1,470.2 million
Third quarter fiscal 2026 vs $1,425.1 million in 2025
Net income
$127.9 million
Third quarter fiscal 2026 vs $119.1 million in 2025
Diluted EPS
$2.87
Third quarter fiscal 2026 vs $2.56 in 2025
Company comparable sales
3.3%
Q3 fiscal 2026 year-over-year increase
Chili’s comparable sales
4.0%
Q3 fiscal 2026 year-over-year increase
Share repurchases
$108.0 million
Common stock repurchased in Q3 fiscal 2026
FY 2026 revenue guidance
$5.78–$5.82 billion
Updated total revenues range for fiscal 2026
FY 2026 EPS guidance (non-GAAP)
$10.60–$10.85
Net income per diluted share excluding special items
Key Terms
Comparable Restaurant Sales, Restaurant operating margin, Adjusted EBITDA, non-GAAP, +1 more
5 terms
Comparable Restaurant Sales financial
"Company comparable restaurant sales increased 3.3% in the third quarter of fiscal 2026"
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.
Restaurant operating margin financial
"Restaurant operating margin, non-GAAP (1) was $267.4 million in Q3 2026"
Adjusted EBITDA financial
"Adjusted EBITDA, non-GAAP (1) was $223.7 million in the third quarter of fiscal 2026"
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.
non-GAAP financial
"Net income per diluted share, excluding special items, non-GAAP (1) was $2.90"
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.
FICA tip credit financial
"The effective income tax rate is lower than the statutory rate primarily due to leverage of the FICA tip credit"
A FICA tip credit is a payroll tax benefit tied to employee tips: when tipped workers report their tips, employers can reduce the Social Security and Medicare taxes they owe by the portion of those taxes that apply to the reported tips. For investors, this lowers a business’s labor-related tax costs and can modestly improve margins in industries with many tipped staff, like restaurants, acting like a small rebate that reduces operating expenses.
Earnings Snapshot
Total revenues: $1,470.2 million · Guidance included
Q3 2026
Total revenues
$1,470.2 million
+$45.1 million vs Q3 2025
Net income
$127.9 million
+$8.8 million vs Q3 2025
Diluted EPS
$2.87
+$0.31 vs Q3 2025
Company comparable restaurant sales
3.3%
Increase vs Q3 2025
Guidance
Updated fiscal 2026 guidance: total revenues $5.78–$5.82 billion, non-GAAP EPS $10.60–$10.85, and capital expenditures $240.0–$250.0 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2026
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
| (Registrant’s telephone number, including area code) | ||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
SECTION 2 – FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Conditions.
The information contained under this Item 2.02 in this Current Report on Form 8-K, including the Exhibit attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
On April 29, 2026, Brinker International, Inc. (the “Company”) issued a Press Release announcing its third quarter of fiscal 2026 results and updated guidance for fiscal 2026. A copy of the Press Release is attached hereto as Exhibit 99.1.
SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated April 29, 2026.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRINKER INTERNATIONAL, INC., a Delaware corporation | |||||||||||
| Dated: April 29, 2026 | By: | /S/ KEVIN D. HOCHMAN | |||||||||
| Kevin D. Hochman, | |||||||||||
| President and Chief Executive Officer | |||||||||||
| of Brinker International, Inc. and President | |||||||||||
| of Chili’s Grill & Bar and Maggiano's Little Italy | |||||||||||
| (Principal Executive Officer) | |||||||||||
Exhibit 99.1
BRINKER INTERNATIONAL REPORTS THIRD QUARTER OF FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 GUIDANCE
DALLAS (April 29, 2026) – Brinker International, Inc. (NYSE: EAT) today announced its financial results for the third quarter ended March 25, 2026.
Third Quarter Fiscal 2026 Financial Highlights
“Chili’s delivered its 20th consecutive quarter of same-store sales growth, up 4%, lapping a 31% increase a year ago,” said Kevin Hochman, President and CEO of Brinker International. “Guest demand remained strong in the quarter, recovering quickly after significant weather headwinds in January, driven by continuous improvements in food, service, and atmosphere, along with unmatched everyday value.”
Company sales were $1,455.5 million in the third quarter of fiscal 2026 compared to $1,413.0 million in the third quarter of fiscal 2025. Company comparable restaurant sales increased 3.3% in the third quarter of fiscal 2026, including 4.0% for Chili’s. Chili’s comparable restaurant sales for February and March both increased 5.9% with positive traffic, reflecting the underlying strength and momentum of the business. In contrast, Chili’s January comparable restaurant sales of 0.6% were adversely impacted by Winter Storm Fern and one fewer operating day resulting from a holiday shift.
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 $108.0 million of the Company’s common stock.
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 | $ | 1,455.5 | $ | 1,413.0 | $ | 42.5 | |||||||||||
| Total revenues | $ | 1,470.2 | $ | 1,425.1 | $ | 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
(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.
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 | $5.78 billion - $5.82 billion | $5.76 billion - $5.83 billion | |||||||||
| Net income per diluted share, excluding special items, non-GAAP | $10.60 - $10.85 | $10.45 - $10.85 | |||||||||
| Capital expenditures | $240.0 million - $250.0 million | $250.0 million - $260.0 million | |||||||||
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 | $ | 1,348.1 | $ | 1,292.2 | $ | 55.9 | $ | 107.4 | $ | 120.8 | $ | (13.4) | |||||||||||||||||||||||
Franchise revenues | 14.5 | 11.9 | 2.6 | 0.2 | 0.2 | — | |||||||||||||||||||||||||||||
| Total revenues | $ | 1,362.6 | $ | 1,304.1 | $ | 58.5 | $ | 107.6 | $ | 121.0 | $ | (13.4) | |||||||||||||||||||||||
Company restaurant expenses(1) | $ | 1,090.6 | $ | 1,042.1 | $ | 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, 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.
2
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 for the third quarter of fiscal 2026 compared to $237.4 million for the third quarter of fiscal 2025.
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 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 18.7% 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.
3
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, 28 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.
4
BRINKER INTERNATIONAL, INC.
Consolidated Statements of Comprehensive Income (Unaudited)
(In millions, except per share amounts)
| 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 | |||||||||||||||
5
BRINKER INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
| March 25, 2026 | June 25, 2025 | ||||||||||
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 | |||||||
6
BRINKER INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
| 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 | |||||||
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BRINKER INTERNATIONAL, INC.
Restaurant Summary
| Fiscal 2026 New Openings | |||||||||||||||||||||||||||||
| Total Restaurants Open at March 25, 2026 | Total Restaurants Open at March 26, 2025 | Third Quarter Openings | Fiscal Year Openings | Full Year Projected Openings | |||||||||||||||||||||||||
| 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 Sales(1) | 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 | % | |||||||||||||||||||||||||||||||||||||||||||
| U.S. | 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 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.
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(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.
| 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 | $ | 209.4 | $ | 197.7 | $ | 4.6 | $ | 10.7 | $ | 166.6 | $ | 156.9 | |||||||||||||||||||||||
| Operating income as a % of Total revenues | 15.4 | % | 15.2 | % | 4.3 | % | 8.8 | % | 11.3 | % | 11.0 | % | |||||||||||||||||||||||
| Operating income - GAAP | $ | 209.4 | $ | 197.7 | $ | 4.6 | $ | 10.7 | $ | 166.6 | $ | 156.9 | |||||||||||||||||||||||
| 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 | $ | 257.5 | $ | 250.1 | $ | 10.3 | $ | 17.3 | $ | 267.4 | $ | 266.8 | |||||||||||||||||||||||
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.
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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 | |||||||||||||||
FOR ADDITIONAL INFORMATION, CONTACT:
KIM SANDERS
INVESTOR RELATIONS
investor.relations@brinker.com
MEDIA RELATIONS
media.requests@brinker.com
(800) 775-7290
3000 OLYMPUS BOULEVARD
DALLAS, TEXAS 75019
10
FAQ
How did Brinker International (EAT) perform in Q3 fiscal 2026?
Brinker reported higher Q3 fiscal 2026 results, with total revenues of $1,470.2 million and net income of $127.9 million. Diluted EPS rose to $2.87 from $2.56, reflecting stronger profitability versus the prior year quarter.
What were Brinker International’s same-store sales trends in Q3 2026?
Company comparable restaurant sales increased 3.3% in Q3 2026. Chili’s rose 4.0%, marking its 20th consecutive quarter of growth, while Maggiano’s comparable restaurant sales declined 4.6% versus the prior-year period.
How did Chili’s perform for Brinker International in Q3 2026?
Chili’s delivered its 20th straight quarter of same-store sales growth, up 4.0% year over year. February and March comparable sales each increased 5.9% with positive traffic, offsetting weaker January results impacted by Winter Storm Fern and a holiday shift.
What is Brinker International’s updated fiscal 2026 revenue guidance?
Brinker now expects fiscal 2026 total revenues of $5.78–$5.82 billion. This tightens the prior range of $5.76–$5.83 billion and reflects management’s latest view of sales performance across Chili’s and Maggiano’s operations for the full year.
What EPS guidance did Brinker International provide for fiscal 2026?
For fiscal 2026, Brinker guides net income per diluted share excluding special items to $10.60–$10.85. This compares with prior guidance of $10.45–$10.85 and is based on non‑GAAP results excluding specified special items.
How much stock did Brinker International repurchase in Q3 2026?
During Q3 fiscal 2026, Brinker repurchased $108.0 million of its common stock. The company also used operating cash flow during the quarter to fully repay the outstanding amount on its revolving credit facility, reducing short‑term borrowings.
What capital expenditures does Brinker International expect for fiscal 2026?
Brinker expects fiscal 2026 capital expenditures of $240.0–$250.0 million. This updated range is lower than the previous $250.0–$260.0 million estimate and reflects anticipated spending on property, equipment, and restaurant investments across its brands.