Brinker International, Inc.

Brinker reported Q4 total revenues of $1.536 billion and consolidated comp sales of +5%. Adjusted diluted EPS was $3.07 versus $2.49 a year ago, up 23%. For FY26, total revenue growth was 7.9%, restaurant operating margin improved 30 basis points, and adjusted EPS grew 20.6%. Q4 adjusted EBITDA was approximately $228 million, up 7.1% year over year; Brinker restaurant operating margin was 18%, up 20 bps. Chili’s Q4 comps were +5.6% (1.5% traffic, 4.3% price, -0.2% mix), while Maggiano’s comps were -2.5% (-5.3% traffic, 2.9% price, -0.1% mix). FY27 guidance calls for revenue of $6.15 billion to $6.27 billion, adjusted diluted EPS of $12.60 to $13.40, weighted average shares of 42 million to 43 million, and capital expenditures of $265 million to $285 million. Management said the 53rd week should add about 2% to total revenue and $0.70 to EPS. They also guided to planned commodity and wage inflation in the low single digits, a tax rate of about 19%, 3 net new company-owned openings, and the acquisition of 12 Chili’s franchise restaurants in Alabama and Mississippi.

Kevin Hochman framed Chili’s turnaround as durable and driven by a consistent formula: strong value, better food/service/atmosphere, and operational simplification. He emphasized that the brand continues to win with traffic, pointing to 20 straight quarters of same-store sales growth and a Big Crispy Chicken Sandwich launch that exceeded expectations. His tone was confident and expansive, repeatedly saying the business has more runway through menu innovation, cycle-time improvements, and throughput work.

Michaela Ware focused on the numbers and the guidance bridge. She highlighted FY26 revenue growth of 7.9%, 30 bps of restaurant margin improvement, 20.6% adjusted EPS growth, and Q4 adjusted EBITDA of about $228 million. She said Q4 food and beverage costs rose 80 bps because of 4.4% commodity inflation, labor was favorable 90 bps, advertising was 3% of sales, and G&A was 3.9% of revenue. On capital allocation, she noted nearly $400 million of repurchases in FY26, a new $750 million authorization, and the post-year-end redemption of $350 million of 8.25% bonds using revolver liquidity, which should lower FY27 interest expense. She also outlined FY27 CapEx of $265 million to $285 million, 3 new company-owned openings, and a planned 60 to 80 reimages, with 20 to 40 bps of margin improvement expected on a 52-week basis.

Analysts focused on FY27 comp assumptions, margin flow-through, the 53rd week, the margin outlook after compensation changes for restaurant leaders, and whether the recent sales acceleration is sustainable. Management said the guidance assumes mid-single-digit Chili’s same-store sales and positive traffic for the rest of the year, with room to beat if momentum continues. On margins, they said they are baking in inflation and protecting value, and that the FY27 model still only assumes 20 to 40 bps of restaurant margin improvement on a 52-week basis. They also said the 53rd week’s EPS contribution is a simple flow-through assumption, and that the 12-store franchise acquisition should be roughly flat to EPS because the restaurants are slightly below brand average and royalties were already being received.