Brinker International closed fiscal year 2026 with Chili's Grill & Bar posting a 5.6% comparable-restaurant sales gain in the fourth quarter — capping five consecutive years of positive comps and a cumulative 71% increase over that span. Total company sales for the quarter ended June 24, 2026 reached $1.52 billion, up from $1.45 billion in the same period a year ago, while full-year company sales came in at $5.75 billion versus $5.34 billion in fiscal 2025.
The Numbers
Chili's was the clear engine. For the full fiscal year, Chili's comparable-restaurant sales rose 9.2%, driven by a 3.6% traffic gain, 4.4% pricing, and 1.2% favorable mix-shift. Franchisees tracked similarly, with domestic Chili's franchise comps up 9.4% for the year. Maggiano's Little Italy was a drag, posting a 3.9% full-year comp decline on a 9.3% traffic drop, partly offset by 5.0% menu pricing. Full-year net income reached $487.0 million, up from $383.1 million, and diluted EPS on a non-GAAP basis came in at $10.74 versus $8.90 in fiscal 2025 — a 20.7% improvement. Adjusted EBITDA for the year hit $847.2 million, up from $760.4 million. Restaurant operating margin for the full system held at 17.8% of company sales on a non-GAAP basis, a 30-basis-point improvement over prior year.
Food and beverage cost headwinds were present in Q4, with management citing higher beef prices and a temporary spike in produce costs tied to a late-season freeze in Florida. Those pressures were largely absorbed by sales leverage: Chili's company restaurant expenses as a percentage of company sales fell 40 basis points year over year to 81.4% in the quarter.
Acquisitions and Capital Deployment
Brinker's 1,635-unit system grew by 33 net openings in fiscal 2026, the majority coming from international Chili's franchisees, which added 23 locations to reach 370 units outside the U.S. On the domestic front, the company struck an agreement to acquire 12 Chili's restaurants in Alabama and Mississippi from a franchisee — including real estate for six of those locations — with the transaction expected to close August 27, 2026. The deal follows a pattern of selective refranchisee buybacks that operators in the casual-dining segment have used to reabsorb high-performing units.
Capital return was aggressive. Brinker repurchased $400 million of its common stock during the fiscal year using operating cash flow, and the board on August 10, 2026 authorized a total of $750 million under the existing repurchase program. The company also redeemed $350 million in 8.25% notes in July, funding the payoff through its revolving credit facility.
FY2027 Outlook
For fiscal 2027 — which includes a 53rd operating week in Q4 — Brinker guided total revenues of $6.15 billion to $6.27 billion, with non-GAAP diluted EPS of $12.60 to $13.40. The extra week alone is estimated to contribute approximately 2.0% to total revenues and $0.70 to non-GAAP EPS. Capital expenditures are projected at $265 million to $285 million. Management pointed to sustained momentum in July — anchored by the Big Crispy chicken sandwich — as evidence that the brand's value proposition and menu innovation cycle remain intact heading into the new fiscal year.
For foodservice operators and c-store chains benchmarking casual-dining category performance, Chili's trajectory is notable: the brand has consistently outperformed the broader casual-dining index on traffic, a metric that has proven elusive across much of the restaurant industry as value-seeking consumers weigh their away-from-home dining options.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
