10-Q · April 29, 2026
Brinker International (EAT) reported Q3 2026 results with revenues of $1.47 billion, a slight miss against estimates of $1.48 billion, while EPS came in at $2.90, exceeding expectations of $2.86. Segment performance…
Earnings analysis · 10-K
EAT earnings analysis
Filed August 19, 2026 · Our reading of the company's report
The latest report
Brinker delivered a strong fiscal 2026, with revenue up to $5,807.4 million, operating margin expanding to 10.7%, diluted EPS rising to $10.87 and operating cash flow reaching $789.4 million. Performance was heavily…
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Brinker delivered a strong fiscal 2026, with revenue up to $5,807.4 million, operating margin expanding to 10.7%, diluted EPS rising to $10.87 and operating cash flow reaching $789.4 million. Performance was heavily concentrated in Chili's, whose comparable sales and operating income increased, while Maggiano's posted a 9.3% revenue decline, a 3.9% comparable-sales decline and $5.4 million of impairment charges. Aggressive buybacks and lower interest expense supported per-share results, but the post-year-end refinancing and continued Maggiano's weakness temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $10.87
- Operating margin
- 10.7%
What stood out
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Revenue and margins continued to expand
Fiscal 2026 total revenue increased to $5,807.4 million from $5,384.2 million in fiscal 2025 and $4,415.1 million in fiscal 2024. Operating income rose to $619.9 million, producing a 10.7% operating margin versus 9.5% and 5.2% in the prior two years.
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Three-year EPS acceleration
Diluted EPS increased to $10.87 from $8.32 in fiscal 2025 and $3.40 in fiscal 2024. Net income reached $487.0 million, compared with $383.1 million and $155.3 million, respectively.
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Chili's delivered the operating momentum
Chili's was the principal growth engine: revenue rose 9.6% to $5,352.6 million, while company-owned comparable sales increased 9.2% and Chili's domestic comparable sales increased 9.4%. Chili's operating income increased to $792.6 million from $644.0 million.
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Operating cash flow reached a record
Cash generation strengthened, with net cash provided by operating activities increasing to $789.4 million from $679.0 million in fiscal 2025 and $421.9 million in fiscal 2024. Capital expenditures were $231.9 million, including increased spending on Chili's and Maggiano's re-images.
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Buybacks and lower interest burden
Capital allocation emphasized share reduction and balance-sheet management: Brinker repurchased 2.9 million shares for $400.0 million during fiscal 2026, while interest expense declined to $40.5 million from $53.1 million after lower average debt balances.
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Focused strategy with a large footprint
The strategy centers on increasing sales and profits at existing restaurants, evolving marketing and branding, investing in digital guest experiences, re-imaging restaurants, simplifying operations, and selectively expanding. The system totaled 1,635 restaurants, including 1,583 Chili's and 52 Maggiano's locations.
What to watch
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Maggiano's traffic and impairment risk
Maggiano's remains a material weak spot: revenue declined 9.3% to $454.8 million, comparable sales fell 3.9% and traffic declined 9.3%. The company recorded $5.4 million of impairment charges primarily related to five underperforming Maggiano's restaurants, versus no comparable Maggiano's impairment charge in fiscal 2025.
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Refinancing shifts debt to revolver
The company redeemed its $350.0 million of 8.25% notes after year-end for total cash outflow of $378.9 million, funded with borrowings under the revolving credit facility. Although $969.9 million was available at June 24, 2026, refinancing increases exposure to variable-rate debt, with the facility carrying a 4.90% interest rate at year-end.
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Geographic and Chili's concentration
Operating concentration raises regional and brand-level exposure: 19.2% of company-owned restaurants were in Texas, 11.8% in Florida and 9.2% in California as of June 24, 2026. In addition, Chili's represented $5,352.6 million of the $5,807.4 million of consolidated revenue, so adverse publicity or operating disruption at Chili's could materially affect results.
Management's outlook
The 10-K does not provide quantitative fiscal 2027 revenue or EPS guidance; annual outlook was provided in the fiscal 2026 earnings press release and call rather than this filing.
Earlier filings 4
10-Q · January 28, 2026
Brinker reported a solid quarter with revenues of $1,452.2M and diluted EPS of $2.86, beating prior-year quarter results and the consensus. Operating income improved to $168.4M (11.6% operating margin) while operating…
10-Q · April 29, 2025
Brinker reported strong year-over-year improvement: total revenues of $1,425.1 million and diluted EPS of $2.56 for the thirteen weeks ended March 26, 2025, both well ahead of the prior year. Operating income expanded…
10-Q · January 29, 2025
Brinker reported a strong quarter: total revenues of $1,358.2 million (thirteen weeks ended December 25, 2024) and diluted EPS of $2.61, both well above the prior-year quarter. Operating margin expanded to ~11.5% driven…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.