EAT earnings analysis
What we found in EAT's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $10.87
- Operating margin
- 10.7%
- Segment
- Chili's: $5,352.6 million revenue in fiscal 2026, up 9.6%; $792.6 million operating income
- Segment
- Maggiano's: $454.8 million revenue, down 9.3%; $16.5 million operating income
- Segment
- Corporate: $(189.2) million operating loss
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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