Q2 Chili's same-store sales were at +8.6%, outpacing the casual dining industry by 680 basis points. This was our 19th consecutive quarter of same-store sales growth with a three-year cumulative comp of 50% and a four-year comp of 62%. Chicken sandwiches is a very large market, with over 80% of people buying them at least once last year, and is by far the biggest segment of all restaurant chicken servings. When we started this turnaround, third-party syndicated data placed us at the bottom or near the bottom of our competitive set in all seven of their key metrics that correlate to future sales growth.

The other important takeaway from this data is where we have repositioned ourselves on value, which allows us a long runway for growth. Maggiano's is now only 8% of our company sales and 3% of our profit contribution, but it can be a source of growth in the future, given the white space opportunities. I know many of us on this call view the storm through a lens of what it will do to sales or earnings, but on the ground, it's a whole lot more than that. Brinker successfully comped the comp, delivering another quarter of positive same-store sales growth, led by 8.6% growth at Chili's, lapping a 31.4% increase from the prior year.

With fiscal 2026 more than halfway complete, we expect to achieve our fifth consecutive year of same-store sales growth and second consecutive year of traffic gains, demonstrating our continued momentum and sustained growth. By focusing on the fundamentals of food, service, and atmosphere, we continue to improve operations, bring guests back, and deliver consistent, positive growth. For the second quarter, Brinker reported total revenues of $1.45 billion, an increase of 7% over the prior year, with consolidated comp sales of +7.5%. Our adjusted diluted EPS for the quarter was $2.87, up from $2.80 last year.

What went well
  • Chili's same-store sales grew 8.6%, beating the casual dining industry by 680 basis points in its 19th consecutive quarter of comp growth (a four-year cumulative comp of 62%).
  • Total revenue rose 7% to $1.45 billion and adjusted diluted EPS increased to $2.87 from $2.80, with adjusted EBITDA up 3.6% to approximately $223.5 million.
  • Menu relaunches drove volume (Skillet Queso lineup +20%, nachos 170% bigger, bacon burger +30-43%) and the 'Wicked' Margarita of the Month sold roughly 1.5 million more drinks than a typical monthly margarita.
  • Guest metrics improved sharply, with guests-with-a-problem down to 2.1% from 2.9% and Chili's now ranking top-three in all seven syndicated perception metrics; it was the #1 traffic brand in casual dining for 2025.
  • The company raised full-year guidance (revenue $5.76-5.83 billion, adjusted EPS $10.45-10.85) and repurchased $100 million of stock, while Maggiano's comps improved to -2.4% and beat internal expectations.
What went wrong
  • Brinker-level restaurant operating margin declined 30 basis points to 18.8%, mainly on Maggiano's sales deleverage and the investments needed to stabilize that brand.
  • Winter Storm Fern forced closures estimated at roughly $20 million in lost revenue and a $0.15 hit to adjusted diluted EPS.
  • Maggiano's same-store sales were still negative at -2.4%, and the brand now represents only about 8% of company sales and 3% of profit.
  • Food and beverage costs were unfavorable 20 basis points on menu mix, and advertising, G&A and depreciation each rose modestly while the tax rate increased to 18.8%.

More on Brinker International, Inc

Reported 2026-01-28 · figures from the Brinker International, Inc Q2 2026 earnings call.

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