Q3 Chili's same-store sales of +4% marked our twentieth consecutive quarter of same-store sales growth and outpaced the casual dining industry by 420 basis points. While our competitors ramp up limited time offers, we spent the quarter investing time in operations, training, and culinary resources into everyday capability that more closely correlates with long-term sustainable traffic growth. Food grade finished at 75%, and intent to return was also an all-time best at 79%. New guests are coming into the restaurants and following the pattern of existing guests on frequency, which gives us confidence growth will continue to sustain.

As I said earlier, we have accelerated our sales outperformance versus the industry to 560 basis points in April, which only includes two weeks of chicken sandwiches. I also want to give an update on our North of Six initiative and how it will be a key to continued sustainable comp growth. A question we get asked a lot is, "With all the traffic growth you've had the past few years, do you still have capacity for more?" Let me start with the numbers. I look forward to sharing new additional initiatives, which should be a continual tailwind for traffic on future earnings calls.

This quarter marks our twentieth consecutive quarter of same-store sales growth and our second year of traffic gains, evidence of the durability of our results and the sustainability of our strategy. We maintained strong business momentum this quarter, achieving positive same-store sales despite last year's positive 31% comparison, including 4% growth at Chili's. While Winter Storm Blair affected Chili's January sales, growth returned to mid-single digits after weather conditions improved. Turning to our financial results, in the third quarter, Brinker reported total revenues of $1.47 billion, an increase of 3.2% over the prior year, with consolidated comp sales of positive 3.3%.

What went well
  • Chili's posted its 20th consecutive quarter of same-store sales growth at +4%, outpacing the industry by 420 basis points, and became the #2 casual dining brand for sales while remaining #1 in traffic.
  • Total revenue grew 3.2% to $1.47 billion and adjusted diluted EPS rose to $2.90 from $2.66, with adjusted EBITDA up 1.4% to $223.7 million.
  • The mid-April Big Crispy chicken sandwich launch was selling 161% more sandwiches than pre-launch, and industry outperformance accelerated from 320 basis points in February to about 560 basis points in April.
  • Guest metrics kept improving (guests-with-a-problem at 1.9%, intent-to-return an all-time best 79%) and the adjusted tax rate fell to 18.7% from 19.3%.
  • The company repurchased $108 million of stock, raised full-year guidance (revenue $5.78-5.82 billion, adjusted EPS $10.60-10.85), and planned to redeem its $350 million 8.25% bonds early for interest savings.
What went wrong
  • Winter Storm Blair and a holiday shift cut roughly 2.1% from sales and pushed Chili's traffic negative at -1.2% for the quarter.
  • Maggiano's remained weak with comp sales down 4.6% and traffic down 10.4%.
  • Brinker restaurant operating margin declined to 18.4% from 18.9% on higher food and beverage and restaurant expenses.
  • Food and beverage costs were unfavorable 60 basis points with 4.6% commodity inflation (mainly beef), and restaurant expense was unfavorable 50 basis points on repairs, maintenance and general inflation.

More on Brinker International, Inc

Reported 2026-04-29 · figures from the Brinker International, Inc Q3 2026 earnings call.

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