Q4 Chili's same-store sales of +6% marked our 21st consecutive quarter of same-store sales growth and again, significantly outpaced the industry. Fiscal 2026 saw this brand increase its lead as the number one casual dining traffic brand, and the results are sustaining year-after-year. We are very appreciative and proud that Chili's is one of the small handful of brands the American consumer trusts and we're willing to increase their visits to. By the end of Q4, we were selling 55 sandwiches per restaurant per day, an increase of 175%, and that number continues to build in the current quarter.

We continue to focus our efforts on both removing friction as well as improving restaurant throughput, as this is a key piece of our sustainable growth flywheel. The Ziosk software upgrade will reduce the manager time needed to resolve check issues, deliver faster table turns, and more importantly, improve the guest dining experience. The traffic growth reinvestment flywheel continues to spin and create sustainable, profitable growth. These updates are all contemplated in the FY 2027 Brinker guidance we have provided today.

As we close fiscal 2026, today's results highlight major milestones in Chili's growth journey. For the year, we reported total revenue growth of 7.9%, restaurant operating margin improvement of 30 basis points, and adjusted EPS growth of 20.6%. Turning to the fourth quarter, we continue to see strong year-over-year top-line growth, traffic well above industry averages, and restaurant margin expansion at Chili's. Our adjusted diluted EPS for the quarter was $3.07, up from $2.49 last year, a 23% increase.

What went well
  • Chili's delivered its 21st consecutive quarter of same-store sales growth (+5.6%) with positive traffic of 1.5%, capping five straight years of comp growth and two straight years of traffic gains.
  • Q4 total revenue reached $1.54 billion and adjusted diluted EPS rose 23% to $3.07 from $2.49; for the full year revenue grew 7.9%, adjusted EPS grew 20.6%, and average unit volumes climbed to $5 million from about $4.5 million.
  • The Big Crispy chicken sandwich scaled to 55 units per restaurant per day (up 175% from pre-launch) as Chili's biggest launch yet, and YouGov reported Q4 brand buzz was the highest ever recorded.
  • Adjusted EBITDA grew 7.1% to about $228 million, restaurant operating margin improved 20 basis points to 18%, labor was favorable 90 basis points, and the adjusted tax rate fell to 17.6% from 19.5%.
  • The company repurchased $100 million of stock (nearly $400 million for the year), lifted its buyback authorization to $750 million, redeemed its $350 million 8.25% bonds, and issued FY2027 guidance of $6.15-6.27 billion revenue and $12.60-13.40 adjusted EPS.
What went wrong
  • Food and beverage costs rose 80 basis points on 4.4% commodity inflation, driven by higher beef prices and a temporary tomato-price spike following a late Florida freeze.
  • Maggiano's comp sales fell 2.5% with traffic down 5.3%, and management called the turnaround 'mixed' and slower than planned as operational gains were offset by the loss of core guests.
  • Advertising expense increased 20 basis points to support the Big Crispy launch, and Chili's mix was slightly negative at -0.2%.

More on Brinker International, Inc

Reported 2026-08-12 · figures from the Brinker International, Inc Q4 2026 earnings call.

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