Brinker International reported its third‑quarter fiscal 2026 results on April 29, 2026, posting revenue of $1.47 billion and adjusted diluted earnings per share of $2.90, a $0.03 beat over the consensus estimate of $2.87. The company also lifted its full‑year revenue and non‑GAAP EPS guidance, signaling confidence in continued performance.
Total revenue rose 3.3% year‑over‑year, driven by a 4.0% increase in Chili’s same‑store sales and a 4.6% decline in Maggiano’s comparable sales. Chili’s maintained its 20th consecutive quarter of same‑store growth, while Maggiano’s faced headwinds from lower traffic and the impact of restaurant closures. The mix shift toward higher‑margin Chili’s restaurants helped offset the weaker performance of the legacy brand.
Operating margin slipped to 18.4% from 18.9% in the prior year, a 50‑basis‑point compression attributed to an unfavorable menu‑item mix and rising labor costs. The decline was partially offset by sales leverage, as higher same‑store sales helped maintain overall profitability. The margin compression reflects the company’s ongoing effort to balance cost pressures with revenue growth.
President and CEO Kevin Hochman highlighted Chili’s momentum, noting that the brand delivered its 20th consecutive quarter of same‑store sales growth and recovered quickly from January weather headwinds. He also acknowledged Maggiano’s challenges, citing lower traffic and restaurant closures as key factors behind the brand’s decline. The comments underscore the company’s focus on sustaining Chili’s growth while working to revitalize Maggiano’s.
Brinker raised its full‑year revenue guidance to $1.47 billion for the quarter and increased its non‑GAAP EPS guidance, reflecting management’s confidence in the company’s operating performance and the resilience of its core brands. The guidance lift signals a positive outlook for the remainder of the fiscal year.
Investors reacted positively to the earnings beat and guidance raise, with the market citing the strong Chili’s performance, the EPS beat, and the company’s confidence in its growth trajectory as key drivers of the favorable response.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.