Brinker International Reports Strong Q4, Authorizes $750 Million Share Buyback
The Chili's parent company delivered its fifth consecutive year of same-store sales growth while expanding its share repurchase program and providing optimistic fiscal 2027 guidance.
Strong Quarter Caps Five-Year Growth Streak
Brinker International, Inc. (NYSE: EAT) reported fourth quarter fiscal 2026 results on August 12, 2026, marking the completion of "five consecutive years of Chili's same-store sales growth, delivering an unprecedented 71% cumulative increase over that time," according to President and CEO Kevin Hochman (8-K filing, 2026-08-12).
Company sales reached $1,521.2 million in the quarter ended June 24, 2026, compared to $1,448.9 million in the prior-year period. Comparable restaurant sales increased 5.0% company-wide, with Chili's posting 5.6% growth driven by positive traffic and menu pricing, while Maggiano's declined 2.5% (8-K filing, 2026-08-12).
Net income per diluted share rose 30.0% to $2.99, while the non-GAAP measure excluding special items increased 23.3% to $3.07 (8-K filing, 2026-08-12). Operating income reached $167.0 million, or 10.9% of total revenues, up from 9.8% in the year-ago quarter.
Full-Year Performance and Margin Expansion
For the full fiscal year 2026, total revenues climbed to $5,807.4 million from $5,384.2 million, with comparable restaurant sales up 8.1%. Operating income as a percentage of total revenues expanded 120 basis points to 10.7% (8-K filing, 2026-08-12).
The company generated net income of $487.0 million, or $10.87 per diluted share, compared to $383.1 million, or $8.32 per share, in fiscal 2025. Restaurant operating margin as a percentage of company sales improved to 17.8% from 17.5% (8-K filing, 2026-08-12).
Aggressive Capital Allocation
Brinker's board authorized $718.0 million in additional share repurchases on August 10, 2026, bringing total available authority under its repurchase program to $750.0 million. During fiscal 2026, the company repurchased $400.0 million of its common stock (8-K filing, 2026-08-12). MarginX data shows recent insider selling activity by director Frances L. Allen.
The company also redeemed $350.0 million in 8.25% notes on July 16, 2026, funded through its revolving credit facility. Additionally, Brinker executed an agreement to acquire 12 Chili's restaurants in Alabama and Mississippi, including real estate for six locations, with closing expected August 27, 2026 (8-K filing, 2026-08-12).
Fiscal 2027 Outlook
Management provided fiscal 2027 guidance of $6.15 billion to $6.27 billion in total revenues and $12.60 to $13.40 in non-GAAP net income per diluted share. The outlook includes a 53rd operating week in the fourth quarter, estimated to contribute approximately 2.0% to revenues and $0.70 to earnings per share (8-K filing, 2026-08-12).
The company expects capital expenditures of $265.0 million to $285.0 million and diluted weighted average shares of 42.0 million to 43.0 million (8-K filing, 2026-08-12).
Hochman noted that "Chili's momentum accelerated in July with the sustained success of the Big Crispy chicken sandwich and other brand initiatives," attributing performance to investments in food quality, service, atmosphere, and marketing (8-K filing, 2026-08-12).
Brinker will report first quarter fiscal 2027 results on October 28, 2026, according to MarginX data.
This article was generated by MarginX from the 8-K filing on 2026-08-12. It is not investment advice.