Brinker Posts 21st Straight Quarter of Same-Store Sales Growth as Chili's Turnaround Gains Momentum
The casual dining operator reported Q4 same-store sales growth of 6% at Chili's, driven by value positioning and operational improvements, as Big Crispy sandwich surpasses prior launches.
Strong Quarter Caps Five-Year Growth Streak
Brinker International closed fiscal 2026 with consolidated comparable sales growth of 5% in the fourth quarter, marking the 21st consecutive quarter of same-store sales growth at its flagship Chili's brand (earnings call, 2026-08-12). The company reported total revenues of $1.536 billion and adjusted diluted earnings per share of $3.07, up 23% from $2.49 in the prior year period.
Chili's same-store sales grew 5.6% in the quarter, "rolling a plus 24% from last year and a plus 15% from 2 years ago for a 3-year cumulative comp of 50%," according to CEO Kevin Hochman (earnings call, 2026-08-12). The growth was driven by price of 4.3% and positive traffic of 1.5%, partially offset by negative mix of 0.2%.
For the full fiscal year, Brinker reported total revenue growth of 7.9%, restaurant operating margin improvement of 30 basis points, and adjusted EPS growth of 20.6%. Average annual unit volumes at Chili's increased from "just over $4.5 million at the end of last fiscal year to $5 million this year," CFO Mika Ware said (earnings call, 2026-08-12).
Big Crispy Launch Exceeds Expectations
The company's Big Crispy chicken sandwich launch has significantly outperformed expectations. Hochman reported that Chili's "were selling 20 chicken sandwiches per restaurant per day pre-Big Crispy launch. By the end of Q4, we were selling 55 sandwiches per restaurant per day, an increase of 175%" (earnings call, 2026-08-12). The product has surpassed both the 2024 Big Smasher and 2025 Big QP launches in performance.
The marketing strategy continues to resonate with consumers. Third-party data from YouGov reported that "Q4 was Chili's highest level of buzz across all cohorts ever recorded," Hochman noted (earnings call, 2026-08-12). The quarter's marketing highlights included the Big Crispy launch, a remake of the brand's 1985 Baby Back Ribs jingle commercial featuring Lizzo, and the Margarita of the Month program.
Operational Efficiency Gains
Brinker has implemented several operational improvements to support throughput and reduce friction. The company simplified its shift line checks "from 8 pages to 1 page and freed up 30 minutes of manager time per day," equivalent to "22 years of manager time freed up annually across our system," according to Hochman (earnings call, 2026-08-12).
The company also rolled out an upgraded loyalty rewards redemption system that automatically applies discounts at payment, reducing manager intervention and improving table turns. These improvements are part of a broader cycle time reduction initiative aimed at enhancing both guest and team member experience.
Maggiano's Turnaround Progressing Slowly
While Chili's continues to drive results, the turnaround at Maggiano's has been "mixed," representing just 8% of company sales. Hochman acknowledged that "while we're headed in the right direction, the turnaround is happening slower than we had planned" (earnings call, 2026-08-12). The brand has made progress on operational and culinary improvements, but these gains have been partially offset by losses with core guests from prior strategies.
Manager retention continues to improve, with "almost 80% of GMs now earn more than $100,000 this past fiscal," Hochman reported (earnings call, 2026-08-12). Both manager and hourly turnover rates are now running ahead of industry averages.
This article was generated by MarginX from the earnings call on 2026-08-12. It is not investment advice.