Brinker International, Inc.

What they do

Brinker owns, develops, operates, and franchises two casual dining brands: Chili's Grill & Bar and Maggiano's Little Italy. As of March 25, 2026, it operated or franchised 1,632 restaurants (1,162 company-owned, 470 franchised) in the U.S., 28 other countries, and two U.S. territories. Chili's is the flagship brand focused on core menu items like burgers, fajitas, Chicken Crispers, margaritas, and the Triple Dipper. Maggiano's offers Italian-American cuisine and caters to special occasions and large parties.

Revenue drivers

• Chili's Grill & Bar — Chili's is the primary revenue driver, with company sales contributing the vast majority of total revenues. In fiscal 2025, average annual sales per company-owned Chili's were $4.5 million, and average revenue per meal was about $21.90.
• Maggiano's Little Italy — Maggiano's is a smaller, polished casual dining brand with average annual sales per restaurant of $9.9 million and average revenue per meal of about $39.06 in fiscal 2025. Banquet/event sales made up 14.7% of its company sales in fiscal 2025.
• Franchise operations — Brinker earns franchise revenue from 470 franchised restaurants, primarily Chili's locations. International expansion through new development agreements is a stated growth avenue, with 20 new franchise openings in the first 39 weeks of fiscal 2026.

Recent performance

In fiscal 2026 (year ended June 24, 2026), total revenues were $5,807.4 million, up from $5,384.2 million in fiscal 2025. Net income rose to $487.0 million from $383.1 million, and diluted EPS increased to $10.87 from $8.32. Fourth quarter fiscal 2026 total revenues were $1,535.8 million, with company comparable restaurant sales up 5.0% (Chili's up 5.6%, Maggiano's down 2.5%). Management noted five consecutive years of Chili's same-store sales growth, with a cumulative 71% increase. During fiscal 2026, the company repurchased $400.0 million of common stock.

Strategy

Chili's strategy emphasizes a streamlined menu focused on five core equities, value offerings like '3 for Me' starting at $10.99, and investments in digital and technology (tabletop devices, handheld tablets, To-Go and delivery partnerships). The brand also uses the My Chili's rewards program to drive guest engagement. Maggiano's is executing a 'Back to Maggiano's' strategy to improve food, service, and atmosphere. International franchise expansion is planned through new development agreements.

Risks

• Consumer preference shifts — Changes in dietary trends or health perceptions could reduce demand for the company's food offerings.
• Macroeconomic pressures — Wage inflation, product cost inflation (including tariffs), and supply chain disruptions could compress margins and impact guest traffic.
• Execution of business strategy — If the business strategy plan is delayed or unsuccessful, gross sales and profitability could be adversely affected.
• Competition and discounting — Competitors employing similar strategies or discounting could pressure sales and market share.

Outlook

Management provided fiscal 2027 guidance in the August 2026 earnings release, though specific figures were not excerpted. The company expects continued momentum at Chili's, citing the success of the Big Crispy chicken sandwich and other initiatives. Management also highlighted a $750.0 million share repurchase authorization effective August 10, 2026, and a planned acquisition of 12 Chili's restaurants from a franchisee. The redemption of $350.0 million 8.25% notes was completed on July 16, 2026, funded via the revolving credit facility.