The quarter was essentially a revenue beat but an earnings miss. Brinker generated $1.536 billion of total revenue versus published consensus of roughly $1.53 billion, while adjusted diluted EPS of $3.07 fell just below the roughly $3.10 expectation. That makes the scorecard a narrow miss rather than a clean upside surprise.
| Metric | Q4 FY26 | Q4 FY25 | Change | Market expectation |
|---|---|---|---|---|
| Total revenue | $1,535.8M (Financial Highlights) | $1,461.9M (Financial Highlights) | +$73.9M | ~$1.53B |
| Comparable sales | +5.0% (Comparable Restaurant Sales) | +19.8% system-wide (Comparable Restaurant Sales) | — | — |
| Adjusted diluted EPS | $3.07 (Non-GAAP reconciliation) | $2.49 (Non-GAAP reconciliation) | +$0.58 | ~$3.10 |
| GAAP diluted EPS | $2.99 (Income Statement) | $2.30 (Income Statement) | +$0.69 | — |
| Operating margin | 10.9% (Financial Highlights) | 9.8% (Financial Highlights) | +1.1 pts | — |
| Adjusted EBITDA | $227.6M (Adjusted EBITDA reconciliation) | $212.4M (Adjusted EBITDA reconciliation) | +$15.2M | — |
Chili’s remains the engine, but the headline growth is moderating. Chili’s comparable sales rose 5.6%, supported by positive traffic, and its restaurant-level margin expanded to 18.6% from 18.2% (Segment results — Chili’s). That is still healthy execution, but it follows much larger prior-year gains, including 23.7% Chili’s comparable-sales growth in the year-ago quarter (Comparable Restaurant Sales). The market already knew the brand had strong momentum; this filing confirms durability more than it creates a fresh acceleration.
Maggiano’s was the clear drag on the consolidated result. Sales declined 7.8% year over year, restaurant-level margin fell to 10.3% from 13.3%, and GAAP operating income dropped to $1.0 million from $13.4 million (Segment results — Maggiano’s). The weakness was not large enough to overwhelm Chili’s, but it helps explain why a strong sales quarter did not translate into an earnings beat.
The FY27 outlook is better than the quarterly miss suggests. Management guided to $6.15 billion-$6.27 billion of revenue and $12.60-$13.40 of adjusted EPS, versus FY26 actual revenue of $5.807 billion and adjusted EPS of $10.74 (FY27 Guidance; Non-GAAP reconciliation). The midpoint implies roughly 7% revenue growth and 21% adjusted EPS growth, although the 53rd operating week contributes about 2% of revenue growth and $0.70 of EPS (FY27 Guidance). The company also authorized $750 million for repurchases after buying back $400 million in FY26 (Capital allocation disclosure). Net: operational momentum and guidance are constructive, but the immediate earnings print itself landed slightly below the bar.
Read the original 8-K on SEC EDGAR ↗