Brinker International (EAT) Q2 2026 earnings summary

Executive summary

• Q2 FY26 total revenues reached $1,452.2 million, up from $1,358.2 million year-over-year, driven by Chili's strong same-store sales growth of 8.6% and higher franchise royalties.

• Net income for the quarter was $128.5 million, up from $118.5 million, with operating income at $168.4 million, reflecting improved sales and cost management.

• Chili's achieved its 19th consecutive quarter of same-store sales growth, outperforming the casual dining industry by 680 basis points and maintaining a two-year comp of 43%.

• Maggiano's segment sales declined 2.4% in Q2 FY26, with ongoing turnaround efforts and value improvements, while franchise revenues rose due to higher royalties and 10 new franchise openings.

• Menu innovation, operational improvements, and value positioning drove guest traffic and retention, with continued digital investments and marketing initiatives.

Financial highlights

• Company sales for the quarter were $1,438.8 million, with consolidated comp sales up 7.5% and Chili's company sales at $1,327 million.

• Adjusted diluted EPS was $2.87, up from $2.80 last year, and net income per diluted share was $2.86.

• Restaurant operating margin was 18.8% (down 30 bps year-over-year), with Chili's margin up 40 bps; adjusted EBITDA was $223.5 million, a 3.6% increase.

• Net cash provided by operating activities for the first half was $339.7 million, up from $281.0 million.

• Interest expenses decreased to $10.7 million from $14.7 million due to lower average debt balances.

Outlook and guidance

• Fiscal 2026 annual revenue guidance raised to $5.76–$5.83 billion, with adjusted diluted EPS of $10.45–$10.85.

• CapEx guidance lowered to $250–$260 million; weighted average shares at 44.7–45.2 million.

• Guidance includes a $20 million revenue and $0.15 EPS negative impact from Winter Storm Fern.

• Management expects to remain in compliance with debt covenants and maintain adequate liquidity for at least the next twelve months.

• Wage and commodity inflation anticipated in the low to mid-single digits for the year.