Brinker International (EAT) Q2 2026 earnings summary

Executive summary

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

• Net income for the quarter was $128.5 million, up from $118.5 million, with operating income rising to $168.4 million.

• Menu upgrades, operational improvements, and marketing drove guest traffic and retention, with new product launches boosting sales.

• Maggiano's segment saw a 2.4% same-store sales decline and lower traffic, but sequential improvement and ongoing turnaround efforts.

• Repurchased $100 million in common stock during the quarter.

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 $1,304.1 million.

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

• Restaurant operating margin was 18.8%, with Chili's margin up 40 bps YoY.

• Adjusted EBITDA was $223.5 million, a 3.6% increase from prior year.

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

Outlook and guidance

• Fiscal 2026 guidance raised: annual revenues expected at $5.76–$5.83 billion, adjusted diluted EPS at $10.45–$10.85, and capital expenditures at $250–$260 million.

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

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

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

• Continued focus on value offerings, digital investments, and international franchise expansion.