BRINKER INTERNATIONAL REPORTS THIRD QUARTER OF FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 GUIDANCE

USA - English

• USA - English

DALLAS, April 29, 2026 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today announced its financial results for the third quarter ended March 25, 2026.

Third Quarter Fiscal 2026 Financial Highlights

"Chili's delivered its 20^th consecutive quarter of same-store sales growth, up 4%, lapping a 31% increase a year ago," said Kevin Hochman, President and CEO of Brinker International. "Guest demand remained strong in the quarter, recovering quickly after significant weather headwinds in January, driven by continuous improvements in food, service, and atmosphere, along with unmatched everyday value."

Company sales were $1,455.5 million in the third quarter of fiscal 2026 compared to $1,413.0 million in the third quarter of fiscal 2025. Company comparable restaurant sales increased 3.3% in the third quarter of fiscal 2026, including 4.0% for Chili's. Chili's comparable restaurant sales for February and March both increased 5.9% with positive traffic, reflecting the underlying strength and momentum of the business. In contrast, Chili's January comparable restaurant sales of 0.6% were adversely impacted by Winter Storm Fern and one fewer operating day resulting from a holiday shift.

Chili's continued strong performance is driven by a disciplined strategy focused on improving the fundamentals of food, service, and atmosphere, supported by ongoing menu innovation, everyday value, and attention‑capturing media and advertising that reinforce the Company's value proposition, drive trial among new guests, and strengthen loyalty. During the quarter, the Company utilized operational cash flow to pay the outstanding amount on the company's revolver and repurchased $108.0 million of the Company's common stock.

Financial results for the third quarter of fiscal 2026 and fiscal 2025 were as follows (in millions, except per share amounts and percentages):

Comparable Restaurant Sales⁽²⁾

Updates to Full Year Fiscal 2026 Guidance

We are providing the following updated select financial guidance for fiscal 2026:

The risks outlined in the Forward-Looking Statements paragraph of this press release, among other risks, could cause actual results to differ materially from forecasted results. We are unable to reliably forecast special items without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.

Third Quarter of Fiscal 2026 Operating Performance

Segment Performance

The table below presents selected financial information (in millions, except as noted) related to our segments' operational performance for the thirteen week periods ended March 25, 2026 and March 26, 2025:

Chili's

• Chili's Company sales increased primarily due to favorable comparable restaurant sales driven by menu pricing, partially offset by lower traffic.
• Chili's Company restaurant expenses, as a percentage of Company sales, increased primarily due to unfavorable commodity costs and menu item mix, higher manager salaries, repairs and maintenance, delivery fees and to-go supplies, and other restaurant expenses partially offset by sales leverage.
• Chili's franchisees generated sales of approximately $274.1 million for the third quarter of fiscal 2026 compared to $237.4 million for the third quarter of fiscal 2025.

Maggiano's

• Maggiano's Company sales decreased primarily due to unfavorable comparable restaurant sales and unfavorable impact of restaurant closures. Unfavorable comparable restaurant sales were driven by lower traffic, partially offset by menu pricing.
• Maggiano's Company restaurant expenses, as a percentage of Company sales, increased primarily due to sales deleverage, unfavorable menu item mix and commodity costs, higher delivery fees and to-go supplies, and other restaurant expenses, partially offset by lower hourly labor, manager bonus, and worker's compensation and general liability insurance.

Corporate

• On a GAAP basis, the effective income tax rate was 18.4% in the third quarter of fiscal 2026. The effective income tax rate is lower than the statutory rate of 21.0% primarily due to leverage of the FICA tip credit. Excluding the impact of special items, the effective income tax rate was an expense of 18.7% in the third quarter of fiscal 2026.

Webcast Information

Investors and interested parties are invited to listen to today's conference call, as management will provide further details of the quarter and business updates. A real-time audio webcast of the presentation can be accessed via the Events and Presentations section of the Brinker Investor Relations page. The call will be broadcast live today, April 29, 2026 at 8 a.m. CDT:

https://investors.brinker.com/events-and-presentations/

For those who are unable to listen to the live broadcast, a replay of the call will be available shortly thereafter.

Additional financial information, including statements of income which detail operations excluding special items, and comparable restaurant sales trends by brand, is also available on Brinker's website under the Financial Information section of the Investor tab.

Forward Calendar

• SEC Form 10-Q for the third quarter of fiscal 2026 filing on or before May 4, 2026
• Earnings release call for the fourth quarter of fiscal 2026 on August 12, 2026

Non-GAAP Measures

Brinker management uses certain non-GAAP measures in analyzing operating performance and believes that the presentation of these measures in this release provides investors with information that is beneficial to gaining an understanding of the Company's financial results. Non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in the tables below.

About Brinker

Brinker International, Inc. is one of the world's leading casual dining restaurant companies and home of Chili's^® Grill & Bar, and Maggiano's Little Italy.^® Founded in 1975 in Dallas, Texas, we've ventured far from home, but stayed true to our roots. Brinker owns, operates or franchises more than 1,600 restaurants in the United States, 28 other countries and two U.S. territories. Our passion is making everyone feel special, and we hope you feel that passion each time you visit one of our restaurants or invite us into your home through takeout or delivery. Learn more about Brinker and its brands at brinker.com.

Forward-Looking Statements

The statements and tables contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only based on our current plans and expectations as of the date such statements are made, and we undertake no obligation to update forward-looking statements to reflect events or circumstances arising after the date such statements are made. Forward-looking statements are neither predictions nor guarantees of future events or performance and are subject to risks and uncertainties which could cause actual results to differ materially from our historical results or from those projected in forward-looking statements. Such risks and uncertainties include, among other things, the impact of general economic conditions, including inflation, on economic activity and on our operations; disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, operations, technology and assets, and our financial performance; the impact of current and potential tariffs and trade barriers; the impact of competition, including competitors employing our same strategies or discounting their offerings; changes in consumer preferences, including shifts in their brand preferences; consumer perception of food safety; reduced consumer discretionary spending; governmental regulations; the effectiveness of the Company's business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management and team members; increasing regulation surrounding wage inflation and competitive labor markets; the impact of social media, including the potential governmental ban of platforms used by the Company in its marketing initiatives; reputational damage or unfavorable publicity for our brands, which may result from actions of franchisees not within our control; reliance on technology and third party delivery providers; failure to protect the security of data of our guests and team members; product availability and supply chain disruptions; regional business and economic conditions; volatility in consumer, commodity, transportation, labor, currency and capital markets; litigation; franchisee success; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; downgrades in credit ratings; changes in estimates regarding our assets; actions of activist shareholders; our pursuit of or failure to comply with new environmental and sustainability requirements; our pursuit of or failure to achieve any goals, targets or objectives with respect to sustainability matters; adverse weather conditions; terrorist acts; cybersecurity, artificial intelligence and phishing threats; health epidemics or pandemics; tax reform; inadequate insurance coverage; and limitations imposed by our credit agreements as well as the risks and uncertainties described in "Risk Factors" in our Annual Report on Form 10-K and future filings with the Securities and Exchange Commission.

Reconciliation of Net Income Excluding Special Items (in millions, except per share amounts)

Brinker believes excluding special items from its financial results provides investors with a clearer perspective of the Company's ongoing operating performance and a more relevant comparison to prior period results.

Reconciliation of Restaurant Operating Margin (in millions, except percentages)

Restaurant operating margin is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to operating income as an indicator of financial performance. Restaurant operating margin is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations. This non-GAAP measure is not indicative of overall Company performance and profitability because this measure does not directly accrue benefit to the shareholders due to the nature of costs excluded.

We define Restaurant operating margin as Company sales less Food and beverage costs, Restaurant labor and Restaurant expenses. We believe this metric provides a more useful comparison between periods and enables investors to focus on the performance of restaurant-level operations by excluding revenues not related to Company-owned restaurants, corporate General and administrative expenses, Depreciation and amortization, and Other (gains) and charges. Restaurant operating margin as presented may not be comparable to other similarly titled measures of other companies in our industry.

Reconciliation of Adjusted EBITDA (in millions)

Adjusted EBITDA is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to net income as an indicator of financial performance. Brinker believes presenting Adjusted EBITDA provides a useful measure of our operating performance, excluding the impacts of financing costs, capital expenditures and special items. We define Adjusted EBITDA as Net income before Provision for income taxes, Other income, net, Interest expenses, Depreciation and amortization and Other (gains) and charges.

SOURCE Brinker International Payroll Company, L.P.

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