Brinker International, Inc. (NYSE:EAT) shares fell 1.98% in premarket trading after the parent company of Chili’s Grill & Bar and Maggiano’s Little Italy reported fiscal fourth-quarter earnings slightly below Wall Street expectations, although its outlook for fiscal 2027 came in well ahead of forecasts.
Adjusted earnings per share reached $3.07 for the quarter ended June 24, narrowly missing the analyst consensus of $3.09. Revenue was in line with expectations at $1.53 billion, representing growth of 5.0% from $1.45 billion in the same period a year earlier.
Chili’s delivers positive traffic and comparable sales growth
Company-wide comparable restaurant sales increased 5.0% during the fourth quarter, supported by another strong performance from Chili’s.
Comparable sales at Chili’s rose 5.6%, driven by menu pricing and higher customer traffic, extending the brand’s long-running growth trajectory.
“Q4 2026 completes five consecutive years of Chili’s same-store sales growth, delivering an unprecedented 71% cumulative increase over that time,” said Kevin Hochman, President and CEO. “Our strong brand relevance, industry-leading value proposition, streamlined operations, and significant restaurant investments have created a competitive moat that positions Chili’s to deliver sustainable, profitable growth.”
Performance at Maggiano’s was weaker, with comparable sales declining 2.5% as lower traffic and restaurant closures weighed on the business.
Brinker forecasts earnings well above Wall Street expectations
Brinker issued a stronger-than-expected outlook for fiscal 2027, which will include a 53rd operating week.
The company expects adjusted earnings per share of between $12.60 and $13.40. The midpoint of $13.00 stands significantly above the analyst consensus forecast of $10.76.
Total revenue is projected at between $6.15 billion and $6.27 billion, also comfortably exceeding Wall Street’s estimate of $5.81 billion.
The additional operating week is expected to contribute approximately 2.0% to annual revenue and around $0.70 to adjusted earnings per share.
Brinker authorises further share buybacks
Brinker also continued returning capital to shareholders during fiscal 2026, repurchasing $400 million of its common stock over the year.
The board has authorised an additional $750 million for future share repurchases, providing the company with further capacity to return capital to investors.
While the slight fourth-quarter earnings miss weighed on the shares in premarket trading, Brinker’s above-consensus fiscal 2027 guidance and continued sales momentum at Chili’s provided a stronger outlook for the coming year.
Brinker International stock price
