EAT

In recent months, analyst reports have highlighted growing optimism around Brinker International, citing upgraded earnings estimates, favorable research ratings, and recognition as a growth-focused restaurant operator supported by Chili’s traffic, pricing, and menu innovation. This shift in sentiment, underpinned by operational execution, labor productivity gains, and an encouraging multi-year outlook, has strengthened the company’s positioning in a casual dining industry still facing cost and demand headwinds. Next, we’ll examine how this rising analyst confidence in Brinker's earnings outlook may influence its existing growth-focused investment narrative. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Brinker International, you have to believe Chili’s and Maggiano’s can keep converting menu innovation, traffic, and productivity gains into durable earnings, despite full service dining and labor headwinds. The recent wave of upbeat analyst revisions and rankings supports that thesis in the near term, but it does not remove the key short term risk that wage and staffing pressures could still squeeze margins if sales momentum cools. The most relevant recent announcement here is Brinker's raised fiscal 2026 guidance, which called for revenue of US$5.78 billion to US$5.82 billion and non GAAP EPS of US$10.60 to US$10.85. That stronger outlook, followed by full year 2026 results of US$5.81 billion in revenue and US$487.0 million in net income, helped underpin the more confident analyst stance on earnings quality and the potential for ongoing margin support. Yet even with rising optimism, investors should be aware that persistent labor inflation and staffing tightness could still... Read the full narrative on Brinker International (it's free!) Brinker International's narrative projects $6.7 billion revenue and $588.6 million earnings by 2029. This requires 5.0% yearly revenue growth and about a $101.6 million earnings increase from $487.0 million today. Uncover how Brinker International's forecasts yield a $263.75 fair value, a 14% upside to its current price. Some of the lowest bracket analysts were assuming only about 3.4 percent annual revenue growth and profit margins easing to roughly 7.7 percent, which is a much more cautious view than today’s upbeat commentary and highlights just how differently you and other shareholders might weigh the same risks and opportunities. Explore 3 other fair value estimates on Brinker International - why the stock might be worth 22% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Brinker International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Brinker International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brinker International's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: AI is about to change healthcare. These 38 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. Outshine the giants: these 18 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EAT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Brinker International stock has logged a very large 3 year gain, yet current valuation checks suggest the shares are no longer an obvious bargain, with the Discounted Cash Flow (DCF) intrinsic value estimate sitting below the recent market price. While the current market price and earnings based multiples look roughly in line with peers, the intrinsic value work points to the stock trading at a premium. Over the past 3 years, Brinker International has delivered a return of roughly 7 times the starting level, which sets a high bar for any further gains to be justified by fundamentals. Analysts now expect stronger growth from Chili’s and related brands which can support the case for higher cash flows, but any disappointment in those growth expectations or unit expansion plans may weigh heavily on what investors are willing to pay. The broader valuation checks give a mixed picture rather than a clear bargain or clear overvaluation, with the overall score of 3 out of 6 suggesting Brinker International screens fairly in some respects and expensive in others. The issue now is whether Brinker International’s current share price leaves enough room for investors if the intrinsic value estimate remains below the market value. Spot opportunities with a similar mix of strong past returns and mixed valuation signals by checking 54 high quality undervalued stocks before you decide whether Brinker International still deserves a place on your radar. The Discounted Cash Flow (DCF) model uses Brinker International’s projected free cash flows to estimate what the stock could be worth today. For the latest twelve months, Brinker International generated free cash flow of about $530.4 million in reporting currency. The model assumes these cash flows are growing from here rather than shrinking, and then discounts them back to today using a 2 Stage Free Cash Flow to Equity approach. On this basis, the DCF points to an intrinsic value of about $179 per share, which sits below the current share price and suggests the stock screens as overvalued by roughly 28.9%. Recent analyst price target increases and higher growth expectations may help explain why the market is willing to pay more than the cash flow model indicates today. Overall, the Discounted Cash Flow work indicates Brinker International currently appears overvalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Brinker International may be overvalued by 28.9%. Discover 54 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Brinker International. The P/E ratio is a useful way to see what you pay today for each dollar of Brinker International’s current earnings. On this measure, Brinker International trades at about 19.8x earnings compared with the Hospitality industry average of roughly 22.7x and a peer group average near 57.6x, so the headline multiple is below both benchmarks. However, Simply Wall St’s fair P/E ratio for Brinker International, which blends in its growth profile, margins, size and risk, is about 20.1x. That is very close to the current 19.8x reading, so the stock does not screen as clearly cheap or expensive on earnings alone, even if it is below some peers. On balance, Brinker International appears roughly fairly valued based on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Brinker International aim to close the gap between the DCF and P/E signals by explaining which paths for Brinker International’s growth, margins and earnings would need to occur for the stock to be worth materially more or less than today’s price. Each narrative presents fair value as a thesis about the business that you can track over time, and they are available on the company’s Community page. Community views on Brinker International are far apart, with one side focused on traffic and earnings potential and the other fixated on margin and demand risk. Bull case: 12% undervalued Read the full Bull Case to see why Brinker International could be undervalued Bear case: 56% overvalued Read the full Bear Case to see why Brinker International could be overvalued Do you think there's more to the story for Brinker International? Head over to our Community to see what others are saying! For Brinker International, the Discounted Cash Flow (DCF) work now points to the stock screening as overvalued, while the P/E based view looks about right relative to its earnings profile. That split likely reflects how far expectations have run after a very strong three year return, with the price now baking in optimistic assumptions about future cash flows. The broader checks are mixed rather than clearly attractive. The key question from here is whether Brinker International can deliver the growth and margin progress implied by today’s price, or whether expectations reset closer to the intrinsic value estimate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EAT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Red Robin Gourmet Burgers, Inc. RRGB is preparing to refranchise 116 company-owned restaurants, a transaction set that could materially change its operating model. The deals are expected to generate $96 million in gross proceeds and expand the role of franchise revenues. The balance-sheet benefit is clear, but the earnings impact is less straightforward. Lower company-operated revenues, greater dependence on franchisees and the need to resize corporate costs will shape the post-transaction profile. Red Robin entered into three asset purchase agreements covering 116 of its 375 company-owned restaurants. The deals are expected to close in the fiscal third quarter, subject to customary closing conditions. Completion would increase the franchised restaurant base from 90 to 206 locations. The change would make franchisees a much larger part of the system and increase Red Robin's exposure to their operating and financial performance. Red Robin Gourmet Burgers, Inc. price-consensus-chart | Red Robin Gourmet Burgers, Inc. Quote The transactions are expected to generate approximately $96 million in gross proceeds. Red Robin plans to use the net proceeds primarily to repay outstanding borrowings under its credit facility and enhance financial flexibility. As of July 12, 2026, credit-facility borrowings totaled $167.2 million. Management is also working to refinance existing debt, making completion of the refranchising transactions an important step in the company's capital-structure plan. Red Robin expects total revenues to decline because company-owned restaurant sales will be replaced by franchise royalty income and advertising fund contributions. That will change the composition of reported revenues even though the locations continue operating under the Red Robin brand. Brinker International, Inc. EAT, a direct casual-dining peer, operates both company-owned and franchised Chili's and Maggiano's restaurants. At June 24, 2026, Brinker had 1,163 company-owned and 472 franchised restaurants, providing a useful comparison for how a mixed ownership model can affect revenue composition. Texas Roadhouse, Inc. TXRH, another casual-dining peer, also combines company and franchise operations. Texas Roadhouse spent $71.8 million on franchise acquisitions in the first half of 2026 while continuing to open company restaurants, showing that ownership mix remains an active capital-allocation lever across the restaurant group. Red Robin cautioned that the effect on operating income could be greater than the effect on revenues. Royalty and advertising contributions will replace restaurant-level operating profit, while a substantial portion of general and administrative expenses may not decline proportionately. That makes corporate cost reductions central to the strategy. If G&A does not fall in line with the smaller company-operated footprint, refranchising could pressure operating income even while improving liquidity and reducing debt. Fiscal 2026 guidance currently excludes the refranchising impact. Red Robin continues to expect comparable restaurant revenue growth of 0.5% to 1.5%, restaurant-level operating profit margin of approximately 13% and adjusted EBITDA of $70 million to $73 million. The company expects to update guidance after the transactions are completed. That update will be an important milestone because the current outlook does not yet reflect the announced shift in the restaurant portfolio. Refranchising could improve Red Robin's financial flexibility, but it also shifts more of the investment case toward franchise economics, cost resizing and execution. Until the transactions close and updated guidance is available, the post-transaction earnings structure remains uncertain. RRGB currently carries a Zacks Rank #3 (Hold). Its VGM Score of A, Value Score of A and Growth Score of B are favorable, while the Momentum Score of D is weaker. The mix supports a measured stance as investors assess the transition. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how sit-down dining stocks fared in Q2, starting with Brinker International (NYSE:EAT). Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants. The 9 sit-down dining stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%. In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results. Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners. Brinker International reported revenues of $1.54 billion, up 5.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ EBITDA estimates. "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 of Brinker International. Brinker International pulled off the highest full-year guidance raise in the group. Unsurprisingly, the stock is up 5.4% since reporting and currently trades at $233.39. Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free. Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands. The Cheesecake Factory reported revenues of $1.03 billion, up 7.7% year on year, outperforming analysts’ expectations by 2.9%. The business had a stunning quarter with an impressive beat of analysts’ same-store sales and EPS estimates. The market seems happy with the results as the stock is up 20.2% since reporting. It currently trades at $107.02. Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it’s free. Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners. Dine Brands reported revenues of $240.9 million, up 4.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates. As expected, the stock is down 2.9% since the results and currently trades at $33.83. Read our full analysis of Dine Brands’s results here. With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Texas Roadhouse reported revenues of $1.68 billion, up 11.1% year on year. This number was in line with analysts’ expectations. It was a satisfactory quarter as it also produced same-store sales in line with analysts’ estimates. The stock is down 2.5% since reporting and currently trades at $202.98. Read our full, actionable report on Texas Roadhouse here, it’s free. Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes. First Watch reported revenues of $354.7 million, up 15.2% year on year. This print beat analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ same-store sales estimates but EPS in line with analysts’ estimates. The stock is flat since reporting and currently trades at $12.49. Read our full, actionable report on First Watch here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Kim Sanders Chief Executive Officer and President - Kevin D. Hochman Chief Financial Officer - Michaela Ware Operator: Good day, and welcome to the Brinker Q4 fiscal 2026 Earnings Call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours. Kim Sanders: Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin D. Hochman, chief executive officer and president of Brinker International and president of Chili's and Michaela Ware, chief financial officer. Results for our fourth quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Micah will first make prepared comments related to our strategic initiatives and operating performance. We will open the call for your questions. Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward looking statements. During our call, management may discuss certain items which are not based entirely on historical facts. Any such items should be considered forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2000. All such statements are subject to risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include factors more completely described in this morning's press release and the company's filings with the SEC. And of course, on the call, we may refer to certain non GAAP financial measures, that management uses in its review of the business and believes will provide insight into the company's ongoing operations. And with that said, I will turn the call over to Kevin. Kevin D. Hochman: Thank you, Kim, and good morning, everyone. Thank you for joining us as we discuss our financial and operating performance for the fourth quarter as well as provide guidance for fiscal 2027. Q4 Chili's same store sales of +6 marked our twenty-first consecutive quarter of same store sales growth and again significantly outpaced the industry. This strong result was rolling a +24 from last year, and a +15% from 2 years ago for a 3 year cumulative comp of 50%. There are lots of different ways to look at our results, but the key conclusion is that Chili's turnaround is real, Fiscal 26 saw this brand increase its lead as the number 1 casual dining traffic brand, and the results are sustaining year after year. Important to note in this difficult operating environment that instead of using precious resources and investments on initiatives to drive short term sales, we at Chili's focus our resources for long term sustainable growth. Improving food service and atmosphere and the team member experience, as well as positioning our brand to be more relevant, easy, and distinctive. These experience improvements coupled with our everyday value leadership represented by a per person average spend that is $3 to $4 below competition, are supporting a powerful flywheel of traffic, sales growth, margin expansion, and then reinvestment into our business. And this steady approach is why the business will continue to win. American consumer demands experience and great value, and they are showing up for those brands who consistently deliver that. Third party syndicated data confirms Chili's continues to be ranked in the top tier across key measures like value, quality, service, and overall experience. We still have room to improve, but our progress gives us confidence that we will sustain traffic gains and repeat business. We are very appreciative and proud that Chili's is 1 of the small handful of brands the American consumer trusts and we are willing to increase their visits to. And we will work hard for our guests to maintain both our value leadership and improving our guest experience year after year. Now I will give some updates on the Chili's business. We are now 4 months post Big Crispy launch, and we can share some more detail on how it is performing. The launch has been a success, overdelivering on our lofty estimates going in. We were selling 20 chicken sandwiches per restaurant per day. Pre Big Crispy launch, By the end of Q4, we were selling 55 sandwiches per restaurant per day. An increase of 175%. And that number continues to build in the current quarter. For perspective, the Big Crispy is bigger than the 2024 Big Smasher launch and the 2025 Big QP launch, as you all know, those were 2 very successful launches. The customer reviews and social media comments have been excellent. Declaring Chili's victorious for size, price, value, and taste versus fast food. The Big Crispy is now a signature sandwich, and another important chapter in our better than fast food story. That will continue to position Chili's uniquely as a restaurant destination. In addition to culinary upgrades, our team continues to deliver world class marketing to drive traffic Q4 highlights include the successful Big Crispy launch, the remake of our famous 1.99 thousand baby back ribs jingle commercial featuring pop star Lizzo, and a continued success with our margarita of the month program. As a reminder, our marketing strategy is driving sales overnight and brand over time. it is clear the marketing is driving sales. But they are also doing an amazing job strengthening the brand's positioning over time. We are 2.5 years removed from the initial viral cheese pull, in early 24, and YouGov's third party data reported that Q4 was Chili's highest level of buzz across all cohorts ever recorded. Chili's is everywhere. It continues to be America's hottest restaurant brand, and the sustained relevance of the brand proves this repositioning has legs beyond 1 social event. Now let's talk about operations. We continue to focus our efforts on both removing friction as well as improving restaurant throughput, as this is a key piece of our sustainable growth flywheel. In addition to listening to our managers' ideas on how to make operations easier, now have the north of $6 million team, our highest volume restaurant leaders to formally source ideas from too. I think the important thing to note is north of $6 million leaders typically have the additional perspective of increasing throughput because of their incredibly high volumes. We recently made some very significant changes to free up managers time to coach teams to be with guests on the floor, The first is the ruthless simplification of our shift line checks, a set of tasks the manager is mandated to perform to know their team is ready to take on guests. We have taken that bidaily process down from 8 pages to 1 page, and freed up 30 minutes of manager time per day. Think about that as 22 years of manager time freed up annually across our system. And that is time much better spent side by side coaching their teams and in the dining room with our guests. Second important change we made is upgrading hot schedules. Our tool managers use to schedule labor to make it easier to schedule the right number of team members per shift. We know the number 1 thing that can set up a shift for success is properly written labor schedules, and anything that makes the task easier to do correctly is a big win for our managers improves our ability to take on more and more traffic. And lastly, the VPs of operations have chosen their obsession metric for fiscal year 2027. This year, they have chosen traffic for a 3rd year in a row. Have added a second metric, profit improvement. They chose a second to begin developing a stronger ownership culture on rest expense with things like R&M. Recently made profits a bigger percentage of their bonus structure, so it is even more important to field leadership to nail the flow through of all the incremental sales. Before I close out Chili's commentary, I do wanna touch on 1 more important thing, Last quarter, I talked about a new initiative we have started with the objective of speeding up restaurant cycle time, meaning looking at everything that goes into the total time of kitchen prep and the dining experience, finding ways to remove time to serve as another traffic building block. Most cycle time improvements may seem small, will continue to compound to make meaningful impacts as well as improve the guest and team member experience. Remember, this is about attacking anything that gets in the way of a smooth dining experience which should also improve overall guest satisfaction. The first of these initiatives have now been successfully rolled out. Supermarket simple for loyalty reward reduction. Newly rolled out system, the guest simply puts the rewards telephone number into the Ziosk, and at the end of the meal, the discount that is available, like free chips and salsa, is automatically removed from the check. Then the Zios tells the guest how much they saved by being a rewards member, kind of like what happens when you put your loyalty number in at the supermarket. The Zios software upgrade will reduce the manager time needed to resolve check issues, deliver faster table terms, and more importantly, improve the guest dining experience. To summarize, Chili's long term growth year after year is a result of deliberate set of choices we make to deploy resources and capital to improve the guest and team member experience, while driving same store sales now and over time. The traffic growth reinvestment flywheel continues to spin to create sustainable profitable growth. I will give a short update on Maggiano's, a reminder that given the success we have had focusing on Chili's, Maggiano's now only represents 8% of sales. For perspective, Chili's Outside Of The US, which is a licensed model, is expected to live 4% of Brinker profits this fiscal, and that will actually surpass Maggiano's profit contribution. While we are seeing some green shoots with financial results improvement, and guest value scores, the turnaround at Maggiano's has been mixed. We have made progress on operational and culinary improvements, but some of that progress has been offset by losses with our core guests from our prior strategy. So we are headed in the right direction. The turnaround is happening slower than what we had planned. We think we are on the right strategy, but we need to be more focused on delivering a few important changes that could have the biggest impact. These updates are all contemplated in the fiscal 27 Brinker guidance we provided today. Before I close, I wanna share 2 weeks ago, we had our annual general managers conference in Arlington, Texas. To summarize the event, the restaurant leaders are proud of their results, excited about the plans for fiscal 27, and ready to lead their teams for another year of growth significantly ahead of the industry. Because of their leadership and their success, almost 80% of GMs now earn more than $100 thousand this past fiscal, that number keeps growing annually. Our stated goal to those GMs 4 years ago was make their jobs more fun, easier, and more rewarding, you could sure feel that in the room. That we have collectively delivered on that commitment. Manager turnover has been well ahead of the industry for years now, and now hourly turnover recently moved ahead of the industry, too. Also recognized our GM of the year, PJ Tremblay, leader of the East Fort Myers Chili's, and our above restaurant leader of the year, Dale Bullotta. The VP who leads our California region. I also wanna recognize Dale's colleague, the legendary vice president in the Northeast Region, Todd Pierce, was inducted into our Chili's Hall of Fame along with 35-year director of operations in South Florida, Tony Viola. Congratulations to all 4 of these amazing leaders, and thank you for your years of making guests feel special and leading our restaurant teams. To close, Chili's delivered another strong quarter rolling very big numbers from the prior 2 years. The macro headwinds the industry is experiencing are still there, but Chili's is positioned to continue winning in this environment with improvements in food and service coupled with our industry leading value. That formula has proven quarter after quarter to be resilient in driving traffic, and outperforming the industry. And with all of the initiatives we have planned for fiscal 27 to continue improving the fundamentals, we are poised to have another year of profitable growth that significantly outpaces the industry. I will hand the call over to Micah to walk you through fiscal 26 fourth quarter numbers. Go ahead, Micah. Michaela Ware: Thank you, Kevin, and good morning. As we close fiscal 26, today's results highlight major milestones in Chili's growth journey. The completion of 5 consecutive years of same store sales growth, positively lapping all 4 quarters of double digit same store sales growth this past fiscal year including 2 quarters that were above 30%, 2 consecutive years of traffic gains, and average annual unit volumes increasing from just over $4.5 million at the end of last fiscal year to $5 million this year. Together, these results demonstrate the continued momentum and sustainability of our focus on the fundamental strategy. For the year, we reported total revenue growth of 7.9%, restaurant operating margin improvement of 30 basis points, and adjusted EPS growth of 20.6%. Turning to the fourth quarter, we continue to see strong year over year top line growth, traffic well above industry averages, and restaurant margin expansion at Chili's. Brinker reported total revenues of $1.536 billion with consolidated comp sales of +5%. Our adjusted diluted EPS for the quarter was $3.07, up from $2.49 last year, a 23% increase. Chili's comps were +5.6% in the quarter. Driven by price of 4.3% and positive traffic of 1.5%. Partially offset by negative mix of 0.2%. Chili's continues to gain momentum through its strong everyday value platform led by the success of the Big Smasher, the Big QP, and now the Big Crispy Chicken Sandwich. July sales and traffic have significantly accelerated versus the fourth quarter further widening our lead over the casual dining industry. For Maggiano's, the brand reported comp sales for the quarter of -2.5% with -5.3% traffic, -0.1% of mix, partially offset by price of 2.9%. At the Brinker level, restaurant operating margins were 18%, a 20-basis-point improvement year over year, primarily driven by sales leverage, partially offset by unfavorable food and beverage costs as well as higher advertising and insurance cost. Food and beverage cost for the quarter increased by 80 basis points driven by 4.4% commodity inflation, primarily from higher beef cost and a temporary spike in tomato prices following a late freeze in Florida. Tomato costs remained elevated longer than expected but have since normalized and will not impact Q1 cost. Labor for the quarter was favorable 90 basis points year over year. Top line sales growth offset wage rate inflation of approximately 3.1%. Additional investments in labor and higher health insurance cost. Restaurant expenses for the quarter were favorable 10 basis points year over year with sales leverage and lower repairs and maintenance cost partially offset by higher advertising cost and general inflation impacting expenses such as utilities, rent, to-go supplies, and delivery fees. Advertising expenses for the fourth quarter were 3% of sales and increased 20 basis points year over year to help support the rollout of the Big Crispy Chicken Sandwich campaign. G&A for the quarter came in at 3.9% of total revenues, 10 basis points favorable to prior year due to sales leverage and lower performance bonus accruals, partially offset by an increase in restaurant center support resources. Depreciation and amortization for the quarter came in at 3.6% of total revenues and decreased 40 basis points year over year due to sales leverage and the lapping of accelerated depreciation from the prior year due to the retirement of the CTX Impinger ovens. Fourth quarter adjusted EBITDA was approximately $228 million, a 7.1% increase from prior year. Our adjusted tax rate declined year over year to 17.6% from 19.5% primarily due to a benefit from our state income tax filing adjustments and a higher benefit from the tie from the FICA tip credit. Capital expenditures for the quarter were approximately $58.3 million driven by capital maintenance spend. In our new 11 reimages in fiscal 2026. Based on the learnings from these restaurants, we plan to complete another 60 to 80 during fiscal 27. In fiscal 28, we will start a planned cadence of 10% of the fleet annually. Regarding new unit growth plans, our growth will be modest in fiscal 27, but we already have sites in the pipeline to ramp up significantly in fiscal 28 with expectations for our new run rate to be in place for fiscal 29. We expect to share more details on our strategy and plans at our September 17 Investor Day. Our strong free cash flow provides sufficient liquidity to our disciplined capital allocation strategy, allowing us to invest in our restaurants, keep debt levels low, and return excess cash to shareholders. We continue to support this approach by repurchasing $100 million of common stock under our share repurchase program in the fourth quarter bringing our total for the year to almost $400 million. In support of our capital allocation strategy, our Brinker board of directors authorized additional amounts under our current share repurchase program in August bringing the total amount available to $750 million. Subsequent to year end, we redeemed our outstanding $350 million of 8.25% bonds using the liquidity on our $1 billion revolver which will provide interest expense savings in fiscal 27 and the flexibility to continue to reduce leverage if we choose. In this morning's press release, we shared that fiscal 27 guidance includes a 53rd operating week in the fourth quarter, We estimate the impact of the additional operating week to be an increase of approximately 2% in total revenues and $0.70 in incremental earnings per share. Regarding the guidance we expect, F27 annual revenues in the range of $6.15 billion to $6.27 billion adjusted diluted EPS in the range of $12.60 to $13.40 Weighted average shares in the range of 42 million to 43 million. And capital expenditures in the range of $265 million to $285 million. Assumptions underlying this guidance include planned commodity and wage inflation in the low single digits, with commodity inflation higher in the first quarter before moderating as the year progresses. A tax rate of approximately 19%, and 3 net new company owned restaurant openings. Guidance also contemplates the planned acquisition of 12 Chili's franchise restaurants located in Alabama and Mississippi. Including the real estate of 6 of the locations. The transaction is expected to close at the end of August. As previously mentioned, fiscal 27 is off to a strong start in July and August, and we are confident our plans will enable us to continue to significantly outperform the industry in both sales and traffic, while delivering another consecutive year of same store sales growth. Before I wrap up, I will just say this. The results we delivered this year give us a lot of confidence in where Chili's is headed. The strategy is working, and we believe there is still plenty of runway ahead. Keep building on the momentum by bringing in new guests, giving them more reasons to come back, and staying focused on the things that matter most. Strong execution in our restaurants, great value, and world class marketing and innovation. I look forward to providing further details at our upcoming investor day, scheduled in Dallas for Thursday, September 17. With our comments now complete, I will turn the call back to Holly to moderate questions. Holly? Operator: Certainly. This time, we will be conducting a question-and-answer session. If you have any questions or comments, please press 1 on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. Your first question for today is from Dennis Geiger with UBS. Dennis Geiger: Thank you, and congrats on another great quarter and year, guys. I wanted to ask a bit more on fiscal 2027 guidance. I know we can back into select items. Is there anything more to share on specific assumptions for Chili's same store sales for the year? And then just shifting over to margins and earnings flow through, helpful with the inflation, but anything more on some of the key pieces there as far as reinvestment opportunities go maybe versus prior years? Michaela Ware: Sure. Hi, Dennis. So what we have done and what is implied in this guidance is we built in a little bit of upside for July But, basically, for the remainder of the year, we have assumed mid single digit same store sales and positive traffic for Chili's. So we feel really confident that we can continue to deliver those results. If this momentum continues that we started in the beginning of this fiscal year, there is absolutely, opportunity to exceed those expectations. But that is what, we have built into the guidance. As far as the margins go and the flow through, you know, we are very protective of our value proposition. We have been very mindful of that. We are very aware of driving positive traffic over time. So we have built in inflation. I talked about the inflation. For commodities and for labor. there is also some inflation and some other pieces of the P&L For example, we have some inflation in rent. We have some inflation in advertising. Inflation in our insurance cost. So we have been just really mindful of baking in all those expenses and making sure that we are not putting too much pressure on the guest and the pricing strategy on the top line. So we feel really good about the numbers that we have built in. I think we have been you know, very conservative about the inflation that we put in, so we feel good about delivering the results in the double-digit EPS that we promised. Dennis Geiger: Thanks, Micah. Congrats. Kevin D. Hochman: Thank you, Dennis. Operator: Your next question is from David Palmer with Evercore ISI. David Palmer: Great. Thank you. Good morning, and congrats on the accelerating sales I had a question about that. I wonder what reasons you would give for this pretty big acceleration you are seeing in July and August. I have heard a lot of theories, but we would love your analysis. And what part or parts do you think are more clearly not sustainable in your mind? Kevin D. Hochman: Yeah. So, you know, we have seen lists like this in the past during this turnaround. David and, like, what we seem to be is we bring people in, and then he just kinda becomes their habit, and we just do not look back. So you know, to answer your question more specifically about what we is driving it right now, number 1 is chicken sandwich. So the chicken sandwich continues to build. it is doing everything that we thought it would do. It was part of our plan to continue the better than fast food campaign. Continue to drive our value leadership in the industry, but most importantly, continue to give the guest unbelievable abundant value that tastes great, and that is exactly what it is doing. We have had a couple of other things that happened from a social standpoint. So we had some pretty good success with our bombshell mark. Which was the mark of the month in July that we saw some younger guests come in for. And then we also seized upon a social media thing that we did not do. So guest started asking for Moltens on top of skillet cookies. The marketing team wanted to get after it immediately. We say, hey. Let's make sure we are operationally ready to do that before we turn that on. So we were hard at work making sure we had the proper supplies on cookies and molten and ice cream. And then we recently put that into the business allowing the servers to have keys to ring it up properly as well as train the teams on how to make it. Consistently versus just looking at social media on how to make it. And that is also been very successful. it is actually reversed our incidence decline on desserts between that and then also upgrading a couple of our other desserts. So we feel like it is just a collection and then, obviously, the continued operational initiatives on removing friction and improving throughput. They are very hard things to pinpoint. Because like I said in my prepared comments, the throughput stuff is a collection of small things that add up. But, like, for example, when we make the redemption of our loyalty rewards supermarket simple, it reduces the number of times the manager has to come and change checks, that turns tables faster. And we know especially on the weekend, turning tables is traffic in the till. So it is a collection of all the things that we are doing, and we have been relatively consistent continuing to deliver comps on top of comps on top of comps, and it is because our strategy is built to just continue to plow through all this. David Palmer: Great. I will pass it on. Thank you. Operator: Your next question for today is from Jeffrey Farmer with Gordon Haskett. Jeff Farmer: Greg, good morning. Michaela, what is your expectation for the restaurant level margin in 2027? And how should we be thinking about the benefit from the 53rd week? Michaela Ware: that is a great question. So what I would say on a 52-week basis, I am gonna expect 20 to 40 basis points of margin improvement. You know, depending on where it falls in that range, the 53rd week could get you up to 50 basis points of margin improvement year over year. So that is that is where we are now, Jeffrey. Jeff Farmer: Okay. And then just 1 more quick 1. As it relates to the it sounds like you guys are made the change in the compensation structure for the restaurant level manager. How are you guys thinking about the impact that would have on the business? Kevin D. Hochman: Yeah. So a couple things that to answer that question. Gordon. So I am sorry. Yeah. So number 1, you know, we are trying to simplify the amount of reports and the measurements that managers use so that they can focus more on the behaviors which is in terms of coaching the team members as well as being in the dining room with the guests. So they are still gonna have access to the GWAP metric. And they will be able to see it, like, on a weekly basis, and they will be able to get verbatims and from guest comments. Use AI to help cultivate that for them so they do not have to go through all of the verbatims. We are not gonna give them GWAP per shift. On a daily basis because we found that they were kind of overly consumed with the daily metric. They were using that more often with their teams. Posting them up, and the team members did not feel great about it. And so even though we have been making incredible progress on GWAP, the guests were the problem. We felt like it was taking them away from the things that we wanted to do. So we are not gonna have them look at it on a daily basis. We remove that from the bonus. The bonus is totally focused now on sales and profits. We did codesign this with them. We started with our vice presidents of operations and we trickled it down. And overall, the feedback's been incredibly positive. it is like, hey. We could focus on the behaviors that we need to focus on. And we do not necessarily have to look at this thing and be consumed with reporting. We also dramatically simplified the reports that they get on a daily basis. We got this kind of laundry list of reports down to 2 main reports that help them with throughput, labor scheduling, and some other key things like guest metrics that they need to be able to see. So I feel like that change is gonna make them focus number 1, most importantly, on the behaviors to deliver a great guest experience. And then number 2, because profits are a higher percentage of their total bonus, we think that is gonna help us with that middle of the P&L. To be able to flow through more of the dollars that we get with incremental sales. And does not mean we are not gonna continue to invest in the business. So Micah talked about that in her prepared comments, but we feel like this is just a continuation of dramatic simplification in order to allow the restaurant teams to do their job, which is making guests feel special. Jeff Farmer: Okay. You for that. Operator: Your next question is from Andrew Strelzik with BMO. Andrew Strelzik: Hey, good morning. Thanks for taking the question. And maybe following up on that last answer, you know, if you feel like you are gonna be able to get more flow through because of the change in the compensation structure, why is 20 to 40 basis points still the right starting point for margin expansion? Michaela Ware: So, Andrew, I will start with that. So like I said, 20 to 40 basis points is what we have built in the model. And again, we have been very mindful of how much price we are taking. So, you know, our pricing strategy had been 3% to 5%. We are on the lower end of that. And we actually have, you know, just a lot of inflationary pressure. So I talked about the commodities. Even though they are in the single digits, that is gonna start at the beginning of the year. Probably, I am gonna give you some nice round numbers where commodities will probably be 4% in Q1. 3% inflation in Q2, 2% inflation in Q3, and 1% in Q4. that is what we are we are modeling now. So we do have a little bit of earlier pressure on that. Also, we have had some inflation in some other areas such as insurance, such as delivery fees. Things like that, we have built in that we are not necessarily passing all the way through to the guest. So we have been very mindful of driving long term traffic over time. When I take a step back and just look at the whole model, we know if we deliver mid single digit same store sales, over time, we deliver 20 to 40 basis points of, margin improvement, and we deliver, you know, double-digit EPS growth, that we are gonna deliver significant earnings and growth to the shareholders if we can deliver those consistently over time. So we are not as concerned do not wanna overpressure the guests in the short term. You have heard a lot of our competitors have that same mindset where you do not wanna overprice the guest right now. We have a lot of inflation that we are facing, so we are being more conservative in those assumptions. Now as the year progresses out, if our sales exceed our expectations or some of those inflation assumptions, are a little bit less, I think we have the opportunity to outperform on those metrics. But that is what we have guided and worked into the model for now to start the year. Andrew Strelzik: Got it. Okay. That makes sense. And maybe if I zoom out, on the margins, obviously, you transformed restaurant level margins of the business. Is there a level at which you think about kind of shifting how much flows through versus how much you reinvest kind of like a ceiling on restaurant margins for this business over time as you kind of continued to make these continuous improvements? How you think about that? Thank you. Michaela Ware: You know what, Andrew? That is also an excellent point that I should have made too. So as you called out, we had, since this turnaround started, over 600 basis points of margin improvement over time. So we have significantly improved the margin profile of this business. Now that is a reason why because we have an investor growth strategy that as we move forward, you are gonna see the margin growth moderate a little bit. And, really, what that means is we are not trying to flow through every dollar. We are trying to make sure that we are mindful to invest back in food service and atmosphere. What that means is we are investing back in the guest experience, the team member experience, and we do not wanna overprice the guest. And we wanna make sure we continue to make that value proposition as strong as it can be because we know that is a secret to driving positive traffic over time. there is not a cap. So I said all of that. You did say, is there a cap? We do think if we continue to grow the top line in the AUVs, we still think we can expand it. it is just not gonna be as material as it has been during this turnaround. So there will be a point you know, as the as the AUVs grow. But right now, we still have plenty of capacity. Our restaurants are only at 80% capacity of our historical guest counts. We have plenty of capacity to continue to grow traffic and grow some margins. Kevin D. Hochman: And just 1 thing I would add is, like, when we first started this turnaround, you know, what I told the leadership team was, boy, we were, like, $3 million AUVs. if we just get to $4 million AUVs. we will have enough labor to service the guest. We will have we will have better restaurant margins. Like, we will have enough money to plow back into the business. That happened. And now we are getting to 5-- we are $5 million now. and just get more of that. And like, the end of the day, when we study these north of $6 million restaurants, they have dramatically higher margins than the balance of the system. So as long as we continue to invest in the business, and grow those AUVs and delight the guest, good things will happen with margin. And every year, you know, we start out the year with a pretty reasonable expect--or a reasonable guidance on our margin growth, but then we, you know, we have blown through it. We have blown through it because we keep delivering on the top line because we are winning with the guests. So I do not know why we would change that approach. And know, I would expect that if we deliver on the upside on sales based on the acceleration that we have seen, in the first part of the year. And, you know, I would expect to see that also expand on restaurant margin. Andrew Strelzik: Great. Thank you very much. Operator: Your next question for today is from John Ivankoe with JPMorgan. John Ivankoe: The first thing, housekeeping and the second may be a little bit more important. In terms of the remodels at 60 to 80 units, I know you have looked at a number of different packages in terms of you know, what you would spend per unit. Where are we--you are kind of--landing in 27 on a per remodel basis? And is that the right number to assume going forward as well with normal type of inflation? Michaela Ware: So, John, that is a number that we are still finalizing right now. But what I will tell you is, you know, we have taken our capital guidance up. The majority of that increase year over year is due to the reimages. And we said we are gonna do, between 60 and 80. So you will get an estimate there. We are continuing to refine that number. We are gonna talk about it on Investor Day and give some more details around it then. But I am pretty happy with the number. The first 250 are probably a little bit elevated because we talked about those being some of the 1 restaurants that probably need a little bit of extra love. They also have, a lot of those are older prototypes, some of the early reimages, if they have the lower ceilings in the bar, we do an extra step where we open up the bar and actually remove a wall. So that also has an incremental cost. So over time, I think this number is gonna continue to evolve and come down as we get more scale. Then we kind of work through the balance of the system. But, again, more details on Investor Day, but the bulk of that increase in the year over year CapEx is for the reimage. John Ivankoe: Well, we are definitely we are definitely looking forward to the 17th. Okay. So let me ask another question on the menu. We have talked in the past about maybe opportunity. Maybe today would not be the time, but, we talked about the opportunity to kind of relaunch salads bowls, and maybe improving steak, you know, to kind of take another modern re-hit at guiltless grill for how people are eating today. So can you kind of talk about any major any major menu categories that could be addressed in the near term and could lead to future sales growth beyond 2027? Kevin D. Hochman: Yeah. We have shuffled a little bit of our priorities, in 2027 based on just what is happening in the, you know, in the Zeitgeist. So let me just tell you what food innovation will be for 2027, and then share with you what we are planning for 2028. So number 1, we are gonna continue to ride the chicken sandwich all year. So that was certainly up in the air as we were launching. The plan was if it does well, we are gonna continue to drive it. And so that is the plan from an out of store marketing standpoint. And then we are gonna continue each quarter to remind the teams on how to make the best sandwiches. it is not an easy thing to make a hand breaded sandwich, so we are gonna stay focused on that operationally. Secondly, we are in process of revamping the menu. So we have launched the new kids menu. And we and this is about how do we just continue to get young families into Chili's You know, we know that kids are talking about Chili's. We see there is a very common thing we see in social media where kids' team wins x, they wanna all go to Chili's. So we think this is the time is right to go after the kids menu. So we have a new kids menu. We brought back grilled chicken tenders, which is a parent and kid favorite. And then next quarter, we are gonna be adding Mini Moltens back to that lineup as well as cheese quesadillas. And then we have recently launched a new floats with our new Blue Bell ice cream. So we have upgraded our ice cream to a much more premium ice cream. Then we have also added, you know, a top--a mocktail for kids Shirley Temple that is made with Sprite. So the new kids menu, part of that has happened now, and the rest of it will be finished next quarter. We finished renovating our pasta platform, so we have added sausage as a protein. We are hearing our chicken and sausage in our Q2 menu. And then we retrained teams on what we call pasta perfection. We did that last quarter. So the pasta is now gonna be featured in Q2 in a bigger way. And then we also have a new cooking process to make it a little bit hotter. And then on a dessert standpoint, we have got a couple of things coming, which we have not done in a while. We just recently upgraded our skillet cookie. So if you go in a restaurant now, you will probably see it being advertised in our little table tent. it is been upgraded with more premium ingredients, chocolate, brown sugar, and butter to make them ooier and gooier. We have obviously upgraded the ice cream, which I talked about earlier. To Blue Bell ice cream. And then lastly, we added this social media phenomenon, the molten on top of the cookie, and that is now something that we are selling in the restaurants. And then next quarter, we are actually gonna bring back cheesecake as a nonchocolate option for folks that want dessert. The other thing I would tell you about desserts that we are learning operationally is a lot of times in casual dining, servers do not sell dessert because they wanna turn the tables on a busy Friday or Saturday. And we think we have an unlock on that 1. The feedback that we have been getting from the servers is, hey. When I get the dessert, it goes to the bottom of the kitchen display system zone 3. that is where we make desserts. So it might take 15 minutes to make a dessert. So I really do not wanna sell a dessert if it is gonna take 15 minutes. And so what we are doing is we are gonna start we are once we are gonna test it first to bump the desserts to the top of the screen, that desserts get priority so we actually can get that sale. So there is a lot of good things happening on the menu. In 28, that is when we are gonna launch. In the fun half, we are gonna launch salads. So we pushed that out a little bit based on what is happening. And then we will have steaks and Guiltless Grill hopefully in the back half of 2028 also. John Ivankoe: A lot going on. Thank you so much. Operator: Your next question is from Brian Harbour with Morgan Stanley. Brian Harbour: Yeah. Thanks. Good morning. Micah, just a quick clarification. So is it correct that you will you expect to run, like, rough 3% price through this year? And then do you have any kind of directional color on, like, mix impact that you are expecting? Michaela Ware: Yes. So what I would say as far as price goes, like I said, for the full year, it is gonna be on the lower end, maybe just over 3%. If you are thinking about the cadence by quarter, it is gonna be a little elevated in Q1. So I would model, again, nice round numbers. 3 if you wanted just some general numbers on how the pricing will go at Chili's. As far as mix goes, like we said, it was slightly negative in Q4. We had the point 2. That was driven by alcohol and appetizers. For the full year, the assumption, I would say it is based basically flattish. So we see, Kevin talked about, we have had a little momentum in the dessert category. But, really, our strategy this year is to focus on driving traffic We have talked about that a little bit with the flow through, but it is really about the chicken sandwich. The chicken sandwich is designed to drive traffic. And we have built up all these other businesses, over the years, and those are all built into the run rate. And now we are really leaning into this 1, to drive traffic, and that is exactly what it is doing. So flattish mix for the year. You got the price just over 3%, and the balance of your sales will be from traffic. Brian Harbour: Okay. Got it. Maybe I will talk about this next month, but I guess any of the, like, you know, north of $6 million initiatives, you know, that you would expect to see visibly this fiscal year or, I guess, like, you know, any of those that you are kind of giving yourself credit for sooner at this point? Michaela Ware: Well, let me let me tell you 1 thing we have done. So, really, we look at north of $6 million to really study their throughput. And so as traffic continues to increase, we wanna capture all that traffic. We just talked about we are really excited about the start of the fiscal year. And when we think about the labor model, that is the main place that we are learning from them. So for example, in Q4, we just talked about, you know, that flow through was a little bit I talked about tomatoes. You know, we saw that food and beverage is up a little bit and also beef. But in our labor model, I will say, hey. We thought that labor would be a little bit more efficient. We have been telling our operators to staff for the sales they want. So we did have a little bit of let's say they were not as efficient as we wanted in labor, but thank God--as we--thank goodness we did that because traffic ramped up so quickly July and August that they were all ready for it, and they are capturing it. So we have actually built in a lot of that, where they exceeded the labor model last year. We built that in, to the model this year. Now a lot of it built in the year over the year already because they overspent, but we learned all that, again, from where are they leaning into this labor model, we are working on getting the base labor model exactly how we have it. I mean, it is a great problem to have that every year, we are growing the business so quickly that we are adjusting that labor model. To make sure that we can capture all the guests and have the throughput improved. But that is kinda where we are focused on. Kevin D. Hochman: Yeah. You know, and like I said in my prepared comments, it is gonna be a lot of little initiatives that can help with throughput. You know, the major 1, I think, that we are mostly focused on in the front half is gonna be host stand. So this is this idea that, like, when we are on a wait, the average wait of our guest is 15 to 20 minutes. And even if we cannot reduce that, we are gonna try to reduce that. Even if we could not reduce that, even just managing the host stand better, makes a huge difference for that guest. Like, there is very different ways you can experience 15 to 20 minutes, and 1 way it can be a delighter and another way can be just the opposite. So gonna focus on how they use the software to seat a guest and to manage the seating of the restaurant. Retraining the host on, you know, how to better work with the guest, on weights. We are obviously gonna work on how do we get tables seated faster, how do we get tables bus faster. So there is a whole host of initiative coming in Q2. Then there is gonna be just things throughout the year. So for example, 1 of the pieces of feedback we have been getting from North 6 restaurants is some have tried to put in a second soda machine, but the reality is we just have a bottleneck on refills. We give a lot of free refills to our guests. And so during a busy Friday, Saturday night, that can get that is basically can get clogged both servers and food runners trying to get drinks. And so we have got some initiatives that will help us with the KDS to unclog that. So there is a lot of little things like that will improve throughput, but it is very clear that those 2 at the 6 restaurants, that take on so much more traffic than our rest of our restaurants, They have the similar sized boxes, but they do things differently, and we are gonna just continue to roll those things out. Plus take new ideas from those north of $6 million restaurants and what we need to work on from a system standpoint. Operator: Your next Brian, are you good? Okay. Your next question is from Brian Vaccaro with Raymond James. Brian Vaccaro: Just on the quarter today, just to kind of make sure we are all on the same page and setting reasonable first quarter expectations, would you be willing to share what the quarter to date comp is at Chili's or provide a guardrail there? And in the fourth quarter, could you also share what the 3 for me mix was and the split between the $10.99 and higher tiers? Yep. Michaela Ware: Sure. So, Brian, what I will say and what I said in my prepared comments is that we did significantly accelerate in July and August. And so if Chili's was 6% in Q4, that means it is higher than that in Q1. So I am happy to talk about all of that when the when the quarter ends. We will go over, you know, all of the results in quarter 1, but we are just really, really pleased with the strong start. To the year and the and the traffic drivers. And so, again, like Kevin said, chicken sandwich is outperforming. The Margarita of the Month has been fantastic. It continues to help us drive traffic. And the triple dipper, I wanted to mention that, that the triple dipper is something that has grown our business year after year after year. And continues to grow today and is up even in, you know, Q1 year over year. So we are happy with that. that is also built into our everyday value. Proposition. So, that is the first thing. The second thing you just asked is on the 3forMe mix, and I am very pleased to say that it is very stable. So in Q3, it was just under 21%, and in Q4, it is just over 21% of our guests are opting in on the total platform for 3 for me. And of that 21%, about 40%--of those 40% of the people are opting into the $10.99 tier which is very stable. that is what we reported you know, every quarter. So what I think the takeaway would be 3 for me continues to be very stable. We are very pleased that the chicken sandwich and before that, the QP and the smasher, they drive in new guests. But the guests--some guests opt in to the $10.99 that want it, but the majority of the guests then eat all over the menu and enjoy you know, anything else they upgrade to whatever they want on the premium option. So that strategy continues to play out, and we are very, very pleased with it. Brian Vaccaro: that is very helpful. Thank you. And I guess as a as a follow-up, if I could, just on the topic of accelerating unit growth and which you have obviously talked about in recent quarters and this morning, could you just give us a sneak peek on just the opportunity you see there in the U.S.? It would seem that there are some pretty large states in the Midwest, the Pacific Northwest, and I saw acquiring in Alabama this morning. As well. there is a lot--there are several states out there where the storage per pop you know, might be 1.5 to 2 instead of, you know, 3.5 plus, like, the system average. So any, you know, early thoughts on the TAM in the U.S. that you could be thinking about? Michaela Ware: Yep. What I will tell you about is we do think there is an opportunity to build to definitely build more Chili's. We talked about kinda the new unit growth. As a percent of revenues ramping up. So we are gonna share all those details We gotta save something for investor day. But what I will tell you, Brian, is that what I really love about it is we still have opportunity to expand in our 3 biggest states. California, Texas, and Florida. We have a lot of opportunity in the Southeast to expand, like you said. I mean, we really have opportunity all over the United States. And so there is a lot of markets where we can continue to build out Chili's. In just kind of those gray areas that we have not built yet. there is a little bit of white space still in the Pacific Northwest where we know we have opportunity there. So we have a great opportunity. I think we are gonna be able to grow units over many, many years at Chili's and have, a nice growth rate to build into our growth algorithm and a nice lever to pull for years to come. Brian Vaccaro: So we are excited about you know, the total opportunity for Chili's. Alright. Well, look forward to the Analyst Day. Thanks for your time. Okay. Thank you. Operator: Your next question for today is from Andrew Charles with TD Cowen. Andrew Charles: Great. Thanks so much. You know, Micah, I had 2 different questions about the guidance. So just first, what contributes to the $0.70, I think, sort of, week impact? It a pretty, large, impact relative to the revenue guidance. You know, is the interest savings piece of it from the--from the new debt structure, a piece of it. Just curious more about how the 70¢ came to be. Michaela Ware: Yeah. So what I would tell you is at a very high level, this is how we did and we will continue to refine that as the year goes on. But it is just an incremental week of sales, so you will look at what our sales volumes are at the end of the year. And it is just a flow through assumption. it is gonna be, you know, probably at restaurant level restaurant level margins is probably gonna be in that, you know, 30% to 35% range, and that is a and that is a net income probably be in the 20% to 25% range. So it is just a flow through assumption on that final week of sales. Andrew Charles: Okay. And then the other piece is how does the impact of the 12-store franchise acquisition, how does that impact EPS guidance? And if you could also provide the purchase price you guys are paying for that as well, it would be helpful. Michaela Ware: So let me tell you how it impacted the guidance. And so I am glad you asked that so I could clarify. So we did we did get the 12 restaurants back. They are they are a little bit lower performing than the brand average. And, also, remember, we have to net out the royalties we were already getting. So the incremental revenues from those restaurants probably around $30 million year over year. And then it is gonna have a flat impact to EPS, basically, because it is a very small acquisition and, you know, with the opportunity of share purchase versus buying those back, it is probably a flat EPS impact. I do not know if I am gonna share all the price on that. Think we will get some more details as it comes, but, you know, we did not put it in now. But we got a really great price on those restaurants, and we are really happy to welcome them back. Andrew Charles: Very good. Thank you for that. Operator: Your next question is from Sara Senator. Sara Senatore: With Bank of America. Maybe just a quick follow-up on that and then a question about Maggiano's. You know, I noticed your acquiring real estate. Is that a signal about how you are thinking about growth ahead in terms of approaching unit growth. I know there have been periods of real estate acquisition, but also sale leaseback. So just as I contemplate how you think about kind of the outlook as you are accelerating unit growth. So that was 1 quick question. And then I do have a follow-up. Michaela Ware: Okay. So, really, our approach to, growing chilies in the future is gonna be that we are we are open. Now I will tell you the majority of the opportunities are gonna be to continue to lease, our locations and have operating leases, which is what we are gonna continue to do. But I guess what I would signal is if there is an that we could purchase the land if it makes sense, we are not against that if it helps us to continue to grow Chili's and it makes sense in certain areas. When we did the deal with Valente, they own that real estate. And we were happy to take it back. We will continue to hold it. We will look at it to see what we think the long term is. I do not know that we have a lot of sale leasebacks in our future. We prefer probably just to, you know, hold the--to hold the real estate. Some of these are older units. We do not wanna burden them with some, you know, really high and long rents on there. So that is not gonna be a big strategy moving forward. But what I would say is, primarily, we are gonna lease. If the opportunity comes to buy, we are not against it. But we are not overhauling our strategy to be an all buy an all buy strategy by any means. Sara Senatore: Got it. Thank you. And then, I guess, maybe just 2 quick modeling questions. 1 is, the negative mix, is that sort of a continuation of the check management you saw in April? And then can you give any color on Maggiano's? You mentioned it was being contemplated in the 2027 guidance. I know Kevin's point is less than 4% of operating profit, but just curious about that. Thank you. Michaela Ware: Yeah. So as we move forward on mix, I think because the chicken sandwich is just going so great, we are just really, again, just modeling, I would say, flattish for the next year. The negative point too was, just a continuation of, like we said, a little bit of check management with alcohol and appetizers. Like, also, Kevin talked about desserts. Those are those are hanging in there a little bit better. So we feel good about mix. And, again, I like to remind everyone that we have spent so many years building of the mix up when we built up the CRISPR business. We built up the triple dipper business, Fajita, the Rib, and all those are maintaining, which is wonderful. And so that is why we are back to this flattish. But there is a little bit of a check management, but it is it is very, very small. As far as Maggiano's goes, I will give you some high level assumptions. And what we have done is we have basically assumed in this guidance that Maggiano's is gonna have flat revenues and flat--and flat profits year over year. That just gives us a little bit of room so that we have seen some green shoots, like Kevin said, so that we just have room to have Maggiano's be able to kind of have the pressure off of them where they can just really focus on improving their food, service, and atmosphere, and they can get that traffic rolling again. But those are the assumptions at high level built in for Maggiano's. Sara Senatore: Thank you. Operator: Your next question is from Christopher Carrill with KeyBanc Capital Markets. Chris Carril: Hi, good morning, and thanks for the question. Just on the chicken sandwich platform, can you maybe expand a little bit more in terms of what you saw around guest demand around the different tiers and price levels you offer, you know, maybe relative to your expectations. And, Kevin, you gave us some detail around the number of chicken sandwiches sold per day and how that is continuing to build. So can you talk maybe about how, like, advertising and awareness drove that growth versus maybe other factors, how the trajectory of chicken sandwich compares to what you saw with Big Smasher and Big QP? Thanks. Michaela Ware: I will start with the 3 for me question on the chicken sandwich. So you know, we are very mindful about maintaining our $10.99 level of the 3 for me. So when something new comes in, the other 1 moves out. And so in this case, the Big Smasher moved out of $10.99. And the, Big Crispy moved in at $10.99 and Big QP out. Like I said, those levels have stayed very similar. So as far as the 3 for me goes, we are selling about a similar amount as we did before of the big QP and the big smasher. The rest of the chicken sandwiches and the increases that Kevin talked about are really on the base menu because we have all the sauce versions. We have the premium, the deluxe. And so that is where we are selling the bulk of our incremental chicken sandwiches are on I would say, the base menu. Kevin D. Hochman: Yeah. And then as far as, like, the driving trial and awareness, the curve when you look at the curve, it looks almost exactly like the QP and the Smasher curve, just higher. So, like, it started off at a certain level, and then it kinda a few months in, it starts to accelerate, which is what we saw on the others too. So that makes us feel good that, like, it is kind of behaving like the other 2. So that is why we will just continue to drive advertising on it. Like, I mean, a lot of folks have seen it you know, quite a few times in, like, in the investment community or in our walls, our 4 walls, but, like, the reality is the vast majority of our guests, you know, have not seen a Chili's ad. I hate to tell the marketing team. So, as they continue to drive and build the awareness of it with a very similar campaign, that awareness will compound over time. So that is why we stay on these things. We do not, you know, do it for 4 weeks and then on to something else. that is had incredible success for us. Since we have started the free for me campaign, so we do not plan to change that. As long as the item is, the customer's responding well to the item, which is what it appears to be on the Big Crispy, You know, we are gonna continue to drive that, and then we will reassess whether in year 2 of Big Crispy, do we continue to advertise that? We bring new news to Big Crispy, or do we move to another item to talk about? But we do that. We have done the same thing every year for the last almost 4 years now, and we have had success. So we do not plan on changing that formula. We think that is creating value certainty for the guest and really repositioning us in the market. Great. Thank you. I will pass it along. Operator: Your next question is from Jon Tower with Citi. Jon Tower: Great. Thanks for taking the question. You know, Kevin, you earlier talked about the cycle time efforts and, what you got lined up for 2027 in terms of what you are tackling. I am just curious, like, how you are thinking beyond that Are there larger chunks or areas that you can go after in 2028 and beyond? I am just trying to get an idea of how long this runway is for you to kinda continue to improve the cycle times. Kevin D. Hochman: Yeah. You know, I think there are 2 areas I think that we know, we will continue to work on that we are gonna learn about, which is, like, the actual dining experience. So, in that 1, I think there is a ton of upside just because it is a big part of the business. And we continue to uncover basically, places where things bottleneck. And so just going to continue to walk through those things. So for example, you know, host stand's a big 1 that is a major initiative for us, but, like, we also know that the or, you know, the order time is a little bit of a blockage. And so when we are--we are finally finishing rolling out the new UX for the order tablet, that is gonna speed up ordering. And you know, what we are learning at the soft drink station, the fact that it is harder to get refills as fast, and that is gonna speed up time. And then this idea of dessert bottlenecks and what so when people do order dessert, it ends up being a long time. that is gonna improve cycle time, but it is also going to improve the server being more willing to sell desserts. Right? So I think we are just gonna continue to uncover things from a from a dining room standpoint, and I know, I think we got at least 3 years of runway on that 1. Michaela Ware: The other 1, which we have not even scratched the surface on, is to go. it is 25% of our business, and we have a huge opportunity to figure out how to get friction out of that to make it seamless. When you look at the players in QSR, that win on digital, meaning they create, habits of their guests that they can rely on to get a quick take home meal it is all about a fast app a seamless pickup experience, and accurate pack out. And we think those 3 things we can go nail over the next couple years, and we think that we are uniquely positioned in casual dining to go after those transactions because if you look at the things that we are winning with, it is all around the better than fast food campaign. So these are things that think about when they think about take home meals. So burgers and chicken sandwiches and chicken tenders. Some of our Tex Mex offerings. Like, these are all things that we think are positioning ourselves well. We have gotta figure out that operation. I think that is a huge task. We are gonna talk a little bit more about it when you guys come in for investor day. But that is the next big frontier I am excited about because there is so many more transactions in QSR. That we could go after with the off premise occasion. Awesome. Jon Tower: Thank you for that. I guess, 1 more follow-up. I guess I have asked this question before in previous calls. I am curious if you have any data behind it now. In terms of the guest behavior. You know, a lot of those guests that had been lapsed and now have come back to Chili's over the years. how they are using the brand perhaps differently than maybe you thought or maybe they are using the brand, or the menu as you had expected. I am curious if you have got kind of that customer journey how they have been coming back in. Kevin D. Hochman: Yeah. We do not really have that detail. I mean, the level that we have with the token data is basically that we are bringing a lot of new guests in. So a little bit more than half of the tokens that we see each month are new. And then when we track them, we now we do it within 9 months. We can understand what their repeat behavior is, and it looks a lot like existing guests. So that is basically what we know. Michaela Ware: We, you know, we have some, you know, broad things of younger guests you know, tend to order more triple dippers. Older guests tend to order more of the 3 for me. So we have some of that. But, like, we do not really it is hard, it would be--I do not know how to answer your I do not have the data to answer your specific question of, like, are how are lapsed users when they come back to the brand using the brand differently? Kevin D. Hochman: We do not have it to that. You know what, John? Michaela Ware: But what we do know is, we continue to draw on new guests every quarter, and then we talk about how 3 for me is pretty stable. So we are not seeing, like, an over index to value. And all of the categories are they have grown over time, but then they are all pretty stable. And so we are not seeing any huge mix shifts in the menu with new guests. it is kinda like we said, you know, we are attracting new guests in, and they quickly fall and look like existing guests over time and then just keep coming back. But they are utilizing the menu basically the same. We are not seeing any big changes in the run rates of all the different particular categories or, like, a run up in 3 for me. Awesome. Jon Tower: Thank you for the time. Operator: Your next question is from Margaret-May Binshtok with Wolfe Research. Margaret-May Binshtok: Good morning. Thanks for taking my question. Just a 2 parter. I wanted to ask. I know you guys have talked about the success of the Big Crispy platform, but anything to call out in terms of the incremental traffic? Is that a younger guest? Anything between the different co income cohorts, the type of guest that is bringing in? And then the second part, just wanted to ask, since you guys launched the margarita of the month Club earlier this year, have you seen any sort of sequential improvement in alcohol incidents? Thank you. Michaela Ware: Thanks for the question, Margaret-May, So you know what the great thing is about Chili's and about burgers and chicken sandwiches? Everybody loves them. So our traffic's been up, and we are growing all. Growing all income levels, low, medium, high. We are growing all of our different demographics. And so, you know, historically, we had a little pop in our younger guests with the initial success of the triple dipper. We have maintained that. And, you know, we continue to grow and attract all the different demographics and cohorts. So we are really pleased. The chicken sandwich, again, has behaved just like the burgers. it is a huge segment, and it is broadly appealing to everyone. And so we are not seeing 1 particular group drive, the traffic. it is all the groups, which we love. Because it is not very specific to 1 group. it is very broadly appealing. Kevin D. Hochman: And as far as the Margot of the month club goes, it is been a huge success for us just in general as a as an everyday value platform for us. So I know our guests really appreciate that $6 margarita. it is fun. it is colorful. They enjoy seeing what is next. it is culturally relevant. The 1 we had in July, Kevin mentioned it, it was really successful. So I would say, overall, the Margarita of the Months have been very successful. They are driving Margarita incidents that are driving traffic. Now if you take a bigger step back and look at the whole alcohol category, know, we are feeling a little pressure like everybody else. You know, as the whole category you know, for the category as a whole. We continue to sell market share. We are at the top end of market share but we are feeling a little bit of that macro pressure like everyone else is. But Margarita the month specifically, great value in helping us drive traffic. And then 1 other thing I would add is I think, you know, maybe 5 years ago, the prior team viewed margarita of the month as just like a, you know, how do we get more drink attachment. And it does play a great role to do that. Still does. So you know, we tested it years ago when I first got here, which was to take it off the table, and it was a mistake. So we know that it drives drink attachment even if the broader macro trends are against alcohol attachment and what is going on with gas prices. So but the second thing I think that is important to note is the new marketing team has done a phenomenal job of figuring out what are different margaritas of the month we can use to drive traffic You know, we saw that with last November with our witch-themed 'ritas. We saw it with the most recent bombshell mark in July. And so I think they are doing a better not every month's gonna be this big traffic creating margaritas. These guys are very planful about which ones they are gonna do. And how they are gonna surround it with advertising and social. But they have done an exceptional job of creating a second growth lever on Margarita of the Month. So it is not just about attachment. And entry price point, but it is also now about traffic driving for certain marks. And I think that is gonna continue. I when I look at the innovation they have planned, think it is not gonna be every month, but often they are gonna be looking at things that are actually going to drive the total box traffic, not just alcohol attachment. Thank you. Operator: We have reached the end of the question-and-answer session. I will now turn the call over to Kim Sanders for closing remarks. Kim Sanders: That concludes our call for today. We appreciate everyone joining us and look forward to presenting an update on our long term growth plans at our upcoming Investor Day in September, updating you on our first quarter fiscal year 27 results in October. Have a wonderful day. Operator: This concludes today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Brinker (EAT) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Brinker International’s results for Q2 were well received, with management highlighting continued momentum at Chili’s as the primary growth engine. CEO Kevin D. Hochman credited the sustained traffic and sales gains to improvements in the guest experience, ongoing value leadership, and successful product launches like the Big Crispy Chicken Sandwich. Management emphasized that the combination of operational enhancements—such as simplified shift checks and improved labor scheduling—along with effective marketing initiatives, contributed to margin expansion and solidified Chili’s position as a leading brand in casual dining. “Chili’s turnaround is real,” Hochman stated, underscoring the impact of deliberate investment in food, service, and team member experience. Is now the time to buy EAT? Find out in our full research report (it’s free). Revenue: $1.54 billion vs analyst estimates of $1.53 billion (5.1% year-on-year growth, in line) Adjusted EPS: $3.07 vs analyst expectations of $3.09 (0.5% miss) Adjusted EBITDA: $227.6 million vs analyst estimates of $232.5 million (14.8% margin, 2.1% miss) Adjusted EPS guidance for the upcoming financial year 2027 is $13 at the midpoint, beating analyst estimates by 3.9% Operating Margin: 10.9%, up from 9.8% in the same quarter last year Locations: 1,635 at quarter end, up from 1,628 in the same quarter last year Same-Store Sales rose 5.1% year on year (19.8% in the same quarter last year) Market Capitalization: $10.11 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dennis Geiger (UBS) asked for details on the assumptions behind Chili’s same-store sales and margin guidance. CFO Michaela Ware explained the company built in mid-single-digit sales growth and positive traffic, with conservative inflation estimates to protect the value proposition. David Palmer (Evercore ISI) questioned the drivers of accelerating sales in July and August. CEO Kevin D. Hochman attributed the momentum to the chicken sandwich launch, targeted marketing, and operational improvements that collectively foster repeat visits. Jeffrey Farmer (Gordon Haskett) inquired about expected restaurant-level margin expansion and the impact of compensation structure changes. Ware guided to 20–40 basis points of margin improvement, while Hochman described bonus redesigns focusing managers on sales and profits over daily metrics. John Ivankoe (JPMorgan) asked about capital allocation for restaurant remodels and menu upgrade priorities. Ware noted increased capital spending driven by reimaging, with details to be outlined at the upcoming Investor Day, and Hochman highlighted ongoing investment in menu innovation. Brian Vaccaro (Raymond James) explored the stability of the “3 for Me” platform and unit growth opportunities. Ware reported stable participation rates and emphasized continued white space for Chili’s expansion, especially in California, Texas, Florida, and the Southeast. Looking forward, the StockStory team will monitor (1) the impact of new menu launches and the continued performance of signature items like the Big Crispy Chicken Sandwich, (2) progress on operational throughput initiatives and restaurant remodels, and (3) the pace of unit expansion, including both new builds and franchise acquisitions. Execution on these fronts will signal the company’s ability to sustain its growth trajectory and margin improvements despite ongoing inflationary pressures. Brinker International currently trades at $234, up from $221.38 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Brinker International (EAT) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Brinker International, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $2.29 per share, which is a change of +18.7% from the year-ago reported number. Over the last 30 days, three estimates have moved higher for Brinker International compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 5.2%. For the full year, the company is expected to earn $12.77 per share, representing a year-over-year change of +18.9%. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Brinker International. Over the past month, seven estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 6.28%. Thanks to promising estimate revisions, Brinker International currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Brinker International because of its solid estimate revisions, as evident from the stock's 24% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Brinker International stock has delivered a very large 3 year gain for shareholders, yet the latest valuation checks suggest the shares now trade at a premium to the intrinsic value estimate from a Discounted Cash Flow (DCF) model and do not screen as a clear bargain overall. Brinker International has returned roughly 7x over the past 3 years, which puts extra focus on whether recent enthusiasm has run ahead of fundamentals. Recent sales momentum at Chili’s and planned investment in menus and store upgrades may support expectations for future cash flow. At the same time, cost pressures and the need to sustain same store traffic remain a risk to those expectations. With a value score of 2 out of 6 checks, Brinker International currently leans expensive on the broader valuation framework rather than looking like an obvious bargain. The issue now is whether Brinker International’s recent share price strength leaves enough compensation for the risks implied by the current intrinsic value estimate. Brinker International delivered 49.9% returns over the last year. See how this stacks up to the rest of the Hospitality industry. The Discounted Cash Flow (DCF) model estimates what Brinker International’s future cash flows might be worth in today’s money. On the latest numbers, the company generated last twelve month free cash flow of about $530.4 million, and the model assumes that cash flows ease back over time rather than climb sharply. On that basis, the projection points to an intrinsic value of about $173.65 per share. With the current share price sitting above that estimate, the DCF outcome suggests Brinker International stock appears overvalued by roughly 36.6%. The recent update that Chili’s has delivered 21 consecutive quarters of same store growth helps explain why investors are willing to pay a higher price, even if the cash flow model indicates limited room for error at today’s level. On balance, the DCF workup indicates Brinker International stock currently appears overvalued relative to its implied intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Brinker International may be overvalued by 36.6%. Discover 50 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Brinker International. The P/E ratio suits Brinker International because earnings are a core focus for many restaurant and hospitality investors comparing opportunities in the sector. Brinker International currently trades on a P/E of about 20.9x. That sits below the broader Hospitality industry average of roughly 23.6x and is also well under the peer group average of about 65.2x. On Simply Wall St’s more tailored view of what would be reasonable for this business, which factors in its earnings profile, industry, size and risk, a fair P/E is around 20.4x. The gap between the current 20.9x and the 20.4x fair ratio is small, which points to a market valuation that broadly matches the earnings power investors appear to be pricing in for Brinker International at today’s share price. Overall, Brinker International appears broadly in line with a fair value range based on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Brinker International pick up where the valuation work leaves off and explain which paths for Brinker International's growth, margins and earnings would be needed for the stock to be worth materially more or less than today's price on the Community page. Each narrative links its figures to a clear view on how growth, profitability and key risks could change, which you can revisit as new information on the business becomes available. One of the top community narratives on Brinker International: 19% overvalued Read one of the top narratives on Brinker International Do you think there's more to the story for Brinker International? Head over to our Community to see what others are saying! For Brinker International, the Discounted Cash Flow (DCF) work suggests the intrinsic value sits meaningfully below the current share price, which points to the stock screening as overvalued on a cash flow basis. The market multiple view is more forgiving and implies the P/E is roughly in line with what investors are currently willing to pay for similar earnings profiles, yet it does not flag clear upside from here either. After such a sharp move, the key question is whether Chili’s sales momentum and margins can keep matching the market’s expectations, or whether any stumble exposes the limited valuation cushion now in the price. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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Brinker International, Inc. EAT expects another year of revenue and earnings growth in fiscal 2027, helped by an unusual 53rd operating week. The calendar benefit is meaningful, but it is only one part of the outlook.Investors still have to weigh Chili's traffic assumptions, restaurant reinvestment and cost pressures to judge how much of the projected growth reflects underlying operating progress. Brinker expects fiscal 2027 revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. Management built the outlook around mid-single-digit Chili's same-store sales growth and positive traffic for the remainder of the year. Brinker International, Inc. price-consensus-chart | Brinker International, Inc. Quote That keeps Chili's execution at the center of the forecast. Darden Restaurants, Inc. DRI, with brands including Olive Garden and LongHorn Steakhouse, provides another large full-service dining benchmark. Texas Roadhouse, Inc. TXRH operates predominantly in casual dining, making traffic and restaurant-level execution important points of comparison across the category. The extra operating week is expected to add about 2% to fiscal 2027 revenues and 70 cents to adjusted earnings per share. Because that contribution comes from the calendar, it should be separated from the company's underlying sales and margin progress.The distinction matters when comparing fiscal 2027 with fiscal 2026. Growth supported by a 53rd week is real for the reported year, but Chili's comparable sales, traffic and restaurant economics will provide a cleaner read on operating momentum. Brinker completed 11 Chili's reimages in fiscal 2026 and plans another 60-80 in fiscal 2027. The program expands a growth lever that is separate from near-term comparable-sales gains and is intended to refresh more of the restaurant base.Fiscal 2027 guidance also assumes three net new company-owned restaurant openings. Brinker plans to acquire 12 franchised Chili's restaurants in Alabama and Mississippi, while management expects a larger new-unit development ramp beginning in later fiscal years. Commodity inflation is expected to ease through fiscal 2027, from about 4% in the first quarter to 3% in the second, 2% in the third and 1% in the fourth. Beef remains the main commodity pressure after contributing to higher food costs in the most recent quarter.Brinker also plans to keep pricing near the lower end of its 3-5% range to protect Chili's value proposition. That approach supports traffic goals but reduces the pricing cushion available if commodity or other restaurant costs prove more persistent. Maggiano's recovery remains slower than planned. Management has incorporated that slower turnaround into fiscal 2027 guidance and modeled roughly flat revenues and profits for the brand.The brand's smaller contribution limits its effect on consolidated results, but execution still matters. Fiscal 2026 comparable sales fell 3.9%, traffic declined 9.3% and restaurant operating margin dropped to 10.1% from 16.3%, leaving little room for further deterioration. The bottom line is that the 53rd week gives fiscal 2027 a clear earnings and revenue lift, while Chili's traffic, reimages and unit actions provide the more durable operating tests. Inflation, pricing discipline and Maggiano's weakness remain offsets.EAT currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of A and VGM Score of A. Its Value Score is C. The Style Scores point to favorable growth and momentum characteristics, but they are designed to complement the Zacks Rank. With a #3 Rank rather than a #1 or #2, the combination supports a measured stance instead of an unqualified buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT) : Free Stock Analysis Report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Brinker International, Inc. EAT reported fourth-quarter fiscal 2026 results, with earnings in line with the Zacks Consensus Estimate while revenues surpassed the same. Both the top and bottom lines increased on a year-over-year basis.In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $3.07, up 23.3% year over year and in line with the Zacks Consensus Estimate. Brinker International, Inc. price-consensus-eps-surprise-chart | Brinker International, Inc. Quote Total revenues rose 5.1% year over year to $1.54 billion and beat the consensus mark by 0.4%. The quarter benefited from sustained momentum at Chili’s, supported by positive traffic, menu pricing, strong everyday value, the Big Crispy launch and continued operational improvements. However, results were partly pressured by weaker traffic and restaurant closures at Maggiano’s, along with higher commodity, advertising and insurance costs. Following the results, EAT stock gained 11.1% during after-hours yesterday. Chili’s total revenues increased 6.2% year over year to $1.423 billion. Company sales rose 6.2% to $1.409 billion, while franchise revenues advanced 12.5% to $14.4 million. The brand continued to benefit from its value platform and menu innovation.Comparable restaurant sales for Chili's increased 5.6% year over year, reflecting 4.3% pricing and 1.5% traffic growth, partly offset by a 0.2% negative mix impact. Management said the Big Crispy chicken sandwich helped sustain momentum, with sales rising to 55 sandwiches per restaurant per day by quarter-end from 20 before the launch. Maggiano’s total revenues declined 7.8% year over year to $112.8 million. Company sales also fell 7.8% to $112.6 million, reflecting lower traffic and restaurant closures, partly offset by menu pricing.Comparable restaurant sales decreased 2.5%. Traffic dropped 5.3% and mix was down 0.1%, while price contributed 2.9%. The brand’s non-GAAP restaurant operating margin contracted to 10.3% from 13.3%. Management said the turnaround is progressing more slowly than planned and modeled flat revenues and profits for fiscal 2027. Operating income increased 17% year over year to $167 million, while operating income margin expanded 110 basis points to 10.9%. Non-GAAP restaurant operating margin improved 20 basis points to 18% of company sales. Net income rose 22.5% to $131.1 million, and GAAP earnings advanced to $2.99 from $2.30. Adjusted EBITDA increased 7.2% to $227.6 million.Food and beverage costs rose to 26.3% of company sales from 25.5%, pressured by 4.4% commodity inflation, mainly higher beef costs and a temporary spike in tomato prices. Restaurant labor improved 90 basis points to 31.3%, as sales leverage offset 3.1% wage inflation and other investments. Restaurant expenses edged down 10 basis points to 24.4%. Advertising expense was 3% of sales, up 20 basis points, supporting the Big Crispy campaign. For fiscal 2026, net cash provided by operating activities rose 16.3% year over year to $789.4 million. Cash and cash equivalents ended the year at $110 million compared with $18.9 million a year earlier. Payments for property and equipment totaled $231.9 million.Brinker used operating cash flow to repurchase $400 million of common stock during fiscal 2026. The board subsequently authorized total repurchase capacity of $750 million. After year-end, the company redeemed $350 million of 8.25% notes using its revolving credit facility, which management expects to generate interest savings in fiscal 2027. Brinker also plans to acquire 12 Chili’s franchise restaurants in Alabama and Mississippi. For fiscal 2027, EAT expects total revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. Capital expenditures are projected at $265-$285 million, with diluted weighted average shares of 42-43 million. The company plans 60-80 Chili’s reimages after completing 11 in fiscal 2026.The outlook includes a 53rd operating week, which is expected to add about 2% to revenues and $0.70 to adjusted earnings per share. Management assumes low-single-digit commodity and wage inflation and three net new company-owned restaurant openings. For Chili’s, the plan assumes mid-single-digit same-store sales growth and positive traffic for the remainder of the year, along with 20-40 basis points of restaurant-level margin improvement on a 52-week basis. Brinker currently has a Zacks Rank #3 (Hold).Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.BJ's Restaurants, Inc. BJRI currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has surged 76.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each.Five Below, Inc. FIVE presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 29.6% year to date.The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels. FIGS, Inc. FIGS has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 26.8% year to date. The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 18.2% and 57.9%, respectively, from the prior-year levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT) : Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Five Below, Inc. (FIVE) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. After 21 straight quarters of same-store sales growth, Chili’s turnaround has evolved into a steady pattern of long-term success.  Parent company Brinker International reported another period of positive sales and traffic momentum for the fiscal year ended June 24, with 5% same-store sales growth driven almost entirely by Chili’s ongoing outperformance.  Chili’s same-store sales growth of 5.6% was bolstered by 4.3% increase in pricing, as well as a smaller boost in traffic. The chain's three-year cumulative same-store sales were up 50%.  Last quarter, Chili’s launched the Big Crispy Chicken sandwich, which drove a lot of traffic and resulted in a 175% increase in average daily per-store sandwich sales. The new chicken sandwich debut made an even bigger splash than the introduction of the Big Smasher Burger in 2024 and the Big QP burger in 2025, the latter of which directly challenged McDonald’s as a new competitor.  The Big Crispy continues this ongoing “war” between Chili’s and the quick-service sector, as the brand’s own spin on McDonald’s McCrispy chicken sandwich. The sandwich will still be a major part of Chili’s menu marketing strategy as Brinker moves into fiscal 2027. “The customer reviews and social media comments have been excellent, declaring Chili's victorious for size, price, value, and taste versus fast food,” Brinker CEO Kevin Hochman said. “The Big Crispy is now a signature sandwich and another important chapter in our better-than-fast-food story that will continue to position Chili's uniquely as a restaurant destination.” Brinker’s other brand, Maggiano’s, struggled in Q4, with a 2.5% decline in same-store sales, though Hochman noted that the brand only represents 8% of the company’s total sales. The brand’s turnaround efforts have been slower than expected, though guest value scores continue to improve.  Looking forward to fiscal 2027, the company is assuming mid-single digits same-store sales growth and positive traffic for Chili’s. The company will also be focused on menu revamps in 2027, starting with a more versatile kids menu (grilled chicken tenders and cheese quesadillas), an ice cream upgrade to Blue Bell, and pasta and dessert platform renovations.  Additionally, after completing 11 store renovations in fiscal 2026, the company expects to see another 60 to 80 reimagings for the year ahead.  Brinker will also be acquiring 12 franchised restaurants in the Alabama and Mississippi markets in fiscal 2027. “The macro headwinds the industry is experiencing are still there, but Chili's is positioned to continue winning in this environment with improvements in food, service, and atmosphere, coupled with our industry-leading value,” Hochman said. “That formula has proven quarter after quarter to be resilient in driving traffic and outperforming the industry, and with all of the initiatives we have planned for fiscal '27 to continue improving the fundamentals, we are poised to have another year of profitable growth that's significantly outpaces the industry.” For the fourth quarter ended June 24, Brinker reported total revenues of $1.52 billion, up from $1.45 billion the same quarter the year prior. The company also reported net income of $131.1 million, or $2.99 per share, for the fourth quarter, compared with $107 million, or $2.30 per share, the same quarter the year prior. For the fiscal year, Brinker reported $5.75 billion in total revenues, up from $5.34 billion in 2025, as well as net income of $487 million, up from $383.1 million in 2025. In 2026, Brinker opened 33 restaurants, ending the fiscal year with 1,635 restaurants globally. Contact Joanna at [email protected]