Q3 2026 Brinker International Inc Earnings Call Transcript
Key Points
- Chili's achieved its 20th consecutive quarter of same-store sales growth, outpacing the casual dining industry by 420 basis points.
- Chili's is now the number two casual dining brand for sales and maintains its status as the number one casual dining traffic brand.
- The new chicken sandwich platform launch has been successful, with initial sales 161% higher than pre-launch levels.
- Brinker International Inc (EAT) reported total revenues of $1.47 billion, a 3.2% increase over the prior year.
- The company has a strong free cash flow, allowing for investments in restaurants, debt reduction, and shareholder returns through stock repurchases.
- Maggiano's reported a decline in comp sales by 4.6% and a 10.4% drop in traffic, indicating challenges in its turnaround efforts.
- Restaurant operating margins decreased to 18.4% from 18.9% in the prior year due to higher food and beverage costs.
- The company faces mid-single-digit commodity inflation, particularly in beef, which could pressure margins.
- There is some evidence of consumer check management, with softness observed in dessert and alcohol sales.
- The company anticipates continued inflationary pressures, which may impact pricing strategies and margins moving forward.
Good day, and welcome to the Brinker International's Q3 F '26 conference call. (Operator Instructions)
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.
Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, Chief Executive Officer and President of Brinker International and President of Chili's; and Mika Ware, Chief Financial Officer. Results for our third quarter were released earlier this morning and are available on our website at brinker.com.
As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then 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,
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