Brinker International, Inc. (EAT) Business Profile

What it does

Brinker International owns, develops, operates and franchises two restaurant brands: Chili’s Grill & Bar and Maggiano’s Little Italy. Founded in 1975 and headquartered in Dallas, the company is led by Chief Executive Officer Kevin Hochman.

Chili’s is Brinker’s casual-dining brand. Its menu features Southwest-inspired American food, including burgers, fajitas and Chicken Crispers, alongside margaritas and other drinks. Guests can eat in the restaurant or order food to go or for delivery. The brand also offers set-price meals through its “3 for Me” platform, which includes a non-alcoholic drink, an appetizer and certain entrées.

Maggiano’s is a full-service Italian American restaurant brand. It serves individual dishes and family-style meals for everyday dining as well as celebrations and other occasions. Its restaurants have banquet spaces for large parties and business gatherings, and offer carry-out and delivery.

Brinker operates restaurants itself and licenses others to franchisees. Franchisees run restaurants under the brands and pay Brinker fees and royalties. Each brand has its own operating and marketing teams, while the company shares services such as technology, accounting, purchasing and restaurant development across the business.

How it makes money

Brinker earns most of its revenue by selling food and drinks at restaurants it owns. Company sales also include delivery, merchandise, digital entertainment, gift-card breakage and Maggiano’s banquet service charges, after applicable discounts. Gift-card breakage is the estimated value of cards that customers will not redeem.

Company sales were $5.8 billion in fiscal 2026, while franchise revenues were $56.5 million. In the first quarter of fiscal 2027, Chili’s same-store sales rose 10%, supported by a 6% increase in traffic.

Chili’s generated $5.4 billion in fiscal 2026 segment revenue, compared with $454.8 million for Maggiano’s. At Chili’s company-owned restaurants, average annual net sales were $5.0 million per restaurant and average revenue per meal, including alcohol, was approximately $23.12 per guest. At Maggiano’s, the respective figures were $9.5 million and approximately $41.36 per guest for fiscal 2026.

Franchise agreements give Brinker another source of revenue as franchisees operate restaurants. International agreements provide development and initial franchise fees, followed by royalties based on restaurant gross sales. Domestic agreements typically provide initial fees and subsequent royalty and advertising fees based on gross sales. Sales made by franchisees are not included in Brinker’s total revenue; the applicable fees and royalties are.

Brinker’s recurring business depends on guests returning for meals, takeout, delivery and events. Its My Chili’s program offers members a free non-alcoholic beverage or chips and salsa on visits and gives the company a way to communicate with them by email and text.

Customers and how it sells

Chili’s serves guests looking for casual meals in its dining rooms and through takeout and delivery. Its menu innovation, digital advertising and loyalty promotions primarily target Millennial families and Gen Z. Maggiano’s primarily targets guests from affluent households who live and work near the higher-end malls where most of its restaurants are located. Its banquet rooms also serve celebrations and business gatherings.

Chili’s takeout customers can order through its mobile app, website, delivery partners, Google Food Ordering or by calling a restaurant. In the dining room, tabletop devices let guests pay, provide feedback and use the My Chili’s program. Maggiano’s also offers carry-out and delivery, although its dining rooms support the majority of its business.

Chili’s operates in the United States, 28 other countries and two United States territories. At June 24, 2026, Brinker had 1,110 company-owned domestic Chili’s restaurants and 4 company-owned international Chili’s restaurants. Franchisees operated 99 domestic and 370 international Chili’s restaurants. Maggiano’s had 49 company-owned and 3 franchised domestic restaurants at that date.

The Chili’s Restaurants segment accounted for 92.2% of Brinker’s fiscal 2026 revenue, and the Maggiano’s Restaurants segment accounted for 7.83%.

Suppliers and costs

Brinker buys food, beverages and supplies for its restaurants from approved suppliers. It negotiates directly with major suppliers on prices and uses purchase agreements where appropriate to reduce volatility in certain commodity prices. Essential products are available through pre-qualified distributors. Brinker has experienced limited product shortages, although it has not experienced significant supply-chain disruptions under recent market conditions.

Suppliers and restaurants must follow the company’s product and safety specifications. Its supplier code of conduct addresses food safety and ingredients, animal welfare, sustainability and business integrity. Brinker’s restaurants prepare and serve meals; Maggiano’s describes its kitchens as scratch-made.

Food and beverage purchases, restaurant labor and other restaurant expenses are important operating costs. In fiscal 2026, food and beverage costs as a percentage of company sales were unfavorable, driven in part by commodity costs for meat and seafood and the mix of items guests ordered. Menu pricing partly offset those increases. Restaurant expenses included advertising, delivery fees, takeout supplies, rent and repairs.

Brinker had 85,003 employees at June 24, 2026. It also needs cash for new and existing restaurants, operating leases and debt interest.

Competitive position

Brinker competes for restaurant visits in casual dining and also markets Chili’s food against fast-food options. Chili’s emphasizes its value meals, core menu items and restaurant experience; Maggiano’s offers Italian American dining and banquet facilities. No competing company is named.

Chili’s combines advertising with its loyalty program and digital channels. Brinker has invested in television, streaming, digital video and social media, and uses its loyalty program to reach guests directly. In the first quarter of fiscal 2027, Chili’s same-store sales increased 10%, while traffic increased 6% from a year earlier. Brinker also stated that Chili’s average spending per guest remained below the competition, although the difference was narrower than it had previously quoted after benchmark errors were identified.

Our reading: Chili’s brand recognition and marketing reach provide a meaningful competitive asset, but the narrower price difference limits the evidence for a durable pricing advantage. Our reading: The loyalty program and restaurant technology help Brinker reach and serve guests, though competitors can also use digital ordering and marketing. Our reading: Maggiano’s banquet facilities give it a distinct way to serve groups, but lower guest traffic in fiscal 2026 shows that the format does not itself ensure growth.

Growth opportunities

Brinker’s growth plans include increasing sales at existing restaurants, improving operations, remodeling Chili’s locations and developing new restaurants. Chili’s has simplified its menu around core items and uses value offerings to encourage visits. It has also invested in digital ordering and off-premise options as guest preferences for convenience have changed.

Chili’s segment revenue increased to $5.4 billion in fiscal 2026 from $4.9 billion in fiscal 2025. The increase was driven primarily by comparable restaurant sales, including menu pricing, higher traffic and changes in what guests ordered. Maggiano’s segment revenue fell from $501.3 million to $454.8 million; lower comparable sales and restaurant closures were the primary reasons.

Brinker plans to remodel Chili’s restaurants in fiscal 2027 and then approximately 10% of the restaurant fleet annually. It is also building a pipeline of sites to accelerate openings beginning in fiscal 2028. International franchise development is another route: partners open restaurants under development agreements, and Brinker receives fees and royalties.

It was reported on 28 October 2026 that Brinker acquired 12 domestic Chili’s restaurants previously owned by a franchisee in the first quarter of fiscal 2027. At Maggiano’s, Brinker has restored banquet sales managers, streamlined banquet execution and assigned single-point ownership of the process. It is also testing Chili’s kitchen-display technology at a Maggiano’s restaurant to address service and coordination.

Structural risks

• Costs and consumer spending: Inflation has added food, labor and benefits costs. Wage and product-cost inflation, tariffs, staffing challenges and supply disruptions could raise costs or reduce guests’ spending and traffic.

• Competition and execution: Competition may adversely affect operations and financial results. Brinker’s strategy also depends on improving service, marketing and technology, finding suitable sites and obtaining capital for remodels and development.

• Maggiano’s performance: Maggiano’s fiscal 2026 comparable sales declined as traffic fell, while closures also affected revenue. Brinker is working to improve operations and rebuild banquet activity.

• Supply and international operations: International franchisees face differences in economic, legal, cultural and political conditions, as well as challenges maintaining consistent quality and obtaining reliable supplies. Problems at those businesses could reduce royalties paid to Brinker.

• Technology and data: A failure to protect payment-card data, personal information or proprietary information could damage Brinker’s reputation and lead to lost revenue, higher costs and litigation.

• Financing and regulation: Credit-rating downgrades could raise borrowing costs or restrict access to capital. Restaurants must also comply with food safety, labor, alcohol licensing, privacy and other requirements.

Bottom line

Our reading

Our reading: Brinker is primarily an operator of company-owned restaurants, with Chili’s supplying most of its revenue and franchise fees providing a smaller additional stream. Its growth depends on keeping guests returning while converting restaurant traffic into enough sales to cover food, labor and occupancy costs. Maggiano’s offers a different dining and banquet business, but its weaker traffic shows that improvement across both brands is not assured.