Brinker International, Inc. Q2 FY2026 earnings call

• Chili's has had nineteenth consecutive quarter of same-store sales growth, with reintroduction of skillet queso successful, nachos and bacon upgrades doing well, and world-class marketing and brand building driving results. - Maggiano's is making progress on food and atmosphere, with some sequential improvement in the business. - Recognized restaurant teams and home office teams for quickly responding to winter storm Fern.

Chili's: Q2 same-store sales were plus 8.6%, with top-line sales growth driven by price of 4.4%, positive traffic of 2.7%, and positive mix of 1.5%. Maggiano's: Q2 comp sales were negative 2.4%, and it is 8% of company sales and 3% of profit contribution.

• Raised fiscal 2026 guidance: annual revenues in range of $5.76 billion to $5.83 billion, adjusted diluted EPS in range of $10.45 to $10.85, CapEx in range of $250 million to $260 million. - Chili's same-store sales expected to return to mid-single-digit range in back half of year, with traffic impact from winter storm but positive in Q4. - Reimage program for Chili's: completed 4 reimages, expect 8-10 more in 2026, ramping to 60-80 in 2027, fully rolled out by 2028; Maggiano's focus on guest-facing repairs and smaller reimage program.

• Weather impact on revenues and operations. - Commodity price fluctuations, particularly beef, with mid-single-digit inflation expected in back half. - Potential structural ceiling on pricing power if mix shifts too much to low price points.

Q: Any other notable shifts in contributors to strong traffic and sales growth beyond the margarita campaign?

A: Mika and Kevin discussed mix was positive driven by margaritas, triple dippers, and appetizer sales, with no huge changes, and internal metrics continuing to improve.

Q: How to prevent ten ninety nine price point from becoming a structural ceiling on pricing power?

A: Kevin mentioned barbell strategy with good, better, best price tiers, continuing innovation at other price points to manage mix.

Q: Any prototypes from reimaging emerging as most exciting?

A: Kevin said guests and team members love all four reimaged units, learning less is more in interior, bar area impactful, and operational learnings on cleaning and tabletop materials.

Q: Read on casual dining segment trends in December and January?

A: Kevin said mixed signals, with December tough, January better, then weather stopped trend, focusing on food service and atmosphere.

Q: Remodel plans for 2027 and beyond?

A: Mika confirmed ramping to 60-80 remodels in 2027, 10% of system by 2028, with new unit growth expected to increase in 2028.

Q: Chicken sandwich launch timing and marketing?

A: Mika said soft launch in over 200 restaurants, real launch in late April with TV advertising, testing mix and feedback before full launch.

Q: Timing of marketing investments and bounce back from winter storm?

A: Mika said marketing spend stable, with Q2 having biggest year-over-year increase, and bounce back from storm depending on recovery, with bulk of impact captured in guidance.

Q: Consumer cohorts and QSR pricing impact?

A: Kevin said low income cohort trends stable, mix healthy, and not concerned about QSR pricing as Brinker has industry-leading value.