Brinker’s smaller restaurant brand lost nearly one dollar for every ten dollars its larger sibling added. For the twelve months ended June 24, Chili’s revenue increased by $462.2 million, while Maggiano’s fell by $46.6 million.
That imbalance is the most revealing detail in Brinker’s latest annual report. Total revenue rose 7.9% to $5.8 billion, operating income climbed 21.1% to $619.9 million, and operating cash flow reached $789.4 million. The company grew, but the growth engine has a very recognizable name on it.
Chili’s revenue rose 9.6% to $5.35 billion. Maggiano’s revenue declined 9.3% to $454.8 million, partly reflecting management’s decision to substantially eliminate banquet service charges. A two-brand portfolio is doing most of its work through one brand, with the other moving in the opposite direction.
Brinker says Chili’s benefited from the unusually useful restaurant combination: customers paid more, showed up more often, and bought a favorable mix of menu items.
"Total revenues increased 9.6% primarily due to favorable comparable restaurant sales driven by menu pricing, higher traffic, and favorable menu item mix."
10-K 2026-08-19; revenue, margin
That combination coincided with operating margin expanding from 9.5% to 10.7%. The improvement was not simply a pricing story, though. Food and beverage costs became less favorable as meat and seafood costs rose, with menu pricing offsetting part of the pressure.
"As a percentage of Company sales: Food and beverage costs were unfavorable 0.6%, due to 0.9% of unfavorable commodity costs driven by meat and seafood and 0.8% of unfavorable menu item mix, partially offset by 1.1% of favorable menu pricing."
10-K 2026-08-19; costs and expenses
In plain English, Chili’s sold more and kept more of each sales dollar, even while some of the ingredients got more expensive. Net income rose 27.1% to $487.0 million, and diluted earnings per share rose 30.6% to $10.87 as the diluted share count declined 2.8% to 44.8 million.
Cash also improved, though the conversion ratio softened from 1.77 times to 1.62 times. Brinker spent 12.6% less on capital projects, bringing capex down to $231.9 million, while investing cash outflows declined as restaurant and IT equipment spending fell. Spending on Chili’s and Maggiano’s re-images increased, so the renovation program did not disappear; it simply consumed less cash overall.
Cash increased on the balance sheet, rising from $18.9 million to $110.0 million. Accounts receivable increased 10.9% to $81.4 million, while inventory slipped 2.0% to $34.5 million. Cash conversion remains a number to follow.
The stock closed at $235.91 on August 18, down 2.4% that day, after gaining 44.4% over six months. At a market capitalization of $10.9 billion and 28.4 times earnings, the filing presents an operating improvement alongside a question about how much of that improvement is concentrated in Chili’s. The valuation context matters because the business is not merely adding sales; it is adding earnings through a narrower brand base.
Brinker’s next report will provide the next comparable read on Maggiano’s sales and Chili’s traffic, pricing, and menu mix. The comparison is simple: Brinker is growing, but increasingly through Chili’s primarily.
Brinker’s full-year growth and margin expansion were led by Chili’s, while Maggiano’s revenue declined, according to the 2026 10-K.