Brinker Raises Fiscal 2027 Outlook After Chili’s Comp Rebound

The Tip Desk · November 1, 2026 · 3 min read

The casual-dining operator lifted full-year revenue guidance to as much as $6.33 billion after first-quarter sales of $1,461.2 million and a 9.1% company comp.

Brinker International, Inc. (EAT) reported first-quarter fiscal 2027 company sales of $1,461.2 million, up from $1,335.4 million a year earlier, as company comparable restaurant sales accelerated to 9.1% from 5.0% in the fourth quarter of fiscal 2026 and 3.3% in the third quarter.

Chili’s Grill & Bar posted a 10.1% comparable sales increase, the 22nd consecutive quarter of growth, after 5.6% in the prior quarter and 4.0% in the third quarter. President and CEO Kevin Hochman said the brand’s flywheel of value, marketing and operations kept attracting guests. The company said first-quarter results reflected ongoing brand initiatives and the launch of the Big Crispy chicken sandwich.

Total revenues were $1,475.6 million. Operating income was $151.0 million, or 10.2% of total revenues, compared with $117.9 million, or 8.7%, a year earlier. Restaurant operating margin, non-GAAP, was $258.0 million, or 17.7% of company sales. Net income was $113.3 million, or $2.64 a share. Excluding special items, net income was $2.77 a share, versus $1.93. Adjusted EBITDA, non-GAAP, was $209.1 million.

Chili’s company sales were $1,366.5 million. The company said the increase came primarily from favorable comparable restaurant sales driven by higher traffic and menu pricing. Chili’s GAAP operating income was $205.0 million, or 14.8% of total revenues. Company restaurant expenses as a percentage of Chili’s company sales fell to 81.3%, which the company attributed primarily to sales leverage, partially offset by commodity costs, hourly labor, advertising, repairs, insurance, delivery fees and other restaurant expenses. Chili’s franchisees generated about $296.7 million in sales.

Maggiano’s Little Italy company sales were $94.7 million, down from $99.2 million. Comparable sales were down 3.4%. The company said the decline came primarily from lower traffic, partially offset by menu pricing. Maggiano’s GAAP operating loss was $3.6 million.

Net cash provided by operating activities was $169.1 million, compared with $120.8 million a year earlier, which the company said was driven primarily by an increase in operating income. Free cash flow, non-GAAP, was $105.7 million. The company used operational cash flow to repurchase $125.0 million of common stock and redeemed $350.0 million of 8.25% notes using revolving-credit funding. Interest expense included a $17.6 million loss on debt extinguishment. Cash and cash equivalents ended at $30.7 million.

Brinker updated fiscal 2027 guidance, including a 53rd operating week in the fourth quarter. It now estimates total revenues of $6.23 billion to $6.33 billion, up from $6.15 billion to $6.27 billion, and net income per diluted share excluding special items of $13.30 to $13.90, up from $12.60 to $13.40. The company estimated the extra week would add about 2.0% to total revenues and $0.70 to non-GAAP earnings excluding special items. Capital-expenditure guidance of $265.0 million to $285.0 million and diluted weighted-average shares of 42.0 million to 43.0 million were unchanged.

The company-owned restaurant count stood at 1,174, including 1,122 domestic Chili’s locations after the acquisition of 12 previously franchised domestic Chili’s restaurants. Total company-owned and franchise restaurants were 1,641. Full-year projected openings were 30 to 36.