Brinker Raises 2027 Outlook as Chili’s Sales Grow 10.1% and Revenue Reaches $1,475.6 Million
Key Facts
Brinker International raised its fiscal 2027 outlook after reporting total revenue of $1,475.6 million in the first quarter ended September 23, 2026, up from $1,349.2 million a year earlier. The company said sales were $1,461.2 million, compared with $1,335.4 million in the year-earlier period. The announcement came alongside 10.1% comparable-sales growth at Chili’s, the results’ main operating driver, while Maggiano’s comparable sales fell 3.4%. Brinker raised its annual revenue outlook to $6.23–$6.33 billion from $6.15–$6.27 billion. It also raised its forecast for adjusted diluted earnings per share, excluding special items, to $13.30–$13.90 from $12.60–$13.40.
Chili’s growth continued for a twenty-second consecutive quarter, Chief Executive Kevin Hochman said, describing the quarterly increase as 10%. Comparable sales had risen 21% in the prior year and 14% in 2024, bringing the cumulative increase over three years to 52%. The official table records growth of 10.1% in the current quarter, while the prior two periods remain at 21% and 14% in Hochman’s description. The company linked performance to increased customer traffic and the continued effect of menu pricing. It said the successful launch of the Big Crispy sandwich boosted quarterly results, adding to the impact of traffic and pricing on the brand’s sales.
Sales growth translated into improved operating profit and net income. Net income was $113.3 million, and diluted earnings per share under generally accepted accounting principles were $2.64. Adjusted diluted earnings per share, a non-GAAP measure that excludes special items, were $2.77, compared with $1.93 a year earlier. Operating income rose to $151.0 million from $117.9 million. Restaurant operating margin, calculated as a percentage of company sales, also widened to 17.7% from 16.2%, according to the results table. These measures distinguish accounting profitability from the figure excluding special items that the company uses to present its results.
Cash generated from operating activities improved to $169.1 million in the quarter, compared with $120.8 million in the year-earlier period. Brinker repurchased $125.0 million of shares during the same period. These figures provide an indication of cash flows and the company’s use of some of them for share buybacks alongside sales and earnings growth. In the historical comparison, total revenue in the fourth quarter of fiscal 2026 was about $1,535.8 million, compared with $1,461.9 million in the fourth quarter of fiscal 2025. Net income in that quarter was $131.1 million, up from $107.0 million a year earlier, according to the prior fiscal-year results statement.
Brinker’s 2027 outlook includes an additional operating week in the fourth quarter, as the fiscal year comprises 53 weeks. The company estimates that the extra week will add about 2.0% to annual revenue and $0.70 to adjusted diluted earnings per share, excluding special items. The raised annual ranges therefore reflect this estimated operating impact as well as first-quarter performance. The company expects to open 30–36 new restaurants during fiscal 2027. The company’s shares, which trade under the ticker EAT, closed at $196.72 on October 27, 2026, before the results were announced.