Brinker Raises Fiscal 2027 Outlook as Chili's Same-Store Sales Rise 10.1%

Brinker International raised its fiscal 2027 outlook after Chili's posted a 10.1% jump in same-store sales, its 22nd straight quarter of growth, on top of a 21% gain a year earlier.

The Dallas-based restaurant company reported first-quarter fiscal 2027 net income of $113.3 million, or $2.64 a diluted share, for the quarter ended Sept. 23, up from $99.5 million, or $2.17, a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Excluding special items, earnings were $2.77 a share, versus $1.93.

Guidance goes up

Brinker now expects fiscal 2027 total revenue of $6.23 billion to $6.33 billion, up from its previous range of $6.15 billion to $6.27 billion. It raised its forecast for adjusted earnings per diluted share to $13.30 to $13.90, from $12.60 to $13.40.

The fiscal year includes a 53rd operating week in the fourth quarter, which the company estimates will add about 2.0% to total revenue and about 70 cents to adjusted earnings per share. Guidance for capital expenditures of $265 million to $285 million and 42 million to 43 million diluted shares was unchanged.

Chili's keeps the streak alive

"The Chili's flywheel of sustainable growth and market share gains keeps spinning, with industry leading value, world class marketing, and continued investments in operations that both attract new guests and keep regular guests coming back," President and CEO Kevin Hochman said. He put Chili's three-year cumulative comparable sales gain at 52%.

Chili's company sales rose to $1.367 billion from $1.236 billion, driven by higher traffic and menu pricing. The brand's restaurant operating margin widened to 18.7% of company sales from 17.3%. The company also credited the launch of its Big Crispy chicken sandwich.

Maggiano's Little Italy remained a soft spot. Comparable sales fell 3.4% on lower traffic, and the chain posted an operating loss of $3.6 million, narrower than the $4.1 million loss a year earlier. Maggiano's company sales slipped to $94.7 million from $99.2 million, though lower advertising and delivery costs trimmed restaurant expenses as a share of sales.

• Company sales: $1.461 billion, up from $1.335 billion
• Total revenues: $1.476 billion
• Operating income: $151.0 million, up from $117.9 million
• Adjusted EBITDA: $209.1 million, up from $172.4 million
• Companywide comparable restaurant sales: up 9.1%

Buybacks and debt

Operating cash flow rose to $169.1 million from $120.8 million, and free cash flow reached $105.7 million. Brinker repurchased $125.0 million of its stock during the quarter.

The company also redeemed its outstanding $350.0 million of 8.25% notes using its revolving credit facility, a move it said lowered its cost of capital.

The call

Management scheduled a conference call for 10 a.m. CDT on Wednesday. Brinker owns, operates or franchises more than 1,600 restaurants in the United States, 28 other countries and two U.S. territories, according to the release.

Sources

1. Brinker International Form 8-K with first-quarter fiscal 2027 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000703351-26-000036)

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