Highlights

  • First quarter fiscal 2027 total revenues were $1,475.6 million, compared with $1,349.2 million in the first quarter of fiscal 2026.
  • Net income was $113.3 million, or $2.64 per diluted share, compared with $99.5 million, or $2.17.
  • Updated fiscal 2027 guidance is total revenues of $6.23 billion to $6.33 billion, compared with $6.15 billion to $6.27 billion.
  • The company repurchased $125.0 million of common stock and redeemed its outstanding $350.0 million 8.25% notes during the quarter.

Brinker International, Inc. (NYSE:EAT) shares were trading at USD 222.97 on October 28, 2026, up 13.34%, with a relative volume at time of 3.61. The casual dining company reported first quarter fiscal 2027 results on October 28, covering the quarter ended September 23, 2026, and updated its fiscal 2027 guidance.

Brinker is incorporated in Delaware and has its principal executive offices in Dallas, Texas. The company is the home of Chili's Grill & Bar and Maggiano's Little Italy, and says it was founded in 1975 in Dallas. It owns, operates or franchises more than 1,600 restaurants in the United States, 28 other countries and two U.S. territories. Its two reported segments are Chili's and Maggiano's. At September 23, 2026, it had 1,641 restaurants in total, of which 1,174 were company-owned and 467 were franchised.

First Quarter Fiscal 2027 Results

Company sales were $1,461.2 million in the first quarter of fiscal 2027, compared with $1,335.4 million in the first quarter of fiscal 2026. Total revenues were $1,475.6 million, compared with $1,349.2 million. Company comparable restaurant sales increased 9.1%, including 10.1% for Chili's, while Maggiano's comparable restaurant sales decreased 3.4%.

Operating income was $151.0 million, or 10.2% of total revenues, compared with $117.9 million, or 8.7%. Net income was $113.3 million, or $2.64 per diluted share, compared with $99.5 million, or $2.17. On a non-GAAP basis, net income per diluted share excluding special items was $2.77, compared with $1.93. Adjusted EBITDA, a non-GAAP measure, was $209.1 million, compared with $172.4 million. Restaurant operating margin, a non-GAAP measure, was $258.0 million, or 17.7% of company sales.

Special items included a $17.6 million loss on debt extinguishment, equal to $0.41 per share, and other charges of $2.4 million. The effective income tax rate was 10.8% on a GAAP basis and 19.0% excluding special items.

By segment, Chili's company sales were $1,366.5 million and operating income was $205.0 million. Maggiano's company sales were $94.7 million, and it reported an operating loss of $3.6 million. The company said Maggiano's sales decreased primarily due to lower traffic, partially offset by menu pricing.

Cash Flow and Capital

Net cash provided by operating activities was $169.1 million, compared with $120.8 million. Free cash flow, a non-GAAP measure, was $105.7 million, compared with $62.2 million. Cash and cash equivalents were $30.7 million at the end of the quarter, compared with $110.0 million at the beginning of the period.

The company repurchased $125.0 million of common stock and redeemed the outstanding $350.0 million 8.25% notes using funding from its revolving credit facility. Borrowings on the revolving credit facility were $470.0 million, and payments were $95.0 million. Long-term debt and finance leases, less current installments, were $451.0 million.

During the quarter, the company acquired 12 Chili's domestic restaurants previously owned by a franchisee.

Fiscal 2027 Guidance

The company updated its fiscal 2027 guidance, which includes a 53rd operating week in the fourth quarter. It estimates the additional week to add approximately 2.0% to total revenues and $0.70 to net income per diluted share excluding special items, a non-GAAP measure.

Updated total revenues are guided to $6.23 billion to $6.33 billion, compared with the previous $6.15 billion to $6.27 billion. Net income per diluted share excluding special items is guided to $13.30 to $13.90, compared with $12.60 to $13.40. Capital expenditures remain at $265.0 million to $285.0 million, and diluted weighted average shares remain at 42.0 million to 43.0 million. The company projects 30 to 36 total restaurant openings for the full year.