Dallas-based Brinker International posted first-quarter fiscal 2027 company sales of $1.461 billion, up from $1.335 billion a year earlier, as Chili's Grill & Bar extended its streak of positive comparable-restaurant sales to 22 consecutive quarters. The flagship brand's 10.1% comp gain — built on positive guest traffic and a 3.7% pricing contribution — landed atop a 21.4% increase in the same quarter last year, producing a three-year cumulative domestic comp of roughly 52%.
The Numbers
System-wide comparable sales rose 8.9% for the quarter ended September 23, 2026. Chili's restaurant operating margin (non-GAAP) expanded 140 basis points to 18.7% of company sales, as sales leverage more than offset higher commodity costs, hourly labor, delivery fees, and repair expenses. Adjusted EBITDA climbed to $209.1 million from $172.4 million in the year-ago period, and free cash flow (non-GAAP) more than doubled to $105.7 million from $62.2 million. Diluted EPS excluding special items reached $2.77, up from $1.93 a year ago. Maggiano's Little Italy was a drag on the portfolio, posting a -3.4% comparable-sales decline driven by lower traffic despite modest menu pricing.
Comp Drivers & Unit Count
Traffic accounted for 6.4 percentage points of Chili's comp — a meaningful figure at a moment when most casual-dining chains are still reporting negative guest counts. The chain operated 1,210 domestic units (company-owned and franchise) at quarter-end, essentially flat year-over-year, while international franchise locations grew to 380 from 371. During the quarter, Brinker acquired 12 franchise-operated domestic Chili's restaurants, bringing company-owned domestic locations to 1,122. The company projects 30–36 new openings system-wide for the full fiscal year, weighted heavily toward international franchise development. The Big Crispy chicken sandwich, launched during the quarter, was cited by President and CEO Kevin Hochman as a contributor to the quarter's performance alongside the brand's value platform and operational investments that "attract new guests and keep regular guests coming back."
Guidance & Capital Allocation
Brinker raised its fiscal 2027 total revenue guidance to $6.23–$6.33 billion, up from a prior range of $6.15–$6.27 billion, partly reflecting the benefit of a 53rd operating week in the fourth quarter (estimated contribution: approximately 2.0% in total revenue and $0.70 in adjusted EPS). The adjusted diluted EPS range was lifted to $13.30–$13.90 from $12.60–$13.40. Capital expenditure guidance held steady at $265–$285 million. On the balance sheet, Brinker redeemed $350 million of 8.25% notes using revolving credit — incurring a $17.6 million loss on debt extinguishment — and repurchased $125 million in common stock during the quarter, reflecting management's continued confidence in the Chili's growth trajectory.
The Chili's momentum is worth watching for convenience-channel foodservice operators. As the casual-dining segment recaptures value-seeking guests, c-store foodservice programs compete directly for the same lunch and dinner occasions. Chains that credibly communicate everyday value — as Chili's has done — continue to draw traffic away from both QSR and retail foodservice. Operators tracking competitive foodservice positioning will find Brinker's comp cadence a useful benchmark for consumer appetite at accessible price points.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
