BRINKER INTERNATIONAL REPORTS FIRST QUARTER FISCAL 2027 RESULTS AND UPDATES FISCAL 2027 GUIDANCE
BRINKER INTERNATIONAL, INC (EAT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 BRINKER INTERNATIONAL REPORTS FIRST QUARTER FISCAL 2027 RESULTS AND UPDATES FISCAL 2027 GUIDANCE DALLAS (October 28, 2026) – Brinker International, Inc. (NYSE: EAT) today announced its financial results for the first quarter ended September 23, 2026 and updated guida
How this was made
The 30-second read
Why it matters
The company provided updated FY2027 revenue and non-GAAP EPS ranges and quantified the incremental contribution from the additional operating week, alongside Q1 cash flow and capital return actions.
Market read
Traders can reassess EAT’s FY2027 outlook using the updated guidance ranges and the quantified 53rd-week impact, plus Q1 evidence of operating leverage and cash generation.
What to watch
Commodity costs, labor, and insurance-related expense pressures are explicitly cited as offsets in Chili’s expense dynamics, which could cap margin upside even with stronger comps.
BRINKER INTERNATIONAL REPORTS FIRST QUARTER FISCAL 2027 RESULTS AND UPDATES FISCAL 2027 GUIDANCE
Company sales, total revenues, operating income, net income, restaurant operating margin, adjusted EBITDA and free cash flow all increased from the first quarter of fiscal 2026. Chili’s comparable restaurant sales rose 10.1%, while Maggiano’s comparable restaurant sales declined 3.4%. The company increased its fiscal 2027 total-revenue and non-GAAP EPS guidance ranges.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Company salesGAAP | $1.46B | – | $125.8 million |
| Franchise revenuesGAAP | $14.4M | – | – |
| Total revenuesGAAP | $1.48B | – | $126.4 million |
| Food and beverage costsGAAP | $378.4M | – | – |
| Restaurant laborGAAP | $458.9M | – | – |
| Restaurant expensesGAAP | $365.9M | – | – |
| Depreciation and amortizationGAAP | $55.7M | – | – |
| General and administrativeGAAP | $63.3M | – | – |
| Other (gains) and chargesGAAP | $2.4M | – | – |
| Total operating costs and expensesGAAP | $1.32B | – | – |
| Operating incomeGAAP | $151M | – | $33.1 million |
| Operating income as a % of Total revenuesGAAP | 10.2% | – | 1.5% |
| Restaurant operating marginnon-GAAP | $258M | – | $42.2 million |
| Restaurant operating margin as a % of Company salesnon-GAAP | 17.7% | – | 1.5% |
| Interest expensesGAAP | $24.6M | – | – |
| Other income, netGAAP | −$600K | – | – |
| Income before income taxesGAAP | $127M | – | – |
| Provision for income taxesGAAP | $13.7M | – | – |
| Effective income tax rateGAAP | 10.8% | – | – |
| Effective income tax rate excluding special itemsnon-GAAP | 19.0% | – | – |
| Net incomeGAAP | $113.3M | – | $13.8 million |
| Adjusted EBITDAnon-GAAP | $209.1M | – | $36.7 million |
| Basic net income per shareGAAP | $2.69 | – | – |
| Diluted net income per shareGAAP | $2.64 | – | $0.47 |
| Net income per diluted share, excluding special itemsnon-GAAP | $2.77 | – | $0.84 |
| Basic weighted average shares outstandingGAAP | 42.1M | – | – |
| Diluted weighted average shares outstandingGAAP | 43M | – | – |
| Net cash provided by operating activitiesGAAP | $169.1M | – | $48.3 million |
| Payments for property and equipmentGAAP | −$63.4M | – | – |
| Free cash flownon-GAAP | $105.7M | – | $43.5 million |
| Company comparable restaurant salesother | 9.1% | – | 9.1% |
| Chili's comparable restaurant salesother | 10.1% | – | 10.1% |
| Maggiano's comparable restaurant salesother | (3.4)% | – | (3.4)% |
| System-wide comparable restaurant salesother | 8.9% | – | 8.9% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Chili'sCompany sales increased primarily due to favorable comparable restaurant sales driven by higher traffic and menu pricing. | $1.38B | – | $131.0 million |
| Maggiano'sCompany sales decreased primarily due to lower traffic, partially offset by menu pricing. | $94.9M | – | $(4.6) million |
Fiscal 2027 outlook
- Revenue$6.23 - $6.33 billion
- NoteNet income per diluted share, excluding special items, non-GAAP: $13.30 - $13.90
- NoteCapital expenditures: $265.0 - $285.0 million
- NoteDiluted weighted average shares: 42.0 - 43.0 million
- NoteFiscal 2027 includes a 53rd operating week in the fourth quarter.
- NoteThe estimated impact of the additional operating week is an increase of approximately 2.0% in Total revenues and $0.70 in Net income per diluted share, excluding special items, non-GAAP.
Capital returns
- The Company utilized operational cash flow to repurchase $125.0 million of the Company’s common stock.
- Purchases of treasury stock were $(165.2) million in the thirteen week period ended September 23, 2026, compared to $(134.5) million in the thirteen week period ended September 24, 2025.
- The Company redeemed the outstanding $350.0 million 8.25% notes using funding from the revolving credit facility.
What drove it
- Chili’s delivered its 22nd consecutive quarter of same-store sales growth, with comparable restaurant sales up 10.1%.
- Chili’s traffic impact was 6.4%, while its price impact was 3.7%.
- The Big Crispy chicken sandwich launch was described as highly successful.
- Chili’s restaurant operating margin was 18.7%, compared with 17.3%, with sales leverage partly offset by unfavorable commodity costs and higher hourly labor, advertising, repairs and maintenance, insurance, delivery fees, to-go supplies and other restaurant expenses.
- Maggiano’s restaurant operating margin was 3.1%, compared with 2.4%, as lower advertising, delivery fees, to-go supplies and other restaurant expenses partly offset sales deleverage and higher rent and manager salaries.
- Chili’s franchisees generated sales of approximately $296.7 million, compared with $269.5 million.
- The company acquired 12 Chili's domestic restaurants previously owned by a franchisee.
Concerns
- Maggiano’s comparable restaurant sales declined 3.4%, reflecting lower traffic.
- Maggiano’s Company sales declined by $(4.5) million.
- Interest expenses were $24.6 million, compared with $10.5 million, including a $17.6 million loss on debt extinguishment from the early redemption of the 8.25% notes.
- Chili’s restaurant cost pressures included unfavorable commodity costs, higher hourly labor, advertising, repairs and maintenance, worker’s compensation and general liability insurance, delivery fees and to-go supplies.
- Cash and cash equivalents declined to $30.7 million at September 23, 2026 from $110.0 million at June 24, 2026.
What to watch
- Chili’s ability to sustain comparable restaurant sales growth after 22 consecutive quarters of same-store sales growth.
- Traffic trends at Chili’s and whether the Big Crispy chicken sandwich continues to support guest demand.
- Whether Maggiano’s can reverse its lower-traffic trend and return to positive comparable restaurant sales.
- Restaurant-level cost pressure at Chili’s, including commodities, labor, advertising, insurance, delivery fees and to-go supplies.
- Delivery against fiscal 2027 total revenue guidance of $6.23 - $6.33 billion and non-GAAP diluted EPS guidance of $13.30 - $13.90.
- The contribution of the 53rd operating week, estimated to add approximately 2.0% to Total revenues and $0.70 to non-GAAP diluted EPS.
Balance sheet and cash flow
- Cash and cash equivalents at September 23, 2026 were $30.7 million, compared with $110.0 million at June 24, 2026.
- Long-term debt and finance leases, less current installments, were $451.0 million at September 23, 2026, compared with $419.7 million at June 24, 2026.
- Total assets were $2,776.7 million at September 23, 2026, compared with $2,815.0 million at June 24, 2026.
- Total current liabilities were $643.6 million at September 23, 2026, compared with $676.7 million at June 24, 2026.
- Total shareholders’ equity was $399.9 million at September 23, 2026, compared with $443.7 million at June 24, 2026.
- Payments for franchise restaurant acquisitions were $(27.1) million.
- Borrowings on revolving credit facility were $470.0 million and payments on revolving credit facility were $(95.0) million.
- Payments on long-term debt and extinguishment premium were $(368.0) million.
- Net cash used in investing activities was $(90.5) million, compared with $(57.9) million.
- Net cash used in financing activities was $(157.9) million, compared with $(48.2) million.
Analysis
Brinker reported broad first-quarter fiscal 2027 growth. Company sales were $1,461.2 million and total revenues were $1,475.6 million, compared with $1,335.4 million and $1,349.2 million, respectively, in the first quarter of fiscal 2026. Operating income increased to $151.0 million from $117.9 million, and operating income as a percentage of total revenues increased to 10.2% from 8.7%. GAAP net income was $113.3 million versus $99.5 million, while diluted net income per share was $2.64 versus $2.17.
Chili’s remained the principal source of growth. Its total revenues were $1,380.7 million, compared with $1,249.7 million, and its comparable restaurant sales increased 10.1%. The company attributed Chili’s Company sales growth to higher traffic and menu pricing. Chili’s restaurant operating margin rose to 18.7% from 17.3%, as sales leverage outweighed higher commodity costs, hourly labor, advertising, repairs and maintenance, insurance, delivery fees and to-go supplies. The reported traffic impact for Chili’s was 6.4%, and the price impact was 3.7%.
Maggiano’s remained the weaker business. Total revenues were $94.9 million, compared with $99.5 million, while comparable restaurant sales declined 3.4%. The company cited lower traffic, partly offset by menu pricing. Its restaurant operating margin increased to 3.1% from 2.4%, but operating loss was $(3.6) million compared with $(4.1) million. The contrast between Chili’s positive traffic trend and Maggiano’s traffic decline is the central mix issue in the quarter.
Cash generation increased, with GAAP operating cash flow of $169.1 million and non-GAAP free cash flow of $105.7 million, compared with $120.8 million and $62.2 million. Brinker repurchased $125.0 million of common stock according to the release and redeemed its outstanding $350.0 million 8.25% notes using revolving-credit-facility funding. Interest expense rose to $24.6 million, including a $17.6 million loss on debt extinguishment. Cash and cash equivalents were $30.7 million at September 23, 2026.
The company updated fiscal 2027 guidance to total revenues of $6.23 - $6.33 billion and non-GAAP diluted EPS of $13.30 - $13.90, versus previous guidance of $6.15 - $6.27 billion and $12.60 - $13.40. Management stated that fiscal 2027 includes a 53rd operating week in the fourth quarter, estimated to increase Total revenues by approximately 2.0% and non-GAAP diluted EPS by $0.70. Capital-expenditure guidance of $265.0 - $285.0 million and diluted weighted average share guidance of 42.0 - 43.0 million remained unchanged.
Management, verbatim
Chili’s delivered its 22nd consecutive quarter of same-store sales growth, up +10%, lapping a +21% from last year and a +14% from 2024 for a 3 year cumulative comp of +52%.
Kevin Hochman, President and CEO of Brinker International
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.
Kevin Hochman, President and CEO of Brinker International
Not in the filing
stated, not guessed- Gross margin was not reported.
- Quarterly dividend information was not reported.
- A current portion of debt was not separately reported.
- No prior-quarter figures were reported for the presented operating metrics.
- No forward guidance for gross margin, operating expenses or tax rate was reported.
- No previous-release outlook section was provided for comparison with first-quarter actual results.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Brinker furnished an SEC 8-K with Q1 fiscal 2027 results and an FY2027 guidance update, including the estimated effect of a 53rd operating week in Q4.
Ticker impact
Brinker (EAT) reported Q1 fiscal 2027 results and updated FY2027 guidance, including an added 53rd operating week impact on revenues and EPS.
Likely upward bias as traders price in the updated FY2027 revenue and EPS outlook tied to the 53rd operating week and stronger cash generation.
The filing provides fresh, company-specific numbers (Q1 sales, margins, FCF, buyback, debt redemption) plus explicit FY2027 guidance ranges and the quantified incremental impact of the additional operating week.
Market effects
Reinforces demand and margin resilience signals for casual dining operators, potentially supporting sentiment toward restaurant value and traffic-driven models.
Limited direct regional read-through; primarily a US-listed single-name catalyst.
Low global relevance; impacts are mostly confined to US casual dining and equity sentiment.
Counterpoint
The guidance update is driven partly by the mechanical benefit of an extra operating week, so underlying demand and cost pressures may be less improved than the headline suggests.
Key entities
- companyBrinker International, Inc.
NYSE-listed restaurant operator reporting Q1 fiscal 2027 results and updating fiscal 2027 guidance.
- brandChili’s
Major Brinker brand cited for same-store sales growth and segment performance.
- brandMaggiano’s
Brinker segment with reported company sales decline and expense leverage discussion.
