Brinker International, Inc.

Two restaurant brands, different results

Brinker International, Inc. trades on the New York Stock Exchange under EAT. It earns revenue from restaurants it operates and from franchise royalties and related fees. Chili's Grill & Bar is by far the larger business; Maggiano's Little Italy is smaller and currently facing weaker customer traffic.

The growth record

Comparable fiscal first quarters ended September 25, 2024, September 24, 2025 and September 23, 2026. Revenue and profit are millions of dollars. Sales and traffic growth below refer to company-owned Chili's restaurants open long enough to enter the comparable base.

Metric	Q1 FY2025	Q1 FY2026	Q1 FY2027
Group revenue	$1,139.0	$1,349.2	$1,475.6
Reported operating profit	$56.4	$117.9	$151.0
Reported net income	$38.5	$99.5	$113.3
Chili's comparable sales growth	14.1%	21.4%	10.1%
Chili's traffic growth	6.5%	13.1%	6.4%

The latest Chili's result includes a 3.7% pricing contribution and no net change in the mix of menu items sold. Maggiano's comparable sales fell 3.4% and traffic declined 5.1%.

Earlier expectations and the next test

August's fiscal 2027 forecast called for $6.15 billion to $6.27 billion in revenue and adjusted earnings of $12.60 to $13.40 a share. In October, Brinker raised those ranges to $6.23 billion to $6.33 billion and $13.30 to $13.90. Both forecasts include the 53rd operating week in Q4; the latest completed quarter contained 13 weeks.

Adjusted earnings remove selected gains, charges and tax items, rather than all employee share compensation. At the next results, the useful checks are whether Chili's continues to add traffic against its strong prior-year base, whether Maggiano's improves and whether the group remains on course for the raised annual ranges.

Cash, refinancing and restaurant purchases

Quarterly operating cash flow was $169.1 million, up from $120.8 million. After $63.4 million of capital spending, free cash flow was $105.7 million, compared with $62.2 million a year earlier.

In July 2026, Brinker redeemed $350 million of notes using its revolving credit facility. Net borrowing on that facility was $375 million during the quarter. Cash fell from $110 million at June 24 to $30.7 million at September 23. Total debt and finance leases were $484.8 million, compared with $448 million before issuance costs at June 24; operating lease obligations are separate.

Brinker completed its $27.1 million purchase of 12 franchised Chili's restaurants in Alabama and Mississippi on August 27, funded with the credit facility. Six locations included real estate. These were existing restaurants changing ownership, not 12 new openings.