Brinker International Beats Q1 Estimates and Raises Full-Year Guidance on Chilis Strength

Brinker International posted fiscal first-quarter 2027 revenue of $1.5 billion, up 9% year over year and ahead of the $1.46 billion Wall Street consensus, as its Chili's Grill and Bar chain extended a remarkable run of same-store sales growth. Adjusted earnings per share came in at $2.77, a 44% jump from a year earlier and well above the $2.45 analyst estimate. On a GAAP basis, net earnings were $113.3 million, or $2.64 per share, compared with $99.5 million, or $2.17 per share, in the year-ago quarter.

Chili's was the clear engine of the quarter, with segment revenue rising 11% to $1.4 billion and comparable restaurant sales climbing 10.1%, marking the chain's 22nd consecutive quarter of positive same-store sales growth. That result lapped a 21% comp from the prior year and a 14% gain from fiscal 2024, producing a three-year cumulative comp of 52%. Brinker also acquired 12 franchisee-owned Chili's restaurants during the quarter and cited the national rollout of its Big Crispy Chicken Sandwich as a highly successful menu addition. Maggiano's Little Italy was a drag, with segment revenue falling 5% to $94.7 million amid persistent foot traffic headwinds.

Free cash flow surged 70% year over year to $105.7 million, and Brinker deployed $125 million in share buybacks while redeeming $350 million in 8.25% senior notes to reduce its cost of capital. The company raised its full-year FY27 revenue guidance to $6.23 billion-$6.33 billion from $6.15 billion-$6.27 billion, and lifted its adjusted EPS outlook to $13.30-$13.90 from $12.60-$13.40, both incorporating the benefit of a 53rd operating week. Shares rose more than 5% in premarket trading following the report.