Brinker International, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 1 new, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Comparable restaurant sales rose 18.8%: Company comparable restaurant sales rose 18.8% for the quarter, including 21.4% at Chili’s. Maggiano’s comparable restaurant sales were down 6.4% in the same period. Source
• Chili’s sales rose on traffic: Chili’s company sales were $1,236.2 million against $1,018.9 million. The company attributed the increase to higher traffic, favorable sales mix and menu pricing. Source
• Maggiano’s sales fell on lower traffic: Maggiano’s company sales were $99.2 million against $108.4 million. The company attributed the decline to lower traffic, partly offset by menu pricing. Source
• Chili’s traffic rose 13.1%: Chili’s comparable sales of 21.4% comprised price of 4.0%, mix of 4.3% and traffic of 13.1%, against traffic of 6.5% in the prior-year comparison. Source
• Restaurant operating margin rose: Restaurant operating margin was $215.8 million, or 16.2% of company sales, against $151.7 million, or 13.5%, a year earlier. The measure is non-GAAP. Source
• Share repurchases of $92.0M: The company repurchased $92.0 million of its common stock in the quarter, per the release. The cash flow statement shows purchases of treasury stock of $134.5 million. Source
• Back to Maggiano’s strategy in motion: Management said several initiatives are in motion under a Back to Maggiano’s strategy, featuring Italian American favorites and warm, attentive service. Source
• Full-year guidance reiterated: Management reiterated fiscal 2026 guidance for total revenues, non-GAAP diluted EPS, capital expenditures and weighted average shares, first given in August 2025. Source

“Chili’s continues to deliver industry leading results with first quarter sales of +21% and traffic of +13%, against a tough macro environment,”

Kevin Hochman, President & CEO of Brinker International

Guidance

What changed from last quarter

• Guidance kept: Fiscal 2026 guidance for total revenues, non-GAAP diluted EPS, capital expenditures and weighted average shares was reiterated without change from the August 2025 guidance. Source

Results and growth drivers

• Comparable restaurant sales rose 18.8%: Company comparable restaurant sales rose 18.8% for the quarter, including 21.4% at Chili’s. Maggiano’s comparable restaurant sales were down 6.4% in the same period. Source
• Company sales and revenues grew: Company sales were $1,335.4 million against $1,127.3 million a year earlier. Total revenues were $1,349.2 million against $1,139.0 million, and franchise revenues were $13.8 million against $11.7 million. Source
• Operating income rose to $117.9M: Operating income was $117.9 million, or 8.7% of total revenues, against $56.4 million, or 5.0%, a year earlier. Net income was $99.5 million against $38.5 million. Source
• Diluted EPS rose to $2.17: Net income per diluted share was $2.17, against $0.84 a year earlier, as reported on a GAAP basis in the release. Source

Chili’s and Maggiano’s results

• Chili’s sales rose on traffic: Chili’s company sales were $1,236.2 million against $1,018.9 million. The company attributed the increase to higher traffic, favorable sales mix and menu pricing. Source
• Segment operating income diverged: Chili’s operating income was $169.0 million against $93.9 million. Maggiano’s posted an operating loss of $4.1 million against operating income of $7.8 million a year earlier. Source
• Maggiano’s sales fell on lower traffic: Maggiano’s company sales were $99.2 million against $108.4 million. The company attributed the decline to lower traffic, partly offset by menu pricing. Source
• Chili’s franchisee sales rose: Chili’s franchisees generated approximately $269.5 million of sales in the quarter, against $225.7 million in the first quarter of fiscal 2025. Source

“give us confidence we can build on this growth and successfully lap the high sales comparisons in Q2 & Q3.”

Kevin Hochman, President & CEO of Brinker International

Traffic, price and mix

• Company-owned traffic drove comparable sales: Company-owned comparable sales of 18.8% comprised price of 4.1%, mix of 4.1% and traffic of 10.6%. Traffic was 4.9% in the prior-year comparison. Source
• Chili’s traffic rose 13.1%: Chili’s comparable sales of 21.4% comprised price of 4.0%, mix of 4.3% and traffic of 13.1%, against traffic of 6.5% in the prior-year comparison. Source
• Maggiano’s traffic fell 12.8%: Maggiano’s comparable sales of (6.4)% comprised price of 5.9%, mix of 0.5% and traffic of (12.8)%. Source
• Franchise comparable sales by region: Franchise comparable sales were 23.1% in the U.S. and 16.5% internationally, and 19.0% for franchise restaurants overall. Source

Restaurant costs and margins

• Restaurant operating margin rose: Restaurant operating margin was $215.8 million, or 16.2% of company sales, against $151.7 million, or 13.5%, a year earlier. The measure is non-GAAP. Source
• Chili’s expense ratio fell: Chili’s restaurant expenses were 82.7% of company sales against 86.5% a year earlier. The company attributed the change to sales leverage and lower repairs and maintenance. Source
• Chili’s labor and commodity pressure: Partly offsetting Chili’s expense gains were higher hourly labor and manager salaries, unfavorable menu item mix and commodity costs, and higher other restaurant expenses. Source
• Maggiano’s expense ratio rose: Maggiano’s restaurant expenses were 97.6% of company sales against 86.7%. Its restaurant operating margin was $2.4 million against $14.4 million. Source
• Depreciation and G&A increased: Depreciation and amortization was $53.6 million against $46.3 million. General and administrative expense was $57.2 million against $51.8 million. Source

Tax, special items and charges

• GAAP tax rate was 7.5%: The GAAP effective income tax rate was 7.5%, below the 21.0% statutory rate, due to FICA tip credit leverage and $11.7 million of excess stock-based compensation tax benefits. Excluding special items, the rate was 18.5%. Source
• Other charges were $0.9 million: Other (gains) and charges totalled $0.9 million, against $8.9 million. Severance was $1.5 million and litigation and claims $0.7 million, offset by a $2.3 million natural disaster credit net of insurance. Source
• EPS excluding special items $1.93: Net income excluding special items was $88.5 million, or $1.93 per diluted share, against $43.5 million, or $0.95 a year earlier. Source

Capital, cash and shareholder returns

• Operating cash flow rose to $120.8M: Net cash provided by operating activities was $120.8 million, against $62.8 million a year earlier. Cash and cash equivalents at the end of the period were $33.6 million. Source
• Capital spending slightly higher: Payments for property and equipment were $58.6 million, against $56.5 million a year earlier. Full-year capital expenditure guidance is covered in the guidance section. Source
• Share repurchases of $92.0M: The company repurchased $92.0 million of its common stock in the quarter, per the release. The cash flow statement shows purchases of treasury stock of $134.5 million. Source
• Revolver activity and debt balance: Revolver borrowings were $255.0 million and repayments were $165.0 million. Long-term debt and finance leases, less current installments, were $525.8 million against $426.0 million at June 25, 2025. Source

Restaurant base and brand strategy

• Seven restaurants opened in quarter: The company opened seven restaurants in the quarter: two Chili’s domestic company-owned and five Chili’s international franchised. Company-owned restaurants totalled 1,161, against 1,170 a year earlier. Source
• Back to Maggiano’s strategy in motion: Management said several initiatives are in motion under a Back to Maggiano’s strategy, featuring Italian American favorites and warm, attentive service. Source
• Menu and advertising drove visits: Management attributed Chili’s results to menu enhancements and advertising that attracted new guests, and to improved restaurant operations that drove repeat visits. Source

Fiscal 2026 guidance and non-GAAP basis

• Full-year guidance reiterated: Management reiterated fiscal 2026 guidance for total revenues, non-GAAP diluted EPS, capital expenditures and weighted average shares, first given in August 2025. Source
• Full-year openings projected at 32-38: Projected full-year openings total 32 to 38, with 8 to 10 Chili’s domestic and 24 to 28 Chili’s international. No Maggiano’s openings are projected for the year. Source
• Special items not in forecasts: Management said it cannot reliably forecast special items without unreasonable effort, so forecasted non-GAAP measures are not reconciled to GAAP. Source

Coming up, as management said on 29 October 2025

• Form 10-Q filing deadline: The Form 10-Q for the first quarter of fiscal 2026 is to be filed on or before November 3, 2025. Source

Figures management reported

Risks management discussed

• External: Management cited a tough macro environment as the backdrop for the quarter's results. Source
• Demand: Maggiano’s company sales declined on lower traffic, and the company reported traffic declines for the brand. Source
• Demand: Management said the company must lap high sales comparisons in the second and third quarters of fiscal 2026. Source

Earlier plans management reported on

• Ahead: Management said Chili’s performance exceeded the company’s plans, while Maggiano’s experienced traffic declines. Source
• Not stated: The company reiterated its fiscal 2026 guidance. The release does not state whether the guidance is on track. Source

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.