Brinker International, Inc. raised its fiscal 2027 sales and adjusted earnings outlook after first-quarter revenue and profit increased, as strong Chili’s sales growth contrasted with a decline at Maggiano’s.
Revenue rose to $1.476 billion in the quarter ended Sept. 23, compared with $1.349 billion in the same period a year earlier. Net income increased to $113.3 million from $99.5 million, while diluted earnings per share rose to $2.64 from $2.17.
Brinker now expects fiscal 2027 revenue of $6.23 billion to $6.33 billion, up from its previous range of $6.15 billion to $6.27 billion. Its forecast for diluted earnings per share excluding special items, a non-GAAP measure, increased to $13.30 to $13.90 from $12.60 to $13.40. The company said the fiscal year’s 53rd operating week is expected to add about 2% to revenue and $0.70 per diluted share excluding special items.
Comparable restaurant sales increased 10.1% at Chili’s and fell 3.4% at Maggiano’s. Chili’s comparable sales have risen for 22 straight quarters, Brinker reported. The company credited Chili’s gain to stronger traffic and menu pricing; at Maggiano’s, lower traffic was the main drag, partly offset by pricing.
Brinker’s earnings release pointed to different operating pressures at the two chains. It cited higher commodity and hourly labor costs among Chili’s expenses. At Maggiano’s, the company cited higher rent and manager salaries.
Brinker filed a Form 8-K with the Securities and Exchange Commission on Oct. 28, listing results under Item 2.02 and financial statements and exhibits under Item 9.01. The company had previously announced its earnings schedule, including a conference call to discuss the results at 11 a.m. ET Wednesday, Oct. 28.
