Q1 Chili's same-store sales were up 21.4%, outperforming the casual dining industry by 1,650 basis points. This strong result was lapping a 14% increase in Q1 last year for a two-year compounded comp of 39%. This data, along with our quarter-to-date sales and traffic trends, give us confidence we'll be able to roll over the Q2 +31.4% sales growth and the +19.9% traffic growth from prior year. Brinker delivered another outstanding quarter led by Chili's, which marks our sixth consecutive quarter of double-digit sales and positive traffic growth.

For the first quarter, Brinker reported total revenues of $1.35 billion, an increase of 18.5% over the prior year, with consolidated comp sales a positive 18.8%. Our adjusted diluted EPS for the quarter was $1.93, up from $0.95 last year. Chili's reported top-line sales growth with comps coming in at +21.4%, driven by positive traffic of 13.1%, positive mix of 4.3%, and price of 4%. We continue to see strong year-over-year top-line growth, same-store sales and traffic well above industry averages, and significant restaurant margin expansion at Chili's.

Food and beverage costs for the quarter were unfavorable 60 basis points year-over-year due to unfavorable menu mix, with 2.6% commodity inflation offset by price. It offers a compelling price point for guests seeking value while still allowing us to maintain margin profitability. Top-line sales growth offset additional investments in labor and wage rate inflation of approximately 3.8%. Advertising expense for the first quarter were 2.5% of sales and decreased 10 basis points year-over-year due to sales leverage.

What went well
  • Chili's same-store sales rose 21.4%, outperforming the casual dining industry by 1,650 basis points and marking the 18th consecutive quarter of positive comps, with traffic up 13%.
  • Total revenue grew 18.5% to $1.35 billion and adjusted diluted EPS more than doubled to $1.93 from $0.95 a year earlier.
  • Restaurant operating margin expanded 270 basis points to 16.2% and adjusted EBITDA jumped 54.4% to approximately $172.4 million.
  • Menu upgrades performed strongly (ribs sales +35% with profitability +29%; Frozen Patron Margarita selling 2x prior units) and the guests-with-a-problem metric hit an all-time low of 2.1%.
  • The company repurchased $92 million of stock and continued gaining share with lower-income households (its fastest-growing cohort was households earning under $60,000).
What went wrong
  • Maggiano's remained weak with comp sales down 6.4%, prompting a new 'Back to Maggiano's' turnaround plan.
  • Food and beverage costs were unfavorable 60 basis points year-over-year on unfavorable menu mix, with 2.6% commodity inflation.
  • Management raised its commodity-inflation outlook to the mid single digits (including tariffs) from low single digits and flagged higher workers' comp and health insurance costs.
  • The adjusted tax rate rose to 18.5%, and management cautioned that Chili's comps would normalize toward the mid single digits against tough prior-year comparisons.

More on Brinker International, Inc

Reported 2025-10-29 · figures from the Brinker International, Inc Q1 2026 earnings call.

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