Brinker Forecasts Continued Growth on Chili's Momentum — Update

By Connor Hart

Brinker International guided for another year of profitable growth, as its Chili's chain continues to attract value-seeking diners with its Triple Dipper appetizer, burgers and ribs.

Chief Executive Kevin Hochman on Wednesday said Chili's again increased its lead in the casual-dining space during the latest quarter, benefiting from recent efforts to improve its food, service and atmosphere, as well as increase its relevance.

Chili's is also winning when it comes to value, with a per-person average spend that is nearly $4 below that of its competitors. The efforts, Hochman said, "are supporting a powerful flywheel of traffic and sales growth, margin expansion, and then reinvestment into our business."

Chili's same-restaurant sales increased 5.6% during the recent quarter, marking five consecutive years of growth. Looking ahead, Brinker guided company-wide revenues and adjusted earnings to again grow over the coming year.

Shares were trading 7.5% higher, at $237.91, in Wednesday trading. The stock is up nearly 60% year to date.

"We still have room to improve, but our progress gives us confidence that we will sustain traffic gains and repeat business," Hochman said.

Chili's over the past several years has become a leaner organization, thanks to ongoing efforts to optimize operations, streamline kitchen prep, and free up managerial time and resources. At the same time, the chain has turned continued inflation into a marketing pitch, comparing itself to fast-food chains such as McDonald's, and arguing that diners get similar burgers to a Big Mac but served at a table with unlimited chips and soda for the same price as a combo meal.

Brinker -- which also operates the Maggiano's Little Italy chain -- said Chili's ongoing outperformance has helped offset some struggles at Maggiano's, where same-restaurant sales slipped 2.5% during the recent quarter.

The chain is seeing some green shoots, Hochman said, noting improvements across certain financial metrics and guest satisfaction scores. Overall, though, the turnaround at Maggiano's has been mixed and is happening slower than expected.

Companywide same-restaurant sales grew 5% during the period, in line with Wall Street estimates, according to FactSet. Total revenue rose 5% to $1.54 billion, also in line with expectations.

For its quarter ended June 24, Brinker posted net income of $131.1 million, or $2.99 a share, up from $107 million, or $2.30 a share, a year earlier. Adjusted earnings of $3.07 a share were just below the $3.09 a share that analysts expected.

Looking ahead, Brinker guided for adjusted earnings of $12.60 to $13.40 a share on revenue of $6.15 billion to $6.27 billion in the coming fiscal year. Analysts were looking for adjusted earnings of $12.57 a share on revenue of $6.15 billion.

Write to Connor Hart at connor.hart@wsj.com

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August 12, 2026 12:59 ET (16:59 GMT)