Q1 2026 Brinker International Inc Earnings Call Transcript
Key Points
- Chili's reported a strong Q1 with same-store sales up 21.4%, outperforming the casual dining industry by 1,650 basis points.
- Chili's has achieved its 18th consecutive quarter of positive same-store sales growth, driven by a 13% increase in traffic.
- The ribs upgrade at Chili's has been successful, with sales up 35% and profitability improved by 29%.
- Chili's frozen Patrón Margaritas platform is selling twice as many units as the previous platform, despite a higher price point.
- Brinker International Inc (EAT) reported total revenues of $1.35 billion for Q1, an 18.5% increase over the prior year, with an adjusted diluted EPS of $1.93, up from $0.95 last year.
- Maggiano's reported a decline in comp sales for the quarter, down 6.4%, indicating challenges in stabilizing and improving the brand.
- Brinker International Inc (EAT) anticipates higher tariffs on commodities and increased inflation in workers' compensation and health insurance claims.
- The company expects commodity inflation, inclusive of tariffs, in the mid-single digits, higher than previously projected.
- Despite strong performance at Chili's, the overall guidance for fiscal 2026 remains unchanged due to softer results at Maggiano's and necessary investments.
- The company faces challenges in maintaining restaurant margins due to unfavorable food and beverage costs and necessary investments in labor and infrastructure.
Good day, and welcome to the Brinker International Earnings Call for Q1 Financial Year 2026. [Operator Instructions]
It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Kim, the floor is yours.
Thank you, Paul, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, President and Chief Executive Officer and President of Chili's; and Mika Ware, Chief Financial Officer. Results for our first quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.
Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items, which are not based entirely on
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