Brinker International Inc. recently unveiled its financial outcomes for the first fiscal quarter, demonstrating performance that exceeded market predictions. The company reported earnings per share of $1.93, a notable increase from $0.95 in the previous year, surpassing the analyst consensus of $1.77. This growth was largely attributed to a surge in customer traffic and strategic pricing adjustments. Additionally, the company's revenue climbed by 18.4% to $1.35 billion, slightly outperforming the anticipated $1.33 billion.
The strong financial results were primarily fueled by the exceptional performance of Brinker's Chili's brand, which recorded a 21.4% rise in comparable restaurant sales and contributed $1.25 billion in revenue. This segment also saw an improved adjusted operating margin of 17.3%. Conversely, Maggiano's experienced a challenging quarter, with a 6.4% decrease in comparable sales and a lower adjusted operating margin of 2.4%, mainly due to reduced customer footfall. Despite this, Brinker International reaffirmed its fiscal 2026 adjusted earnings outlook of $9.90 to $10.50 per share, aligning with analyst expectations, although its sales forecast of $5.60 billion to $5.70 billion fell short of the $5.72 billion predicted by Wall Street.
Kevin Hochman, President and CEO of Brinker International, highlighted Chili's remarkable achievements, noting its industry-leading sales growth of 21% and a 13% increase in traffic, especially within a demanding economic landscape. He expressed confidence in the company's continuous investments in culinary offerings, customer service, and ambiance, believing these efforts will sustain growth and help overcome strong comparative sales figures in the upcoming quarters. This forward-looking approach, combined with strategic financial management, such as the repurchase of $92.0 million in common stock, positions Brinker International to navigate future market dynamics effectively.