Brinker's Chili's Hits 20-Quarter Growth Streak, Lifts Forecast

DALLAS, TX – April 29, 2026 – Brinker International (NYSE: EAT) today reported strong third-quarter financial results, underscoring the formidable and sustained momentum of its flagship Chili's Grill & Bar brand. The casual dining giant announced that Chili's has achieved its 20th consecutive quarter of same-store sales growth, a milestone that propelled the company to beat earnings expectations and raise its full-year profit forecast, signaling robust confidence despite a mixed performance across its brand portfolio.

The impressive results sent Brinker's stock soaring in pre-market trading, as investors cheered the company's ability to navigate a challenging consumer environment. For the third quarter ended March 25, 2026, Brinker posted total revenues of $1.47 billion and an adjusted net income per diluted share of $2.90, surpassing analyst consensus.

"Chili's delivered its 20th consecutive quarter of same-store sales growth, up 4%, lapping a 31% increase a year ago," said Kevin Hochman, President and CEO of Brinker International, in a statement. "Guest demand remained strong in the quarter, recovering quickly after significant weather headwinds in January, driven by continuous improvements in food, service, and atmosphere, along with unmatched everyday value."

The Unstoppable Engine: How Chili's Keeps Winning

The story of Brinker's recent success is fundamentally the story of Chili's resurgence and sustained dominance. The brand's 4.0% comparable restaurant sales growth in the third quarter is not an anomaly but the continuation of a five-year trend built on a disciplined, multi-faceted strategy. This performance is particularly noteworthy as it comes on top of a massive 31.6% growth in the same quarter last year.

A core pillar of this success is a relentless focus on menu innovation and quality enhancement. The brand has strategically upgraded core menu items, leading to significant sales lifts. For instance, after bringing back its popular Skillet Queso, sales jumped 20%. Similarly, refreshed nachos and improved bacon cheeseburgers saw sales increases of 170% and 43%, respectively. Most recently, Chili's rolled out a new line of "super premium chicken sandwiches," directly challenging fast-food and fast-casual competitors with a larger, higher-quality product offered within its popular "3 For Me" value platform. Early data shows this move has increased chicken sandwich sales by over 160%.

This value proposition is another key driver. The "3 For Me" menu, which offers a beverage, appetizer, and entree starting at $10.99, continues to resonate deeply with consumers seeking affordable sit-down dining experiences. By positioning itself as "Better Than Fast Food," Chili's effectively captures diners who might otherwise opt for a quick-service meal, offering a full-service experience at a competitive price point.

Behind the scenes, operational and technological upgrades are locking in these gains. The implementation of high-tech TurboChef ovens allows for faster, more consistent cooking, while new kitchen display systems and server handheld tablets have improved ticket times and service efficiency. This focus on the fundamentals allows restaurants to handle higher traffic volumes without sacrificing quality, a key component of the brand's ability to grow traffic even as the broader industry struggles.

A Tale of Two Brands: Maggiano's Navigates Headwinds

While Chili's shines, Brinker's other major brand, Maggiano's Little Italy, presents a more complicated picture. The Italian-American concept reported a 4.6% decrease in comparable restaurant sales for the quarter, a stark contrast to Chili's robust growth.

The decline at Maggiano's was primarily driven by lower guest traffic, compounded by the unfavorable impact of some restaurant closures. The brand's restaurant operating margin also shrank, squeezed by the effects of lower sales, unfavorable menu mix, and rising costs for commodities and delivery services.

Brinker's leadership is not ignoring the issue, having initiated a "Back to Maggiano's" strategy aimed at turning the brand around by focusing on service, value, and operational improvements. While the turnaround is expected to take time, the relatively small footprint of Maggiano's—which contributes around 8% of Brinker's total sales—means its struggles do not derail the parent company's overall positive trajectory. This portfolio balance allows Brinker to leverage Chili's immense strength to provide the stability needed to address the challenges at its smaller brand methodically.

Confidence in Capital: Upgraded Guidance and Shareholder Returns

Brinker's strong quarterly performance, powered by Chili's, has instilled a high degree of confidence in its financial outlook. The company updated its guidance for fiscal 2026, raising the lower end of its forecast for non-GAAP diluted earnings per share to a range of $10.60 to $10.85. Total revenue is projected to land between $5.78 billion and $5.82 billion for the year.

This optimistic forecast is backed by a robust capital allocation strategy focused on delivering shareholder value. During the quarter, the company utilized its strong operational cash flow to repurchase $108.0 million of its common stock. This significant buyback, coupled with the complete pay-down of its revolving credit facility, underscores management's belief that its stock is a valuable investment and reflects a commitment to maintaining a healthy balance sheet.

Looking forward, the company has earmarked between $240 million and $250 million for capital expenditures in fiscal 2026. These funds are not just for maintenance but are strategic investments aimed at fueling further growth. The capital will be funneled into the very initiatives that have proven successful: restaurant remodels, technology upgrades to enhance efficiency, and new unit growth for the high-performing Chili's brand, ensuring the engine of Brinker's success remains well-oiled.

Outpacing the Competition in a Crowded Market

Chili's performance is even more impressive when viewed against the backdrop of the broader casual dining industry. While many competitors are struggling to maintain traffic, Chili's has consistently grown its customer base. The brand's 4.0% comparable sales growth places it in an elite tier. For comparison, recent reports show Darden Restaurants' Olive Garden grew same-restaurant sales by 2.3%, while Bloomin' Brands' Outback Steakhouse saw a slight decline of 0.3% in its most recent quarter.

This outperformance highlights the success of Brinker's strategy in a market where consumers are increasingly discerning. With inflation still a concern, the battle for market share is fierce, and value is paramount. Chili's has managed to thread the needle, delivering a compelling value proposition through its "3 For Me" platform without sacrificing the quality, innovation, and in-restaurant experience that differentiates it from quick-service options. The brand's ability to drive positive traffic in February and March, rebounding swiftly from weather-related disruptions in January, demonstrates the underlying strength and loyalty it has cultivated among its guests. As the company heads into the final quarter of its fiscal year, its strategy appears well-positioned to continue capturing share in a competitive field.