Oct 28, 2026 earnings call — Chili's traffic-led growth and Big Crispy success
Brinker reported total revenues of $1.476 billion and updated fiscal '27 revenue range to $6.23 billion to $6.33 billion.
Revenue $1.5B (est $1.5B) · EPS $2.77 (est $2.45) · Next-quarter revenue outlook $6.2B–$6.3B
Key quotes
"Customers are responding to the size and quality of the sandwich versus fast food, as well as the price certainty of $10.99 for a large and abundant complete meal."
"Our guest experience improvements and our everyday value leadership continue to support a powerful flywheel of traffic, sales growth, margin expansion and reinvestment in our business."
"Banquet sales were up 11% for the quarter versus a year ago."
Analyst Q&A 11
consumer demand and inflation
Q (David Palmer · Evercore): He asked what the company sees in consumer behavior by income and weekly trends, and also asked about inflation pressure on freight and costs by fiscal year end.
A: Management said customers are under pressure from gas and rates, but Chili's is growing share via traffic and value; they launched the $10.99 chicken sandwich to drive visits. They also said oil and freight pressure is in their guidance, with about $7 million built into restaurant expense and sales helping margins.
"So we are seeing what most of you guys are all seeing, which is a consumer that is under pressure with what's happening with gas prices and the interest rates." — Kevin Hochman (CEO)
Big Crispy promotion plan
Q (John Ivankoe · JPMorgan): He asked whether they will use traditional media to build awareness of the Chicken Parm Big Crispy and how the product should trend through the quarter.
A: Management said this is a 'big swing' marketing play using social first, then in-restaurant merchandising starting November 1, and they expect to learn more in a few weeks. They said current sales are a bit below expectations but expect pickup once table tents and merch are in restaurants.
"So right now, it's being a little over two a day, which is a little short of what we expected it to do." — Kevin Hochman (CEO)
same-store sales outlook
Q (Dennis Geiger · UBS): He wanted the assumptions for Chili's same-store sales for fiscal 2027, especially the back half, and asked about the mix and $10.99 value mix.
A: They guided mid-single-digit same-store growth with positive traffic in quarters 2–4 and noted a strong October start but a tough lap in November. On value mix, the 3 for Me platform is around 20%–21%, up slightly, and traffic is driving results though guests may trim alcohol and desserts.
"So Dennis, what I would say is for the back half of the year, two, three and four, we're back to the mid-single-digit same-store sales expectation with positive traffic." — Mika Ware (CFO)
drivers of quarter strength and remodel returns
Q (Christopher O'Cull · Baird): He asked what is driving the quarter-to-date strength without heavy national advertising, and asked for returns on remodels as they scale.
A: Management said strong marketing plus operations keep bringing guests back; social and value campaigns drove relevance while Google scores rose. On remodels, they said current reimages roughly cover cost of capital, delivering 3%–5% sales lift, and it's early so they'll refine returns over time.
"So Chris, really, what they're doing now is covering the cost of capital." — Mika Ware (CFO)
restaurant margins and G&A
Q (Jeffrey Farmer · Gordon Haskett): He asked for updated restaurant-level margin expectations given stronger same-store sales, and an update on G&A as percent of sales.
A: They expect full-year restaurant-level margin improvement of about 70 to 90 basis points year-over-year, with quarter-to-quarter smoothing and some labor pressure in Q2. G&A should remain around 4% to 4.1% of sales, with some incremental performance-based comp.
"So taking a step back. So if we look at the full year, what I'm expecting in restaurant-level margin improvement is about 70 to 90 basis points improvement year-over-year now, especially with the strong first quarter that we've had." — Mika Ware (CFO)
throughput and manager incentives
Q (Andrew Strelzik · BMO): He asked whether throughput initiatives have measurably reduced ticket times and for rollout status, and whether changing manager bonuses changed behaviors.
A: They reported a slight but not yet reportable decrease in ticket time and described rollouts: labor scheduling best practices, host-stand changes by November/December, and a handheld interface by year-end. Changing manager bonuses reduced distractions over guest scores and simplified daily operational focus, which they expect will improve operations over time.
"So we've seen a slight decrease in ticket time, but it's not worth, it wasn't worth, it wasn't significant enough to worth reporting." — Kevin Hochman (CEO)
celebrity collaborations and labor outlook
Q (Andrew Charles · TD Cowen): He asked if celebrity collaborations (Snooki, Lizzo) are on a regular cadence and asked for labor inflation guidance.
A: They said collaborations are planned based on calendar and commercial priorities, not a fixed six-month cadence; they pick partners to support specific product or timing. Labor inflation is expected around 3% for the year, in a 3%–5% band.
"So it's not necessarily like on a cadence of every six months." — Kevin Hochman (CEO)
off-premise strategy
Q (Sara Senatore · Morgan Stanley): He asked about the delivery and carryout business and when they expect improvements from the Investor Day initiatives.
A: Delivery and carryout are each about 12.5% of sales (roughly 25% combined). They are running a multi-year cross-functional effort focused on better promise times, easier reorder flows to target sub-one-minute order times, pickup experience and packaging; improvements will roll out over several years.
back-of-house improvements
Q (Brian Harbour · Morgan Stanley): He asked what still needs to improve in back-of-house after Kevin's restaurant visits.
A: They said much can still get better, especially by making restaurants easier to run with tech like an AI-fueled Heart of House ERP over 2–3 years and by improving manager retention. Longer-tenured managers at top restaurants are a key advantage for operations.
"One was we have to be continuously improving and making this restaurant easier to run." — Kevin Hochman (CEO)
dessert upsell and Big Crispy cadence
Q (Margaret-May Binshtok · Wolfe): She asked how they balance promoting desserts while customers trim checks, and whether more Big Crispy variants or cadence are planned.
A: They are testing moving desserts to the top of the kitchen screen but are cautious not to slow service, so it's still in test. For Big Crispy, most marketing spend supports the $10.99 value message; they have seven variants in development and will add innovations only if the advertising response weakens.
"I will say we're in test right now with bumping the desserts to the top of the screen." — Kevin Hochman (CEO)
why big marketing swings work
Q (Christopher Carril · KeyBanc): He asked why their 'big swings' (marketing moves) are landing more often and whether process changes help ensure success.
A: Management said they take a few big marketing swings and operational swings each quarter, learn from results, and adjust tactics—using broad TV for value and social/PR to target groups. They said the marketing team improves year to year by debriefing and refining what made hits sticky.
"So I would tell you it's just every year, we're learning how to be more effective." — Kevin Hochman (CEO)