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What were the key takeaways from Brinker International's earnings call?

- **Chili's Dominance**: Q1 comps +21.4% YoY, 18th straight quarter of growth, driven by 35% ribs sales and frozen margarita success.
- **Data-Driven Retention**: Tokenized data shows 70% of new guests return, with stable visit frequency across cohorts.
- **Value Leadership**: $10.99 3-for-Me mix steady at 18%, with 3-for-Me guests visiting 20% more frequently.
- **Tariff Mitigation**: $10M+ price increases planned, offsetting mid-single-digit commodity inflation.
- **Maggiano's Turnaround**: Q1 comps -6.4% but early signs of stabilization with scratch-made focus and repairs.
- **Growth Pipeline**: 4 Chili's reimaged prototypes complete by Q4 2025, with new unit growth evaluation in Q2 2026.

**【CEO Summary Section】**
- **Chili's Q1 Performance**: Same-store sales grew 21.4% YoY, driven by 13% traffic increase and 4.3% mix improvement. This marks the 18th consecutive quarter of positive comps.
- **Menu Innovations**: Ribs sales up 35% YoY with 29% profitability improvement. Frozen Patrón Margaritas sold twice as many units as the previous platform at a higher price point.
- **Guest Retention**: Tokenized data shows monthly cohorts maintain stable visit frequency, retaining 70% of new guests over time.
- **Consumer Insights**: Households earning under $60k grew fastest, with Chili's gaining market share in lower-income segments.
- **Maggiano's Turnaround**: Focused on scratch-made recipes, service speed, and guest-facing repairs. Q1 comp sales declined 6.4% but leadership sees early signs of stabilization.

**【CFO Financial Commentary】**
- **Topline Results**: Total revenue $1.35B (+18.5% YoY), adjusted EPS $1.93 (+104% YoY). Chili's comps +21.4%, Maggiano's comps -6.4%.
- **Cost Management**: Restaurant operating margin 16.2% (+270bps YoY) due to sales leverage. Food costs up 2.6% YoY, labor expenses +3.8% offset by sales growth.
- **Tariffs and Pricing**: Anticipate mid-single-digit commodity inflation, with $40M in price increases planned for Q1 2026. $10.99 3-for-Me platform maintains 18% mix stability.
- **CapEx and Growth**: $58.6M Q1 capex for maintenance and 4 Chili's reimaged prototypes. Maggiano's focused on repairs before new unit growth.

**【Q&A Highlights】**
- **Value Strategy**: $10.99 3-for-Me platform drives 18% mix, with 3-for-Me guests visiting 20% more frequently. Q3 will launch new $10.99 innovation.
- **Tariff Impact**: 2026 guidance includes mid-single-digit commodity inflation, offset by $10M+ price increases. Q2 EPS may face 6-8% Maggiano's drag.
- **Menu Renovation**: Chicken sandwich platform to launch Q4 2025, targeting boneless fried chicken growth. Queso upgrade added $150M+ sales but required reintroducing legacy queso.
- **Labor Model**: North of 6 initiative reduces friction, with tankless water heaters and table reconfiguration improving throughput.
- **Maggiano's Progress**: Reimaging focuses on abundance, speed, and repairs. Q2 2026 will test new unit growth feasibility post-reimaging.


Brinker International, Inc. (EAT) Q1 2026 Earnings Call Transcript

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