Chili's sales surge 8.6% as Brinker battles storm losses and stock volatility

Brinker International, the parent company of Chili's and Maggiano's, has faced a mixed start to 2026. While Chili's reported strong sales growth, Winter Storm Fern and rising industry costs have weighed on overall performance. The company's stock has also seen volatility, dropping by around 4.5% since late January.

On January 28, 2026, Brinker released its second-quarter earnings for the period ending December 31, 2025. Chili's delivered an 8.6% rise in comparable sales, outperforming expectations. However, Maggiano's struggled with a 2.4% decline in the same metric.

Winter Storm Fern disrupted operations, costing the company an estimated $20 million in lost revenue and reducing earnings per share by $0.15. Despite these challenges, Brinker raised its full-year guidance, projecting revenue of $5.76 to $5.83 billion and adjusted earnings per share between $10.45 and $10.85.

The stock initially dipped by 2.72% to $146.52 after the earnings report. Since then, it has fallen further to around $140, remaining within its 52-week range of $100 to $187. Meanwhile, insiders sold approximately $15.7 million worth of shares over the past quarter, including a $677,601 transaction on February 10. In contrast, Hillsdale Investment Management boosted its stake by roughly 55%, acquiring 53,200 shares.

Texas Roadhouse, a competitor, has also warned of rising costs, forecasting a 7% increase in commodity inflation for the year. Brinker's next financial update is scheduled for May 5, 2026.

Brinker's results reflect both strong brand performance at Chili's and external pressures from severe weather and industry-wide cost increases. The company's updated guidance suggests confidence in recovery, though stock movements and insider activity indicate cautious investor sentiment. The next earnings report in May will provide further clarity on its financial trajectory.