If you have seen headlines about Chili’s restaurant closures, you may be wondering: Is Chili’s still going out of business? The short answer is no. Chili’s is not shutting down as a company. While individual restaurants have closed over the years, the overall brand remains active and is currently showing strong business performance.
In fact, the situation in 2026 looks quite different from the rumors. Chili’s is investing in restaurant renovations, introducing new menu items, and opening locations in the United States and international markets. Its parent company, Brinker International, has also reported continued sales growth for the brand.
Where Did the “Chili’s Is Closing” Rumor Come From?
The rumors largely grew from reports about individual Chili’s locations closing. When several restaurants disappear from different cities, it can easily create the impression that an entire chain is struggling. Social media posts and headlines can make those isolated closures look even more significant.
However, closing some locations is very different from shutting down the whole company. Brinker reported that five company-owned Chili’s restaurants were permanently closed during fiscal 2026. These restaurants were below performance standards or involved leases where acceptable extension terms could not be reached.
Chili’s Current Financial Performance
Chili’s latest numbers do not look like those of a restaurant chain preparing to disappear. For fiscal 2026, Chili’s comparable restaurant sales increased 9.2%. In the fourth quarter alone, comparable sales were up 5.6%, with the company also reporting positive customer traffic.
Fiscal 2026 also completed five consecutive years of same-store sales growth for Chili’s. Over that five-year period, cumulative same-store sales growth reached 71%. These figures provide important context for anyone wondering about the current financial condition of the restaurant chain.
Signs Chili’s Is Actually Growing
Restaurant numbers also help tell the story. At the end of fiscal 2026, Chili’s had 1,209 domestic and 374 international restaurants, giving the brand a total of 1,583 locations. During the fiscal year, 33 Chili’s restaurants opened across company-owned and franchise operations.
The company is also planning for future restaurant development. Alongside opening new locations, Chili’s is investing money in improving existing restaurants. This combination of new openings and renovations shows that the company is focused on its long-term restaurant network.
Retro Renovation Plan Across Chili’s Locations
One major investment is Chili’s modern Greenville restaurant design. The concept takes inspiration from the original Chili’s restaurant that opened on Greenville Avenue in Dallas in 1975. The redesigned restaurants combine familiar elements of the brand with updated dining areas and operational improvements.
Chili’s plans to remodel around 60 to 80 restaurants in fiscal 2027 and then target roughly 10% of its restaurant fleet each year. The broader renovation effort is expected to eventually reach more than 1,200 restaurants across North America.
New Menu Items Launching in 2026
Food and value remain important parts of Chili’s strategy. In April 2026, the company introduced its Big Crispy Chicken Sandwich and Spicy Big Crispy. The sandwiches became part of the $10.99 “3 For Me” lineup, which includes an entrée and fries along with chips and salsa and a fountain drink.
Chili’s has continued developing its chicken sandwich offerings as it competes for customers who might otherwise choose traditional fast-food restaurants. The strategy combines affordable pricing with the experience of eating at a full-service restaurant.
International Expansion, Including Peru
Chili’s growth is not limited to the United States. The restaurant chain finished fiscal 2026 with 374 international restaurants, compared with 368 a year earlier. International franchise partners also opened 23 Chili’s restaurants during the fiscal year.
Expansion has continued in markets such as Peru. New restaurant plans there have been accompanied by remodeling and menu development. International growth gives Chili’s another way to expand its customer base while maintaining its large presence in the United States.
What Chili’s Is Doing to Bring Customers Back
Chili’s recent performance is not based on one change. The company has focused on food quality, everyday value, restaurant atmosphere, service, marketing, and simpler operations. Offers such as the 3 For Me menu also give customers a clear price when comparing Chili’s with increasingly expensive fast-food meals.
Restaurant improvements are another part of the strategy. Rather than completely replacing the familiar Chili’s identity, newer designs bring back recognizable elements while updating restaurants for modern customers. This helps the restaurants feel fresh without losing the casual atmosphere associated with the brand.
Individual Location Closures vs. Company-Wide Shutdown
This distinction is important when answering “Is Chili’s still going out of business?” A restaurant chain with more than 1,500 locations can close individual stores without the overall company shutting down. Restaurant closures are a normal part of managing a large chain.
Brinker regularly reviews restaurant performance. Locations that do not meet expectations may receive operational, marketing, or physical improvements. In some situations, relocation may be considered. A restaurant can ultimately close when its performance remains weak or when continuing its lease no longer makes financial sense.
What’s Driving Chili’s Turnaround?
Value appears to be one important part of Chili’s recent momentum. The company has positioned meals such as 3 For Me as an alternative to fast-food pricing while still providing table service. Popular menu items and highly visible marketing have also helped bring attention back to the brand.
Operational improvements have played a role as well. Chili’s has worked on simplifying restaurant operations, improving food and service, investing in restaurant buildings, and strengthening the overall customer experience. Positive customer traffic alongside sales growth suggests that more people are visiting the restaurants, rather than growth coming only from higher prices.
Conclusion
So, is Chili’s still going out of business in 2026? No. Some individual Chili’s locations have closed, but there is no company-wide shutdown underway. Current business results instead show sales growth, positive customer traffic, new restaurant openings, and continued investment in the brand.
With restaurant renovations, new menu offerings, value-focused meals, and international expansion continuing, Chili’s is currently focused on improving and growing its business. Customers may still see individual restaurants close or relocate, but those decisions should not be confused with the entire Chili’s chain going out of business.
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