It’s a comeback that many might not have seen coming. Chili’s is America’s hottest restaurant right now.
The increasingly popular restaurant chain’s sales went up 31% last quarter, marking the third quarter in a row of double-digit growth. Brinker International, Chili’s parent company, which also owns Maggiano’s, saw a stock bump of 16% on Wednesday, Jan. 29, alone.
How did Chili’s become America’s #1 restaurant?
It’s not higher prices that are accounting for people spending more at Chili’s — it’s more people spending time there. Chili’s foot traffic went up 20% last quarter, according to the company.
The chain, which was falling behind other casual dining restaurants across the country, like Olive Garden and Texas Roadhouse, has a few things to thank for that, such as its upgraded french fry and chicken tender recipes, inexpensive meal deals, $6 margaritas and videos of its gooey mozzarella sticks going viral on TikTok, for starters.
That internet fame is what’s helped Chili’s survive the recent restaurant slowdowns, with other long-lasting chains like Red Lobster and TGI Friday’s filing for bankruptcy last year and Denny’s and Applebee’s announcing major store closings.
What’s next?
With how well things are going for Chili’s right now, Brinker said it’s now expecting to make $5.15 billion this fiscal year, up from its previous prediction of $4.7 billion.
On a call with analysts on Wednesday, Brinker’s Chief Executive Kevin Hochman said the numbers signal that Chili’s turnaround has taken hold “and it is sustainable.”
Hochman said the company will now shift its focus to turning around Maggiano’s using the Chili’s playbook.
