Brinker International (EAT) CEO Kevin Hochman attributes Chili’s impressive 348% stock gain to investments in higher-quality food and effective marketing. The company’s long claim to fame has been its saucy ribs, sizzling fajitas, and gigantic burger patties.
Hochman, a former KFC marketing whiz, led the chain to a hot streak despite sit-down restaurants facing mobile ordering, salad-loving customers, and rising costs for labor and food. The company’s same-store sales exploded 31.4% year over year in the most recent quarter, with customer visits increasing by 19.9%.
Hochman credits these gains to value marketing and higher-quality food. He swapped chicken trimmings for “whole lobe” chicken and improved bacon quality. Freshly made guacamole is now a daily staple.
Analysts praise Chili’s comeback, citing sales momentum carrying into the fiscal third quarter with new product news and store-level initiatives on the horizon. CEO Hochman revealed plans to reinvent chili’s ribs with more smoke and sauce, softer fajita shells, and a surprise new menu item (although its nature remains under wraps).
The company’s market cap now stands at $8.1 billion, outperforming rivals like Dine Brands (DIN) and Nvidia (NVDA). As the chain looks to maintain its sales momentum, Hochman notes that there are “way more changes ahead” than those already completed.
Source: https://finance.yahoo.com/news/why-this-50-year-old-restaurant-chain-has-a-stock-thats-smoking-nvidias-141949435.html