If you have been to a Chili's lately, you already know the Big Chicken sandwich is everywhere. The chain is betting big on it, and the numbers say the bet is working.
The company points to a familiar face for the boost. The Big Chicken sandwich, which launched in April, has been a monster.
"The Big Chicken is not Chili's first rodeo with fast-food-style items," CEO Kevin Hochman said. It follows the Big Smasher burger from 2024 and the Big QP burger from this year, and Hochman says the chicken version is outperforming both of them.
Part of the strategy is leaning into what makes Chili's different from the places it is stealing customers from. While fast-food chains have been raising prices, Chili's has pushed value deals and social-media-friendly menu items. It is also renovating some locations with a retro, nostalgic feel. The combination has proven so effective that Brinker's shares jumped up to 7.8% in Wednesday's trading, and the stock is up more than 65% for the year.
Momentum carried into the summer, too. Brinker said the Big Chicken remained popular through July, which suggests the chain is not just a one-quarter wonder.
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Chili's is thriving, but Brinker's other big brand is dragging things down.
For roughly a year, Brinker has attempted to revive Maggiano's through price adjustments and service modifications. So far, nothing has moved the needle. It is a reminder that even good restaurant companies can stumble when a brand loses its identity or its audience.
The weak spot matters because it shows up in the overall numbers. Total revenue for the quarter was $1.54 billion, just barely above the $1.53 billion that analysts had predicted. Without Maggiano's dragging on results, the picture would look even cleaner.
Maggiano's struggles are not new. The brand has seen customer traffic fall for five consecutive quarters, and some locations have closed. While Chili's benefits from a clear value proposition and social media buzz, Maggiano's has struggled to find its footing in a competitive casual dining market. The contrast highlights the challenges of managing a multi-brand restaurant company.
For the fiscal year that began June 25, Brinker is guiding to sales of $6.15 billion to $6.27 billion. That implies growth of roughly 6% to 8% from the prior year, which is solid for a restaurant company in this environment.
Analysts at UBS wrote before the earnings release that Chili's should hold up even when compared against last year's strong numbers. They pointed to the menu upgrades, the value positioning, and the marketing push as reasons to stay confident.
So what does this mean for your portfolio? If you own Brinker shares, the market has already rewarded you handsomely this year. The question is whether Chili's can keep the streak alive when the next round of comparisons gets tougher.
The Big Chicken may have a long runway, but the Maggiano's problem is not going away on its own. One chain is firing on all cylinders while the other keeps stalling, and that split is the real story to watch.
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