Americans are turning to Chili’s for their burger cravings, leaving McDonald’s in the dust. Chili’s parent company, Brinker International, reported a nearly 15% surge in same-store sales and a 6% increase in traffic last quarter, thanks to their new Big Smasher burger and a savvy promotional campaign.
With fast food prices on the rise, sit-down chains like Chili’s and Applebee’s are capitalizing on the trend by offering competitive deals. Chili’s latest $10.99 meal deal features the Big Smasher—an oversized burger with double the beef of a Big Mac, though with a single hearty patty and familiar toppings.
This bold move and targeted advertising have allowed Chili’s to outperform competitors in both sales and traffic, contrasting sharply with the struggling performance of major fast-food chains like McDonald’s, Burger King, and Wendy’s.
Brinker CEO Kevin Hochman highlighted that the Big Smasher promotion has been instrumental in attracting customers frustrated by fast food prices and engaging in broader cultural discussions. The campaign is set to run through the year, continuing to challenge the fast-food giants.
In comparison, Applebee’s has also promoted value-based offers, but without the same impact as Chili’s. The shifting landscape reveals a growing opportunity for sit-down restaurants to draw diners with appealing pricing and a more comfortable dining experience, challenging fast-food norms.
In response to Chili’s Big Smasher promotion, major fast-food chains quickly rolled out their own deals. McDonald’s $5 offer has been so successful that it will remain on U.S. menus through August, the company recently announced. According to a July memo, the promotion is achieving its goal of drawing customers back and even boosting full-priced sales, though the financial impact will be detailed in their fall earnings report.
Despite Chili’s impressive performance in driving traffic and sales, Brinker International’s stock took an 11% hit. The drop reflects a disappointing profit report that fell short of analyst expectations and a cautious outlook from the company.
