Brinker International, Inc. EAT is broadening the menu strategy at Chili’s as it seeks to extend the brand’s recent traffic and sales momentum. Management highlighted chicken, kids’ offerings and desserts as key areas of focus for fiscal 2027.
The Big Crispy Chicken Sandwich remains central to the strategy. Brinker plans to continue marketing the sandwich throughout fiscal 2027 while reinforcing execution at restaurants. Management said chicken sandwiches sold per restaurant per day had risen sharply since the launch, making the platform an important traffic driver.
Chili’s is also revamping its kids’ menu to attract more families. The updated lineup includes grilled chicken tenders, with mini Moltens and cheese quesadillas planned, alongside upgraded ice cream and a kids’ mocktail.
Desserts represent another potential sales opportunity. Chili’s has upgraded its skillet cookies and ice cream, introduced the social-media-driven Molten-over-cookie combination and plans to bring back cheesecake. Brinker is also testing ways to prioritize dessert orders in the kitchen to encourage servers to sell them during busy periods.
The broader backdrop remains constructive, with Chili’s reporting its 21st consecutive quarter of same-store sales growth in fourth-quarter fiscal 2026. However, sustaining traffic gains while managing inflation and protecting value will remain important as EAT moves through fiscal 2027.
Darden Restaurants and Bloomin’ Brands Add Competitive Pressure
Two relevant competitors are Darden Restaurants DRI and Bloomin’ Brands BLMN as Brinker leans further into menu innovation, value and family-oriented dining. Darden’s portfolio includes Olive Garden and LongHorn Steakhouse, giving it exposure to casual dining occasions that compete with Chili’s. Olive Garden’s broad menu, family appeal and value-oriented promotions can overlap with Chili’s efforts to attract larger groups and younger families.
Bloomin’ Brands, the parent of Outback Steakhouse, also competes for consumers seeking casual dining and differentiated food offerings. Outback’s emphasis on steaks, chicken dishes and desserts provides a broad menu proposition similar to the categories Brinker is strengthening.
For EAT, the key differentiator is Chili’s continued focus on traffic-driving food platforms, particularly its chicken sandwich, while simultaneously refreshing kids’ offerings and desserts. Brinker is also working on restaurant throughput and guest experience, aiming to convert higher traffic into sustained sales and margin growth.
EAT’s Price Performance, Valuation and Estimates
Brinker’s shares have gained 51.5% over the past six months against the industry’s 13.2% decline.
EAT Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 15.42, down from the industry average of 19.97.
EAT’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2027 earnings per share has increased, as shown in the chart. Moreover, the estimate for EAT’s fiscal 2027 earnings per share implies a year-over-year uptick of 22.7%.
Image Source: Zacks Investment Research
EAT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).