America is obsessed with chilies

new York
CNN
—

People can't seem to get enough of the Big Smasher burger, $6 margaritas, and triple dipper combo platters at Chili's.

Brinker International, Chili's parent company, reported a 14% increase in same-store sales and a 6.5% increase in traffic as the chain launched promotions aimed at its fast-food competitors and menu items that going viral on TikTok continues to perform strongly.

Rising prices for fast food sparked an advertising campaign for Chili's promoting the $10.99 Big Smasher, a rival to McDonald's Big Mac that “continues to win with guests” and is a “significant” traffic driver, Brinker CEO Kevin Hochman said on the company's earnings call Wednesday.

Shares of Brinker (EAT) were up 9% in midday trading and are up a whopping 150% for the year.

Chili's launched the $10.99 Big Smasher meal deal in April, describing it as “twice the beef of a Big Mac and flavors fast food lovers will recognize.” The meal also includes unlimited soft drink refills, bottomless chips with salsa and french fries.

The deal was so successful that it was renewed again and will continue through next year because “consumers value the value of their holiday spending,” he said, noting that customers tell employees that ” the burger looks exactly like it does in the advertisement.” ”

Another success story from Chili's was the Triple Dipper plate allows eaters to choose three entrees and sauces for less than $20. Food now accounts for 11% of Chili's business, with sales increasing 70% in the last year.

The Triple Dipper is “very relevant to younger guests and how they prefer to eat in a more varied, individual and experiential way through our large selection of dips,” Hochman said. The Triple Dipper is a staple on TikTok. Customers film their combinations and rave about them. Chili's monthly margaritas are $6 also draws people in, particularly its October “Witches Brew,” which has become “one of the best-selling promotional margaritas of all time,” he said. A new $10 Don Julio-based margarita is also attracting upscale consumers.

Chili's focus on affordability and virality “shows how broad the chain's appeal is,” says a new report from Placer.ai, a company that tracks foot traffic. “By delivering quality meals at affordable prices, Chili's has cemented its place as a chain for everyone and offers value comparable to quick service restaurants.”

Chili's success stands in stark contrast to some of its competitors TGI Fridays. That chain abruptly closed 50 stores across the United States last week as bankruptcy reportedly loomed. Meanwhile, McDonald's rebounded on the back of the $5 meal deal, but its momentum was slowed by an E. coli outbreak.