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Brinker International (Eat) CEO Kevin Hochman does not agree to place an item with the name Nvidia (NVDA) chips and Guac on the menu – but maybe he should do that.
The Former KFC Marketing Whiz leads one of the most popular restaurant chains on the planet in Chile, an old-fashioned sit-down eatery that was born in 1975.
“Of course I am surprised (by the results),” Hochman told me on the opening offer -Podcast from Yahoo Finance (see video above; Listen below). “I knew we were doing the right things and I knew that over time we would get better and get stronger and get good results.”
The shares of Brinker have yielded a savory profit of 348% in the past year, which performs better than the lean 99% of Nvidia. The share price has also surpassed any other large restaurant chain.
Yahoo Finance – Data show that Brinker now has a market capitalization of $ 8.1 billion, lightyears for the meager $ 468 million that offer struggling dinner brands (DIN) – the old rival operates Applebee’s and IHOP.
How great have the performance of the 1500 locations chain been? Quite damn great, given that sit-down restaurants are fighting against mobile ordering, salad loving people over 20, Ozempic shots, higher costs for labor and food, and perhaps a dozen other headwind.
Selling chilis in the same store exploded 31.4% year after year in the most recent quarter. The profit was supported by an EYE opening of 19.9% increase in customer visits.
The results come after a series of double -digit quarterly sales profits for chilis.
Hochman has credited a few items for the comeback of the chain.
First, a steady stream from value marketing to a customer base that often goes out to eat like a weekly or monthly luxury. And second, investments in higher quality food. In some items, Hochman has exchanged chicken cutting effects for “whole lob” chicken. Bacon comes from the kitchen crispier. Guacamole is made fresh daily instead of using “day two” guac.
“The flywheel of better food, service, atmosphere and marketing translating into sales is fully in force, with Chile’s postcomp growth that we have never seen from an adult brand (ex-bodem),” wrote Citi Restaurant Analyst Jon Tower in a Client Note. “There is little evidence that suggests that this force should fade with the management that points to sales momentum with the tax third quarter, a pipeline of new product news and initiatives at store level (oven replacement, renovations) that offers dearly to the sales story.”
