Brinker International (EAT): Can Chili’s Keep Bringing the Heat?

Brinker International (NYSE: EAT), the parent company of Chili’s and Maggiano’s, has been on fire — literally and figuratively. 

While much of the restaurant sector has struggled with labor costs, uneven traffic, and weak margins, Brinker stock has exploded more than 200% over the past year. 

Even with a recent post-earnings pullback, EAT is still the top-performing restaurant stock of the past 12 months. It also has a Zen Rating of A (Strong Buy).

But with the restaurant industry rated D overall in our system, it’s worth asking: Is Brinker an outlier worth betting on, or has the stock simply run too far, too fast?

Is EAT Still the Best Restaurant Stock in 2025?

Let’s start with what’s working. Chili’s has pulled off one of the most impressive turnarounds in recent memory. 

Traffic is up. Same-store sales are up 31%. Margins have surged to over 19%. 

And they’ve done it without chasing food fads or gimmicks — the strategy has been all about operational simplicity (fewer menu items, faster kitchen tech), smart marketing, and a viral Gen Z fan favorite: the Triple Dipper.

Source: Business Insider

That appetizer combo — a choose-your-own sampler plate — has become a TikTok staple, driving real foot traffic and repeat visits from younger diners. It now accounts for 14% of restaurant sales. 

And while it might sound silly to credit a plate of sliders and mozzarella sticks for a $7B valuation bump, it’s a powerful case study in social-media-driven brand resurgence.

Meanwhile, Maggiano’s (another one of the company’s brands/restaurants) is now following the Chili’s blueprint, with management warning that traffic growth will take time — but the early results suggest they're on the right path.

A Cautionary Note

EAT now trades at a historically high multiple … and even in our system, EAT scores a C in our Value Component Grade.

And while Brinker is the #1 stock in the D-rated restaurant industry, that doesn’t make the broader category less challenging. Rising wage pressure, food inflation, and potential consumer pullbacks could hit casual dining harder than fast food or QSR.

That said, exceptional companies can outperform even in weak industries — and EAT may be one of them. Its sharp focus, viral relevance, and operational discipline have earned it an A rating in our system. It ranks at the very top of the restaurant sector for Growth, with an A Component Grade due to strong sales acceleration, EPS growth, margin improvements, and more.

It also scores a B in Sentiment and Financials. See the full breakdown of its other Component Grades here.

Overall, EAT is worth keeping an eye on even though we have concerns about the restaurant sector more broadly. To see whether a strong stock in a weak sector fits your investing style, I recommend reading our recent piece on the Best Stocks in the Best Industries.

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.