Brinker International CEO Kevin Hochman detailed how his company has improved its Chili’s chain in an interview with CNBC’s Jim Cramer, saying new advertising strategies have helped bring in customers and return the brand to relevancy.
“Progressively, every quarter, our results are getting better and better, now they’re being fueled by 19% traffic growth, and, quite frankly, we think the sky’s the limit,” Hochman said. “We don’t think this is the end, we think this is just the beginning of the Chili’s turnaround.”
Brinker posted an earnings beat on Wednesday, sending share soaring to finish the session up more than 16%. The company said it saw $1.35 billion in sales for the latest quarter, compared to $1.06 billion during the same period last year.
According to Hochman, Chili’s growth is sustainable because it is able to retain new customers. He said some believe that Brinker spends more on Chili’s advertisements than it actually does, praising his company’s marketing executives who “know how to pick shows,” including certain live sports.
Hochman said Brinker is looking to redesign some Chili’s locations, including “200 of our 1200 restaurant estate that…need some love.” He said the company has a new design it’s working on and will start to reimage next year. Hochman said that atmosphere is especially important post-Covid, as consumers want “a third place to come together.” He boasted about the chain’s general value proposition, saying it’s consistently affordable.
“We’re always going to be there with that $6 margarita,” Hochman said.
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