Chili’s Was Left for Dead…Until Viral Mozzarella Sticks Gave It The Lazarus Treatment

By Stocks News   |   4 months ago   |   Stock Market News
Chili’s Was Left for Dead…Until Viral Mozzarella Sticks Gave It The Lazarus Treatment

The year is 2025 and the hottest restaurant in America is the place your dad got divorced…

Chili’s…the chain once left for dead in the strip mall graveyard… is suddenly back on the growth train, carried by mozzarella sticks that went viral on TikTok. Yes, America’s casual-dining punching bag is expanding again, planning to break out of its Florida–Texas–California stronghold and plant those Baby Back Rib flags in new, unsuspecting suburbs across the Northeast and Pacific Northwest.

(Source: Giphy) 

In short, when Kevin Hochman took over in 2022, Chili’s wasn’t exactly thriving. The menu was bloated, service was slow, and the brand carried the stale aura of a restaurant where your dad once ordered a Presidente Margarita during his midlife crisis (true story). Hochman went full Gordon Ramsay, and with a little help with degenerates on social media, he chopped 25% of the menu, dumped $100 million into maintenance, staffed up stores, and simplified recipes so cooks could actually execute them.

(Source: Bloomberg) 

As a result, sales are now mooning, margins are looking girthier, and new store openings are about as open as Opendoors CEO position. Translation: Chili’s figured out how to make mozzarella sticks both crispy and viral, and suddenly the suburbs are asking for more. For more context, Chili played it bigly smart by noticing how Americans are furious at fast-food chains charging $15 for a soggy Big Mac combo. Chili’s swooped in with $10.99 sit-down combos, turning the family dining stigma into a moat. Why choke down a $17 Chipotle burrito when you can get bottomless chips, viral mozz sticks, and an overworked waiter for less? It’s a no-brainer. 

(Source: Giphy) 

And, naturally, it’s working. Gen Z, who previously thought Chili’s was just a meme from The Office, are actually showing up (if that doesn’t tell you anything, I don’t know what does). Which is why now, Hochman’s next project is steak. The problem? Cuts aren’t consistent, so cooks often struggle to nail doneness (true story #2). The solution, allegedly, is still in “R&D”, which probably means a summer of interns grilling in the Chili’s parking lot like some rendition of the Mickey D brothers perfecting their speed system on a tennis court. Of course, Hochman admits they’re not a steakhouse, but if you order a ribeye and it arrives looking like it was just butchered 2 minutes ago, you’re not likely coming back. 

For investors in Brinker International (Chili’s parent), they’re now watching the most G.O.A.T.’d ticker symbol’d stock ($EAT) expand to over 1,100 company-owned Chili’s and 100 franchises. Expansion into higher-cost regions shows confidence in the turnaround. And yet, Hockman doesn’t just want to squeeze costs, he’s wanting to make Chili’s a real competitor in the “affordable indulgence” lane. Meaning, if same-store sales momentum holds, $EAT investors could see Chili’s go from ironic meme stock to actual growth story.

(Source: Giphy) 

Bottom line: Chili’s is proof that in America, nothing dies forever… not brands, not mozzarella sticks, and if the price is right for baby-backed food (with barbecue sauce) neither does your waistline. They cut the fat, leaned into the meme, and found growth where most restaurants are still grifting. It’s 100% admirable, and smart. Which is why, it might be a good idea to keep your eyes on $EAT as we head into this morning's opening bell (especially as shares are up 4.05% over the past five trading days). Until next time, friends… 

At the time of publishing, Stocks.News holds positions in McDonalds as mentioned in the article. 

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