“I Want My Baby Back, Baby Back $$$”... 2021 Levels Reached?!?

The S&P 500 is on a winning streak that would make Patrick Mahomes jealous, notching its sixth straight victory with a 1.64% climb and inching within a field goal (3%) of its record high. Carried by semiconductor stocks, the Nasdaq saw a 2.34% jump, and the Dow rose 1.2%.

Walmart and Cisco brought the snacks, with both stocks jumping over 6% after delivering earnings beats. 

After a rough start to August, the market’s doing its best Rocky impersonation, shaking off the bruises and coming out swinging. 

Today’s Consumer Price Index gave us the lowest year-over-year increase since early 2021. We are so back.

Time to crank up the money printers Jerome.

"I Want My Baby Back, Baby Back $$$"

Chili’s, the restaurant that was a staple for kids who grew up in the 90s, just pulled off a genius marketing move that would have the whole Mad Men cast pouring a celebratory scotch. 

Brinker International, the parent company of Chili’s, saw a 6% rise in its stock, thanks to a clever ad campaign and a viral TikTok appetizer that’s brought in customers by the droves. After two years of trying to turn the brand around, this quarter’s results show that CEO Kevin Hochman’s strategy is finally paying off.

The center of this turnaround was a viral tiktok that’s been viewed over 1.2 million times where Eason Trbojevic blamed McDonald’s for “price gouging” and then served up a sales pitch that would’ve had Draper reaching for his notepad. 

Eason shared that the “3 for Me” deal at Chili’s allows him to choose an appetizer, drink, and meal for only $11—and the internet went wild as people realized how much cheaper Chili’s had become. “Def prefer these chain restaurants,” one commenter admitted, while another added, “A sit-down is now the same price as drive-thru here, too.” With the Triple Dipper alone driving 40% of Chili’s recent sales growth, someone might want to cut Eason a check—or at least a lifetime supply of chips and salsa.

As the viral TikTok grabbed headlines, another Chili’s star quietly rose to fame online: the Big Smasher, a massive yet affordable burger that’s been turning heads. 

(Source: The Daily Dot)

CEO Kevin Hochman spotted the growing frustration over rising fast-food prices and saw an opportunity too good to pass up. “We noticed on social media that people were upset about where fast-food prices were heading,” Hochman noted. So, Chili’s launched an ad campaign that went straight for the jugular, directly challenging the big fast-food chains by positioning the Big Smasher as the better deal. And boy, did it work—the burger alone drove 60% of Chili’s impressive 14.8% same-store sales growth this quarter.

The surge in demand has pushed Chili’s resources to the limit, especially when it comes to staffing. They’ve been throwing cash at hiring and training new crew members, and yeah, it’s put a dent in their bottom line. But Hochman isn’t losing any sleep over it—he knows you’ve got to spend money to make money, and right now, keeping up with Chili’s skyrocketing popularity is worth every penny.

Looking forward, Chili’s has serious momentum on its side. While Brinker International has taken a cautious approach with its outlook for fiscal 2025, Hochman remains optimistic. “The sky’s the limit,” he said, reflecting his confidence in the brand’s future. If they keep playing their cards right, this could be the start of a long-term comeback that has all of us ’90s kids lining up every week for that sweet hit of “baby back” nostalgia.

Stock.News has positions in McDonald’s.