What’s an average check?
Average check is the average price a customer pays for the meal at a restaurant. The average check at Brinker International’s (EAT) Chili’s restaurant is $14.31, and 85.9% of that is from food and nonalcoholic beverages. The remaining 14.1% is from alcoholic beverages.
At Maggiano’s Little Italy, the average check is $26.70, and 83% of that is from food and nonalcoholic beverages. The remaining 17% is from alcoholic beverages.
To learn more about the components of the average check, please read Market Realist’s An in-depth overview of the US restaurant industry.
Chili’s average check compared to its peers
The average prices of items on Chili’s menu ranges from $6 to $17.69. In the above chart, you can see how the average checks at Chili’s and Maggiano’s compare with their peers.
The average check at Chili’s in 2014 was $14.31, which was below Darden Restaurant’s (DRI) LongHorn Steakhouse with an average check of $19.25. It was also below Texas Roadhouse’s (TXRH) average check of $16.02. Outback, under the umbrella of Bloomin’ Brands (BLMN), had an average check of $21, the highest among its peers.
Darden Restaurants are held by the Consumer Discretionary Select Sector SPDR (XLY). XLY holds about 10% of restaurant stock, which gives a diversified exposure to the industry.
Maggiono’s isn’t cheap
While Chili’s had a lower average check among its peers, Maggiano’s had the highest average check among its peers. Maggiano’s peers include Olive Garden under the umbrella of Darden and Carrabba’s under the umbrella of Bloomin’ Brands. The average prices of items on Maggiano’s menu were in the range of $12.95 to $42.50.
Traffic at Chili’s improved slightly in 2014. Traffic at Maggiano’s remains unchanged year-over-year. Both restaurants suffered a decline in same-store sales in 2013.