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Brinker International: Casual Dining at Chili’s and Maggiano’s

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Company overview

Brinker International, Inc. (EAT) operates casual dining concept restaurants in 31 countries, including the United States, under the brand names Chili’s Grill & Bar and Maggiano’s Little Italy. Brinker International has 1,615 restaurants in a combination of company-owned and franchised business modes. About half, or 894, of the restaurants in its system are company-owned, and the rest are franchised.

To know more about the restaurant business, read Market Realist’s series Why restaurants are so important to investors.

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In 1975, Larry Lavine opened the first Chili’s in Dallas, Texas. By 1983, there were 23 Chili’s restaurants in six states, and Norman Brinker purchased all of them. Chili’s, Inc. went public that same year with a listing on the NASDAQ. Chili’s changed its name to Brinker International, Inc. in 1991, and in 1995, Brinker purchased Maggiano’s Little Italy.

Chili’s peers

Some of Chili’s peers with similar menu offerings include LongHorn Steakhouse under the umbrella of Darden Restaurants (DRI), Texas Roadhouse (TXRH), Outback Steakhouse under the umbrella of Bloomin’ Brands (BLMN), and BJ’s Restaurants (BJRI).

Maggiano’s Little Italy offers a menu similar to Olive Garden under the umbrella of Darden Restaurants (DRI) and Carrabba’s Italian Grill under the Bloomin’ Brands (BLMN) umbrella.

We’ll take a more detailed look at each of Brinker International’s restaurant brands in the next section of this series.

All of the restaurants mentioned in this article are casual dining restaurants. A good way to get an exposure to several of these types of restaurants is an ETF such as the Consumer Discretionary Select Sector SPDR (XLY), which holds 10% of restaurant stocks in its portfolio.

Series overview

In this business overview series, we’ll be taking an in-depth look at Brinker International. We’ll see what its financial performance looks like and what drives its revenues, competition, latest earnings, and stock performance.

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