This Iconic Chain's Shocking Comeback Is Outpacing Olive Garden and Texas Roadhouse

Ever since the pandemic, sit-down chains have been struggling to stay afloat. From inflation forcing the price of dining out to the healthy eating trend, fewer people have been spending their money at their local Chili's, Outback, or Olive Garden. However, little by little, the bigger chains are building their customer bases once again.

New data published by Yahoo Finance using information from Bloomberg highlights the growth of the most popular sit-down chains throughout 2024. "There's an opportunity to win share from weaker competitors, mostly independents," Citi analyst Jon Tower told Yahoo Finance, calling it "a tailwind for chain operators, assuming they get things right." And, one brand in particular is experiencing a noteworthy surge in popularity: Chili's. Here are the most popular sit-down chains at the moment.

Chili's

According to stats, Brinker International's (EAT) Chili's experienced nearly a 15 percent growth in 2024. Jefferies analyst Andy Barish called the chain "the most extreme example of being able to hit a value promotion at exactly the right time and then be able to support it with an incredible amount of social media spending and influencers." Toware added that the chain was an "overnight success" after suffering a slump in popularity before CEO Kevin Hochman took over in 2022. One successful move was adding a $10.99 meal deal with an appetizer, entree, and beverage. "We're leading the industry on value," he told Yahoo Finance's Market Domination after Chili's experienced a 14% year-over-year same-store sales jump last quarter with Brinker's stock soaring by 280% in the last 12 months.

Texas Roadhouse

Texas Roadhouse (TXRH) has "consistently been a winner from a traffic and sales standpoint" and prioritizes the guest experience, Tower said about the BBQ brand. "We want to be the everyday value player out there," an executive from the chain told the audience at the ICR conference in Orlando. Promotions like a $10.99 Early Bird Special before 6 p.m., have helped increase foot traffic, with same-store sales growth increasing 8.50%, 9.30%, and 8.40% in the past three quarters and the company's stock going up around 45% in the past year.6254a4d1642c605c54bf1cab17d50f1e

LongHorn Steakhouse

LongHorn Steakhouse, run by Darden, was up 5.2% at the end of 2024. Here's why people are flocking to the affordable steakhouses: "This is the category that really took off post-pandemic," R.J. Hottovy, head of analytical research for Placer.ai, which tracks consumer traffic patterns, said in 2024. "People want to go out. They don't always have the financial means to do it right now, but when they go out, they want to make the most of it. And, for some people, that is a casual-dining steakhouse."

Maggianos

Maggianos experienced the most growth in the Italian chain category in Q4 to the tune of 2.7% – more than Olive Garden. In September, the Brinker restaurant announced they were bringing in Michelin-starred Chef Anthony Amoroso as its first-ever vice president of innovation and growth. Using his "seasoned expertise and visionary leadership," the chain rolled out eight new Italian-American menu items. In December, Brinker also added Mike Wesley as Vice President of Marketing.

Olive Garden

Olive Garden, another one of Darden's most popular chains, experienced a 2% growth. During a December earnings call previously reported by ETNT, executives revealed that the Aug. 26 return of Olive Garden's Never-Ending Pasta Bowl promotion was a major driver behind its improved performance. The deal offers customers unlimited pasta, breadsticks, and their choice of soup or salad for a starting price of $13.99. Darden CEO Rick Cardenas revealed that they extended the deal by four weeks, and a record number of Never-Ending Pasta Bowl customers opted for a $4.99 protein upgrade. "So, the promotion did well," he said.

Cracker Barrel

Cracker Barrel's stock has fallen nearly 20% over the last year, as less people are dining out for breakfast. "[The] breakfast category is more challenged," Tower said, explaining that budget-conscious consumers are dining more at home. However, they still experienced a 1.5% growth in Q4. "We have some very, very sharp entry price points" like a $7.99 breakfast menu, CEO Julie Felss Masino told Yahoo Finance at ICR.

Denny's

Denny's stock plummeted 40% over the last year. Denny's CEO Kelli Valade told Yahoo Finance there is "cautious optimism" and a "bit of a stabilizing consumer" at the ICR conference. The brand currently has a 5-year plan in place, which includes remodels and closures of 30 locations. This resulted in same-store sales growing 1.1% in Q4. "About 20% of the guests are eating some kind of value offering … $6 and the $10 categories are doing the strongest," she said.

IHOP

One breakfast chain that is falling in growth is IHOP. The brand dropped 1.3% in Q4. Operated by Dine Brands, the company is trying to make changes, per Chief Executive Officer John Peyton. "What we're seeing is a very promotion-driven environment right now and a lot of 'noise' for consumers to sort through when there are so many brands and categories offering so many promotions and deals, so we have to make sure we are sharp in the right promotion," Peyton said during a call. "We know we're capable of more and while the underlying strength of our business provides assurance of resilience through market cycles, we are diligently working to identify and address the missing ingredients in our strategy to refine our offerings and move forward," Peyton said.

Applebee's

Applebee's, another Dine Brands eaterie, also dropped 3.7%. The restaurant plans on leaning into its new NFL partnership to drive traffic and is modifying its menu items.  "We're applying our learnings with a shift to more full meal value offers and will continue to evolve our value propositions to keep our guests engaged," Peyton said."We need to be more consistent with our promotions, making sure they perform more often or all the time and not as hit or misses we had during the quarter."