This Steakhouse Just Became America's Top Restaurant Chain, Shocking Diners
For years, Olive Garden has dominated the chain restaurant category. Since 2018, the Italian-themed eaterie has continued expanding, opening new restaurants and increasing sales. However, according to new data, a new restaurant has taken the top chain spot for the first time in seven years and diners are shocked.
New Data Has Texas Roadhouse As the Top Chain Restaurant
Technomic has released new data showing that Texas Roadhouse is the number one chain among the 500 largest restaurant chains in the U.S. The steakhouse, which operates 664 restaurants, has experienced rapid growth over the past few years and surging sales, which helped it nab the top spot.
Sales Increased in 2024, with Texas Roadhouse Surging Past Olive Garden
According to the data, Texas Roadhouse's U.S. systemwide sales increased 14.7% last year to $5.5 billion. It also opened 26 new locations, a 4.1% change. Olive Garden only experienced a 0.8% growth in sales in 2024, to $5.2 billion. It opened 15 new restaurants, bringing its total footprint to 923, an increase of 1.7%.
Chili's Surged Past Applebee's
Chili's surged past Applebee's to take the number three spot with a 15% sales growth. It was a major comeback year for the brand, thanks to a new menu with added value. Applebee's wasn't far behind, though sales slid about 6% and instead of opening new restaurants, closed 35 locations.
Texas Roadhouse Offers a Lot of Everyday Value
Citi analyst Jon Tower told Yahoo Finance recently about Texas Roadhouse (TXRH) and its success, noting that the brand has "consistently been a winner from a traffic and sales standpoint" because it prioritizes the guest experience. An executive from the chain recently told the audience at the ICR conference in Orlando, "We want to be the everyday value player out there."
Promotions Have Helped Bring in Customers
He added that promotions like a $10.99 Early Bird Special before 6 p.m. have helped increase foot traffic. Same-store sales growth has increased 8.50%, 9.30%, and 8.40% in the past three quarters, and the company's stock has gone up around 45% in the past year.
Chili's, Under New Leadership, Has Made Major Changes
Chili's, which experienced nearly a 15 percent growth in 2024, is "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," Jefferies analyst Andy Barish said at the time.
They Have Also Added a Lot of Value to the Menu
Tower added the appointment of CEO Kevin Hochman in 2022 was game-changing for the brand. Under his leadership, they added 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.
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