Brinker International CEO Kevin Hochman discusses the company's decision to de-emphasize virtual brands, focusing instead on core businesses Chili's and Maggiano's. This strategic shift, implemented 15 months prior, prioritized in-restaurant dining due to higher margins and reduced reliance on third-party aggregators. Despite a decrease in overall traffic (partially attributed to the virtual brand reduction), same-store sales improved due to menu price increases and favorable item mix. Hochman highlights increased advertising investment ($60 million) as a key factor in driving traffic growth and profitability, exceeding Wall Street expectations. He also addresses the importance of signature items and their attachment rates (like Chili's margaritas), and future plans to enhance the digital ordering experience to further improve off-premise sales.
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