The first is that commencing from July, Chili's would unveil a fresh value platform and new advertising campaign featuring handcrafted burgers with a focus on ingredient transparency.
The second initiative is that the company expects opportunities to expand its bar business next year and beyond. Currently, its sales mix is 14 percent. Next year, Chili's would commence testing new Happy Hour platforms with food and drinks at price point levels of $3–$5. Also, other bar enhancement tests would happen in 2017.
The third initiative seen by the two analysts also involves Chili's planning several improvements like new appetizer ordering capabilities via Ziosk, mobile payment and pre-order dine in.
The analysts said, "EAT plans to increase advertising spend at Chili's by +16 percent y/y in 2017", which is the fourth initiative. The fifth is that "EAT will utilize its extensive data gained from Ziosk, which includes a 25 percent response rate, 425 responses per week per restaurant and average of 193 per server per quarter, to improve service and training."
The sixth initiative is that Chili's would test server handhelds in California, with potential expansion next year. The company outlined L-T Return Targets of +10–15 percent annual EPS growth, with +6–8 percent from free cash flow driven share repurchases.
At time of writing, shares of Brinker were down 1.48 percent at $46.26.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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