12 Best Restaurant Stocks to Buy According to Hedge Funds

5. Brinker International, Inc. (NYSE:EAT)

Number of Hedge Fund Holders: 51

Brinker International, Inc. (NYSE:EAT) runs casual dining establishments under the names Maggiano’s Little Italy (Maggiano’s) and Chili Grill and Bar (Chili’s). Chili’s belongs to the casual dining category of bars and grills. Signature dishes like slow-smoked baby back ribs, handmade burgers, fajitas, and bottomless chips and salsa served with tableside guacamole are among the Fresh Mex and Fresh Tex faves on its menu. The whole lunch and dinner menu of Maggiano’s, an Italian restaurant chain, includes chef-prepared dishes such as appetizers, chicken, seafood, veal and top steaks, and desserts. Chili’s category brings in the majority of revenue for the company.

Brinker International, Inc. (NYSE:EAT) had an outstanding quarter in Q3 of 2025, with a 21% rise in traffic and a remarkable 31.6% growth in same-restaurant sales, driven by Chili’s stellar performance. Through efforts to simplify its menu, increase sales, and improve operational efficiency, Chili’s also achieved an exceptional restaurant operating margin of 18.9%. The Big QP launch and other strategic marketing activities produced more impressions than previous ads and greatly increased brand awareness. Efficiency was also improved through operational changes, including better kitchen display systems. Sales of Margarita of the Month broke records as a result of the firm’s redesigned Margarita strategy, showing the success of its marketing campaigns.

In terms of finances, Brinker International, Inc. (NYSE:EAT) reported $1.425 billion in total revenues, a 28.2% rise in consolidated comparable sales, and adjusted diluted EPS that more than doubled from $1.24 to $2.66 in the previous year. By paying back about $125 million in funded debt, the company also strengthened its balance sheet and reduced its lease-adjusted leverage ratio to 1.9 times.