Chili's Takes Aim at Taco Bell With New Taco and Quesadilla Push
EAT has more than doubled off its 52-week low of $100.3 on light trading volume (0.3× avg).
Summary
Chili's is expanding its value-war playbook beyond burgers, now targeting Taco Bell's to-go Mexican segment with new taco and quesadilla offerings. Executives said the items could feature Chili's improved chicken tenders, steak, or spicy mayo. This follows the chain's successful 2024 campaign against McDonald's, which drove traffic with $10.99 burger meals. Taco Bell is currently vulnerable after a cyclospora outbreak linked to its lettuce caused a sharp sales decline. The move signals a direct competitive attack on a weakened rival, potentially accelerating Chili's market share gains.
At the time of this announcement, EAT was trading at $206.21 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.6B. The 52-week trading range was $100.30 to $254.99. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.