Dallas, TX — A thunderous shot was fired in America’s burger wars when Chili’s launched a value-priced burger meal designed to lure customers away from McDonald’s and Wendy’s. The bold strategy seems to be paying off.
Since introducing its $10.99 “3 for Me” Big Smasher meal in April 2024, Chili’s has seen a surge in foot traffic and sales — a rare success story at a time when most restaurant chains are struggling with higher prices and cautious consumers.
Chili’s Gains While Rivals Struggle
The move directly targeted fast-food regulars hit by rising menu costs. According to company data, Chili’s is now attracting diners who previously favored fast-food drive-thrus.
“We know diners are experiencing sticker shock from the rising cost of fast food, with little change to the actual quantity or quality of fast food combo meals,” said George Felix, Chili’s Chief Marketing Officer. “We believe that Chili’s 3 For Me offers better value than you’ll find in any drive-thru.”
Chili’s parent company, Brinker International, had missed Wall Street revenue expectations in three of the four quarters before the new deal launched. But the value strategy helped the brand rebound strongly.
During its March 2024 earnings call, Brinker CEO Kevin Hochman said the burger deal was designed to appeal to consumers seeking value without compromising service quality.
“Delivering waitstaff-level, dine-in service at a more attractive price point with superior value and better food — that gets very exciting for the guests,” Hochman said.
As reported by TheStreet, Chili’s now leads the casual dining segment in both growth and market share, while its fast-food competitors are losing ground.
Numbers Tell the Story
Recent data shows Chili’s outperforming McDonald’s and Wendy’s in both traffic and sales:
- Chili’s Foot Traffic Growth: Q2 2025 – 19.3%, Q3 2025 – 15.4%
- McDonald’s Foot Traffic: Q2 2025 – 0.9%, Q3 2025 – -3.5%
- Wendy’s Foot Traffic: Q2 2025 – -2.9%, Q3 2025 – -6.5%
- Chili’s Same-Store Sales Growth: +21.4%
- McDonald’s U.S. Sales Growth: +2.4%
- Wendy’s Same-Store Sales Decline: -4.7%
Sources: Placer.ai, Brinker International 10-Q filings.
Value Meals Fueling Chili’s Comeback
The “3 for Me” burger meal — which includes bottomless chips and salsa, a beverage, fries, and the burger itself — is priced competitively with typical fast-food combos but comes with full-service dining.
That formula has resonated especially well with households earning under $60,000, according to Hochman.
“Our cohort growing the fastest is actually households with income under $60,000,” Hochman said. “We are gaining market share with low-income households while others are reporting softness with that group.”
Meanwhile, both McDonald’s and Wendy’s have acknowledged a decline in visits from lower-income consumers, a demographic that forms the core of their customer base.
“In the U.S., we continue to see a bifurcated consumer base with QSR traffic from lower-income consumers declining nearly double digits,” admitted Chris Kempczinski, McDonald’s CEO, during a recent earnings call.
McDonald’s and Wendy’s Fight Back
Fast-food giants are not surrendering easily. Both have launched new value initiatives and strategic changes aimed at winning back customers.
McDonald’s response includes:
- Reintroducing its $2.99 Snack Wraps.
- Expanding its value meal lineup to ensure “everyday affordability.”
“We brought extra value meals back to ensure fans can find affordable pricing across our menu boards,” said Ian Borden, McDonald’s CFO.
Wendy’s counterattack — “Project Fresh” — focuses on:
- Improving restaurant experiences.
- Introducing new items such as “Tendys,” its chicken tender offering.
- Closing 300 underperforming stores to improve efficiency.
“The first pillar of Project Fresh is revitalizing the Wendy’s brand by celebrating what makes us stand out from the competition,” said Wendy’s CEO Ken Cook.
The Big Picture: Chili’s Advantage
Chili’s success underscores how value-driven casual dining can outperform even fast-food heavyweights when consumers tighten budgets.
With $4.9 billion in fiscal 2025 sales and 15%+ growth in foot traffic, the chain’s comeback signals a shifting landscape in America’s dining scene.
Whether McDonald’s and Wendy’s can reclaim lost market share remains to be seen, but for now, Chili’s appears to have won this round of the burger wars — one value meal at a time.
What do you think about Chili’s winning strategy? Do you see casual dining replacing fast food for value seekers? Share your views in the comments below.
