Cramer Picks Brinker’s Chili’s Play Over Darden Ahead of Results

Jim Cramer said he favored Brinker International over Darden Restaurants ahead of Darden’s quarterly report, pointing to Chili’s value meals and a stronger growth plan. He made the comparison on CNBC’s “Mad Money” on September 18.

Cramer praised Darden’s Olive Garden business but said he preferred Brinker’s “3 for Me” offer, which starts at $10.99. Brinker owns Chili’s and Maggiano’s Little Italy.

Brinker’s fiscal 2026 company comparable sales rose 8.1%, while Chili’s comparable sales increased 9.2% for the year. In the fiscal fourth quarter, Chili’s sales at restaurants open at least a year grew 5.6%, and the chain’s restaurant operating margin rose to 18.6% from 18.2%.

Darden’s results were positive, but growth varied by brand. Fiscal 2026 comparable sales climbed 4.5% across the company, including 4% at Olive Garden and 7.2% at LongHorn Steakhouse. In the fourth quarter, Olive Garden growth slowed to 2.4%, while LongHorn posted 9.5%.

That gap put Olive Garden’s performance in focus before Darden’s fiscal 2027 first-quarter report, scheduled for September 24. The company’s full-year forecast calls for $13.60 billion to $13.75 billion in sales and earnings of $11.10 to $11.35 per diluted share.

Brinker also faces a concentration risk: Chili’s accounts for most of the company’s sales, leaving results more exposed to a slowdown at that chain. Maggiano’s comparable sales fell 3.9% in fiscal 2026, a weaker showing that Chili’s gains helped offset.

The comparison is not simply a bet on value meals. Darden operates a broader group of restaurant brands, while Cramer’s preference reflects Brinker’s faster recent sales growth and Chili’s offer. Darden’s next results will show whether Olive Garden can regain momentum and keep the company on track with its annual outlook.