Why Business Is Booming for Steakhouses Like LongHorn and Texas Roadhouse [Video]

Americans are pulling back spending across several categories, but they’re still comfortable splurging on a night out.

Steakhouses like Darden Restaurants’ (DRI) LongHorn and Texas Roadhouse (TXRH) have managed to continue delivering strong results and traffic even as consumers contend with higher prices on essentials and seek out the most value for their money.

The perception that steakhouses deliver value—along with rising meat prices at supermarkets that make ordering it in restaurants more appealing—are helping pull more people through their doors.

“The consumer is really focused on what price they’re paying in everywhere, not just in restaurants,” Darden Chief Executive Officer (CEO) Ricardo Cardenas said on a conference call last week. If consumers get relief in the price of essentials like rent and utilities, he said, that could mean more discretionary income and even more business at LongHorn and Darden’s other brands like Olive Garden.

Companies from McDonald’s (MCD) to Home Depot (HD) …