Brinker International Stock Rises on Analyst Upgrade
Shares of Brinker International (EAT) rose by over 4% after Northcoast upgraded the stock from neutral to buy, citing strong performance at Chili's. The upgrade included a price target of $275 per share, implying potential for 37% growth in the next year. Analyst Jim Sanderson highlighted improved menu offerings and marketing strategies as key drivers behind Brinker’s success. Chili's has been outperforming its peers by capturing market share through value-focused advertising campaigns that contrast with fast-food chains like McDonald's. In fiscal 2026, which ended in July, the company reported 8.1% same-store sales growth overall and 9.2% at Chili's specifically. However, Maggiano’s, another Brinker-owned brand, has struggled recently. Looking ahead, Brinker aims for annual revenue growth of 4%-6%, including unit expansion with up to 30 new restaurants per year. The company also plans double-digit adjusted EPS growth and intends to repurchase between 3%–5% of its shares annually.
Topics: Brinker International casual dining Chili's restaurant industry Wall Street analysts