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UBS believes that Brinker International remains attractively valued and well-positioned to sustain its sales growth. The bank upgraded the parent company of Chili’s and Maggiano’s Little Italy to buy from neutral. It also raised its price target to $175 per share from $144, which signals upside of about 17%. Analyst Dennis Geiger said Brinker trades at an attractive valuation versus its peers and believes that Brinker is well-positioned for continued sales momentum, citing “levers to support further outperformance in ’26 and beyond.” He thinks the company as a whole can sustain sales momentum in the 3% to 5% range, and particularly applauded the menu innovation and upgrades at Chili’s for supporting said momentum. EAT 1Y mountain EAT 1Y chart “Chili’s has exhibited solid sales growth over the past few years, with outperformance against industry peers and an avg ~12% [same-store sales] during FY22-FY25,” he wrote. “Our Evidence Lab Casual Dining survey results support our favorable sales growth outlook with better food and affordability being key factors for incremental visits, a positive customer net visit intent that outperforms the industry, and strong brand attributes across value and speed of service.” Brinker trades at a forward price-to-earnings ratio of 13.4. Darden Restaurants, the parent company of Olive Garden, has a multiple of 17.4. The analyst also sees earnings upside potential from operational efficiencies and sales leverage. Additional opportunities that could further unlock shareholder value come from share repurchase, a turnaround in Maggiano’s business, and restaurant development acceleration, Geiger wrote. Geiger also highlighted Brinker’s effective marketing across channels, which has helped generate and support customer interest and traffic. This has resulted in notable virality through items such as the Chili’s Tripping Dipper or with the Witches Brew and Good Witch Margaritas launched in November as a partnership with the movie “Wicked.” Shares of Brinker International have added 6% in the past 12 months.
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