UBS Upgrades Brinker International to Buy, Raises Price Target to $175
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Should l Buy EAT?
Source: CNBC
Brinker International Inc's stock rose by 3.07% and reached a 20-day high amid positive market conditions.
UBS upgraded Brinker International from neutral to buy and raised its price target from $144 to $175, indicating an upside of approximately 17%. The analyst highlighted that menu innovations and upgrades at Chili's are key factors supporting sales momentum, with expectations for overall sales growth to remain in the 3% to 5% range. This reflects market confidence in its sustained sales growth and solid performance, particularly with Chili's showing an average same-store sales growth of about 12% during FY22-FY25.
The upgrade from UBS is expected to enhance investor interest in Brinker International, as the company continues to innovate and improve its market position, potentially unlocking further shareholder value through strategic initiatives.
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Analyst Views on EAT
Wall Street analysts forecast EAT stock price to rise
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 158.310
Low
155.00
Averages
188.00
High
210.00
Current: 158.310
Low
155.00
Averages
188.00
High
210.00
About EAT
Brinker International, Inc. is a casual dining restaurant company. The Company owns, develops, operates and franchises the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands. The Company operates through two segments: Chili’s and Maggiano’s. The Chili’s segment includes its Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also includes its Canadian Company-owned restaurants and royalties from its franchised locations in the United States, 27 other countries and two United States territories. The Maggiano’s segment includes its Company-owned Maggiano's restaurants in the United States as well as royalties from its domestic franchise business. It owns, operates or franchises more than 1,600 restaurants in the United States and 27 other countries and two United States territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
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- Market Trend Reversal: As prices for fast food and fast-casual dining rise, American consumers are returning to traditional sit-down restaurants in 2026, with Chili's reporting an 8.6% same-store sales growth while Chipotle's declined by 2.5%, indicating a significant shift in consumer preferences.
- Strong Performance by Brinker: Brinker International's stock has surged nearly 300% over the past three years, reflecting the success of its Chili's brand in attracting diners, particularly against the backdrop of rising fast-food prices that have driven customers back to sit-down options.
- Challenges for Fast-Casual Brands: Fast-casual brands like Chipotle are facing pressure from discounted low-end fast food and price competition from higher-end sit-down restaurants, threatening their market share, especially as they grapple with rising prices and declining product quality.
- Investor Strategy Adjustment: In the dynamically changing restaurant market, investors should focus on the specific value propositions of individual restaurants rather than overall categories, as Chipotle struggles while Texas Roadhouse and Brinker International thrive by offering good value at reasonable prices.
See More
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- Club Launch: Chili's® Grill & Bar introduces the Margarita of the Month Club to engage super fans who visit monthly to try new drinks, potentially boosting sales from nearly 30 million margaritas sold in 2025.
- Member Benefits: Guests can join the club for free, track their monthly margarita consumption, and purchase unique merchandise, enhancing brand loyalty and customer engagement.
- Limited Edition Merchandise: To celebrate the club's launch, Chili's releases a line of collectible items showcased in short films that highlight the brand's yacht-club aesthetic, aiming to attract younger consumers.
- Holiday Promotions: On National Margarita Day, February 22, Chili's will offer special margarita deals at participating locations for guests aged 21 and over, further enhancing the brand's market presence.
See More
Chili's Launches Limited-Edition Margarita Club
- Margarita Club Launch: Chili's® Grill & Bar has launched the Margarita of the Month Club to engage its super fans, having sold nearly 30 million margaritas in 2025, making it the top-selling restaurant brand in the U.S., thereby reinforcing its market leadership.
- Limited-Edition Merchandise: To celebrate the club's launch, Chili's is releasing a line of collectible merchandise, including a $45 cabana shirt and a $30 snapback hat, aimed at attracting more customers and enhancing brand loyalty through unique branding.
- National Margarita Day Promotions: On February 22, National Margarita Day, Chili's will offer various margarita specials, including a $5 Tequila Classic and a $7 PATRÓN® Frozen Margarita, expected to draw large crowds and boost restaurant traffic and sales.
- Membership Benefits: Guests joining the Margarita Club can track their monthly margarita tastings for free and purchase exclusive merchandise, further enhancing customer engagement and brand affinity, fostering long-term customer relationships.
See More
Brinker International CFO Sells 5,000 Shares Amid Strong Earnings
- Executive Stock Sale: Brinker International CFO Michaela Ware sold 5,000 shares at a weighted average price of $162.40 on February 5, 2026, totaling approximately $812,000, indicating a routine transaction amidst the company's strong performance.
- Ownership Position Change: This sale reduced Ware's direct holdings by 17.74%, leaving her with 19,923 shares directly held, while she maintains 3,259 shares indirectly through her 401(k), suggesting continued confidence in the company's future.
- Strong Performance Boost: Brinker International reported $1.5 billion in sales for fiscal Q2 2026, a 7.1% increase year-over-year, with Chili's achieving 19 consecutive quarters of same-store sales growth, highlighting robust performance in the casual dining sector.
- Optimistic Future Outlook: The company raised its fiscal 2026 sales guidance to between $5.76 billion and $5.83 billion, reflecting market confidence in its growth potential, while the current P/E ratio of 17 is lower than last year, potentially offering a buying opportunity for investors.
See More
Restaurant Stocks Struggle in 2025 Amid Consumer Shifts
- Overall Industry Decline: In 2025, restaurant stocks fell approximately 0.7%, significantly trailing the S&P 500's 16% gain, indicating severe challenges within the sector that investors need to carefully assess for future prospects.
- Individual Stock Volatility: Sweetgreen's stock plummeted by 80%, Cava Group dropped 50%, and Chipotle Mexican Grill fell 30%, reflecting a lack of confidence in the restaurant industry that could impact investor decisions moving forward.
- Shifts in Consumer Behavior: Although industry sales are projected to grow by 4% to $1.5 trillion in 2025, declining guest traffic puts pressure on many operators, as consumers become more price-sensitive, intensifying competition among quick-service and casual dining sectors.
- Profitability Metrics: Chipotle maintains a restaurant-level operating margin around 24.5%, showcasing its profitability amid rising costs, while Texas Roadhouse achieved approximately 5% same-store sales growth in Q3, demonstrating resilience and competitiveness in the market.
See More
