What Happened?
Shares of casual restaurant chain Brinker International (NYSE: EAT) jumped 8.7% in the afternoon session after Citigroup upgraded the stock to "Buy" from "Neutral" and increased its price target.
The analyst raised the price target to $176 from a previous $144. The upgrade was influenced by several positive factors, including cost reductions from lower food tariffs in Brazil and successful efforts at Chili's to attract and retain younger diners. These initiatives created sustained traffic growth and supported sales expansion. The positive outlook was also backed by the company's strong performance, which included an 18% year-over-year revenue increase and a 19% boost in comparable sales, mainly driven by higher traffic at Chili's.
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What Is The Market Telling Us
Brinker International’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 8% on the news that Stifel maintained its Buy rating on the stock with a $200 price target. The decision followed investor meetings with the company's leadership team. This vote of confidence was supported by Brinker's recent robust financial results for the first quarter of its 2026 fiscal year. In that report, the company posted earnings per share of $1.93 on revenue of $1.35 billion, beating consensus estimates on both fronts. In addition, Freedom Capital Markets initiated coverage on Brinker with a Buy rating and a price target of $145, reflecting further positive sentiment around the company's growth potential.
Brinker International is up 10.5% since the beginning of the year, but at $152.13 per share, it is still trading 19.6% below its 52-week high of $189.14 from February 2025. Investors who bought $1,000 worth of Brinker International’s shares 5 years ago would now be looking at an investment worth $2,910.
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