Brinker price target raised to $215 from $200 at Stifel on traffic gains

Published 23/06/2025, 11:12
Brinker price target raised to $215 from $200 at Stifel on traffic gains

Investing.com - Stifel raised its price target on Brinker Int’l (NYSE:EAT) to $215 from $200 on Monday while maintaining a Buy rating on the stock, citing Chili’s strong traffic performance and market share gains. The optimism appears well-founded, as InvestingPro data shows the company has delivered an impressive 150.74% return over the past year, with revenue growing 19.8% in the last twelve months.

The research firm conducted analyses to evaluate Chili’s market share, growth capacity, and potential constraints to determine if its outperformance relative to the broader full-service industry would continue. Stifel estimates Chili’s has gained substantial traffic market share, potentially becoming the largest full-service restaurant chain in terms of total guest visits. According to InvestingPro’s analysis, Brinker maintains a GREAT financial health score, with particularly strong momentum and growth metrics. Subscribers can access 15+ additional ProTips and comprehensive financial analysis in the Pro Research Report.

Stifel believes Chili’s can continue gaining market share in a fragmented category where scale advantages are becoming more valuable. The firm’s analysis indicates that current traffic volume per store, although significantly improved from recent lows, remains well below historical peaks.

This suggests there is ample capacity for further share gains at Chili’s restaurants, according to the research note. Based on these findings, Stifel raised its long-term growth rate assumptions for the company.

Stifel concluded that Brinker has a "proven playbook that will lead to durable SRS gains," which factored into the firm’s decision to increase its target price to $215.

In other recent news, Brinker International reported strong financial performance for the first quarter of 2025, exceeding both earnings and revenue forecasts. The company posted an earnings per share (EPS) of $2.66, surpassing the forecast of $2.49, and achieved a revenue of $1.43 billion, exceeding expectations by $60 million. Despite these positive results, the company’s stock experienced a decline. Additionally, S&P Global Ratings upgraded Brinker’s credit rating to ’BB+’ from ’BB-’, citing the company’s continued outperformance and successful debt reduction. The adjusted debt to EBITDA ratio was lowered to 2.0x, showing significant improvement from the previous year.

In management news, Brinker International promoted Aaron White to Executive Vice President, Chief Operating Officer, and Chief People Officer, highlighting her 29-year tenure and instrumental role in the company’s development. Raymond (NSE:RYMD) James analyst Brian Vaccaro maintained a Market Perform rating on Brinker’s stock, expressing a neutral stance on the company’s near-term risk/reward balance. Vaccaro noted Brinker’s strategic plans, including menu innovation and expansion efforts. These developments reflect Brinker’s ongoing efforts to enhance operational efficiency and maintain its competitive position in the casual dining sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.