Stifel reiterates Buy rating on Brinker Int’l stock, maintains $215 target

Published 20/08/2025, 12:46
Stifel reiterates Buy rating on Brinker Int’l stock, maintains $215 target

Investing.com - Stifel has reiterated its Buy rating on Brinker International (NYSE:EAT) stock, maintaining its price target of $215.00 following a virtual fireside chat with the company’s leadership team. According to InvestingPro data, the stock currently trades at $153.83, with 12 analysts recently revising their earnings expectations upward.

The research firm cited Chili’s success as being driven by a combination of operational improvements, food quality enhancements, menu merchandising, and effective marketing execution, which together have produced significant growth for the restaurant chain operator. This success is reflected in the company’s impressive 21.95% revenue growth and a remarkable 130.8% stock price return over the past year.Want deeper insights? InvestingPro subscribers have access to over 10 additional exclusive tips and comprehensive financial analysis for Brinker International.

Brinker’s marketing strategy focuses on broad reach and sub-culture activations to attract new and lapsed guests, maintain stable customer frequency, and reduce reliance on discounting promotions, according to Stifel’s analysis.

The company plans to foster an ownership mindset among General Managers over the next few years by reintroducing full P&L responsibility and aligning incentives with growth objectives, while leadership evaluates whether to focus on a single brand or pursue a multi-brand portfolio.

For its Maggiano’s brand, Brinker is implementing a turnaround strategy that leverages the Chili’s playbook but adapts it for scale, with a focus on local marketing and renewed emphasis on the brand’s core strengths.

In other recent news, Brinker International reported its fourth-quarter fiscal 2025 results, showcasing an adjusted earnings per share (EPS) of $2.49, which exceeded the consensus estimate of $2.47. The company’s revenue for the quarter was in line with forecasts at $1.44 billion. This performance was driven by strong comparable sales at its Chili’s restaurant chain. Following these results, Goldman Sachs raised its price target for Brinker International to $207, maintaining a Buy rating, citing the company’s consistent double-digit same-store sales growth and better-than-expected operating margins. Evercore ISI also increased its price target to $190, noting a significant turnaround in same-store sales growth for Chili’s. Piper Sandler adjusted its price target to $168, acknowledging the impressive full-year performance with a 25% growth in same-store sales. BMO Capital raised its price target to $170, highlighting the company’s stronger-than-expected sales and in-line restaurant margins. These developments reflect the positive outlook analysts have for Brinker International.

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

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