Brinker's Guidance Appears Achievable, Led by Chili's Chicken Sandwich Launch, UBS Says

MT Newswires Live05-01 01:24

Brinker International's (EAT) top end of full-year 2026 guidance seems achievable with a strong Chili's chicken sandwich launch and continued traction across sales initiatives, UBS Securities said in a note Thursday.

The brokerage expects mid-single-digit same-store-sales growth and positive traffic at Chili's as reachable in fiscal Q4, with momentum likely continuing in fiscal 2027, driven by contribution from everyday value, marketing, menu enhancements, operational improvements, and remodel benefits over time, according to the note.

Additional future catalysts for Brinker include accelerating unit growth, an eventual Maggiano's turnaround, strong balance sheet, and share repurchases, the brokerage said.

UBS maintained a buy rating on Brinker with a price target of $190.

Price: 151.10, Change: +3.30, Percent Change: +2.23

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