Brinker Likely to Deliver Strong Start to Fiscal 2027, UBS Says

MT Newswires Live10-20

Brinker International (EAT) is expected to report solid fiscal Q1 results, driven by traffic-driven sales momentum amid ongoing execution of strategic initiatives, UBS said in a note Sunday. The results are due Oct. 28.

The report said expectations include for Q1 Chili's system same-store sales of 8.5% to 9.5% range, against consensus of 7.8%, and for trends to slow to 3% to 4% range in Q2.

Chili's sales momentum was likely driven by contribution from the Big Crispy platform and the Margarita of the Month, along with compelling value and marketing, the report said.

"We believe EAT maintains earnings upside potential, a strong balance sheet, and a compelling valuation (15.4x FY27E EPS),

with share gains likely if traffic remains positive and sss of at least +MSD% continue," the report said.

The report also pointed to upside potential for shares from the sustainability of sales outperformance and better than expected earnings amid more negative investor sentiment.

UBS maintained its buy rating while lowering its price target to $265 from $285.

Price: 196.71, Change: -7.43, Percent Change: -3.64

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