Aug. 13 at 4:36 PM
UBS hikes outlook on Brinker thanks to momentum at Chili’s
Shares of Brinker International
, the casual dining operator, are getting a boost thanks to its subsidiary Chili’s, according to UBS.
The bank reiterated its buy rating on the stock and hiked its price target to
$285 from
$260. That implies an almost 16% gain from Wednesday’s close. Shares jumped more than 11% on Wednesday after the company delivered its latest earnings report, which analyst Dennis Geiger said showed solid growth at the company.
“We’re encouraged by Chili’s sales momentum into F1Q, with QTD sss meaningfully
accelerating from F4Q levels (5.6%) and strength sustaining from July into early August,” Geiger wrote in a Thursday note, singling out Chili’s. Driving the subsidiary’s growth is strong value, menu upgrades, effective marketing and operational improvements.
$EAT