Brinker InternationalEATBUYApr 29, 2026Stock price when the opinion was issued
As of May 29, 2026. Market Open.
A long-term turnaround story under a new CEO (three years ago). Same-store sales are rising rapidly with new menu options, and a digital marketing campaign. They own several restaurant brands including Chili's. Not cheap nor expensive, but trades at a market multiple at 19x PE.
(Analysts’ price target is $167.47)(Top Pick Jun 25/15, Down 18.16%) It was off in the last 6 months. Oil exposure hurt them because 17% of their restaurants (e.g. Chilli’s) are in Texas. They made a significant change to their loyalty program that hurt foot traffic. They are addressing it. 10% free cash flow yield, 8% share buyback and 2% dividends. He still likes it.
Shares surged today by 14% after reporting Q3. Investors were bracing for a disaster, but instead got a good number. January saw bad weather, but February and March were much better. Management raised the low end of their forecast. Shares sold off going into the quarter over cost worries.