Why Is Brinker International (EAT) Stock Soaring Today

What Happened?

Shares of casual restaurant chain Brinker International (NYSE:EAT) jumped 5% in the afternoon session after UBS upgraded the stock from "Neutral" to "Buy" and increased its price target to $175 from $144. 

The analyst, Dennis Geiger, pointed to the company's strong sales momentum and attractive valuation. A key factor in the upgrade was the performance of its Chili's brand, which saw same-store sales grow by an average of about 12% between fiscal years 2022 and 2025, surpassing many competitors. This growth was reportedly driven by successful menu upgrades that attracted both new and returning customers. Looking ahead, UBS projected continued strength, forecasting an average same-store sales growth of 5.5% over the next three years for the restaurant operator.

After the initial pop the shares cooled down to $156.63, up 4.8% from previous close.

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What Is The Market Telling Us

Brinker International’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 19 days ago when the stock gained 4.6% on the news that Wells Fargo analyst Zachary Fadem raised the price target on the company's stock to $175 from $160, while keeping an "Overweight" rating. 

This move suggested a more positive outlook for the company's future stock performance. The new price target represented a 9.38% increase from the previous one. Adding to the upbeat sentiment, this action followed another recent price target hike from Jefferies, which increased its target to $155 from $125 just a couple of days earlier, although it maintained a "Hold" rating. These adjustments from financial analysts indicated a growing confidence in the restaurant company's value.

Brinker International is up 3.4% since the beginning of the year, but at $156.63 per share, it is still trading 17.2% below its 52-week high of $189.14 from February 2025. Investors who bought $1,000 worth of Brinker International’s shares 5 years ago would now be looking at an investment worth $2,660.

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