Analyst Sara Senatore of Bank of America Securities reiterated a Buy rating on Brinker International, retaining the price target of $192.00.
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Sara Senatore has given her Buy rating due to a combination of factors that highlight Brinker International’s strong market position and growth potential. The company has successfully navigated challenging comparisons due to its turnaround strategy, which has been supported by increased advertising and investments in service and quality. This has resulted in a positive cycle of sales and advertising growth, which is expected to continue.
Furthermore, Brinker International has managed to gain market share in a declining casual dining restaurant segment, thanks to its competitive pricing and ongoing reinvestments in product and labor. The fragmented nature of the Varied Menu category offers Chili’s significant opportunities for expansion. Despite its strong returns on investment and rising restaurant margins, Brinker International’s valuation remains at its historical average, indicating potential for future growth and multiple expansion. These factors collectively support the Buy rating assigned by Sara Senatore.
In another report released on October 17, Gordon Haskett Capital Corporation also maintained a Buy rating on the stock with a $160.00 price target.