Citi analyst Jon Tower upgraded the rating on Brinker International to a Buy today, setting a price target of $176.00.
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Jon Tower has given his Buy rating due to a combination of factors that suggest a positive outlook for Brinker International. A key reason for this upgrade is the anticipated reduction in costs, particularly with the decrease in Brazil’s food tariffs, which is expected to alleviate pressure on the company’s beef expenses. This cost reduction, coupled with robust sales, is likely to improve margins beyond current market expectations.
Another factor influencing the Buy rating is the successful conversion of younger guests at Chili’s, which is part of Brinker International. The brand has seen significant traffic growth, supported by increased media spending, and this trend is expected to continue. Additionally, there is still ample capacity in stores to accommodate and build on this traffic surge. These elements, combined with adjusted earnings estimates and a higher target price, contribute to the optimistic view of Brinker International’s future performance.
In another report released on November 18, TR | OpenAI – 4o also upgraded the stock to a Buy with a $133.00 price target.