Brinker International (EAT) is expected to report another solid quarter, with Chili's well-positioned for continued growth into fiscal 2027, UBS said in a note Monday.
The company is scheduled to report its fiscal Q4 results on Wednesday.
UBS said investors expect Chili's same-store sales to rise about 5.5% to 6%, with growth potentially accelerating to the high-single digits early in fiscal 2027. Expectations for fiscal 2027 are for 3% to 5% revenue growth, 5% to 8% earnings before interest, taxes, depreciation, and amortization growth, and 13% to 17% earnings per share growth, broadly in line with the company's long-term targets, according to the note.
The firm said it expects focus to be on Chili's sales momentum through fiscal Q4 and into fiscal Q1, the sustainability of its sales momentum in fiscal 2027, and the company's multiyear earnings potential. Some of this may be addressed this week, with a deeper discussion expected at the Sept. 17 Investor Day, the firm added.
UBS raised its price target on Brinker International to $260 from $190, and has a buy rating on the stock.
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