Brinker International (EAT) is likely to sustain double-digit percentage earnings growth into fiscal 2027 as its Chili's brand benefits from menu innovation and value positioning, UBS said in a note Thursday.
Same-store sales momentum has accelerated into the new fiscal year, following 5.6% growth in the fiscal fourth quarter, driven by the Big Crispy chicken sandwich platform and continued traction from the "3 for Me" value offering, UBS said.
The analysts expect mid-single-digit percentage same-store sales growth and 20-40 basis points of margin expansion through fiscal 2027, as sales leverage offsets commodity and wage inflation, with more detail on a long-term growth algorithm anticipated at the company's Sept. 17 investor day.
UBS maintained its buy rating on the stock and raised its price target to $285 from $260.
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