EAT Brinker International, Inc.

S&P Global Ratings revised its outlook on Brinker International to Positive from Stable while affirming its BB+ issuer credit rating, citing strong traffic growth, market-share gains and declining debt. The company’s adjusted leverage improved to 1.6x in fiscal 2026 from 1.8x a year earlier, supported by stronger earnings and a new financial policy targeting leverage below 2.0x. Brinker’s flagship Chili’s Grill & Bar brand continues to outperform the casual-dining sector through value-focused marketing and a simplified menu that attracts cost-conscious consumers. The strategy helped drive approximately 12% three-year revenue CAGR, with comparable restaurant sales rising 23% in fiscal 2025 and 9% in fiscal 2026. Despite persistent wage and commodity inflation, Brinker expanded its S&P-adjusted EBITDA margin by 60 basis points to 18.4% in fiscal 2026, using revenue growth and employee-retention initiatives to offset higher beef and utility costs. $EAT

$EAT Jefferies moved to Buy today and lifted its target to 255 dollars from 230 dollars, pegged at 11 times its 2027 EBITDA estimate. The call leans on Chili's volume, average sales per restaurant above 5 million dollars, up from roughly 3 million dollars a few years back, with about 40 percent of the menu still left to refresh. The stock popped about 3.4 percent premarket to 209.21 dollars and has since faded back to roughly flat intraday.

Jefferies upgraded Brinker International to Buy from Hold and raised its price target to $255 from $230, arguing that the restaurant operator has completed its restructuring and is now positioned for sustained growth and long-term value creation that the market has yet to fully recognize. The firm compared Brinker’s trajectory with the multiyear transformation of Darden Restaurants, suggesting significant upside potential remains. Adding to the positive outlook, S&P Global Ratings revised Brinker’s credit outlook to Positive from Stable while affirming its BB+ issuer credit rating. The agency highlighted improved leverage, which declined to 1.6x in fiscal 2026 from 1.8x a year earlier, alongside a 60-basis-point expansion in EBITDA margin to 18.4%. Brinker’s commitment to keeping leverage below 2.0x further supports its improving financial position. The bullish developments reflect sustained traffic growth at Chili’s and disciplined financial management. $EAT $JEF

$EAT Jefferies upgrades Brinker Int. From Buy from Hold Price Target 255 from $230 Based on turnaround completion