While the underlying sales momentum of Brinker International Inc's (NYSE:EAT) Chili’s Grill & Bar could continue through the end of fiscal 2026 and into fiscal 2027, the company's initial guidance for fiscal 2027 and investor day "could serve as positive catalysts," according to KeyBanc Capital Markets analyst Christopher Carril

The Brinker International Analyst: Carril upgraded the rating from Sector Weight to Overweight, while maintaining the price target at $177.

The Brinker International Thesis: Read-throughs from casual-dining peers and proprietary card data indicate that underlying sales trends at Chili’s remained strong in the fiscal third quarter, Carril said in the upgrade note.

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What is more important for Brinker International's stock is that there is a "more visible path" toward mid-single-digit growth in same-restaurant sales from the fiscal fourth quarter onwards, the analyst stated.

He added that there is potential for upside if this underlying momentum sustains as comps ease in the coming quarters.

"We also believe margin upside potential and modest unit growth to provide a tailwind for multiple expansion, as EAT shares currently trade below recent historical and peer averages," the analyst further wrote.

EAT Price Action: Shares of Brinker International had declined by 0.31% to $142.90 at the time of publication on Thursday.

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