Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Brinker International, Inc. (NYSE: EAT) were rising in early trading on Friday.
The latest investor meetings with management highlighted progress with regarding Chili's turnaround efforts, according to Stifel.
The Brinker International Analyst: Chris O'Cull upgraded the rating for Brinker International from Hold to Buy, while raising the price target from $38 to $45.
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The Brinker International Thesis: After years of following a top-down decision-making process, the company’s team members are being encouraged to cultivate a growth mindset, under the leadership of new CEO Kevin Hochman, O'Cull said in the upgrade note.
Brinker International’s plan for Chili's turnaround “mirrors the strategic playbook of successful restaurant turnarounds, such as Olive Garden, Popeyes, and KFC,” the analyst stated. “Chili's greatest challenges are operational, with several opportunities to implement changes during the next few quarters that should improve team members' and customers' experiences,” he added.
While the consumer backdrop continues to be challenging, Brinker International has the “potential for earnings upside and multiple expansion over the next 2-3 years,” O'Cull further stated.
EAT Price Action: Shares of Brinker International had risen by 4.57% to $32.47 at the time of publication Friday.
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