Brinker International has succeeded in turning around Chili’s chain, but the potential of that business hasn’t fully been baked in, according to Jefferies. The investment firm upgraded the restaurant stock to buy from hold. It also hiked its price target on shares to $255 from $230, implying 26% upside from Tuesday’s close. “We see a clear transition from turnaround into a durable, compounding story,” analyst Alexander Slagle said Tuesday in a note to clients. “We think value-creation [opportunity] is underappreciated as this higher-volume/margin platform creates a flywheel of reinvestment to drive years of consistent growth & share gain.” Over the past few years, Chili’s has improved its sales by beefing up its social media presence, refreshing its menu options and embracing value-oriented advertising. EAT YTD mountain EAT in 2026 Those strategies seem to be boosting Brinker’s stock, which is up 41% in 2026.Shares are also on pace for their fourth consecutive year of gains. However, the stock still has a lot of room to run as the company continues to follow through on initiatives aimed at bringing in new diners and retaining existing customers, according to Jefferies. Chili’s still has roughly 40% of the menu to refresh, which could drive further upside to the stock, Slagle noted. Jefferies’ call falls in line with consensus on Wall Street. Of the 23 analysts covering Brinker International, 20 have a buy or strong buy on the stock, while three have a hold rating on it, LSEG data shows.
