Chili’s parent Brinker International has a prolonged progress runway forward, in line with Evercore ISI. Analyst David Palmer upgraded the informal eating restaurant firm to outperform from in line and lifted his value goal by $20 to $210. That suggests roughly 32% potential upside for the inventory, which has gained 20.2% this 12 months. Palmer’s new score comes after Brinker — which owns and operates Chili’s Grill & Bar, Maggiano’s Little Italy and Just Wings franchises — on Aug. 14 reported fourth-quarter income that exceeded Wall Street’s expectations. The firm boasted outcomes that pointed to Chili’s constant site visitors and gross sales efficiency, and in addition guided its fiscal 12 months 2026 earnings per share estimates barely above analysts’ expectations, in line with FactSet. Palmer is the newest analyst to improve his value goal on the inventory after these outcomes, which had led companies together with Piper Sandler and Morgan Stanley to carry theirs final month. The analyst raised his same-store gross sales progress estimates for Brinker’s first quarter and mentioned the corporate has the “marketing and menu levers to pull throughout FY26” to maintain its momentum. “Although we see upside to consensus sales and earnings in the near term, the bulk of our Outperform thesis relates to sustainable SSS growth potential from improving customer satisfaction measures (core menu upgrades and labor investment), ongoing effective marketing, and budding growth tailwinds from new units and remodels,” Palmer wrote in a Thursday be aware to shoppers. Some drivers in place Palmer talked about are Chili’s latest ribs relaunch, which he mentioned can be a profit with digital advertising, a brand new skillet queso recipe, higher sides choices in addition to improved frozen margaritas. “We believe Chili’s operational improvements are in the early to middle innings,” Palmer wrote. “Although the current P/E valuation is 3 turns more expensive, we believe the company is transitioning to sustainable growth—warranting a more Darden-like valuation.” EAT 1Y mountain Brinker International efficiency over the previous 12 months. Shares rose more than 2% following the improve.