Brinker International falls after KeyBanc cuts rating on valuation

Brinker International

24/01/2025 13:38

** Chili's Grill & Bar operator Brinker International's  EAT.N 
shares fall 1.5% to $152.26 premarket
    ** Brokerage KeyBanc downgrades stock to "sector weight"
from "overweight" 
    ** Says stock’s current valuation is well beyond a realistic
bull-case scenario
    ** Says profit targets can be achieved, but is not a given,
even as company is poised to deliver another quarter of
industry-leading same-store sales growth
    ** Brokerage says it prefers Darden Restaurants  DRI.N  over
EAT, as DRI has higher store-level margins, modest unit growth,
and a track record of successful M&A activity
    ** EAT is set to report Q2 results on Jan. 29
    ** Four of 20 brokerages rate the stock "buy" or higher, and
16 "hold"; with a median PT of $140 - data compiled by LSEG
    ** In 2024, EAT rose ~206%

 (Reporting by Neil J Kanatt in Bengaluru)
 ((mailto:Neil.JKanatt@thomsonreuters.com;))