BUZZ-Brinker International falls after KeyBanc cuts rating on valuation

Reuters
01-24
BUZZ-Brinker International falls after KeyBanc cuts rating on valuation

** 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)

((Neil.JKanatt@thomsonreuters.com;))

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