Barclays Maintains an 'Overweight' on Brinker Int'l (EAT); Chili's Restaurant Tour Key Takeaways...'Kitchen of the Future'

Barclays maintains an 'Overweight' on Brinker Int'l (NYSE: EAT) price target of $32.00.

Barclays analyst says, "We attended Brinker's Restaurant Tour at a Chili's in Raleigh, NC on 11/15. The visit allowed investors to touch and feel the very popular (and until now very difficult to visualize) "kitchen of the future" (KOF) retrofit program and reimaging efforts. These are key drivers of guidance for ~400bps of net margin improvement (from F10), with half already achieved. Importantly, the leaner cost structure allows for greater EPS flow-through as comps recover, while also allowing for greater menu innovation. We see EAT as attractive at 11.5x forward versus the 5-15x 3-year range & 12x average."

For an analyst ratings summary and ratings history on Brinker Int'l click here. For more ratings news on Brinker Int'l click here.

Shares of Brinker Int'l closed at $23.56 yesterday.

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