Chili’s has sent its parent company’s stock surging. Baird thinks there’s even more upside
Chili’s owner Brinker International has rallied a lot this year, and there is still plenty of room to run as the casual dining chain continues its multi-year turnaround, according to Baird. The investment firm initiated the stock with an outperform rating. It also put a $325 price target on shares, implying 32% upside from Friday’s close. Shares of Chili’s have risen 71% year to date as the restaurant chain has undergone an overhaul of its menu and service. The corporate strategy shift began in 2022 under CEO Kevin Hochman, and it is still underway. “Brinker has completed one of the restaurant industry’s most impressive operating turnarounds, as Chili’s simplified its menu, improved execution and hospitality, sharpened value, and expanded advertising reach,” analyst Chris O’Cull said Monday in a note to clients. “The investment debate has shifted from whether Chili’s is improving to whether the brand has created durable consumer pull or simply benefited from a powerful—but eventually normalizing—combination of value messaging, advertising, social-media attention, and weak competitors.” EAT YTD mountain Shares are up 71% in 2026. Over the past four years, Chili’s has recorded “stronger traffic, market share gains, and greater profitability,” O’Cull wrote. He added that bar and grill’s success on those fronts will allow it to progress to the next phase of its growth, likely driving even more value to Brinker International. “Going forward, the next phase of the story should be less about fixing the basics and more about using those improvements to unlock capacity, throughput, and convenience across the system,” O’Cull said in his note. Baird’s call falls in line with consensus on Wall Street. Of the 22 analysts covering Brinker International 16 have a buy or strong buy rating on the stock, LSEG data shows. Shares ticked around 0.8% in the premarket after Baird’s initiation.
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