Brinker International: Chili's Momentum Is Intact, Yet The Stock Isn't Hot

Brinker International is rated Buy, trading at 13.8x forward earnings with improving traffic, cost structure, and emerging unit growth runway. Chili's delivered its twentieth consecutive quarter of positive same-store sales, outperforming peers, with underlying traffic momentum and durable operational improvements. Balance sheet strength is increasing: revolving credit fully repaid, $350M high-cost notes to be refinanced, leverage at 2.1x EBITDA, and ongoing share buybacks.