Canaccord analyst Lynne Collier lowered same store sales estimates on most of the casual dining sector ahead of Q3 earnings. The analyst said September comps were worse than expected and that sales trends in Q3 were similar to Q2. Collier also believes 2017 will see negative comps as oversupply remains an issue, the inflation gap will continue, and there will be a reduced benefit from lower gasoline prices. As such, the analyst believes Street estimates are too high for the sector for next year. Names in the casual dining space include BJ's Restaurants (BJRI), Buffalo Wild Wings (BWLD), Cheesecake Factory (CAKE), Brinker (EAT), Red Robin (RRGB) and Texas Roadhouse (TXRH).

Evercore ISI raised the firm's price target on Brinker to $50 from $48 and keeps an In Line rating on the shares. After a weather impaired January and February, the firm had hoped for a mid-quarter acceleration in restaurant industry same-store sales growth, but "trends remained lackluster," the analyst tells investors in a Q1 preview for the group. The firm estimates fast food industry same-store sales growth of 1.5% in Q1 and a casual dining segment same-store sales decline of 1%, noting that it recently lowered top-line forecasts for much of its coverage because of the sluggish trends lately.