Loop Capital analyst Lynne Collier lowered her price target on Brinker to $42 and kept her Hold rating after its "mixed" Q4 results with a beat on earnings but a miss on comps. The analyst notes that while the management was upbeat on FY20 comps thanks to the roll-out of delivery and the continued success of the "3 for $10" value platform, investors were less positive about the company's ability to meet next year's guidance, particularly with traffic at Chili's turning negative for the first time in 5 quarters. Collier adds that Brinker shares are attractive on a valuation basis, but expects the stock to trade range-bound on investor perception of guidance being too aggressive.

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.