11:35 AM EDT, 10/10/2024 (MT Newswires) -- Brinker International's ( EAT ) shares have seen a 95% rally year-to-date driven by Chief Executive Kevin Hochman's execution of a turnaround at Chili's ( EAT ), BofA Securities said in a note Thursday.

Chili's ( EAT ) is expected to benefit from near-term catalysts such as strong advertising and the success of its 3-for-Me value offering, the firm said.

BofA said that while operational improvements and marketing strategies have helped Chili's ( EAT ), there are concerns about the long-term sustainability of favorable industry conditions, such as elevated fast-food prices and reduced competition from larger players.

Chili's ( EAT ) recent strategy of raising prices ahead of its casual dining peers could also present challenges, particularly as fast-food competitors catch up to its value pricing, the firm said.

There is less potential for positive earnings per share revisions in fiscal 2025 and 2026 due to ongoing investments in labor and restaurant reimaging and the reduced impact of remaining turnaround initiatives, the note added.

BofA upgraded its rating on Brinker's ( EAT ) stock to neutral from underperform and raised the price target to $90 from $63.

Price: 83.56, Change: +0.60, Percent Change: +0.72