05:35 AM EDT, 08/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target price by $3 to $53, 20x our 2026 EPS estimate (previously 22x our 2025 EPS estimate), a discount to shares' 24x three-year forward average P/E. We trim our 2025 EPS estimate to $2.19 from $2.55 and 2026's to $2.63 from $3.12. Although we are lowering our estimates to reflect higher marketing spend (G&A expenses +38% Y/Y) and promotional pricing and lowering our multiple to reflect a term premium on 2026 EPS, loyalty program gains (+2.7M since the November relaunch) and improved free cash flow (+185% YTD) support our decision to reiterate our Buy opinion. We note our estimates, while lower, remain above the $2.23 consensus 2026 EPS estimate, reflecting our favorable view of improving comparable sales growth. Although the company saw Q2 adjusted EBITDA margins decline (-190 bps Y/Y), we feel improving the brand's standing with consumers, through marketing, promotional prices, and an improved menu, is more important to improve the top-line, which will enable margin growth in the future.