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Brinker International’s (EAT) shares traded 1% higher in afternoon trading on Tuesday after JPMorgan upgraded the stock to ‘Overweight’ from ‘Neutral’ following a recent selloff in the shares. 

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JPMorgan, however, cut its price target on the stock to $175, from $180, according to TheFly. The firm believes that casual dining should benefit from low supply growth, value messaging, and tax benefits in 2026.

JPMorgan added that it upgraded Brinker based on valuation following the recent share pullback, which serves as an attractive entry point.

Retail sentiment on Brinker International remained unchanged in the ‘bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

The company noted strong growth in its Chili’s restaurants in July, following better-than-expected second-quarter earnings and sales. Brinker stated that an increase in traffic, generated by a combination of advertising spend and operational improvements, helped Chili’s sales.

"Improving fundamentals continues to drive a better guest experience and sustained business results," said Brinker CEO Kevin Hochman.

Restaurants, including fine dining and fast-food chains, are seeing a pullback in demand as consumers turn extremely cautious due to the evolving macro environment, which has resulted in higher prices.

Customers from lower- and middle-income groups are increasingly preferring to eat at home over dining out, resulting in slower traffic for companies such as McDonald’s and Starbucks.

Shares of Brinker have declined 4% this year and increased by over 50% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<