UPDATE: KeyBanc Upgrades Shares of Brinker to Buy from Hold

According to a research report released today, KeyBanc is upgrading Brinker International EAT from a Hold rating to Buy with a $31.00 PT. “We feel that the 7.1% pullback in shares vs. a pullback of 0.1% for the S&P 500 and a gain of 0.7% for the Russell 2000 was overdone in response to a slight miss to SSS and revenue estimates. Management continues to impress on the cost savings side with two completed initiatives delivering results at or above expectations and several other initiatives in the pipeline. Also, efforts to refocus Chili's marketing strategy from limited-time offers (LTOs) to an "everyday value" message appear to be gaining traction, as Chili's traffic outperformed the Knapp Track™ SSS index by approximately 200 bps in the 2Q even as the Company pulled back on television advertising year-over-year in the quarter,” KeyBanc said in the report. Brinker International closed yesterday at $25.66.