BTIG says it may be time to take profits from Brinker International and invest in other restaurant stocks. The Chilean owner has made significant gains this year, up more than 202% year-to-date. That outpaces the year-to-date growth of AI chip favorite Nvidia, which has risen more than 176% this year. “Who needs AI when your baby has ribs on their back?” analyst Jonathan Krinsky wrote in a report to clients this week. “We will look to reduce this strength and rotate to other restaurants with more timely setups.” EAT YTD Mountain EAT, year-to-date This increase also marks Brinker’s best year ever. In fact, if the company were included in the S&P 500, it would rank as the third-best performing stock in terms of year-to-date gains, Krinsky said. Before this year, the company’s biggest year-to-date gains were more than 143% in 1991, more than 80% in 1998, and more than 75% in 2000. Noting its success and Brinker’s stock price being about 90% higher than it was in 2000. Clinksy added that the daily moving average is another all-time high for the stock. He now sees opportunities for other names in the sector, particularly Domino’s Pizza, Darden Restaurants and the Yum brand. All of these stocks are up this year, up more than 14%, nearly 6%, and more than 6%, respectively. That said, they still underperform the broader market, with the S&P surging more than 26% in 2024. BTIG has a Neutral rating on Yum Brands, but rates both Domino’s Pizza and Darden Restaurants as Buys. Domino’s Pizza’s $500 price target suggests more than 5% upside from here, and Darden’s $195 price target reflects more than 12% upside as of Tuesday’s close. Wall Street is equally bullish on both Domino’s Pizza and Darden. According to LSEG data, 22 out of 35 analysts covering the pizza chain give Domino’s a strong buy or buy rating, while 12 analysts give it a hold rating. I’m wearing it. The average price target is $477.91, reflecting an upside of about 1% from Tuesday’s closing price. By comparison, 20 of the 31 analysts covering Darden on the Street have a buy or strong buy rating, and 10 have a hold rating, according to LSEG. It becomes. The average price target is $183.73, reflecting an upside of more than 5% from Tuesday’s closing price. Meanwhile, Yum’s average price target is $144.06, reflecting about 4% upside from Tuesday’s closing price. This is despite the majority of analysts taking a neutral stance. More specifically, 21 out of 30 analysts covering the stock on the Street have a hold rating, according to LSEG. The remaining nine stocks have strong ratings of “buy” or “buy.”
BTIG points out that baby back ribs are outperforming AI while restaurant stocks outperform NVIDIA
By NvidiaDaily
