UBS sees improved US restaurant sector in 2026, Brinker up after upgrade

Brokerage UBS bullish on U.S. restaurants going into 2026 following significant pressures in 2025

Sees effective stimulus benefits from the One Big Beautiful Bill Act, improving industry sales trends; says upper-income consumers will benefit most

Also sees potentially strengthening consumer sentiment, favorable comparisons boosting sales, while underlying macro pressures like lower-income, younger, Hispanic consumers linger

Says cyclical macro headwinds are primary pressure impacting fast casual rather than structural challenges, sees segment maintaining outsized growth long-term

Brokerage upgrades Brinker International EAT.N to "buy" from "neutral", sees benefits from strong leadership, menu upgrades, compelling value; raises PT to $175 from $144, shares up 5% at $156.95

UBS names coffee chain Dutch Bros BROS.N as its top pick in sector, sees upside given industry-leading store growth, ongoing sales, traffic momentum

Brokerage positive on Chipotle CMG.N as unit growth outlook remains strong, along with sales drivers including menu innovation and
value efforts

UBS, however, downgrades salad chain Sweetgreen SG.N to "neutral" from "buy", expects store traffic, sales to take time to turn positive as macro pressures persist into 2026