Brinker International's (EAT) plan to open and remodel more Chili's restaurants could help sustain sales growth and lift margins, UBS Securities said in a report Friday, following the company's investor day.

Brinker set three-year targets for annual revenue growth of 4% to 6%, restaurant growth of 2% to 3% by 2029 and double-digit earnings-per-share growth, the firm noted. The company could exceed those targets as menu improvements, value offerings, marketing and operational enhancements support customer traffic, the report said.

The firm called the restaurant growth target as "likely achievable," citing "attractive unit economics" and room to expand across the US. Brinker also plans to remodel 60 to 80 Chili's restaurants in fiscal 2027, the firm noted, adding that the 16 remodels to date have produced "sales lift" of about 3% to 5%.

Brinker plans to prioritize new restaurants and remodels while maintaining a "strong balance sheet" and repurchasing shares. Its buyback goal is to reduce its share count by about 3% to 5% annually, the report said.

"We believe further upside potential exists for shares from the sustainability of sales outperformance and potential for better than expected earnings in FY27 & beyond," UBS said.

UBS has a buy rating on Brinker with a price target of $285 per share.

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