Brinker International (NYSE:EAT) Given "Overweight" Rating at Stephens

Key Points

• Stephens reaffirmed its “Overweight” rating on Brinker International and maintained a $300 price target, implying approximately 36% upside from the prior close.
• Analyst sentiment remains positive, with MarketBeat reporting a “Moderate Buy” consensus rating and an average price target of $248.20.
• Brinker exceeded quarterly expectations, reporting $2.77 in EPS versus the $2.45 consensus and $1.48 billion in revenue, up 9.4% year over year. The stock was trading near its 12-month high after rising 12%.

Brinker International (NYSE:EAT - Get Free Report)'s stock had its "overweight" rating reaffirmed by stock analysts at Stephens in a research note issued on Thursday, Benzinga reports. They currently have a $300.00 price objective on the restaurant operator's stock. Stephens's price target suggests a potential upside of 36.18% from the stock's previous close.

Other research analysts also recently issued research reports about the stock. Morgan Stanley increased their price target on shares of Brinker International from $250.00 to $260.00 and gave the company an "overweight" rating in a report on Thursday, September 10th. Piper Sandler boosted their price objective on Brinker International from $166.00 to $240.00 and gave the stock a "neutral" rating in a research note on Monday, August 17th. Citigroup reduced their price objective on Brinker International from $282.00 to $270.00 and set a "buy" rating on the stock in a research note on Monday, October 19th. Bank of America upped their price objective on Brinker International from $224.00 to $310.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Finally, Raymond James Financial raised Brinker International from an "outperform" rating to a "strong-buy" rating and lowered their price objective for the company from $270.00 to $260.00 in a research note on Friday, October 16th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $248.20.

Brinker International Stock Up 12.0%

NYSE EAT opened at $220.29 on Thursday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.40 and a current ratio of 0.45. The company has a market capitalization of $9.20 billion, a P/E ratio of 20.23, a P/E/G ratio of 0.95 and a beta of 1.25. Brinker International has a one year low of $100.30 and a one year high of $254.99. The stock has a 50 day moving average price of $210.12 and a 200-day moving average price of $174.06.

Brinker International (NYSE:EAT - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The restaurant operator reported $2.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.45 by $0.32. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The company had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the firm earned $2.17 earnings per share. Brinker International's revenue was up 9.4% on a year-over-year basis. As a group, equities analysts predict that Brinker International will post 13.20 EPS for the current fiscal year.

Insider Activity

In related news, CEO Kevin Hochman sold 40,000 shares of Brinker International stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $243.15, for a total transaction of $9,726,000.00. Following the completion of the transaction, the chief executive officer directly owned 144,090 shares of the company's stock, valued at approximately $35,035,483.50. The trade was a 21.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP George Felix sold 14,349 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $237.47, for a total transaction of $3,407,457.03. Following the transaction, the executive vice president owned 6,293 shares in the company, valued at $1,494,398.71. The trade was a 69.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 173,694 shares of company stock worth $41,568,690 in the last 90 days. Company insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Deutsche Bank AG increased its holdings in Brinker International by 18.0% during the 2nd quarter. Deutsche Bank AG now owns 63,795 shares of the restaurant operator's stock worth $10,718,000 after purchasing an additional 9,733 shares during the period. Callan Family Office LLC purchased a new stake in shares of Brinker International in the 2nd quarter worth $2,258,000. Wealth High Governance Capital Ltda purchased a new stake in shares of Brinker International in the 2nd quarter worth $3,710,000. Bank of America Corp DE grew its position in shares of Brinker International by 37.7% during the 1st quarter. Bank of America Corp DE now owns 242,648 shares of the restaurant operator's stock worth $34,643,000 after buying an additional 66,383 shares in the last quarter. Finally, Cynosure Group LLC bought a new position in shares of Brinker International during the 2nd quarter worth $766,000.

Key Brinker International News

Here are the key news stories impacting Brinker International this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Brinker reported adjusted EPS of $2.77, above the roughly $2.45–$2.49 consensus range and up from $2.17 a year earlier. Revenue rose 9.4% year over year to $1.48 billion, topping the $1.46 billion estimate. Brinker International fiscal 2027 first-quarter results
• Positive Sentiment: Chili’s continued to drive comparable-sales growth. The brand posted a 10% increase in same-store sales, its 22nd consecutive quarter of growth. The result follows a 21% increase in the prior-year period and represents 52% cumulative comparable-sales growth over three years, highlighting strong brand momentum despite difficult comparisons. Brinker rallies after Chili’s results
• Positive Sentiment: Management raised its fiscal 2027 earnings outlook. Brinker now expects adjusted EPS of $13.30 to $13.90, slightly above the FactSet estimate of $13.28. The upward revision suggests management expects continued sales strength and operating leverage. Brinker fiscal 2027 adjusted EPS outlook
• Neutral Sentiment: The strong report comes after a substantial stock rally: EAT trades well above its 50-day and 200-day moving averages and near its 12-month high. This reflects positive momentum but also leaves the shares more exposed to profit-taking if future results or guidance disappoint. Brinker advances on strong first-quarter results

About Brinker International

Brinker International, Inc is a casual-dining restaurant company that owns, operates and franchises restaurants in the United States and select international markets. The company is headquartered in Dallas, Texas, and serves customers through company-operated and franchised locations.

Brinker's principal brands are Chili's Grill & Bar and Maggiano's Little Italy. Chili's offers a broad menu of burgers, steaks, ribs, fajitas, Tex-Mex dishes, salads and beverages in a full-service, casual setting.

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