Brinker International (NYSE:EAT) Stock Gets Price Target Bump from Morgan Stanley

Key Points

• Morgan Stanley raised Brinker International’s price target from $260 to $262 while maintaining an “overweight” rating, implying 16.9% upside from the previous close.
• Brinker reported quarterly adjusted EPS of $2.77, beating the $2.45 consensus estimate, while revenue rose 9.4% year over year to $1.48 billion.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and average price target of $249.45, although insiders sold approximately $41.6 million of shares during the quarter.

Brinker International (NYSE:EAT - Get Free Report) had its price target lifted by stock analysts at Morgan Stanley from $260.00 to $262.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the restaurant operator's stock. Morgan Stanley's price objective points to a potential upside of 16.90% from the stock's previous close.

EAT has been the subject of a number of other reports. DA Davidson reduced their target price on shares of Brinker International from $240.00 to $210.00 and set a "neutral" rating for the company in a research note on Monday, September 21st. Seaport Research Partners began coverage on shares of Brinker International in a report on Wednesday, September 16th. They set a "buy" rating and a $230.00 target price for the company. Northcoast Research raised Brinker International from a "neutral" rating to a "buy" rating and set a $275.00 price target on the stock in a research note on Tuesday, September 22nd. Bank of America lifted their price target on Brinker International from $224.00 to $310.00 and gave the company a "buy" rating in a report on Friday, August 14th. Finally, Citigroup dropped their price objective on Brinker International from $282.00 to $270.00 and set a "buy" rating on the stock in a report on Monday, October 19th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $249.45.

Brinker International Stock Up 1.5%

Shares of NYSE EAT traded up $3.38 during mid-day trading on Thursday, reaching $224.12. The company had a trading volume of 761,084 shares, compared to its average volume of 1,203,023. The company has a current ratio of 0.45, a quick ratio of 0.40 and a debt-to-equity ratio of 0.95. Brinker International has a 52-week low of $100.30 and a 52-week high of $254.99. The stock has a market cap of $9.36 billion, a P/E ratio of 20.53, a PEG ratio of 0.95 and a beta of 1.25. The firm has a 50 day simple moving average of $210.12 and a two-hundred day simple moving average of $174.06.

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

Insider Buying and Selling

In other Brinker International news, SVP Daniel Fuller sold 1,909 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $253.54, for a total transaction of $484,007.86. Following the completion of the sale, the senior vice president owned 30,177 shares in the company, valued at approximately $7,651,076.58. The trade was a 5.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP James Butler sold 10,000 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $240.37, for a total transaction of $2,403,700.00. Following the completion of the sale, the senior vice president directly owned 9,064 shares in the company, valued at approximately $2,178,713.68. This trade represents a 52.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 173,694 shares of company stock valued at $41,568,690. Corporate insiders own 1.18% of the company's stock.

Institutional Investors Weigh In On Brinker International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Virtue Capital Management LLC acquired a new stake in Brinker International during the 3rd quarter worth approximately $1,112,000. ProShare Advisors LLC lifted its stake in shares of Brinker International by 14.4% during the third quarter. ProShare Advisors LLC now owns 7,089 shares of the restaurant operator's stock worth $1,372,000 after purchasing an additional 894 shares in the last quarter. Vise Technologies Inc. raised its holdings in shares of Brinker International by 6.6% during the 3rd quarter. Vise Technologies Inc. now owns 2,078 shares of the restaurant operator's stock valued at $402,000 after buying an additional 129 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al grew its position in Brinker International by 12.8% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 21,166 shares of the restaurant operator's stock valued at $4,096,000 after acquiring an additional 2,400 shares in the last quarter. Finally, Hanseatic Management Services Inc. purchased a new position in shares of Brinker International in the third quarter valued at $1,072,000.

Key Brinker International News

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

• Positive Sentiment: Strong Q1 results beat expectations: Brinker reported adjusted earnings of $2.77 per share, above the roughly $2.45-$2.49 analyst consensus, while revenue rose 9.4% year over year to $1.48 billion, exceeding the $1.46 billion estimate. EPS also increased from $2.17 in the prior-year quarter. Brinker International earnings report
• Positive Sentiment: Chili’s continues to drive growth: Chili’s delivered its 22nd consecutive quarter of same-store sales growth, with comparable sales up 10% despite cycling a 21% increase last year. Management cited strong traffic and customer demand, with three-year cumulative comparable-sales growth reaching 52%. Brinker fiscal 2027 results
• Positive Sentiment: Fiscal 2027 outlook was raised: Brinker now expects adjusted fiscal 2027 EPS of $13.30 to $13.90, slightly above the FactSet estimate of $13.28, reinforcing confidence in continued operating momentum. Brinker fiscal 2027 outlook
• Positive Sentiment: Analyst sentiment strengthened: Wells Fargo, KeyCorp, Robert W. Baird and TD Cowen raised their price targets, while Stephens reaffirmed an overweight rating with a $300 target. The revisions indicate analysts see additional upside from Chili’s traffic and earnings growth.
• Neutral Sentiment: Investor focus remains on execution: Brinker’s elevated valuation and continued reliance on Chili’s sustained traffic gains leave the stock sensitive to any slowdown in comparable sales, consumer spending or margins.

Brinker International Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.