Brinker International (NYSE:EAT) Stock Rating Upgraded by Freedom Broker

Key Points

• Freedom Broker upgraded Brinker International to “strong buy,” adding to generally positive analyst sentiment. The stock has a “Moderate Buy” consensus rating and an average price target of $243.30.
• Brinker reported quarterly revenue of $1.54 billion, up 5.1% year over year, while EPS of $3.07 narrowly missed estimates. Management is targeting continued revenue, earnings and restaurant-unit growth through fiscal 2029.
• The company plans to return approximately $400 million to shareholders through fiscal 2026 share repurchases, although investors may be concerned about the spending required for accelerated restaurant development and remodeling. Insiders have also been significant net sellers recently.

Brinker International (NYSE:EAT - Get Free Report) was upgraded by analysts at Freedom Broker to a "strong-buy" rating in a research report issued on Friday, Zacks reports.

A number of other research firms also recently weighed in on EAT. Mizuho raised their price target on shares of Brinker International from $175.00 to $275.00 and gave the stock an "outperform" rating in a research report on Thursday, August 13th. TD Cowen reaffirmed a "buy" rating and issued a $270.00 price target on shares of Brinker International in a report on Friday. DA Davidson reduced their price objective on shares of Brinker International from $260.00 to $240.00 and set a "neutral" rating on the stock in a research note on Friday, September 11th. Bank of America raised their price objective on shares of Brinker International from $224.00 to $310.00 and gave the stock a "buy" rating in a report on Friday, August 14th. Finally, Citigroup boosted their target price on shares of Brinker International from $227.00 to $282.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $243.30.

Brinker International Stock Performance

NYSE:EAT opened at $197.04 on Friday. The firm has a 50-day moving average of $217.18 and a two-hundred day moving average of $172.85. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.40. The stock has a market cap of $8.23 billion, a P/E ratio of 18.09, a PEG ratio of 1.05 and a beta of 1.25. Brinker International has a 1-year low of $100.30 and a 1-year high of $254.99.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The business had revenue of $1.54 billion during the quarter, compared to analysts' expectations of $1.53 billion. During the same period in the prior year, the company posted $2.30 EPS. The company's revenue for the quarter was up 5.1% on a year-over-year basis. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. On average, research analysts expect that Brinker International will post 13 earnings per share for the current fiscal year.

Insider Transactions at Brinker International

In other news, EVP Aaron M. White sold 16,220 shares of the firm's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $236.22, for a total value of $3,831,488.40. Following the transaction, the executive vice president directly owned 42,756 shares in the company, valued at approximately $10,099,822.32. This trade represents a 27.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP George S. Felix sold 14,349 shares of the business'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 sale, the executive vice president directly owned 6,293 shares of the company's stock, valued at approximately $1,494,398.71. This represents a 69.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 173,694 shares of company stock valued at $41,568,690 over the last quarter. Insiders own 1.43% of the company's stock.

Institutional Trading of Brinker International

Several hedge funds have recently made changes to their positions in EAT. The Manufacturers Life Insurance Company grew its stake in Brinker International by 13.1% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 21,550 shares of the restaurant operator's stock worth $3,620,000 after buying an additional 2,489 shares during the last quarter. Tidal Investments LLC lifted its stake in Brinker International by 24.1% in the second quarter. Tidal Investments LLC now owns 8,897 shares of the restaurant operator's stock valued at $1,495,000 after buying an additional 1,726 shares during the last quarter. WINTON GROUP Ltd lifted its stake in Brinker International by 318.2% in the second quarter. WINTON GROUP Ltd now owns 28,047 shares of the restaurant operator's stock valued at $4,712,000 after buying an additional 21,340 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of Brinker International during the second quarter valued at $145,000. Finally, Empirical Finance LLC acquired a new position in shares of Brinker International during the second quarter valued at $687,000.

Brinker International News Roundup

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

• Positive Sentiment: Brinker outlined plans to return approximately $400 million to shareholders through share repurchases in fiscal 2026, potentially supporting earnings per share and providing a source of demand for the stock. Brinker's 2026 Outlook: Capital Allocation Targets $400 Million in Share Repurchases
• Positive Sentiment: Management is targeting 4% to 6% annual revenue growth through fiscal 2029, double-digit annual adjusted EPS growth, 2% to 3% unit growth and as many as 30 new restaurants annually, led by Chili’s expansion and remodels. Brinker Sets Out FY29 Targets, Plans Faster Unit Expansion
• Positive Sentiment: Analyst sentiment remains favorable. Stephens reaffirmed an Overweight rating with a $300 target, while TD Cowen reaffirmed Buy with a $270 target, both implying substantial upside based on the referenced price. Stephens Reaffirms Brinker Rating
• Neutral Sentiment: Seaport Research Partners initiated coverage, adding another analyst view to the stock following its previously reported Buy initiation. Seaport Research Partners Initiates Coverage on Brinker International
• Negative Sentiment: Investors appear concerned that accelerated restaurant development and remodeling will require significant spending before returns materialize, creating potential pressure on margins and free cash flow. Brinker Shares Slip After Investor Day Targets Highlight Heavier Growth Spending
• Negative Sentiment: Reported insider activity is a sentiment headwind: company insiders made no open-market purchases but recorded multiple sales during the past six months, including sales by senior executives.

About Brinker International

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining restaurants. Its portfolio includes Chili's Grill & Bar, a full-service restaurant brand known for burgers, fajitas, ribs, steaks, Tex-Mex dishes and a broad beverage menu, and Maggiano's Little Italy, which specializes in Italian-American cuisine and family-style dining.

Chili's restaurants serve a wide range of lunch and dinner offerings in a casual, bar-and-grill setting, while Maggiano's locations offer traditional Italian dishes, including pasta, chicken, seafood and desserts.

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