Brinker International (NYSE:EAT) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Brinker International to “strong buy” from “hold” and raised several future EPS estimates, including forecasts of $13.06 for FY2027, $13.97 for FY2028, and $15.22 for FY2029.
• Analyst sentiment is broadly positive: 17 analysts rate the stock a Buy and two rate it a Strong Buy, producing a “Moderate Buy” consensus and an average price target of $243.38.
• Despite the favorable outlook, shares opened at $190.08 after recently trading below their 50-day moving average, while insiders sold $41.6 million of stock over three months, potentially adding near-term caution.

Brinker International (NYSE:EAT - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Monday, Zacks reports. Zacks Research also issued estimates for Brinker International's Q1 2027 earnings at $2.42 EPS, Q4 2027 earnings at $4.06 EPS, FY2027 earnings at $13.06 EPS, Q1 2028 earnings at $2.59 EPS, Q3 2028 earnings at $3.61 EPS, Q4 2028 earnings at $4.45 EPS, FY2028 earnings at $13.97 EPS and FY2029 earnings at $15.22 EPS.

Other equities analysts also recently issued research reports about the company. Citigroup increased their price target on Brinker International from $227.00 to $282.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. KeyCorp upped their price objective on shares of Brinker International from $204.00 to $275.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Morgan Stanley boosted their target price on shares of Brinker International from $250.00 to $260.00 and gave the stock an "overweight" rating in a research note on Thursday, September 10th. Wells Fargo & Company upped their price target on shares of Brinker International from $220.00 to $280.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Finally, Stephens reiterated an "overweight" rating and issued a $300.00 price objective on shares of Brinker International in a report on Friday, September 18th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $243.38.

Brinker International Trading Down 2.1%

Shares of NYSE:EAT opened at $190.08 on Monday. 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 12-month low of $100.30 and a 12-month high of $254.99. The business has a 50 day moving average of $219.96 and a two-hundred day moving average of $178.16. The company has a market capitalization of $7.94 billion, a PE ratio of 17.45, a PEG ratio of 1.01 and a beta of 1.25.

Brinker International (NYSE:EAT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). The firm had revenue of $1.54 billion for the quarter, compared to analysts' expectations of $1.53 billion. Brinker International had a return on equity of 122.35% and a net margin of 8.39%.The business's quarterly revenue was up 5.1% on a year-over-year basis. During the same period last year, the company posted $2.30 earnings per share. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. As a group, analysts forecast that Brinker International will post 13.15 EPS for the current year.

Insiders Place Their Bets

In related news, SVP James Butler sold 10,000 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $240.37, for a total value of $2,403,700.00. Following the completion of the sale, the senior vice president owned 9,064 shares of the company's stock, valued at approximately $2,178,713.68. This trade represents a 52.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph DePinto sold 25,000 shares of the business's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $230.39, for a total value of $5,759,750.00. Following the transaction, the director directly owned 77,812 shares in the company, valued at $17,927,106.68. This trade represents a 24.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 173,694 shares of company stock worth $41,568,690. 1.18% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Brinker International

Several hedge funds and other institutional investors have recently bought and sold shares of EAT. BlackRock Inc. increased its stake in Brinker International by 2.2% during the second quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator's stock worth $1,130,552,000 after acquiring an additional 145,525 shares during the last quarter. State Street Corp lifted its stake in shares of Brinker International by 3.5% in the 2nd quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator's stock valued at $293,786,000 after purchasing an additional 59,120 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Brinker International by 0.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator's stock worth $167,128,000 after purchasing an additional 9,692 shares during the period. Balyasny Asset Management L.P. grew its holdings in shares of Brinker International by 667.5% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,142,263 shares of the restaurant operator's stock worth $163,938,000 after purchasing an additional 993,435 shares during the period. Finally, Freestone Grove Partners LP acquired a new stake in shares of Brinker International during the 2nd quarter worth about $91,237,000.

Brinker International News Summary

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

• Positive Sentiment: Zacks Research raised multiple EPS forecasts. The firm increased its estimates for Q1 2027 to $2.42 from $2.29, Q1 2028 to $2.59 from $2.49, FY2028 to $13.97 from $13.66, and FY2029 to $15.22 from $14.90. It also made smaller upward revisions for Q4 2027, Q3 2028, and Q4 2028. The revisions indicate improving confidence in Brinker’s earnings trajectory and could support the investment case for EAT. Zacks Research Brokers Raise Earnings Estimates for EAT
• Positive Sentiment: Longer-term earnings expectations remain constructive. Zacks now projects FY2027 EPS of $13.06, FY2028 EPS of $13.97, and FY2029 EPS of $15.22, compared with the current-year consensus of $13.15. These forecasts imply continued earnings growth if Chili’s and Brinker’s broader operating targets are achieved.
• Neutral Sentiment: The stock’s valuation and technical positioning may be contributing to volatility. EAT recently traded below its 50-day moving average of $219.96 but above its 200-day average of $178.16. With the shares having advanced substantially over the past year, investors may be reassessing expectations following the company’s investor-day targets for 4%–6% annual revenue growth, double-digit EPS growth, and annual share repurchases of 3%–5%.
• Negative Sentiment: Profit-taking and margin concerns remain an overhang. A recent analyst price-target reduction, while maintaining a neutral view, cited potential margin pressure. In addition, reported insider activity showed numerous sales and no purchases during the past six months, which may reinforce near-term investor caution. Why Brinker International Stock Is Falling Today

About Brinker International

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining establishments. Its portfolio is led by Chili's Grill & Bar, a full-service restaurant brand known for burgers, steaks, fajitas, ribs and other American-style menu items, and Maggiano's Little Italy, which specializes in Italian-American cuisine and operates both restaurants and catering services.

Brinker also developed It's Just Wings, a virtual restaurant brand offering chicken wings, fries and related items through delivery and takeout.

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