Brinker International (NYSE:EAT) Upgraded at Jefferies Financial Group

Key Points

• Jefferies upgraded Brinker International from “hold” to “buy” and raised its price target from $230 to $255, implying 26.21% upside from the prior close.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $247.19; other firms have set targets as high as $280.
• Brinker’s latest quarter showed revenue growth of 5.1% year over year to $1.54 billion, though earnings of $3.07 per share narrowly missed estimates. Insiders sold $41.6 million of stock during the latest quarter.

Brinker International (NYSE:EAT - Get Free Report) was upgraded by equities researchers at Jefferies Financial Group from a "hold" rating to a "buy" rating in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has a $255.00 price target on the restaurant operator's stock, up from their prior price target of $230.00. Jefferies Financial Group's price target would indicate a potential upside of 26.21% from the company's previous close.

EAT has been the subject of several other reports. Weiss Ratings raised Brinker International from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 11th. Seaport Research Partners started coverage on Brinker International in a research report on Wednesday, September 16th. They set a "buy" rating and a $230.00 target price on the stock. TD Cowen reaffirmed a "buy" rating and set a $270.00 target price on shares of Brinker International in a report on Friday, September 18th. Wells Fargo & Company upped their target price on Brinker International from $220.00 to $280.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Finally, Zacks Research upgraded Brinker International from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $247.19.

Brinker International Stock Performance

Shares of EAT opened at $202.04 on Wednesday. Brinker International has a 12-month low of $100.30 and a 12-month high of $254.99. The stock has a market capitalization of $8.44 billion, a P/E ratio of 18.55, a P/E/G ratio of 1.01 and a beta of 1.25. The firm's 50 day moving average is $217.82 and its 200-day moving average is $179.79. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.40.

Brinker International (NYSE:EAT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.09 by ($0.02). The business had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.53 billion. Brinker International had a return on equity of 122.35% and a net margin of 8.39%. The company's quarterly revenue was up 5.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.30 EPS. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. Equities research analysts anticipate that Brinker International will post 13.16 EPS for the current fiscal year.

Insider Buying and Selling at Brinker International

In related news, EVP Michaela Ware sold 3,030 shares of Brinker International stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $233.48, for a total transaction of $707,444.40. Following the completion of the sale, the executive vice president owned 17,494 shares of the company's stock, valued at approximately $4,084,499.12. This trade represents a 14.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Daniel Fuller sold 1,909 shares of the business's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $253.54, for a total value of $484,007.86. Following the completion of the transaction, the senior vice president owned 30,177 shares in the company, valued at $7,651,076.58. This trade represents a 5.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 173,694 shares of company stock valued at $41,568,690 in the last quarter. Corporate insiders own 1.18% of the company's stock.

Institutional Investors Weigh In On Brinker International

Several large investors have recently made changes to their positions in the company. BlackRock Inc. raised its position in Brinker International by 2.2% during the second quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator's stock valued at $1,130,552,000 after acquiring an additional 145,525 shares in the last quarter. State Street Corp grew its position in Brinker International by 3.5% in the second quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator's stock worth $293,786,000 after acquiring an additional 59,120 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Brinker International by 0.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator's stock worth $167,128,000 after acquiring an additional 9,692 shares in the last quarter. Balyasny Asset Management L.P. grew its position in Brinker International by 667.5% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,142,263 shares of the restaurant operator's stock worth $163,938,000 after acquiring an additional 993,435 shares in the last quarter. Finally, Freestone Grove Partners LP acquired a new position in shares of Brinker International during the 2nd quarter worth $91,237,000.

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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