Citigroup Forecasts Strong Price Appreciation for Brinker International (NYSE:EAT) Stock

Key Points

• Citigroup raised Brinker International’s price target from $270 to $277 and maintained a “buy” rating, implying 26.25% upside from the stock’s trading price.
• Analyst sentiment remains broadly positive: Brinker has an average “Moderate Buy” rating and a consensus price target of $249.80, with Stephens maintaining the highest target at $300.
• Brinker beat quarterly expectations with EPS of $2.77 versus $2.45 forecast and revenue of $1.48 billion, up 9.4% year over year; shares traded near $219.41, down 0.6%.

Brinker International (NYSE:EAT - Get Free Report) had its price objective raised by research analysts at Citigroup from $270.00 to $277.00 in a report released on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the restaurant operator's stock. Citigroup's price objective points to a potential upside of 26.25% from the company's current price.

Several other research analysts have also issued reports on the company. Stephens restated an "overweight" rating and set a $300.00 target price on shares of Brinker International in a research report on Thursday. Seaport Research Partners assumed coverage on Brinker International in a report on Wednesday, September 16th. They issued a "buy" rating and a $230.00 price target on the stock. Jefferies Financial Group raised Brinker International from a "hold" rating to a "buy" rating and raised their price target for the stock from $230.00 to $255.00 in a research note on Wednesday, October 14th. Mizuho boosted their price objective on Brinker International from $175.00 to $275.00 and gave the company an "outperform" rating in a report on Thursday, August 13th. Finally, DA Davidson cut their price objective on Brinker International from $240.00 to $210.00 and set a "neutral" rating on the stock in a research report on Monday, September 21st. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, Brinker International presently has an average rating of "Moderate Buy" and a consensus price target of $249.80.

Brinker International Trading Down 0.6%

EAT stock traded down $1.33 during mid-day trading on Thursday, reaching $219.41. 1,730,885 shares of the stock traded hands, compared to its average volume of 1,205,894. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.40 and a current ratio of 0.45. Brinker International has a one year low of $100.30 and a one year high of $254.99. The stock has a market capitalization of $9.16 billion, a PE ratio of 20.15, a PEG ratio of 0.95 and a beta of 1.25. The business has a 50-day moving average price of $210.12 and a two-hundred day moving average price of $174.06.

Brinker International (NYSE:EAT - Get Free Report) last announced its earnings results on Wednesday, October 28th. The restaurant operator reported $2.77 earnings per share for the quarter, beating the consensus estimate of $2.45 by $0.32. The business had revenue of $1.48 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.17 earnings per share. Equities research analysts expect that Brinker International will post 13.20 EPS for the current year.

Insider Activity

In other Brinker International news, Director Joseph DePinto sold 25,000 shares of Brinker International stock in a transaction on Friday, August 28th. The stock was sold at an average price of $230.39, for a total transaction of $5,759,750.00. Following the completion of the sale, the director directly owned 77,812 shares of the company's stock, valued at $17,927,106.68. The trade was a 24.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP James M. Butler sold 10,000 shares of the company's stock in a transaction 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 $2,178,713.68. This represents a 52.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 173,694 shares of company stock valued at $41,568,690. Insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On Brinker International

Institutional investors have recently made changes to their positions in the company. Virtue Capital Management LLC acquired a new position in Brinker International during the 3rd quarter valued at about $1,112,000. ProShare Advisors LLC raised its stake in Brinker International by 14.4% in the third quarter. ProShare Advisors LLC now owns 7,089 shares of the restaurant operator's stock valued at $1,372,000 after buying an additional 894 shares during the last quarter. Vise Technologies Inc. boosted its holdings in Brinker International by 6.6% in the third quarter. Vise Technologies Inc. now owns 2,078 shares of the restaurant operator's stock worth $402,000 after acquiring an additional 129 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings 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 worth $4,096,000 after acquiring an additional 2,400 shares in the last quarter. Finally, Hanseatic Management Services Inc. acquired a new stake in Brinker International in the third quarter worth about $1,072,000.

Key Stories Impacting Brinker International

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

• Positive Sentiment: Quarterly results exceeded expectations: Brinker reported fiscal Q1 adjusted EPS of $2.77, beating the $2.45 consensus estimate, while revenue rose 9.4% year over year to $1.48 billion, above the $1.46 billion forecast. EPS also increased from $2.17 a year earlier. Brinker fiscal 2027 first-quarter results
• Positive Sentiment: Chili’s remains the primary growth driver: The chain delivered its 22nd consecutive quarter of same-store sales growth, with comparable sales up 10% despite lapping a 21% increase last year. Reports also highlighted a surge in Chili’s traffic, reinforcing investor confidence in the brand’s operating momentum. Brinker earnings call highlights
• Positive Sentiment: Fiscal 2027 guidance was raised: Management now expects adjusted EPS of $13.30 to $13.90, slightly above the approximately $13.28 FactSet consensus, signaling confidence that current sales and profitability trends can continue. Brinker fiscal 2027 guidance
• Positive Sentiment: Analysts raised targets across the board: Morgan Stanley increased its target to $262, Wells Fargo to $285, KeyCorp to $258, Robert W. Baird to $280 and TD Cowen to $270. Stephens reaffirmed its overweight rating with a $300 target. The upgrades and targets imply continued upside and reinforce the bullish reaction to the earnings report.
• Neutral Sentiment: Investor consideration: Brinker’s strong recent performance raises expectations for sustained Chili’s traffic, comparable-sales growth and execution in upcoming quarters; any slowdown could make the stock more sensitive to valuation and guidance risks.

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.

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