Brinker International (NYSE:EAT) Coverage Initiated at Wolfe Research

Key Points

• Wolfe Research initiated coverage with an "outperform" rating and a $184 price target (implying ~42% upside); the consensus price target is about $186.44 with most analysts rating the stock a Buy/Moderate Buy.
• Shares dropped roughly 4.1% to $129.29 despite Brinker reporting an earnings beat ($2.87 EPS vs. $2.53 consensus) and $1.45 billion in revenue, leaving the stock well below its 52-week high of $187.12.
• Insiders have sold about 97,678 shares (~$15.7M) in the last 90 days (insiders own 1.43%), and the company trades at a P/E of 13.07 with a market cap of $5.63 billion.

Wolfe Research began coverage on shares of Brinker International (NYSE:EAT - Get Free Report) in a research note issued on Monday. The firm set an "outperform" rating and a $184.00 price target on the restaurant operator's stock. Wolfe Research's price objective would suggest a potential upside of 42.32% from the stock's previous close.

A number of other equities research analysts have also weighed in on the company. Zacks Research raised Brinker International from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 4th. The Goldman Sachs Group raised their price target on Brinker International from $180.00 to $200.00 and gave the stock a "buy" rating in a research report on Thursday, January 29th. UBS Group lifted their price target on Brinker International from $175.00 to $190.00 and gave the stock a "buy" rating in a research note on Thursday, January 29th. Citigroup boosted their price objective on Brinker International from $187.00 to $190.00 and gave the company a "buy" rating in a research report on Thursday, January 29th. Finally, Raymond James Financial raised Brinker International from a "market perform" rating to an "outperform" rating and set a $195.00 price objective for the company in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Brinker International has an average rating of "Moderate Buy" and a consensus price target of $186.44.

Brinker International Trading Down 4.1%

Shares of Brinker International stock traded down $5.52 during trading on Monday, reaching $129.29. The company's stock had a trading volume of 175,092 shares, compared to its average volume of 1,260,010. The company has a quick ratio of 0.31, a current ratio of 0.36 and a debt-to-equity ratio of 1.19. Brinker International has a 52-week low of $100.30 and a 52-week high of $187.12. The firm's 50-day moving average is $155.33 and its two-hundred day moving average is $143.16. The company has a market cap of $5.63 billion, a price-to-earnings ratio of 13.07, a PEG ratio of 0.95 and a beta of 1.34.

Brinker International (NYSE:EAT - Get Free Report) last issued its earnings results on Wednesday, January 28th. The restaurant operator reported $2.87 EPS for the quarter, topping analysts' consensus estimates of $2.53 by $0.34. Brinker International had a net margin of 7.98% and a return on equity of 134.92%. The company had revenue of $1.45 billion for the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter last year, the company earned $2.80 EPS. The firm's revenue was up 6.9% compared to the same quarter last year. Brinker International has set its FY 2026 guidance at 1.045-10.850 EPS. On average, sell-side analysts anticipate that Brinker International will post 8.3 earnings per share for the current year.

Insider Buying and Selling

In other Brinker International news, Director James C. Katzman sold 447 shares of the stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $164.19, for a total value of $73,392.93. Following the completion of the sale, the director owned 28,994 shares in the company, valued at approximately $4,760,524.86. This trade represents a 1.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Michaela M. Ware sold 5,000 shares of Brinker International stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $162.40, for a total value of $812,000.00. Following the completion of the sale, the executive vice president owned 19,923 shares in the company, valued at approximately $3,235,495.20. This represents a 20.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 97,678 shares of company stock valued at $15,700,372 over the last ninety days. Corporate insiders own 1.43% of the company's stock.

Hedge Funds Weigh In On Brinker International

A number of hedge funds and other institutional investors have recently made changes to their positions in EAT. Caitong International Asset Management Co. Ltd bought a new stake in Brinker International in the third quarter valued at $25,000. Allworth Financial LP increased its position in Brinker International by 105.8% during the 2nd quarter. Allworth Financial LP now owns 142 shares of the restaurant operator's stock valued at $26,000 after purchasing an additional 73 shares during the period. Salomon & Ludwin LLC bought a new position in Brinker International in the 3rd quarter worth $26,000. Transamerica Financial Advisors LLC raised its holdings in Brinker International by 570.4% in the 4th quarter. Transamerica Financial Advisors LLC now owns 181 shares of the restaurant operator's stock worth $26,000 after purchasing an additional 154 shares in the last quarter. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Brinker International in the 2nd quarter worth about $34,000.

Brinker International Company Profile

Brinker International, Inc NYSE: EAT is a leading global operator of casual dining restaurants. The company's portfolio is anchored by its flagship Chili's® Grill & Bar concept and Maggiano's® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili's brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.

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