Brinker International (NYSE:EAT) Raised to Buy at Bank of America

Key Points

• Brinker International has been upgraded to a "buy" rating by Bank of America, suggesting a potential upside of 51.41% from its previous close, with a new target price of $192.00.
• Brinker reported quarterly earnings of $2.49 EPS, which exceeded analyst expectations, alongside a revenue rise of 21.0% year-over-year.
• According to consensus estimates, Brinker International is forecasted to achieve an EPS of 8.3 for the current year, while its FY 2026 guidance is projected between 9.900-10.50 EPS.

Brinker International (NYSE:EAT - Get Free Report) was upgraded by research analysts at Bank of America from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a $192.00 target price on the restaurant operator's stock, up from their prior target price of $190.00. Bank of America's target price points to a potential upside of 51.41% from the stock's previous close.

Several other research firms have also issued reports on EAT. Morgan Stanley lifted their target price on shares of Brinker International from $149.00 to $161.00 and gave the company an "equal weight" rating in a report on Thursday, August 14th. The Goldman Sachs Group cut their price objective on shares of Brinker International from $207.00 to $180.00 and set a "buy" rating for the company in a research report on Tuesday, September 30th. Evercore ISI raised shares of Brinker International from an "in-line" rating to an "outperform" rating and upped their target price for the stock from $190.00 to $210.00 in a report on Thursday, September 4th. JPMorgan Chase & Co. upped their target price on shares of Brinker International from $160.00 to $180.00 and gave the stock a "neutral" rating in a report on Wednesday, June 25th. Finally, Piper Sandler upped their target price on shares of Brinker International from $155.00 to $168.00 and gave the stock a "neutral" rating in a report on Thursday, August 14th. Eight investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, Brinker International presently has a consensus rating of "Hold" and a consensus target price of $171.65.

Brinker International Stock Performance

NYSE EAT opened at $126.81 on Monday. The company has a quick ratio of 0.25, a current ratio of 0.31 and a debt-to-equity ratio of 1.15. The company has a 50-day simple moving average of $150.33 and a two-hundred day simple moving average of $155.66. The firm has a market cap of $5.64 billion, a price-to-earnings ratio of 15.26, a PEG ratio of 0.81 and a beta of 1.38. Brinker International has a 12-month low of $80.44 and a 12-month high of $192.21.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $2.49 EPS for the quarter, topping the consensus estimate of $2.47 by $0.02. Brinker International had a net margin of 7.12% and a return on equity of 211.86%. The business had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same period last year, the business posted $1.61 earnings per share. Brinker International's quarterly revenue was up 21.0% compared to the same quarter last year. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. On average, equities analysts forecast that Brinker International will post 8.3 EPS for the current year.

Insider Activity at Brinker International

In related news, Director Harriet Edelman sold 8,325 shares of the firm's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $157.00, for a total transaction of $1,307,025.00. Following the completion of the transaction, the director owned 28,905 shares of the company's stock, valued at $4,538,085. This trade represents a 22.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Douglas N. Comings sold 16,000 shares of the business's stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $156.48, for a total transaction of $2,503,680.00. Following the transaction, the chief operating officer owned 12,951 shares in the company, valued at $2,026,572.48. The trade was a 55.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 68,325 shares of company stock valued at $10,754,785 over the last 90 days. Insiders own 1.72% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Allworth Financial LP boosted its holdings in shares of Brinker International by 105.8% in the 2nd quarter. Allworth Financial LP now owns 142 shares of the restaurant operator's stock valued at $26,000 after buying an additional 73 shares in the last quarter. GPS Wealth Strategies Group LLC increased its holdings in shares of Brinker International by 52.1% in the 2nd quarter. GPS Wealth Strategies Group LLC now owns 219 shares of the restaurant operator's stock valued at $39,000 after purchasing an additional 75 shares in the last quarter. Sequoia Financial Advisors LLC increased its holdings in shares of Brinker International by 5.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 1,462 shares of the restaurant operator's stock valued at $264,000 after purchasing an additional 81 shares in the last quarter. Maryland State Retirement & Pension System increased its holdings in shares of Brinker International by 0.7% in the 2nd quarter. Maryland State Retirement & Pension System now owns 13,043 shares of the restaurant operator's stock valued at $2,352,000 after purchasing an additional 85 shares in the last quarter. Finally, Yousif Capital Management LLC grew its stake in Brinker International by 0.7% in the 2nd quarter. Yousif Capital Management LLC now owns 12,097 shares of the restaurant operator's stock valued at $2,181,000 after acquiring an additional 85 shares during the last quarter.

Brinker International Company Profile

Brinker International, Inc, together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.