Brinker International (NYSE:EAT) Rating Lowered to "Neutral" at Northcoast Research

Key Points

• Northcoast Research downgraded Brinker International to “neutral” from “buy,” despite the stock trading near its 52-week high at $239.50.
• Brinker reported quarterly revenue of $1.54 billion, up 5.1% year over year and above expectations, while EPS of $3.07 narrowly missed the $3.09 consensus estimate.
• Analyst sentiment remains broadly positive: 16 analysts rate the stock a “buy” and seven a “hold,” with an average price target of $234.35, although several firms recently raised targets as high as $300.

Brinker International (NYSE:EAT - Get Free Report) was downgraded by equities researchers at Northcoast Research from a "buy" rating to a "neutral" rating in a report released on Friday, Marketbeat.com reports.

EAT has been the topic of several other research reports. BMO Capital Markets lifted their price target on Brinker International from $175.00 to $230.00 and gave the stock a "market perform" rating in a report on Thursday. UBS Group upped their price objective on shares of Brinker International from $190.00 to $260.00 and gave the company a "buy" rating in a report on Monday. DA Davidson raised their price objective on shares of Brinker International from $160.00 to $260.00 and gave the stock a "neutral" rating in a research report on Thursday. Citigroup lifted their target price on shares of Brinker International from $227.00 to $282.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Stephens increased their price target on shares of Brinker International from $220.00 to $300.00 and gave the company an "overweight" rating in a research note on Thursday. Sixteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Brinker International has an average rating of "Moderate Buy" and an average target price of $234.35.

Brinker International Price Performance

NYSE:EAT opened at $239.50 on Friday. Brinker International has a one year low of $100.30 and a one year high of $253.71. The stock has a market cap of $10.27 billion, a PE ratio of 21.99, a P/E/G ratio of 1.41 and a beta of 1.24. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.35 and a current ratio of 0.40. The stock has a 50 day moving average price of $185.01 and a 200 day moving average price of $160.19.

Brinker International (NYSE:EAT - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.53 billion. Brinker International had a return on equity of 127.82% 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 firm posted $2.30 EPS. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. Equities research analysts expect that Brinker International will post 12.84 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of EAT. Van Hulzen Asset Management LLC acquired a new stake in shares of Brinker International during the second quarter valued at about $341,000. Whalen Wealth Management Inc. acquired a new position in shares of Brinker International in the 2nd quarter worth approximately $316,000. OMERS ADMINISTRATION Corp acquired a new position in shares of Brinker International in the 2nd quarter worth approximately $1,176,000. Sanctuary Advisors LLC purchased a new position in shares of Brinker International during the 2nd quarter worth approximately $241,000. Finally, Wealth High Governance Capital Ltda purchased a new position in shares of Brinker International during the 2nd quarter worth approximately $3,710,000.

Key Stories Impacting Brinker International

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

• Positive Sentiment: Strong Chili’s performance: Fiscal fourth-quarter revenue rose 5.1% year over year to $1.54 billion, exceeding expectations, while EPS increased from $2.30 to $3.07. Growth was driven by higher Chili’s sales and traffic, expanding margins and the popularity of its new chicken-sandwich offerings. Brinker Q4 Earnings Meet Estimates, Revenues Beat on Chili's Growth
• Positive Sentiment: Above-consensus 2027 outlook: Brinker forecast fiscal 2027 EPS of $12.60–$13.40 and revenue of $6.2–$6.3 billion, above analysts’ estimates of $12.47 EPS and approximately $6.1 billion in revenue. Management also identified takeout and digital ordering as important areas for future growth. Chili’s Parent Wants a Bigger Slice of Fast Food’s Digital Business
• Positive Sentiment: Broad analyst optimism: Stephens raised its target to $300, Citi to $282, Wells Fargo to $280, KeyCorp to $275, Mizuho to $275, TD Cowen to $270, and Morgan Stanley to $250. Most firms maintained bullish ratings, reinforcing expectations that Brinker’s earnings momentum can continue. These Analysts Boost Their Forecasts On Brinker Following Q4 Earnings
• Neutral Sentiment: CEO Kevin Hochman’s interview with Jim Cramer highlighted brand strength, consumer trends and the company’s growth strategy, potentially supporting investor confidence. Brinker International CEO Kevin Hochman Sits Down With Jim Cramer
• Negative Sentiment: EPS of $3.07 was slightly below the reported consensus estimate of $3.09, creating a modest quarterly earnings miss. BMO Capital raised its target to $230 but retained a market-perform rating, below the stock’s recent trading level.

About Brinker International

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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