Brinker International (NYSE:EAT) Shares Gap Up After Strong Earnings

Key Points

• Brinker International's stock price gapped up from $154.88 to $163.12 after announcing earnings of $2.49 per share, exceeding expectations by $0.02.
• The company experienced a significant year-over-year revenue increase of 21.0%, and its net margin stood at 6.50% with an impressive return on equity of 333.03%.
• Multiple analysts have raised their price targets for Brinker International, with Stifel Nicolaus increasing their target from $200.00 to $215.00 and categorizing the stock as a "buy."

Brinker International, Inc. (NYSE:EAT - Get Free Report)'s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $154.88, but opened at $163.12. Brinker International shares last traded at $157.57, with a volume of 1,145,072 shares trading hands.

The restaurant operator reported $2.49 EPS for the quarter, beating the consensus estimate of $2.47 by $0.02. Brinker International had a net margin of 6.50% and a return on equity of 333.03%. Brinker International's revenue was up 21.0% on a year-over-year basis. During the same period last year, the company earned $1.61 EPS.

Wall Street Analysts Forecast Growth

EAT has been the subject of a number of recent research reports. Morgan Stanley lifted their price objective on Brinker International from $144.00 to $149.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Bank of America boosted their price target on Brinker International from $185.00 to $186.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. Stifel Nicolaus lifted their price objective on Brinker International from $200.00 to $215.00 and gave the stock a "buy" rating in a report on Monday, June 23rd. Barclays boosted their price target on Brinker International from $155.00 to $166.00 and gave the company an "equal weight" rating in a report on Thursday, July 17th. Finally, JPMorgan Chase & Co. boosted their price target on Brinker International from $160.00 to $180.00 and gave the company a "neutral" rating in a report on Wednesday, June 25th. Thirteen analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $156.41.

Insider Activity at Brinker International

In other news, Director Joseph Michael Depinto sold 10,000 shares of the business's stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $170.36, for a total value of $1,703,600.00. Following the sale, the director directly owned 99,297 shares in the company, valued at $16,916,236.92. The trade was a 9.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 1.72% of the company's stock.

Institutional Investors Weigh In On Brinker International

A number of hedge funds and other institutional investors have recently bought and sold shares of EAT. Westfield Capital Management Co. LP lifted its stake in shares of Brinker International by 24.2% in the second quarter. Westfield Capital Management Co. LP now owns 1,236,583 shares of the restaurant operator's stock worth $222,993,000 after buying an additional 240,870 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Brinker International by 1.3% during the second quarter. Geode Capital Management LLC now owns 1,071,523 shares of the restaurant operator's stock valued at $193,619,000 after acquiring an additional 14,033 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Brinker International by 3,277.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 987,334 shares of the restaurant operator's stock valued at $130,615,000 after acquiring an additional 958,101 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Brinker International by 5.1% during the first quarter. Dimensional Fund Advisors LP now owns 967,550 shares of the restaurant operator's stock valued at $144,201,000 after acquiring an additional 46,896 shares during the last quarter. Finally, Balyasny Asset Management L.P. acquired a new position in shares of Brinker International in the fourth quarter valued at approximately $82,408,000.

Brinker International Stock Up 0.8%

The company has a market cap of $6.94 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 0.36 and a beta of 1.68. The company has a current ratio of 0.28, a quick ratio of 0.23 and a debt-to-equity ratio of 2.00. The firm's fifty day simple moving average is $168.80 and its 200 day simple moving average is $158.36.

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.

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