Brinker International (NYSE:EAT) Shares Down 4.7% - What's Next?

Key Points

• Brinker International's stock fell 4.7%, trading at $145.59 after reaching a low of $144.20, along with a significant decline in trading volume.
• The company's recent quarterly earnings showed strong performance, with an EPS of $2.49, exceeding estimates and a 21% revenue increase year-over-year.
• Multiple analysts have updated their price targets on Brinker International, with the average target now at $172.59, while the stock holds a mixed rating with five Buy and twelve Hold ratings from analysts.

Brinker International, Inc. (NYSE:EAT - Get Free Report) was down 4.7% on Tuesday . The company traded as low as $144.20 and last traded at $145.59. Approximately 508,854 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 1,456,065 shares. The stock had previously closed at $152.84.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on EAT shares. Piper Sandler boosted their price target on Brinker International from $155.00 to $168.00 and gave the company a "neutral" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. upped their price objective on Brinker International from $160.00 to $180.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 25th. Wells Fargo & Company upped their price objective on Brinker International from $150.00 to $165.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 17th. Wall Street Zen lowered Brinker International from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 16th. Finally, Stifel Nicolaus upped their price objective on Brinker International from $200.00 to $215.00 and gave the company a "buy" rating in a report on Monday, June 23rd. Five research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $172.59.

Brinker International Stock Down 2.0%

The business's 50 day moving average price is $156.23 and its 200-day moving average price is $156.12. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.31 and a quick ratio of 0.25. The company has a market cap of $6.05 billion, a P/E ratio of 16.37, a PEG ratio of 0.88 and a beta of 1.43.

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

Insider Activity

In other news, CEO Kevin Hochman sold 44,000 shares of the business's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $157.82, for a total value of $6,944,080.00. Following the completion of the transaction, the chief executive officer owned 212,867 shares of the company's stock, valued at $33,594,669.94. The trade was a 17.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Douglas N. Comings sold 16,000 shares of the company's stock in a transaction on 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 completion of the transaction, the chief operating officer directly owned 12,951 shares of the company's stock, valued at approximately $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 in the last quarter. Company insiders own 1.72% of the company's stock.

Hedge Funds Weigh In On Brinker International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP boosted its stake in Brinker International by 105.8% in the 2nd quarter. Allworth Financial LP now owns 142 shares of the restaurant operator's stock worth $26,000 after purchasing an additional 73 shares during the period. GPS Wealth Strategies Group LLC grew 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 acquiring an additional 75 shares in the last quarter. Sequoia Financial Advisors LLC increased its position in shares of Brinker International by 5.9% in the second quarter. Sequoia Financial Advisors LLC now owns 1,462 shares of the restaurant operator's stock valued at $264,000 after acquiring an additional 81 shares during the last quarter. Maryland State Retirement & Pension System increased its position in shares of Brinker International by 0.7% in the second quarter. Maryland State Retirement & Pension System now owns 13,043 shares of the restaurant operator's stock valued at $2,352,000 after acquiring an additional 85 shares during the last quarter. Finally, Yousif Capital Management LLC increased its position in shares of Brinker International by 0.7% in the second 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.