Brinker International (NYSE:EAT) Upgraded by Stephens to Strong-Buy Rating

Key Points

• Stephens upgraded Brinker International to a strong-buy rating, adding to a generally bullish analyst backdrop for the restaurant operator. MarketBeat says the stock now carries an average rating of Moderate Buy with an average price target of $189.20.
• Several analysts have recently raised their outlooks, including Wells Fargo and KeyCorp, with targets of $220 and $204, respectively. This comes alongside a mix of other ratings, but the overall analyst sentiment remains positive.
• Brinker’s latest quarterly results topped expectations, with EPS of $2.90 versus a $2.85 estimate and revenue roughly in line at $1.47 billion. The company also guided FY2026 EPS to 10.60–10.85, while shares recently traded near a 52-week high.

Brinker International (NYSE:EAT - Get Free Report) was upgraded by stock analysts at Stephens to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports.

Other research analysts have also issued reports about the company. Barclays increased their price objective on Brinker International from $170.00 to $175.00 and gave the company an "equal weight" rating in a research report on Thursday, April 30th. Zacks Research downgraded Brinker International from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 23rd. KeyCorp upped their price target on Brinker International from $177.00 to $204.00 and gave the company an "overweight" rating in a research note on Wednesday. TD Cowen decreased their price target on Brinker International from $188.00 to $170.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Finally, Weiss Ratings upgraded Brinker International from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $189.20.

Brinker International Price Performance

Shares of EAT stock opened at $189.28 on Thursday. Brinker International has a 1 year low of $100.30 and a 1 year high of $192.20. The firm's 50 day moving average is $156.45 and its 200-day moving average is $152.85. The firm has a market capitalization of $8.12 billion, a price-to-earnings ratio of 18.56, a PEG ratio of 1.15 and a beta of 1.24. The company has a current ratio of 0.40, a quick ratio of 0.35 and a debt-to-equity ratio of 1.05.

Brinker International (NYSE:EAT - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The restaurant operator reported $2.90 EPS for the quarter, beating the consensus estimate of $2.85 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.47 billion. Brinker International had a net margin of 8.07% and a return on equity of 123.22%. Brinker International's revenue was up 3.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.66 earnings per share. Brinker International has set its FY 2026 guidance at 10.60-10.850 EPS. Sell-side analysts forecast that Brinker International will post 10.75 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in EAT. Vanguard Group Inc. raised its position in shares of Brinker International by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 4,819,397 shares of the restaurant operator's stock valued at $691,680,000 after acquiring an additional 73,346 shares during the period. UBS Group AG increased its stake in Brinker International by 103.2% in the fourth quarter. UBS Group AG now owns 2,975,655 shares of the restaurant operator's stock valued at $427,066,000 after purchasing an additional 1,511,266 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Brinker International by 27.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,393,604 shares of the restaurant operator's stock valued at $176,542,000 after purchasing an additional 301,912 shares in the last quarter. Balyasny Asset Management L.P. increased its stake in Brinker International by 667.5% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,142,263 shares of the restaurant operator's stock valued at $163,938,000 after purchasing an additional 993,435 shares in the last quarter. Finally, Capital World Investors raised its holdings in Brinker International by 96.5% in the fourth quarter. Capital World Investors now owns 1,137,863 shares of the restaurant operator's stock worth $163,306,000 after purchasing an additional 558,799 shares during the period.

Trending Headlines about Brinker International

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

• Positive Sentiment: Stephens initiated coverage on Brinker International with an overweight rating and a $220 price target, signaling meaningful upside from current levels.
• Positive Sentiment: Wells Fargo also raised its price target on Brinker International to $220 from $200 and kept an overweight rating, reinforcing the bullish analyst outlook. Benzinga report on Wells Fargo price target raise
• Positive Sentiment: KeyCorp lifted its price target to $204, adding to the cluster of positive analyst revisions for EAT.
• Positive Sentiment: Zacks highlighted Brinker as an incredible growth stock and said the company could beat earnings estimates again, which supports investor confidence ahead of the next report. Zacks growth-stock article
• Positive Sentiment: Another Zacks article noted Brinker’s strong earnings surprise history and favorable setup for another quarterly beat, which can be a catalyst for the shares. Zacks earnings beat article
• Neutral Sentiment: Coverage from market commentary on Brinker versus other consumer cyclical names helped keep the stock in focus, but it did not appear to materially change the investment thesis. The Globe and Mail analyst coverage article

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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