Brinker International, Inc. (NYSE:EAT) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a moderately bullish view: Twenty-three brokerages give Brinker International an average “Moderate Buy” rating, with 16 buys and seven holds. The average 12-month price target is $243.30.
• Brinker outlined ambitious fiscal 2029 goals, including 4%–6% annual revenue growth, double-digit adjusted EPS growth, 2%–3% unit growth and roughly 30 new restaurants annually, while recent analysts raised several price targets.
• Investment risks remain: Increased spending on remodels and new Chili’s locations could pressure near-term margins and cash flow, while insiders have sold substantial shares. The company’s latest quarter slightly missed EPS estimates despite revenue growth of 5.1% year over year.

Shares of Brinker International, Inc. (NYSE:EAT - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-three brokerages that are covering the company, Marketbeat reports. Seven investment analysts have rated the stock with a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $243.30.

A number of analysts have recently weighed in on the stock. Seaport Research Partners assumed coverage on shares of Brinker International in a research report on Wednesday. They issued a "buy" rating and a $230.00 target price on the stock. Stephens lifted their price target on shares of Brinker International from $220.00 to $300.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Northcoast Research lowered shares of Brinker International from a "buy" rating to a "neutral" rating in a research note on Friday, August 14th. Bank of America upped their price objective on shares of Brinker International from $224.00 to $310.00 and gave the stock a "buy" rating in a report on Friday, August 14th. Finally, TD Cowen raised their target price on shares of Brinker International from $210.00 to $270.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th.

Key Brinker International News

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

• Positive Sentiment: Management outlined a multi-year growth strategy targeting 4% to 6% annual revenue growth, double-digit annual adjusted EPS growth, 2% to 3% unit growth and approximately 30 new restaurants annually by fiscal 2029. Brinker International outlines growth strategy and long-term targets at Investor Day
• Positive Sentiment: Seaport Global initiated coverage with a Buy rating, adding a favorable Wall Street view after the company’s strong operating momentum and growth prospects. Seaport Global initiates coverage of Brinker International at Buy
• Neutral Sentiment: The long-term targets are constructive, but investors must weigh them against Brinker’s existing fiscal 2027 outlook of $6.15 billion to $6.27 billion in revenue and adjusted EPS of $12.60 to $13.40, alongside planned capital expenditures of $265 million to $285 million.
• Negative Sentiment: The investor-day presentation emphasized increased spending on restaurant remodels and new Chili’s locations. That investment may pressure near-term margins and cash flow before the new and renovated restaurants generate returns, leading investors to question whether the targets adequately compensate for execution risk. Brinker International shares slip after investor day targets highlight heavier growth spending
• Negative Sentiment: Recent insider-trading data shows selling rather than buying by executives over the past six months. In addition, the median analyst price target cited by Quiver Quantitative was below the recent market level, potentially reinforcing valuation concerns. Brinker International stock sinks as market gains

Brinker International Stock Performance

Brinker International stock opened at $199.72 on Friday. Brinker International has a fifty-two week low of $100.30 and a fifty-two week high of $254.99. The stock has a market cap of $8.34 billion, a price-to-earnings ratio of 18.34, a PEG ratio of 1.11 and a beta of 1.25. The stock's 50 day simple moving average is $216.93 and its two-hundred day simple moving average is $172.68. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.40 and a current ratio of 0.45.

Brinker International (NYSE:EAT - Get Free Report) last released its earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). The firm had revenue of $1.54 billion during the quarter, compared to analysts' expectations of $1.53 billion. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The company's revenue for the quarter was up 5.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.30 EPS. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. As a group, analysts expect that Brinker International will post 13.01 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Michaela Ware sold 3,030 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $233.48, for a total transaction of $707,444.40. Following the completion of the transaction, the executive vice president owned 17,494 shares of the company's stock, valued at $4,084,499.12. This trade represents a 14.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Daniel Fuller sold 1,909 shares of Brinker International stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $253.54, for a total value of $484,007.86. Following the transaction, the senior vice president owned 30,177 shares of the company's stock, valued at $7,651,076.58. The trade was a 5.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 173,694 shares of company stock worth $41,568,690 over the last three months. Corporate insiders own 1.43% of the company's stock.

Hedge Funds Weigh In On Brinker International

A number of hedge funds have recently bought and sold shares of EAT. Balyasny Asset Management L.P. boosted its position in shares of Brinker International by 667.5% during 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 buying an additional 993,435 shares during the last quarter. Norges Bank bought a new stake in Brinker International in the 4th quarter worth about $83,603,000. Capital World Investors raised its position in Brinker International by 96.5% in the 4th quarter. Capital World Investors now owns 1,137,863 shares of the restaurant operator's stock worth $163,306,000 after buying an additional 558,799 shares during the last quarter. Freestone Grove Partners LP purchased a new position in Brinker International in the 2nd quarter worth about $91,237,000. Finally, Bank of America Corp DE bought a new position in Brinker International during the 2nd quarter valued at about $39,687,000.

Brinker International Company Profile

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining restaurants. Its portfolio includes Chili's Grill & Bar, a full-service restaurant brand known for burgers, fajitas, ribs, steaks, Tex-Mex dishes and a broad beverage menu, and Maggiano's Little Italy, which specializes in Italian-American cuisine and family-style dining.

Chili's restaurants serve a wide range of lunch and dinner offerings in a casual, bar-and-grill setting, while Maggiano's locations offer traditional Italian dishes, including pasta, chicken, seafood and desserts.

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