Zacks Research Issues Pessimistic Forecast for EAT Earnings

Key Points

• Zacks Research slightly lowered Brinker International’s Q2 2027 EPS estimate to $3.23 from $3.24, while maintaining a “Strong-Buy” rating; full-year consensus EPS is $13.16.
• Brinker’s latest quarter showed mixed results: EPS of $3.07 missed estimates by $0.02, but revenue reached $1.54 billion, up 5.1% year over year and above expectations.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $243.38, although insiders sold $41.6 million of stock over the last quarter.

Brinker International, Inc. (NYSE:EAT - Free Report) - Investment analysts at Zacks Research dropped their Q2 2027 earnings per share estimates for Brinker International in a report released on Tuesday, October 6th. Zacks Research analyst Team now expects that the restaurant operator will post earnings of $3.23 per share for the quarter, down from their previous forecast of $3.24. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Brinker International's current full-year earnings is $13.16 per share. Zacks Research also issued estimates for Brinker International's Q3 2027 earnings at $3.34 EPS and Q2 2028 earnings at $3.33 EPS.

Brinker International (NYSE:EAT - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share for the quarter, missing the consensus estimate of $3.09 by ($0.02). Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The firm had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.53 billion. During the same quarter last year, the company earned $2.30 EPS. The company's quarterly revenue was up 5.1% compared to the same quarter last year. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS.

Several other brokerages have also recently issued reports on EAT. Freedom Broker raised shares of Brinker International to a "strong-buy" rating in a research note on Friday, September 18th. TD Cowen restated a "buy" rating and issued a $270.00 price target on shares of Brinker International in a research report on Friday, September 18th. Mizuho boosted their target price on Brinker International from $175.00 to $275.00 and gave the stock an "outperform" rating in a research report on Thursday, August 13th. BMO Capital Markets boosted their price target on shares of Brinker International from $175.00 to $230.00 and gave the company a "market perform" rating in a report on Thursday, August 13th. Finally, Northcoast Research raised Brinker International from a "neutral" rating to a "buy" rating and set a $275.00 price objective for the company in a research note on Tuesday, September 22nd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $243.38.

Brinker International Price Performance

Shares of Brinker International stock opened at $184.99 on Thursday. The company has a current ratio of 0.45, a quick ratio of 0.40 and a debt-to-equity ratio of 0.95. The company's 50-day moving average price is $219.55 and its two-hundred day moving average price is $178.44. Brinker International has a 52 week low of $100.30 and a 52 week high of $254.99. The stock has a market cap of $7.73 billion, a PE ratio of 16.99, a price-to-earnings-growth ratio of 0.99 and a beta of 1.25.

Institutional Trading of Brinker International

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. raised its holdings in shares of Brinker International by 2.2% during the 2nd quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator's stock valued at $1,130,552,000 after purchasing an additional 145,525 shares in the last quarter. State Street Corp boosted its holdings in Brinker International by 3.5% in the second quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator's stock worth $293,786,000 after purchasing an additional 59,120 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in Brinker International by 0.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator's stock worth $167,128,000 after buying an additional 9,692 shares during the last quarter. Balyasny Asset Management L.P. increased its position in 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 worth $163,938,000 after buying an additional 993,435 shares during the last quarter. Finally, Freestone Grove Partners LP bought a new position in Brinker International during the second quarter valued at about $91,237,000.

Insider Buying and Selling at Brinker International

In related news, SVP James Butler sold 10,000 shares of the business's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $240.37, for a total value of $2,403,700.00. Following the completion of the sale, the senior vice president owned 9,064 shares of the company's stock, valued at approximately $2,178,713.68. The trade was a 52.45% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Michaela Ware sold 3,030 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $233.48, for a total value of $707,444.40. Following the completion of the transaction, the executive vice president owned 17,494 shares in the company, valued at $4,084,499.12. This represents a 14.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 173,694 shares of company stock worth $41,568,690 over the last quarter. Insiders own 1.18% of the company's stock.

Brinker International News Summary

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

• Positive Sentiment: Zacks upgraded EAT to “Strong-Buy” from “Hold,” signaling increased confidence in Brinker’s earnings growth and valuation. Brinker International upgraded to Strong-Buy at Zacks Research
• Positive Sentiment: Zacks raised multiple earnings forecasts, including FY2027 EPS to $13.06 from $13.03, FY2028 EPS to $13.97 from $13.66, and FY2029 EPS to $15.22 from $14.90. Quarterly estimates were also increased, including Q1 FY2027 EPS to $2.42 from $2.29. These revisions point to improving expectations for Chili’s and other operations. Zacks Research raises earnings estimates for EAT
• Positive Sentiment: A Zacks analysis identified Brinker as a potentially attractive long-term growth stock based on its style and growth characteristics, adding to the constructive analyst sentiment. Why Brinker International is a top growth stock for the long term
• Neutral Sentiment: The company’s current valuation remains supported by expected earnings of approximately $13.15–$13.16 per share for the current fiscal year, while the stock remains well above its 52-week low but below its recent high. The supplied reports provide no new operational or company-specific negative catalyst to explain the decline.

Brinker International Company Profile

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining establishments. Its portfolio is led by Chili's Grill & Bar, a full-service restaurant brand known for burgers, steaks, fajitas, ribs and other American-style menu items, and Maggiano's Little Italy, which specializes in Italian-American cuisine and operates both restaurants and catering services.

Brinker also developed It's Just Wings, a virtual restaurant brand offering chicken wings, fries and related items through delivery and takeout.

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