Brinker International (NYSE:EAT) Releases FY 2027 Earnings Guidance

Key Points

• Brinker issued FY 2027 guidance of adjusted EPS between $13.30 and $13.90, above the $13.26 consensus estimate, while revenue is projected at $6.2 billion-$6.3 billion, roughly in line but slightly below the $6.3 billion consensus.
• The company’s latest quarter exceeded expectations, with EPS of $2.77 versus $2.45 expected and revenue of $1.48 billion versus $1.46 billion; revenue rose 9.4% year over year, driven by Chili’s performance.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and a $249.80 average price target, although EAT shares fell during Friday trading and insiders have recently sold substantial amounts of stock.

Brinker International (NYSE:EAT - Get Free Report) issued an update on its FY 2027 earnings guidance on Friday morning. The company provided earnings per share guidance of 13.300-13.900 for the period, compared to the consensus earnings per share estimate of 13.260. The company issued revenue guidance of $6.2 billion-$6.3 billion, compared to the consensus revenue estimate of $6.3 billion.

Brinker International Stock Performance

Shares of EAT traded down $5.79 during trading hours on Friday, hitting $214.11. The company had a trading volume of 148,574 shares, compared to its average volume of 1,202,832. The firm has a market cap of $8.94 billion, a price-to-earnings ratio of 18.63, a PEG ratio of 1.20 and a beta of 1.25. The business has a fifty day moving average of $209.85 and a 200-day moving average of $174.36. Brinker International has a 12 month low of $100.30 and a 12 month high of $254.99. The company has a quick ratio of 0.40, a current ratio of 0.34 and a debt-to-equity ratio of 1.13.

Brinker International (NYSE:EAT - Get Free Report) last announced its earnings results on Wednesday, October 28th. The restaurant operator reported $2.77 EPS for the quarter, topping the consensus estimate of $2.45 by $0.32. The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. Brinker International had a net margin of 8.44% and a return on equity of 125.65%. Brinker International's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.17 EPS. Equities analysts anticipate that Brinker International will post 13.44 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

EAT has been the topic of a number of recent research reports. Jefferies Financial Group upgraded Brinker International from a "hold" rating to a "buy" rating and increased their target price for the stock from $230.00 to $255.00 in a research note on Wednesday, October 14th. Zacks Research upgraded Brinker International from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. DA Davidson dropped their target price on Brinker International from $240.00 to $210.00 and set a "neutral" rating for the company in a report on Monday, September 21st. Seaport Research Partners began coverage on Brinker International in a report on Wednesday, September 16th. They set a "buy" rating and a $230.00 target price for the company. Finally, TD Cowen boosted their target price on shares of Brinker International from $250.00 to $270.00 and gave the company a "buy" rating in a research report on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Brinker International has a consensus rating of "Moderate Buy" and a consensus price target of $249.80.

Insiders Place Their Bets

In other news, EVP Aaron M. White sold 16,220 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $236.22, for a total value of $3,831,488.40. Following the completion of the transaction, the executive vice president directly owned 42,756 shares in the company, valued at approximately $10,099,822.32. The trade was a 27.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP James M. Butler sold 10,000 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $240.37, for a total transaction of $2,403,700.00. Following the sale, the senior vice president owned 9,064 shares in the company, valued at $2,178,713.68. This represents a 52.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 173,694 shares of company stock valued at $41,568,690 over the last 90 days. 1.18% of the stock is owned by company insiders.

Key Headlines Impacting Brinker International

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

• Positive Sentiment: Brinker reported fiscal Q1 adjusted EPS of $2.77, well above analyst estimates of approximately $2.45-$2.49, while revenue of $1.48 billion also exceeded expectations. Revenue increased 9.4% year over year, with Chili’s traffic and profitability described as key drivers. Brinker International Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its fiscal 2027 adjusted EPS outlook to $13.30-$13.90, ahead of the roughly $13.26-$13.28 consensus range. The upbeat outlook reinforces expectations that Chili’s operating momentum can continue. Brinker International Advances on Strong Q1 Results and Raised Outlook
• Positive Sentiment: Several analysts raised their price targets following the results. Wells Fargo moved to $285, Citigroup to $277, Morgan Stanley to $262, KeyCorp to $258, Robert W. Baird to $280, and TD Cowen to $270; ratings remain bullish, including buy, overweight, and outperform recommendations. Stephens reaffirmed an overweight rating with a $300 target.
• Neutral Sentiment: Management projected fiscal 2027 revenue of $6.2 billion-$6.3 billion. Although the range supports continued growth, its midpoint is slightly below the $6.3 billion consensus estimate, creating a modest potential concern relative to the stronger EPS outlook.
• Negative Sentiment: After a substantial rise following the earnings release, some investors may be taking profits. That selling pressure can weigh on EAT even though quarterly results, Chili’s trends, analyst sentiment, and full-year EPS guidance remain favorable.

Brinker International Company Profile

Brinker International, Inc is a casual-dining restaurant company that owns, operates and franchises restaurants in the United States and select international markets. The company is headquartered in Dallas, Texas, and serves customers through company-operated and franchised locations.

Brinker's principal brands are Chili's Grill & Bar and Maggiano's Little Italy. Chili's offers a broad menu of burgers, steaks, ribs, fajitas, Tex-Mex dishes, salads and beverages in a full-service, casual setting.

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