JPMorgan Chase & Co. Upgrades Brinker International (NYSE:EAT) to Overweight

Key Points

• JPMorgan Chase & Co. has upgraded Brinker International's stock rating from "neutral" to "overweight," with a target price set at $175.00, indicating a potential upside of 38.31%.
• Brinker International reported a quarterly earnings per share of $2.49, slightly exceeding analysts' expectations, with a year-over-year revenue increase of 21.0%.
• Multiple analysts have set target prices for Brinker International, with a consensus rating of "Moderate Buy" and an average target price of $171.35.

Brinker International (NYSE:EAT - Get Free Report) was upgraded by analysts at JPMorgan Chase & Co. from a "neutral" rating to an "overweight" rating in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a $175.00 target price on the restaurant operator's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 38.31% from the company's previous close.

A number of other research analysts also recently commented on EAT. UBS Group increased their target price on Brinker International from $155.00 to $165.00 and gave the company a "neutral" rating in a research report on Thursday, August 14th. Piper Sandler lifted their price objective on shares of Brinker International from $155.00 to $168.00 and gave the stock a "neutral" rating in a research note on Thursday, August 14th. Wall Street Zen cut shares of Brinker International from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 16th. BMO Capital Markets upped their price objective on Brinker International from $150.00 to $170.00 and gave the company a "market perform" rating in a research report on Thursday, August 14th. Finally, Wells Fargo & Company raised Brinker International from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $165.00 to $175.00 in a research note on Monday, September 22nd. Nine equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $171.35.

Brinker International Trading Down 0.0%

NYSE:EAT opened at $126.53 on Tuesday. The company has a market cap of $5.63 billion, a PE ratio of 15.23, a price-to-earnings-growth ratio of 0.81 and a beta of 1.38. The company has a current ratio of 0.31, a quick ratio of 0.25 and a debt-to-equity ratio of 1.15. The company has a 50 day simple moving average of $149.72 and a two-hundred day simple moving average of $155.53. Brinker International has a 12 month low of $81.29 and a 12 month high of $192.21.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.02. The firm had revenue of $1.46 billion for 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%. The business's quarterly revenue was up 21.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.61 EPS. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. Research analysts forecast that Brinker International will post 8.3 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Harriet Edelman sold 8,325 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $157.00, for a total value of $1,307,025.00. Following the sale, the director owned 28,905 shares in the company, valued at $4,538,085. This represents a 22.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Kevin Hochman sold 44,000 shares of the company's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $157.82, for a total transaction of $6,944,080.00. Following the completion of the sale, the chief executive officer directly owned 212,867 shares in the company, valued at $33,594,669.94. This trade represents a 17.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 68,325 shares of company stock valued at $10,754,785. 1.72% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Brinker International

Hedge funds have recently bought and sold shares of the business. Westfield Capital Management Co. LP raised its holdings in shares of Brinker International by 24.2% during the second quarter. Westfield Capital Management Co. LP now owns 1,236,583 shares of the restaurant operator's stock valued at $222,993,000 after acquiring an additional 240,870 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Brinker International by 86.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,091,692 shares of the restaurant operator's stock valued at $196,865,000 after purchasing an additional 506,087 shares in the last quarter. Geode Capital Management LLC boosted its stake in Brinker International by 1.3% during the 2nd quarter. Geode Capital Management LLC now owns 1,071,523 shares of the restaurant operator's stock worth $193,619,000 after purchasing an additional 14,033 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Brinker International by 5.1% during the first quarter. Dimensional Fund Advisors LP now owns 967,550 shares of the restaurant operator's stock worth $144,201,000 after buying an additional 46,896 shares in the last quarter. Finally, Balyasny Asset Management L.P. grew its holdings in shares of Brinker International by 107.1% during the second quarter. Balyasny Asset Management L.P. now owns 639,362 shares of the restaurant operator's stock worth $115,296,000 after buying an additional 330,611 shares in 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.

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