Citigroup Upgrades Brinker International (NYSE:EAT) to “Buy”

Brinker International (NYSE:EAT) was upgraded by equities research analysts at Citigroup from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Tuesday,Finviz reports. The firm presently has a $176.00 target price on the restaurant operator’s stock. Citigroup’s target price points to a potential upside of 25.44% from the stock’s previous close.

Several other research analysts have also recently weighed in on the company. Piper Sandler boosted their price target on Brinker International from $155.00 to $168.00 and gave the stock a “neutral” rating in a research note on Thursday, August 14th. Wells Fargo & Company decreased their target price on shares of Brinker International from $175.00 to $160.00 and set an “overweight” rating on the stock in a research note on Thursday, October 30th. BMO Capital Markets increased their target price on Brinker International from $150.00 to $170.00 and gave the stock a “market perform” rating in a research report on Thursday, August 14th. Evercore ISI upgraded shares of Brinker International from an “in-line” rating to an “outperform” rating and lifted their price target for the company from $190.00 to $210.00 in a report on Thursday, September 4th. Finally, Morgan Stanley reduced their price objective on Brinker International from $161.00 to $160.00 and set an “equal weight” rating on the stock in a research note on Wednesday, October 22nd. Eleven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $167.44.

Brinker International Stock Up 4.0%

Shares of NYSE:EAT opened at $140.30 on Tuesday. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.25 and a current ratio of 0.35. The firm has a market capitalization of $6.23 billion, a PE ratio of 14.55, a price-to-earnings-growth ratio of 0.77 and a beta of 1.38. The firm has a fifty day moving average of $124.63 and a 200 day moving average of $149.42. Brinker International has a 52-week low of $100.30 and a 52-week high of $192.21.

Brinker International (NYSE:EAT) last released its quarterly earnings data on Wednesday, October 29th. The restaurant operator reported $1.93 EPS for the quarter, topping the consensus estimate of $1.76 by $0.17. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.32 billion. Brinker International had a return on equity of 164.66% and a net margin of 7.94%.The company’s quarterly revenue was up 18.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.95 earnings per share. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. As a group, research analysts anticipate that Brinker International will post 8.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, COO Douglas N. Comings sold 16,000 shares of Brinker International stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $156.48, for a total transaction of $2,503,680.00. Following the completion of the sale, the chief operating officer owned 12,951 shares of the company’s stock, valued at $2,026,572.48. The trade was a 55.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through 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 approximately $33,594,669.94. The trade was a 17.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Concord Wealth Partners purchased a new stake in Brinker International in the 2nd quarter valued at $25,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Brinker International in the 3rd quarter worth approximately $25,000. Allworth Financial LP lifted its stake in Brinker International by 105.8% during the second quarter. Allworth Financial LP now owns 142 shares of the restaurant operator’s stock worth $26,000 after purchasing an additional 73 shares in the last quarter. Salomon & Ludwin LLC purchased a new position in shares of Brinker International during the third quarter worth $26,000. Finally, AdvisorNet Financial Inc purchased a new position in Brinker International during the 2nd quarter valued at about $33,000.

About Brinker International

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.