Brinker International Inc. (NYSE:EAT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The firm currently has a $56.00 target price on the stock. Zacks Investment Research’s price target would indicate a potential upside of 11.31% from the company’s previous close.
According to Zacks, “Brinker International’s aggressive expansion strategies and sales building initiatives, like menu innovation, promotional offerings along with introduction of loyalty program, should boost comps. Additionally, Brinker’s increased focus on company-owned restaurants, which allows it to have full control over operations, is likely to enhance the bottom as well as the top line. Various operational, remodeling and digital initiatives undertaken by the company should further drive growth. Moreover, the company has positive record of earnings surprises in recent quarters. Estimates too have been mostly going up ahead of the company’s first-quarter fiscal 2017 earnings release. However, the company’s revenues missed the Zacks Consensus Estimate in five of the trailing six quarters, mainly due to traffic decline at its restaurants. Further, higher costs and slow growth at international markets remain a cause of concern.”
Other research analysts have also issued research reports about the company. JPMorgan Chase & Co. reissued a “buy” rating on shares of Brinker International in a report on Sunday, June 12th. Barclays PLC restated a “hold” rating on shares of Brinker International in a research note on Sunday, June 12th. BTIG Research restated a “neutral” rating on shares of Brinker International in a research note on Thursday, June 9th. Sterne Agee CRT restated a “buy” rating and set a $51.00 target price on shares of Brinker International in a research note on Monday, June 13th. Finally, Piper Jaffray Cos. increased their target price on Brinker International from $49.00 to $50.00 and gave the company a “neutral” rating in a research note on Friday, August 12th. One equities research analyst has rated the stock with a sell rating, eighteen have issued a hold rating and ten have assigned a buy rating to the company’s stock. Brinker International has a consensus rating of “Hold” and a consensus target price of $53.93.
Shares of Brinker International (NYSE:EAT) traded down 0.12% on Wednesday, reaching $50.25. The company had a trading volume of 562,461 shares. The firm has a market capitalization of $2.76 billion, a PE ratio of 14.69 and a beta of 0.26. The company’s 50-day moving average is $52.47 and its 200 day moving average is $47.91. Brinker International has a 12 month low of $43.20 and a 12 month high of $55.16.
Brinker International (NYSE:EAT) last issued its quarterly earnings data on Thursday, August 11th. The company reported $1.24 EPS for the quarter, beating the Zacks’ consensus estimate of $1.23 by $0.01. The business had revenue of $881.70 million for the quarter, compared to analyst estimates of $881.43 million. Brinker International had a negative return on equity of 114.14% and a net margin of 6.16%. The firm’s revenue for the quarter was up 15.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.94 EPS. Equities analysts forecast that Brinker International will post $3.47 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 29th. Stockholders of record on Friday, September 9th were given a $0.34 dividend. This is a positive change from Brinker International’s previous quarterly dividend of $0.32. This represents a $1.36 annualized dividend and a dividend yield of 2.70%. The ex-dividend date of this dividend was Wednesday, September 7th. Brinker International’s dividend payout ratio (DPR) is currently 39.42%.
In other news, SVP David Roy Doyle sold 15,187 shares of the firm’s stock in a transaction on Monday, August 15th. The stock was sold at an average price of $54.32, for a total value of $824,957.84. Following the transaction, the senior vice president now directly owns 54,200 shares in the company, valued at approximately $2,944,144. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Krista M. Gibson sold 19,000 shares of the firm’s stock in a transaction on Friday, September 2nd. The stock was sold at an average price of $53.27, for a total value of $1,012,130.00. Following the completion of the transaction, the insider now owns 37,225 shares in the company, valued at $1,982,975.75. The disclosure for this sale can be found here. 1.76% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Charter Trust Co. raised its position in Brinker International by 2.9% in the second quarter. Charter Trust Co. now owns 7,932 shares of the company’s stock valued at $361,000 after buying an additional 221 shares in the last quarter. Commonwealth Equity Services Inc raised its position in Brinker International by 2.1% in the first quarter. Commonwealth Equity Services Inc now owns 12,584 shares of the company’s stock valued at $578,000 after buying an additional 263 shares in the last quarter. State of Alaska Department of Revenue raised its position in Brinker International by 7.5% in the second quarter. State of Alaska Department of Revenue now owns 6,745 shares of the company’s stock valued at $307,000 after buying an additional 468 shares in the last quarter. Metropolitan Life Insurance Co. NY raised its position in Brinker International by 0.9% in the second quarter. Metropolitan Life Insurance Co. NY now owns 54,850 shares of the company’s stock valued at $2,497,000 after buying an additional 477 shares in the last quarter. Finally, First Citizens Bank & Trust Co. raised its position in Brinker International by 6.8% in the second quarter. First Citizens Bank & Trust Co. now owns 7,727 shares of the company’s stock valued at $352,000 after buying an additional 490 shares in the last quarter.
Brinker International Company Profile
Brinker International, Inc is engaged in the ownership, operation, development, and franchising of the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands. The Company’s Chili’s operates Bar & Grill category of casual dining. Chili’s menu features authentic Fresh Mex and Fresh Tex cuisine, including signature items, such as Baby Back Ribs smoked in-house, Hand-Crafted Burgers served with house-made garlic dill pickles, Mix and Match Fajitas, Tableside Guacamole and house-made Chips and Salsa.
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