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.”
Several other brokerages have also recently issued reports on EAT. TheStreet cut shares of Brinker International from a buy rating to a hold rating in a research note on Thursday, June 9th. Barclays PLC reaffirmed a hold rating on shares of Brinker International in a research note on Sunday, June 12th. Piper Jaffray Cos. boosted their price target on shares of Brinker International from $49.00 to $50.00 and gave the company a neutral rating in a research report on Friday, August 12th. RBC Capital Markets reissued a sector perform rating and set a $55.00 price target (up previously from $49.00) on shares of Brinker International in a research report on Saturday, August 13th. Finally, Canaccord Genuity started coverage on shares of Brinker International in a research report on Monday, August 22nd. They set a hold rating and a $56.00 price target on the stock. One analyst has rated the stock with a sell rating, nineteen have given a hold rating and nine have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $53.93.
Shares of Brinker International (NYSE:EAT) opened at 50.97 on Friday. The stock has a market cap of $2.80 billion, a P/E ratio of 14.90 and a beta of 0.26. Brinker International has a 1-year low of $43.20 and a 1-year high of $55.16. The company’s 50-day moving average is $51.86 and its 200-day moving average is $48.08.
Brinker International (NYSE:EAT) last announced its earnings results on Thursday, August 11th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.01. Brinker International had a net margin of 6.16% and a negative return on equity of 114.14%. The company had revenue of $881.70 million for the quarter, compared to analysts’ expectations of $881.43 million. During the same quarter in the previous year, the company posted $0.94 EPS. The firm’s quarterly revenue was up 15.4% on a year-over-year basis. Equities analysts expect that Brinker International will post $3.47 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 29th. Investors of record on Friday, September 9th were issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 2.67%. This is an increase from Brinker International’s previous quarterly dividend of $0.32. The ex-dividend date was Wednesday, September 7th. Brinker International’s dividend payout ratio is 39.42%.
In related news, insider Wyman Roberts sold 41,722 shares of the company’s stock in a transaction that occurred on Friday, August 12th. The stock was sold at an average price of $53.00, for a total value of $2,211,266.00. Following the completion of the transaction, the insider now directly owns 114,746 shares of the company’s stock, valued at $6,081,538. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Krista M. Gibson sold 19,000 shares of the company’s stock in a transaction that occurred on Friday, September 2nd. The shares were 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 directly owns 37,225 shares of the company’s stock, valued at $1,982,975.75. The disclosure for this sale can be found here. 1.76% of the stock is owned by corporate insiders.
Institutional investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. increased its stake in Brinker International by 19.9% in the first quarter. JPMorgan Chase & Co. now owns 6,023,056 shares of the company’s stock valued at $276,759,000 after buying an additional 1,001,600 shares during the last quarter. Vanguard Group Inc. increased its stake in Brinker International by 0.9% in the second quarter. Vanguard Group Inc. now owns 4,600,662 shares of the company’s stock valued at $209,468,000 after buying an additional 42,116 shares during the last quarter. Capital Research Global Investors increased its stake in Brinker International by 35.0% in the second quarter. Capital Research Global Investors now owns 2,007,500 shares of the company’s stock valued at $91,401,000 after buying an additional 520,000 shares during the last quarter. BlackRock Fund Advisors increased its stake in Brinker International by 3.4% in the second quarter. BlackRock Fund Advisors now owns 1,975,471 shares of the company’s stock valued at $89,943,000 after buying an additional 64,461 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in Brinker International by 1.5% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,797,046 shares of the company’s stock valued at $81,820,000 after buying an additional 26,493 shares during the last quarter.
About Brinker International
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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