Brinker International (NYSE:EAT) Shares Break Above Fifty Day Moving Average – What’s Next?

Brinker International, Inc. (NYSE:EAT) shares passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $210.12 and traded as high as $231.74. Brinker International shares last traded at $220.2910, with a volume of 3,549,888 shares trading hands.

Key Brinker International News

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

• Positive Sentiment: Brinker reported fiscal Q1 adjusted earnings of $2.77 per share, exceeding analyst estimates of approximately $2.45-$2.49 and rising from $2.17-$2.18 a year earlier. Revenue increased 9.4% to $1.48 billion, also topping the roughly $1.46 billion consensus. Brinker International Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Chili’s delivered its 22nd consecutive quarter of same-store sales growth, with comparable sales up 10% despite lapping a 21% increase in the prior-year quarter. Management said the brand’s three-year cumulative comparable-sales growth reached 52%, highlighting sustained customer demand and strong execution. Brinker Rallies After Chili’s Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $13.30-$13.90, slightly above the $13.28 FactSet estimate. The higher forecast signals that Brinker expects operating momentum, particularly at Chili’s, to continue. Brinker Fiscal 2027 EPS Guidance
• Neutral Sentiment: The earnings beat and outlook revision were widely reported, contributing to unusually heavy trading volume. However, the stock remains near its 52-week high, with a valuation around 20 times earnings, leaving investors dependent on continued sales growth to justify further gains. Brinker Q1 Earnings and Revenues Top Estimates

Analysts Set New Price Targets

A number of research firms have weighed in on EAT. DA Davidson lowered their price target on Brinker International from $240.00 to $210.00 and set a “neutral” rating on the stock in a research report on Monday, September 21st. Robert W. Baird started coverage on Brinker International in a report on Monday, August 24th. They issued an “outperform” rating and a $325.00 price objective for the company. BMO Capital Markets increased their price objective on Brinker International from $175.00 to $230.00 and gave the company a “market perform” rating in a research report on Thursday, August 13th. Northcoast Research upgraded Brinker International from a “neutral” rating to a “buy” rating and set a $275.00 price objective on the stock in a research report on Tuesday, September 22nd. Finally, UBS Group raised their price objective on Brinker International from $190.00 to $260.00 and gave the company a “buy” rating in a report on Monday, August 10th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $249.45.

Brinker International Trading Up 12.0%

The stock has a market capitalization of $9.20 billion, a P/E ratio of 20.23, a price-to-earnings-growth ratio of 0.95 and a beta of 1.25. The company has a current ratio of 0.45, a quick ratio of 0.40 and a debt-to-equity ratio of 0.95. The stock’s fifty day moving average price is $210.12 and its two-hundred day moving average price is $174.06.

Brinker International (NYSE:EAT) last announced its quarterly earnings data on Wednesday, October 28th. The restaurant operator reported $2.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.45 by $0.32. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the prior year, the company earned $2.17 EPS. The firm’s revenue was up 9.4% on a year-over-year basis. Equities research analysts forecast that Brinker International, Inc. will post 13.20 EPS for the current year.

Insiders Place Their Bets

In other Brinker International news, SVP Daniel Fuller sold 1,909 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $253.54, for a total value of $484,007.86. Following the completion of the sale, the senior vice president directly owned 30,177 shares of the company’s stock, valued at $7,651,076.58. The trade was a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP James Butler sold 10,000 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were 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 of the company’s stock, valued at approximately $2,178,713.68. The trade was a 52.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 173,694 shares of company stock valued at $41,568,690 over the last three months. 1.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Brinker International

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. grew its position in Brinker International by 2.2% during the 2nd quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator’s stock worth $1,130,552,000 after acquiring an additional 145,525 shares during the last quarter. State Street Corp increased its stake in Brinker International by 3.5% in the 2nd quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator’s stock worth $293,786,000 after purchasing an additional 59,120 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Brinker International by 0.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator’s stock worth $167,128,000 after purchasing an additional 9,692 shares during the period. Freestone Grove Partners LP bought a new stake in Brinker International in the second quarter valued at approximately $91,237,000. Finally, Wellington Management Group LLP lifted its position in Brinker International by 63.7% in the second quarter. Wellington Management Group LLP now owns 413,472 shares of the restaurant operator’s stock valued at $69,463,000 after purchasing an additional 160,939 shares during the last quarter.

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.