Brinker International, Inc. (EAT) Stock Rating Upgraded by Zacks Investment Research

Brinker International, Inc. (NYSE:EAT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The firm currently has a $35.00 price objective on the restaurant operator’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 10.83% from the stock’s current price.

According to Zacks, “Brinker’s aggressive expansion strategies and sales building initiatives like streamlining of menu and innovation value offerings along with its loyalty program should boost comps. Increased focus on company-owned restaurants, which allows it to have full control over operations, is also expected to boost the bottom as well as the top line. However, the company’s revenues missed the Zacks Consensus Estimate in eight of the trailing ten quarters, mainly due to traffic decline at its restaurants. Further, higher labor as well as costs related to various initiatives might continue to hurt margins, while overall choppiness in the restaurant space might keep on pressurizing comps in the coming quarters. Nevertheless, various operational, remodeling and digital initiatives are likely to aid the stock in driving growth, going ahead. Meanwhile, estimates have been stable ahead of the company's fiscal first-quarter 2018 earnings release.”

Several other brokerages have also weighed in on EAT. Raymond James Financial, Inc. reissued a “market perform” rating on shares of Brinker International in a report on Monday, July 24th. ValuEngine lowered Brinker International from a “buy” rating to a “hold” rating in a report on Friday, September 1st. Telsey Advisory Group decreased their price objective on Brinker International from $40.00 to $37.00 and set a “market perform” rating for the company in a report on Tuesday, September 19th. BMO Capital Markets set a $36.00 price objective on Brinker International and gave the stock a “hold” rating in a report on Saturday, August 12th. Finally, Maxim Group reissued a “buy” rating and issued a $54.00 price objective on shares of Brinker International in a report on Thursday, June 15th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $41.46.

Brinker International (NYSE:EAT) last announced its earnings results on Thursday, August 10th. The restaurant operator reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.05. Brinker International had a negative return on equity of 31.46% and a net margin of 4.79%. The firm had revenue of $810.66 million during the quarter, compared to analyst estimates of $809.94 million. During the same period last year, the firm posted $1.24 EPS. The business’s revenue was down 8.1% compared to the same quarter last year.

Brinker International declared that its board has authorized a share repurchase plan on Thursday, August 10th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to reacquire up to 14.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

TRADEMARK VIOLATION NOTICE: “Brinker International, Inc. (EAT) Stock Rating Upgraded by Zacks Investment Research” was first reported by The Ledger Gazette and is the property of of The Ledger Gazette. If you are viewing this report on another website, it was illegally stolen and reposted in violation of U.S. and international copyright & trademark law. The legal version of this report can be accessed at https://ledgergazette.com/2017/10/13/brinker-international-inc-eat-stock-rating-upgraded-by-zacks-investment-research.html.

In related news, Director Michael A. George purchased 16,450 shares of Brinker International stock in a transaction on Wednesday, September 6th. The stock was acquired at an average price of $30.31 per share, for a total transaction of $498,599.50. Following the completion of the transaction, the director now directly owns 49,952 shares in the company, valued at approximately $1,514,045.12. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. 1.91% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. Bruderman Asset Management LLC purchased a new stake in Brinker International in the second quarter worth about $123,000. LS Investment Advisors LLC grew its position in shares of Brinker International by 14.2% during the second quarter. LS Investment Advisors LLC now owns 4,689 shares of the restaurant operator’s stock worth $179,000 after purchasing an additional 582 shares in the last quarter. ING Groep NV purchased a new stake in shares of Brinker International during the second quarter worth about $227,000. Profund Advisors LLC grew its position in shares of Brinker International by 0.8% during the second quarter. Profund Advisors LLC now owns 6,849 shares of the restaurant operator’s stock worth $261,000 after purchasing an additional 57 shares in the last quarter. Finally, Nomura Holdings Inc. purchased a new stake in shares of Brinker International during the second quarter worth about $262,000.

Brinker International Company Profile

Brinker International, Inc is engaged in the ownership, operation, development, and franchising of t

According to Zacks, “Brinker’s aggressive expansion strategies and sales building initiatives like streamlining of menu and innovation value offerings along with its loyalty program should boost comps. Increased focus on company-owned restaurants, which allows it to have full control over operations, is also expected to boost the bottom as well as the top line. However, the company’s revenues missed the Zacks Consensus Estimate in eight of the trailing ten quarters, mainly due to traffic decline at its restaurants. Further, higher labor as well as costs related to various initiatives might continue to hurt margins, while overall choppiness in the restaurant space might keep on pressurizing comps in the coming quarters. Nevertheless, various operational, remodeling and digital initiatives are likely to aid the stock in driving growth, going ahead. Meanwhile, estimates have been stable ahead of the company's fiscal first-quarter 2018 earnings release.”

Several other brokerages have also weighed in on EAT. Raymond James Financial, Inc. reissued a “market perform” rating on shares of Brinker International in a report on Monday, July 24th. ValuEngine lowered Brinker International from a “buy” rating to a “hold” rating in a report on Friday, September 1st. Telsey Advisory Group decreased their price objective on Brinker International from $40.00 to $37.00 and set a “market perform” rating for the company in a report on Tuesday, September 19th. BMO Capital Markets set a $36.00 price objective on Brinker International and gave the stock a “hold” rating in a report on Saturday, August 12th. Finally, Maxim Group reissued a “buy” rating and issued a $54.00 price objective on shares of Brinker International in a report on Thursday, June 15th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $41.46.

Brinker International (NYSE:EAT) last announced its earnings results on Thursday, August 10th. The restaurant operator reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.05. Brinker International had a negative return on equity of 31.46% and a net margin of 4.79%. The firm had revenue of $810.66 million during the quarter, compared to analyst estimates of $809.94 million. During the same period last year, the firm posted $1.24 EPS. The business’s revenue was down 8.1% compared to the same quarter last year.

Brinker International declared that its board has authorized a share repurchase plan on Thursday, August 10th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to reacquire up to 14.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

TRADEMARK VIOLATION NOTICE: “Brinker International, Inc. (EAT) Stock Rating Upgraded by Zacks Investment Research” was first reported by The Ledger Gazette and is the property of of The Ledger Gazette. If you are viewing this report on another website, it was illegally stolen and reposted in violation of U.S. and international copyright & trademark law. The legal version of this report can be accessed at https://ledgergazette.com/2017/10/13/brinker-international-inc-eat-stock-rating-upgraded-by-zacks-investment-research.html.

In related news, Director Michael A. George purchased 16,450 shares of Brinker International stock in a transaction on Wednesday, September 6th. The stock was acquired at an average price of $30.31 per share, for a total transaction of $498,599.50. Following the completion of the transaction, the director now directly owns 49,952 shares in the company, valued at approximately $1,514,045.12. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. 1.91% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. Bruderman Asset Management LLC purchased a new stake in Brinker International in the second quarter worth about $123,000. LS Investment Advisors LLC grew its position in shares of Brinker International by 14.2% during the second quarter. LS Investment Advisors LLC now owns 4,689 shares of the restaurant operator’s stock worth $179,000 after purchasing an additional 582 shares in the last quarter. ING Groep NV purchased a new stake in shares of Brinker International during the second quarter worth about $227,000. Profund Advisors LLC grew its position in shares of Brinker International by 0.8% during the second quarter. Profund Advisors LLC now owns 6,849 shares of the restaurant operator’s stock worth $261,000 after purchasing an additional 57 shares in the last quarter. Finally, Nomura Holdings Inc. purchased a new stake in shares of Brinker International during the second quarter worth about $262,000.

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.

Analyst Recommendations for Brinker International (NYSE:EAT)

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