Brinker International (NYSE:EAT) Upgraded by Morgan Stanley to Overweight Rating

Brinker International (NYSE:EAT) was upgraded by analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a $200.00 price objective on the restaurant operator’s stock, up from their previous price objective of $160.00. Morgan Stanley’s target price would indicate a potential upside of 26.76% from the stock’s previous close.

Several other research firms have also weighed in on EAT. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Brinker International in a report on Monday, December 29th. The Goldman Sachs Group cut their price objective on shares of Brinker International from $207.00 to $180.00 and set a “buy” rating for the company in a report on Tuesday, September 30th. Jefferies Financial Group upped their price objective on shares of Brinker International from $125.00 to $155.00 and gave the stock a “hold” rating in a research report on Monday, December 15th. Stifel Nicolaus dropped their target price on Brinker International from $215.00 to $200.00 and set a “buy” rating on the stock in a research report on Friday, October 24th. Finally, BMO Capital Markets lifted their price target on Brinker International from $140.00 to $170.00 and gave the company a “market perform” rating in a research note on Tuesday, January 6th. Twelve research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $178.89.

Brinker International Stock Performance

Shares of NYSE EAT opened at $157.78 on Tuesday. The company has a 50 day simple moving average of $144.75 and a two-hundred day simple moving average of $144.52. The stock has a market cap of $7.01 billion, a price-to-earnings ratio of 16.37, a PEG ratio of 1.08 and a beta of 1.34. The company has a current ratio of 0.35, a quick ratio of 0.29 and a debt-to-equity ratio of 1.53. Brinker International has a 12 month low of $100.30 and a 12 month high of $192.21.

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of EAT. Allworth Financial LP boosted its holdings in Brinker International by 105.8% in the 2nd quarter. Allworth Financial LP now owns 142 shares of the restaurant operator’s stock worth $26,000 after buying an additional 73 shares during the last quarter. GPS Wealth Strategies Group LLC raised its holdings in shares of Brinker International by 52.1% during the second quarter. GPS Wealth Strategies Group LLC now owns 219 shares of the restaurant operator’s stock valued at $39,000 after acquiring an additional 75 shares during the last quarter. Sequoia Financial Advisors LLC raised its holdings in shares of Brinker International by 5.9% during the second quarter. Sequoia Financial Advisors LLC now owns 1,462 shares of the restaurant operator’s stock valued at $264,000 after acquiring an additional 81 shares during the last quarter. Maryland State Retirement & Pension System lifted its position in shares of Brinker International by 0.7% in the second quarter. Maryland State Retirement & Pension System now owns 13,043 shares of the restaurant operator’s stock valued at $2,352,000 after acquiring an additional 85 shares in the last quarter. Finally, Yousif Capital Management LLC boosted its stake in shares of Brinker International by 0.7% in the second quarter. Yousif Capital Management LLC now owns 12,097 shares of the restaurant operator’s stock worth $2,181,000 after acquiring an additional 85 shares during the last quarter.

About Brinker International

Brinker International, Inc (NYSE: EAT) is a leading global operator of casual dining restaurants. The company’s portfolio is anchored by its flagship Chili’s® Grill & Bar concept and Maggiano’s® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili’s brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.