Brinker International (NYSE:EAT) Shares Down 4.1% – Here’s What Happened

Brinker International, Inc. (NYSE:EAT) dropped 4.1% during mid-day trading on Thursday . The company traded as low as $201.27 and last traded at $201.9310. 403,812 shares traded hands during trading, a decline of 65% from the average session volume of 1,142,580 shares. The stock had previously closed at $210.61.

Key Headlines Impacting Brinker International

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

• Positive Sentiment: Brinker outlined plans to return approximately $400 million to shareholders through share repurchases in fiscal 2026, potentially supporting earnings per share and providing a source of demand for the stock. Brinker’s 2026 Outlook: Capital Allocation Targets $400 Million in Share Repurchases
• Positive Sentiment: Management is targeting 4% to 6% annual revenue growth through fiscal 2029, double-digit annual adjusted EPS growth, 2% to 3% unit growth and as many as 30 new restaurants annually, led by Chili’s expansion and remodels. Brinker Sets Out FY29 Targets, Plans Faster Unit Expansion
• Positive Sentiment: Analyst sentiment remains favorable. Stephens reaffirmed an Overweight rating with a $300 target, while TD Cowen reaffirmed Buy with a $270 target, both implying substantial upside based on the referenced price. Stephens Reaffirms Brinker Rating
• Neutral Sentiment: Seaport Research Partners initiated coverage, adding another analyst view to the stock following its previously reported Buy initiation. Seaport Research Partners Initiates Coverage on Brinker International
• Negative Sentiment: Investors appear concerned that accelerated restaurant development and remodeling will require significant spending before returns materialize, creating potential pressure on margins and free cash flow. Brinker Shares Slip After Investor Day Targets Highlight Heavier Growth Spending
• Negative Sentiment: Reported insider activity is a sentiment headwind: company insiders made no open-market purchases but recorded multiple sales during the past six months, including sales by senior executives.

Wall Street Analysts Forecast Growth

EAT has been the subject of a number of recent research reports. KeyCorp boosted their price objective on shares of Brinker International from $204.00 to $275.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Bank of America increased their target price on Brinker International from $224.00 to $310.00 and gave the company a “buy” rating in a research report on Friday, August 14th. Morgan Stanley lifted their price target on Brinker International from $250.00 to $260.00 and gave the company an “overweight” rating in a report on Thursday, September 10th. Mizuho upped their price objective on Brinker International from $175.00 to $275.00 and gave the stock an “outperform” rating in a research note on Thursday, August 13th. Finally, Citigroup upped their price objective on Brinker International from $227.00 to $282.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, Brinker International currently has an average rating of “Moderate Buy” and an average target price of $243.30.

Brinker International Stock Performance

The firm’s 50 day moving average is $217.18 and its 200 day moving average is $172.85. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.40 and a current ratio of 0.45. The stock has a market cap of $8.23 billion, a P/E ratio of 18.09, a price-to-earnings-growth ratio of 1.05 and a beta of 1.25.

Brinker International (NYSE:EAT) last announced its earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share for the quarter, missing the consensus estimate of $3.09 by ($0.02). The firm had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.53 billion. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. Brinker International’s revenue was up 5.1% on a year-over-year basis. During the same quarter last year, the business earned $2.30 earnings per share. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. Analysts anticipate that Brinker International, Inc. will post 13 EPS for the current year.

Insider Transactions at Brinker International

In other Brinker International news, Director James C. Katzman sold 650 shares of the stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $220.09, for a total value of $143,058.50. Following the completion of the sale, the director directly owned 25,094 shares in the company, valued at approximately $5,522,938.46. This trade represents a 2.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Michaela M. Ware sold 3,030 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $233.48, for a total value of $707,444.40. Following the completion of the sale, the executive vice president directly owned 17,494 shares of the company’s stock, valued at approximately $4,084,499.12. This represents a 14.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 173,694 shares of company stock worth $41,568,690. 1.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Brinker International

Several hedge funds and other institutional investors have recently modified their holdings of EAT. Kilter Group LLC purchased a new stake in Brinker International during the 2nd quarter worth approximately $35,000. Allworth Financial LP raised its holdings in shares of Brinker International by 49.3% in the fourth quarter. Allworth Financial LP now owns 336 shares of the restaurant operator’s stock worth $48,000 after buying an additional 111 shares during the last quarter. CoreCap Advisors LLC raised its holdings in shares of Brinker International by 33,000.0% in the second quarter. CoreCap Advisors LLC now owns 331 shares of the restaurant operator’s stock worth $56,000 after buying an additional 330 shares during the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Brinker International during the second quarter worth $71,000. Finally, Parkside Financial Bank & Trust lifted its stake in shares of Brinker International by 881.2% during the second quarter. Parkside Financial Bank & Trust now owns 471 shares of the restaurant operator’s stock worth $79,000 after buying an additional 423 shares during the period.

About Brinker International

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining restaurants. Its portfolio includes Chili’s Grill & Bar, a full-service restaurant brand known for burgers, fajitas, ribs, steaks, Tex-Mex dishes and a broad beverage menu, and Maggiano’s Little Italy, which specializes in Italian-American cuisine and family-style dining.

Chili’s restaurants serve a wide range of lunch and dinner offerings in a casual, bar-and-grill setting, while Maggiano’s locations offer traditional Italian dishes, including pasta, chicken, seafood and desserts.