Brinker International (NYSE:EAT) Shares Gap Up Following Strong Earnings

Shares of Brinker International, Inc. (NYSE:EAT) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $154.88, but opened at $163.12. Brinker International shares last traded at $157.57, with a volume of 1,145,072 shares traded.

The restaurant operator reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.02. The company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.42 billion. Brinker International had a return on equity of 211.86% and a net margin of 7.12%. The firm’s revenue for the quarter was up 21.0% compared to the same quarter last year. During the same period last year, the firm earned $1.61 EPS.

Wall Street Analyst Weigh In

EAT has been the subject of a number of recent research reports. Bank of America lifted their price objective on Brinker International from $186.00 to $190.00 and gave the company a “neutral” rating in a research note on Thursday. Piper Sandler lifted their price objective on Brinker International from $155.00 to $168.00 and gave the company a “neutral” rating in a research note on Thursday. Stifel Nicolaus lifted their price objective on Brinker International from $200.00 to $215.00 and gave the company a “buy” rating in a research note on Monday, June 23rd. Barclays raised their target price on Brinker International from $166.00 to $170.00 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Evercore ISI raised their target price on Brinker International from $180.00 to $190.00 and gave the company an “in-line” rating in a research report on Thursday. Thirteen research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, Brinker International has a consensus rating of “Hold” and a consensus target price of $171.41.

Insiders Place Their Bets

In related news, Director Joseph Michael Depinto sold 10,000 shares of the firm’s stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $170.36, for a total value of $1,703,600.00. Following the transaction, the director directly owned 99,297 shares of the company’s stock, valued at approximately $16,916,236.92. This trade represents a 9.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.72% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Concord Wealth Partners purchased a new position in Brinker International in the 2nd quarter worth approximately $25,000. Allworth Financial LP lifted its stake 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 purchasing an additional 73 shares in the last quarter. AdvisorNet Financial Inc purchased a new position in Brinker International in the 2nd quarter worth approximately $33,000. Twin Peaks Wealth Advisors LLC purchased a new position in Brinker International in the 2nd quarter worth approximately $34,000. Finally, Farther Finance Advisors LLC lifted its stake in Brinker International by 575.0% in the 1st quarter. Farther Finance Advisors LLC now owns 189 shares of the restaurant operator’s stock worth $29,000 after purchasing an additional 161 shares in the last quarter.

Brinker International Price Performance

The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.23 and a current ratio of 0.31. The stock’s 50 day simple moving average is $168.26 and its two-hundred day simple moving average is $158.40. The firm has a market capitalization of $7.02 billion, a PE ratio of 18.99, a price-to-earnings-growth ratio of 0.36 and a beta of 1.68.

About Brinker International

Brinker International, Inc, together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands.