Brinker International, Inc. (NYSE:EAT) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Friday, July 21st.
According to Zacks, “Brinker’s shares underperformed the industry year to date. Notably, Brinker’s revenues missed the Zacks Consensus Estimate in eight of the trailing nine quarters, mainly due to traffic decline at its restaurants. The company has a mixed record of earnings surprises in recent quarters. Meanwhile, estimates have been going down ahead of its fiscal Q4 earnings release. A slowdown in some of the international markets and overall choppiness in the restaurant space might keep on pressurizing comps in the coming quarters. Nevertheless, the company’s expansion strategies, sales building initiatives along with various operational, remodeling and digital initiatives are expected to drive growth. Yet, higher labor and costs related to initiatives might continue to hurt margins in the near term. Brinker’s presence in energy-exposed markets may also continue to hurt traffic.”
A number of other equities analysts have also recently issued reports on the company. Barclays PLC decreased their target price on Brinker International from $47.00 to $44.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 19th. Telsey Advisory Group decreased their target price on Brinker International from $49.00 to $40.00 and set a “market perform” rating on the stock in a report on Monday, July 17th. BMO Capital Markets upgraded Brinker International from an “underperform” rating to a “market perform” rating and set a $40.00 target price on the stock in a report on Thursday, June 22nd. Maxim Group restated a “buy” rating and issued a $54.00 target price on shares of Brinker International in a report on Thursday, June 15th. Finally, J P Morgan Chase & Co cut Brinker International from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $48.00 to $44.00 in a report on Thursday, June 15th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and four have assigned a buy rating to the company’s stock. Brinker International currently has an average rating of “Hold” and a consensus price target of $46.54.
Shares of Brinker International (NYSE EAT) opened at 34.89 on Friday. Brinker International has a 52-week low of $33.53 and a 52-week high of $55.84. The stock has a market capitalization of $1.71 billion, a P/E ratio of 11.39 and a beta of 0.25. The firm’s 50-day moving average price is $36.49 and its 200-day moving average price is $41.12.
Brinker International (NYSE:EAT) last issued its earnings results on Thursday, August 10th. The restaurant operator reported $1.09 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.04 by $0.05. The business had revenue of $810.66 million for the quarter, compared to analysts’ expectations of $809.94 million. Brinker International had a negative return on equity of 39.89% and a net margin of 5.05%. The company’s quarterly revenue was down 8.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.24 EPS. Equities analysts forecast that Brinker International will post $3.14 earnings per share for the current fiscal year.
A number of hedge funds have recently added to or reduced their stakes in the stock. Bruderman Asset Management LLC purchased a new stake in Brinker International during the second quarter worth about $123,000. LS Investment Advisors LLC boosted its stake in Brinker International by 18.7% in the first quarter. LS Investment Advisors LLC now owns 4,107 shares of the restaurant operator’s stock worth $181,000 after buying an additional 647 shares during the last quarter. Kernodle & Katon Asset Management Group LLC boosted its stake in Brinker International by 0.4% in the first quarter. Kernodle & Katon Asset Management Group LLC now owns 4,864 shares of the restaurant operator’s stock worth $214,000 after buying an additional 17 shares during the last quarter. ING Groep NV purchased a new stake in Brinker International during the second quarter worth about $227,000. Finally, Eqis Capital Management Inc. boosted its stake in Brinker International by 0.3% in the first quarter. Eqis Capital Management Inc. now owns 6,393 shares of the restaurant operator’s stock worth $281,000 after buying an additional 18 shares during the last quarter.
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.
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