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

Brinker International, Inc. (NYSE:EAT)’s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $97.01, but opened at $104.00. Brinker International shares last traded at $103.51, with a volume of 400,840 shares changing hands.

The restaurant operator reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.26. Brinker International had a negative return on equity of 274.62% and a net margin of 3.52%. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.10 billion. During the same period last year, the company earned $0.28 earnings per share. The business’s revenue was up 12.5% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on EAT shares. Raymond James lowered Brinker International from an “outperform” rating to a “market perform” rating in a research note on Thursday, October 17th. Bank of America increased their target price on Brinker International from $97.00 to $110.00 and gave the stock a “neutral” rating in a research note on Thursday. Barclays upped their target price on Brinker International from $76.00 to $95.00 and gave the stock an “equal weight” rating in a report on Thursday. Argus downgraded Brinker International from a “buy” rating to a “hold” rating in a report on Tuesday, October 1st. Finally, Citigroup raised their price target on shares of Brinker International from $83.00 to $110.00 and gave the stock a “neutral” rating in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $84.19.

Institutional Trading of Brinker International

A number of institutional investors have recently modified their holdings of EAT. Transcendent Capital Group LLC acquired a new stake in shares of Brinker International during the 1st quarter worth approximately $25,000. CWM LLC lifted its stake in Brinker International by 96.2% in the 2nd quarter. CWM LLC now owns 416 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 204 shares in the last quarter. Headlands Technologies LLC purchased a new stake in Brinker International in the 1st quarter valued at $47,000. Hollencrest Capital Management purchased a new position in Brinker International during the first quarter worth about $50,000. Finally, Covestor Ltd grew its position in Brinker International by 32,500.0% in the first quarter. Covestor Ltd now owns 1,304 shares of the restaurant operator’s stock worth $65,000 after acquiring an additional 1,300 shares during the period.

Brinker International Stock Performance

The stock has a market capitalization of $4.57 billion, a PE ratio of 30.48, a price-to-earnings-growth ratio of 1.35 and a beta of 2.51. The company has a current ratio of 0.38, a quick ratio of 0.32 and a debt-to-equity ratio of 19.96. The firm’s fifty day moving average is $79.86 and its 200-day moving average is $69.33.

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.