Analysts Upgrade Brinker International Following Strong Earnings
Strong Fourth Quarter Results from Brinker International
Brinker International, Inc. (NYSE: EAT) has recently reported impressive fourth quarter earnings which have sparked optimism among analysts and investors alike. The company posted adjusted earnings per share of $2.49, surpassing the consensus estimate of $2.45. Additionally, quarterly sales reached $1.462 billion, reflecting a year-over-year increase of 21% and exceeding the anticipated figure of $1.437 billion.
Positive Projections for Fiscal Year 2026
Following these excellent results, Brinker International has revised its fiscal year 2026 guidance. They are projecting an adjusted EPS ranging from $9.90 to $10.50, significantly above the previous consensus estimate of $8.84. Sales expectations are set between $5.6 billion and $5.7 billion, indicating strong growth ahead compared to the earlier forecast of $5.36 billion.
Management's Insights on Growth
Kevin Hochman, the President & CEO of Brinker International, expressed confidence in the company's growth trajectory. He stated, "We now have delivered a Q4 two-year sales growth of +39% and a three-year growth of +45%. With that sustained momentum, coupled with a robust pipeline of initiatives, we are confident in our ability to grow sales and traffic throughout Fiscal 2026."
Market Reaction Post Announcement
As a reflection of this optimistic outlook, Brinker International shares saw a rise of 1.1%, trading at approximately $159.12 immediately after the announcement. This uptick indicates investor confidence in the company's strategic direction and performance foresight.
Analyst Ratings Update
In light of these promising results, several analysts have modified their price targets for Brinker International. Barclays' Jeffrey Bernstein has maintained an Equal-Weight rating but increased the target price from $166 to $170. similarly, BMO Capital analyst Andrew Strelzik raised his target price from $150 to $170 while retaining a Market Perform rating.
Evercore and UBS Analyst Outlook
Evercore ISI Group's David Palmer sustained an In-Line rating on Brinker International, elevating the price target from $180 to $190. At the same time, UBS analyst Dennis Geiger has reaffirmed a Neutral stance, also raising the target from $155 to $165.
Piper Sandler and B of A Securities Revisions
Piper Sandler's Nicole Miller Regan maintained a Neutral rating, raising the target from $155 to $168, while B of A Securities analyst Katherine Griffin upgraded the price target from $186 to $190. Meanwhile, Morgan Stanley's John Glass kept an Equal-Weight rating, adjusting the target price from $149 to $161.
What Analysts Are Saying About EAT Stock
Considering buying EAT stock? Analysts show a varied but commonly optimistic outlook on the stock. With recent adjustments reflecting the company's robust performance, many believe Brinker International is poised for significant growth. Their continuous innovation and strategic initiatives are expected to set the stage for further success in the upcoming fiscal year.
Frequently Asked Questions
What were Brinker International's fourth quarter earnings?
Brinker International reported adjusted earnings of $2.49 per share, exceeding analyst expectations.
What is Brinker International's sales projection for FY 2026?
The company projects sales of between $5.6 billion and $5.7 billion for the fiscal year 2026.
How did analysts respond to Brinker’s earnings report?
Analysts generally raised their price targets for Brinker International following the positive earnings report.
Who is the CEO of Brinker International?
The CEO of Brinker International is Kevin Hochman.
What is Brinker International's stock symbol?
The stock symbol for Brinker International is EAT.
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