Brinker International, Inc. (NYSE:EAT) Downgraded by Zacks Investment Research to Strong Sell
Brinker International, Inc. (NYSE:EAT) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Friday.
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.”
EAT has been the topic of several other reports. Barclays PLC decreased their price target on shares of Brinker International from $47.00 to $44.00 and set an “equal weight” rating on the stock in a research note on Wednesday. ValuEngine cut shares of Brinker International from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Telsey Advisory Group reduced their price objective on shares of Brinker International from $49.00 to $40.00 and set a “market perform” rating on the stock in a research note on Monday. Royal Bank Of Canada reaffirmed a “hold” rating and issued a $49.00 price objective on shares of Brinker International in a research note on Thursday, April 20th. Finally, BMO Capital Markets raised shares of Brinker International from an “underperform” rating to a “market perform” rating and set a $40.00 price objective on the stock in a research note on Thursday, June 22nd. Two analysts have rated the stock with a sell rating, twelve have given a hold rating and three have issued a buy rating to the company’s stock. Brinker International has an average rating of “Hold” and a consensus target price of $47.92.
Brinker International (EAT) traded down 0.28% during midday trading on Friday, reaching $36.07. The company’s stock had a trading volume of 54,377 shares. The firm has a 50-day moving average price of $38.38 and a 200 day moving average price of $42.35. The stock has a market capitalization of $1.76 billion, a price-to-earnings ratio of 11.78 and a beta of 0.27. Brinker International has a 52-week low of $35.61 and a 52-week high of $55.84.
Brinker International (NYSE:EAT) last released its quarterly earnings results on Tuesday, April 25th. The restaurant operator reported $0.94 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.85 by $0.09. Brinker International had a net margin of 5.05% and a negative return on equity of 39.89%. The business had revenue of $810.60 million for the quarter, compared to analysts’ expectations of $817.50 million. During the same period in the prior year, the firm earned $1.00 earnings per share. Brinker International’s revenue was down 1.7% compared to the same quarter last year. Equities research analysts predict that Brinker International will post $3.14 EPS for the current fiscal year.
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In other news, EVP Steve Provost sold 2,750 shares of Brinker International stock in a transaction dated Thursday, May 11th. The shares were sold at an average price of $44.06, for a total value of $121,165.00. Following the completion of the transaction, the executive vice president now owns 29,780 shares of the company’s stock, valued at approximately $1,312,106.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP David Roy Doyle sold 7,182 shares of Brinker International stock in a transaction dated Tuesday, May 2nd. The shares were sold at an average price of $44.41, for a total transaction of $318,952.62. Following the completion of the transaction, the senior vice president now directly owns 54,074 shares of the company’s stock, valued at approximately $2,401,426.34. The disclosure for this sale can be found here. 1.76% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. LS Investment Advisors LLC increased its position in shares of Brinker International by 14.2% in the second quarter. LS Investment Advisors LLC now owns 4,689 shares of the restaurant operator’s stock worth $179,000 after buying an additional 582 shares during the period. Kernodle & Katon Asset Management Group LLC increased its stake in shares of 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 valued at $214,000 after buying an additional 17 shares during the last quarter. Eqis Capital Management Inc. increased its stake in shares of Brinker International by 0.3% in the first quarter. Eqis Capital Management Inc. now owns 6,393 shares of the restaurant operator’s stock valued at $281,000 after buying an additional 18 shares during the last quarter. Segantii Capital Management Ltd bought a new stake in shares of Brinker International during the first quarter valued at approximately $286,000. Finally, Creative Planning increased its stake in shares of Brinker International by 2.7% in the first quarter. Creative Planning now owns 6,843 shares of the restaurant operator’s stock valued at $301,000 after buying an additional 180 shares during the last quarter.
About Brinker International
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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