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

Brinker International, Inc. (NYSE:EAT)’s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $157.29, but opened at $167.88. Brinker International shares last traded at $156.81, with a volume of 1,706,659 shares trading hands.

The restaurant operator reported $2.87 EPS for the quarter, beating the consensus estimate of $2.53 by $0.34. Brinker International had a net margin of 7.98% and a return on equity of 134.92%. The company had revenue of $1.45 billion for the quarter, compared to the consensus estimate of $1.41 billion. During the same period in the prior year, the firm posted $2.80 EPS. Brinker International’s revenue for the quarter was up 6.9% on a year-over-year basis. Brinker International has set its FY 2026 guidance at 1.045-10.850 EPS.

Brinker International News Roundup

Here are the key news stories impacting Brinker International this week:

• Positive Sentiment: Brinker beat expectations for Q2 (EPS $2.87 vs. $2.53 est.) and raised FY2026 guidance, driven by robust Chili’s comps and revenue growth — the core operational catalyst cited by management. PR Newswire: Q2 Results & Guidance
• Positive Sentiment: Media coverage highlights a turnaround at Chili’s as the primary driver of the beat and outlook — useful context for investors focused on brand-level recovery and same-store sales momentum. Yahoo Finance: Chili’s Turnaround Video
• Positive Sentiment: Several major brokers raised price targets and issued more bullish ratings after the print — notable lifts include Morgan Stanley (to $205, overweight), Goldman Sachs (to $200, buy), Citi and UBS (to $190, buy), and JPMorgan (to $187, overweight). This institutional re-rating supports further upside interest. Benzinga: Analyst Coverage Summary TickerReport: Morgan Stanley Note
• Neutral Sentiment: Some firms issued less bullish stances despite higher targets — Jefferies raised its target to $175 but kept a “hold”; Piper Sandler moved to neutral with a raised target to $166; Barclays to equal weight at $170. These temper enthusiasm among more cautious analysts. Benzinga: Coverage on Mixed Analyst Actions TickerReport: Piper Sandler Note
• Neutral Sentiment: Technical setup is constructive for momentum traders — a recent “golden cross” (50-day SMA > 200-day SMA) has been flagged by market commentators, which can attract technical buying. Zacks: Technical Outlook
• Negative Sentiment: Balance-sheet/liquidity metrics remain a watch item for risk-aware investors — reported debt-to-equity is elevated and current/quick ratios are low, which could limit flexibility if industry conditions weaken. No link

Analyst Ratings Changes

A number of brokerages recently weighed in on EAT. Raymond James Financial upgraded shares of Brinker International from a “market perform” rating to an “outperform” rating and set a $195.00 price objective on the stock in a research report on Wednesday, January 21st. Citigroup lifted their price objective on Brinker International from $187.00 to $190.00 and gave the stock a “buy” rating in a report on Thursday. Mizuho increased their target price on Brinker International from $155.00 to $175.00 and gave the company an “outperform” rating in a report on Friday, January 9th. The Goldman Sachs Group raised their target price on Brinker International from $180.00 to $200.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Jefferies Financial Group upped their target price on shares of Brinker International from $155.00 to $175.00 and gave the company a “hold” rating in a report on Thursday. Twelve research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Brinker International presently has a consensus rating of “Moderate Buy” and a consensus price target of $188.56.

Institutional Trading of Brinker International

Several institutional investors have recently made changes to their positions in the business. Pictet Asset Management Holding SA raised its stake in Brinker International by 6.3% during the 4th quarter. Pictet Asset Management Holding SA now owns 6,215 shares of the restaurant operator’s stock valued at $892,000 after purchasing an additional 371 shares during the period. Elevated Financial Group LLC bought a new position in shares of Brinker International during the 4th quarter valued at about $328,000. UBS Group AG grew its position in shares of Brinker International by 103.2% during the fourth quarter. UBS Group AG now owns 2,975,655 shares of the restaurant operator’s stock valued at $427,066,000 after purchasing an additional 1,511,266 shares in the last quarter. Brindle & Bay Financial Advisors LLC bought a new stake in shares of Brinker International in the fourth quarter worth about $437,000. Finally, Vanguard Group Inc. lifted its position in shares of Brinker International by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 4,819,397 shares of the restaurant operator’s stock worth $691,680,000 after buying an additional 73,346 shares in the last quarter.

Brinker International Stock Performance

The company has a market capitalization of $7.15 billion, a P/E ratio of 16.28, a price-to-earnings-growth ratio of 1.13 and a beta of 1.34. The business has a 50 day moving average of $151.34 and a 200 day moving average of $144.24. The company has a quick ratio of 0.29, a current ratio of 0.36 and a debt-to-equity ratio of 1.19.

About Brinker International

Brinker International, Inc (NYSE: EAT) is a leading global operator of casual dining restaurants. The company’s portfolio is anchored by its flagship Chili’s® Grill & Bar concept and Maggiano’s® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili’s brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.