Brinker International (NYSE:EAT) Shares Gap Up After Better-Than-Expected Earnings

Brinker International, Inc. (NYSE:EAT) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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 changing hands.

The restaurant operator reported $2.87 EPS for the quarter, topping analysts’ consensus estimates of $2.53 by $0.34. The firm had revenue of $1.45 billion during the quarter, compared to analysts’ expectations of $1.41 billion. Brinker International had a net margin of 7.94% and a return on equity of 164.66%. The business’s revenue for the quarter was up 6.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.80 earnings per share. Brinker International has set its FY 2026 guidance at 1.045-10.850 EPS.

Key Headlines Impacting Brinker International

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

• Positive Sentiment: Q2 results beat consensus: EPS $2.87 vs. $2.53 expected and revenue $1.45B vs. $1.41B, with year‑over‑year revenue growth of ~6.9%. PR Newswire: Brinker Q2 results
• Positive Sentiment: Company raised FY‑2026 guidance (EPS range ~10.45–10.85 and revenue guidance near $5.8B), which came in above Street revenue expectations and signals confidence in the outlook. WSJ: Brinker Boosts Outlook
• Positive Sentiment: Chili’s remains the growth engine: management cited +9% comp sales this quarter and a two‑year comp of +43%, underpinning the better results and raised guidance. PR Newswire: Chili’s performance
• Positive Sentiment: Technical momentum: the 50‑day moving average recently crossed above the 200‑day (“golden cross”), which technical traders view as bullish. Zacks: Technical outlook
• Neutral Sentiment: Management commentary and the full call transcript provide color on menu mix, marketing cadence and unit plans — useful for assessing sustainability of Chili’s strength. Seeking Alpha: Q2 call transcript
• Neutral Sentiment: Analyst and media coverage is upbeat (earnings beat + guidance lift) but some outlets frame Brinker as still operating in a competitive restaurant backdrop. Fool: Analyst take
• Negative Sentiment: Despite the beat and guidance, the stock is pulling back — likely reflecting profit‑taking after an initial post‑earnings pop and elevated trading volume. That intraday volatility can pressure the price even on good fundamentals. MSN: stock reaction coverage
• Negative Sentiment: Balance‑sheet and liquidity metrics are modest (low quick/current ratios and a debt/equity around 1.5), which increases sensitivity to margin pressures or a slowdown in traffic. Investors should weigh leverage when valuing the stronger top‑line performance. MarketBeat: financial metrics

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on EAT shares. Bank of America upgraded Brinker International from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $190.00 to $192.00 in a research report on Monday, October 6th. Mizuho boosted their price target on Brinker International from $155.00 to $175.00 and gave the stock an “outperform” rating in a report on Friday, January 9th. JPMorgan Chase & Co. upped their price objective on Brinker International from $155.00 to $160.00 and gave the company an “overweight” rating in a research note on Thursday, December 11th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Brinker International in a research report on Monday, December 29th. Finally, Raymond James Financial raised shares of Brinker International from a “market perform” rating to an “outperform” rating and set a $195.00 target price on the stock in a report on Wednesday, January 21st. Thirteen research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $184.72.

Institutional Investors Weigh In On Brinker International

Several large investors have recently modified their holdings of EAT. Allworth Financial LP boosted its position in Brinker International by 105.8% during the second quarter. Allworth Financial LP now owns 142 shares of the restaurant operator’s stock valued at $26,000 after acquiring an additional 73 shares during the last quarter. GPS Wealth Strategies Group LLC boosted its position in shares of Brinker International by 52.1% during the 2nd quarter. GPS Wealth Strategies Group LLC now owns 219 shares of the restaurant operator’s stock valued at $39,000 after purchasing an additional 75 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in Brinker International by 5.9% during the second quarter. Sequoia Financial Advisors LLC now owns 1,462 shares of the restaurant operator’s stock worth $264,000 after purchasing an additional 81 shares during the period. Maryland State Retirement & Pension System grew its stake in Brinker International by 0.7% during the second quarter. Maryland State Retirement & Pension System now owns 13,043 shares of the restaurant operator’s stock worth $2,352,000 after purchasing an additional 85 shares during the period. Finally, Yousif Capital Management LLC increased its holdings in Brinker International by 0.7% in the second quarter. Yousif Capital Management LLC now owns 12,097 shares of the restaurant operator’s stock worth $2,181,000 after purchasing an additional 85 shares in the last quarter.

Brinker International Stock Performance

The stock has a market capitalization of $6.94 billion, a price-to-earnings ratio of 16.19, a price-to-earnings-growth ratio of 1.16 and a beta of 1.34. The company has a 50 day simple moving average of $150.66 and a 200-day simple moving average of $144.13. The company has a quick ratio of 0.29, a current ratio of 0.35 and a debt-to-equity ratio of 1.53.

Brinker International Company Profile

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.