Zachary Fadem, an analyst from Wells Fargo, maintained the Sell rating on Brinker International (EAT – Research Report). The associated price target is $40.00.
Geoff Meacham has given his Sell rating due to a combination of factors impacting Brinker International’s outlook. The company’s second fiscal quarter showed positive developments, such as improved quarter-over-quarter traffic and better restaurant-level margins. However, these are set against a backdrop of moderating growth, suggesting that the company may face challenges in maintaining its momentum.
Concerns contributing to the Sell rating include the upcoming difficulty in surpassing previous pricing strategies in the second half of the year, as well as emerging headwinds related to customer behavior, such as trading down and an increase in promotional activity. These factors could potentially pressure sales and margins, leading to a cautious stance on the stock’s future performance.
In another report released on January 29, Bank of America Securities also maintained a Sell rating on the stock with a $43.00 price target.
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Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EAT in relation to earlier this year.
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Brinker International (EAT) Company Description:
Brinker International, Inc. engages in owning, developing, and franchising Chili’s Grill and Bar and Maggiano’s Little Italy restaurant brands. It operates through the following segments: Chili’s, and Maggiano’s. The Chili’s segment includes the results of company-owned Chili’s restaurants in the U.S. and Canada as well as the results from domestic and international franchise business. The Maggiano’s segment comprises the results of company-owned Maggiano’s restaurants. The company was founded by Larry Lavine on March 13, 1975 and is headquartered in Dallas, TX.
Read More on EAT:
- BRINKER INTERNATIONAL REPORTS SECOND QUARTER OF FISCAL 2024 RESULTS; AND UPDATES FISCAL 2024 GUIDANCE
- Brinker price target raised to $43 from $37 at BofA
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- Brinker price target raised to $44 from $38 at JPMorgan
