Brinker International: Analysts Boost Forecasts After Upbeat Q2 Results

As the restaurant industry continues to rebound from the pandemic, Brinker International (EAT) has reported strong Q2 results, leading analysts to boost their revenue and earnings forecasts. The Dallas-based company, which operates popular restaurant chains Chili's Grill & Bar and Maggiano's Little Italy, saw its stock price surge following the earnings release.



Brinker International reported fiscal second-quarter net income of $118.5 million, or $2.61 per share, on revenue of $1.36 billion. Both figures topped Wall Street expectations. The company's earnings, adjusted for one-time gains and costs, came to $2.80 per share, beating the average estimate of 10 analysts surveyed by Zacks Investment Research by 53%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy (EAT) posted revenue of $1.36 billion in the period, which also topped Street forecasts. Nine analysts surveyed by Zacks expected $1.24 billion.

Brinker International expects full-year earnings in the range of $7.50 to $8.00 per share, with revenue in the range of $5.15 billion to $5.25 billion. These projections are higher than the analyst consensus estimate of $6.36 for earnings and $4.90 billion for revenue.



Analysts have responded to Brinker International's strong Q2 results by raising their price targets and ratings. Wedbush analyst Nick Setyan raised his price target for EAT stock from $140 to $185, while Barclays analyst Jeffrey Bernstein raised his price target from $150 to $190. Both analysts maintained their 'Neutral' ratings on the stock.

Chris O'Cull, an analyst at Stifel, raised his price target for EAT stock from $155 to $170 and maintained his 'Strong Buy' rating. Eric Gonzalez, an analyst at Keybanc, raised his price target from $115 to $125 but downgraded his rating from 'Buy' to 'Hold.'

The average analyst rating for EAT stock from 19 stock analysts is 'Hold,' with a target price of $117.06, predicting a decrease of -34.89% from the current stock price of $179.79. However, the upward revision of analysts' forecasts suggests that many remain optimistic about Brinker International's long-term growth prospects.



In conclusion, Brinker International's strong Q2 results have led analysts to boost their revenue and earnings forecasts for the company. The Dallas-based restaurant operator's stock price has surged following the earnings release, reflecting investors' confidence in the company's long-term growth prospects. As the restaurant industry continues to rebound from the pandemic, Brinker International appears well-positioned to capitalize on the growing demand for dining out.