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Brinker International Inc (NYSE:EAT). (market cap: $5.92 billion), the parent company of popular restaurant chains such as Chili's and Maggiano's Little Italy, has reached an all-time high, with its stock price soaring to $133.99. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with a P/E ratio of 31.5x. This milestone reflects a remarkable 221.32% change over the past year, signaling strong investor confidence and a robust recovery trajectory for the company. The impressive performance of Brinker International's stock is a testament to the company's resilience and strategic initiatives, supported by 8.39% revenue growth and a "GOOD" overall financial health rating from InvestingPro. The company has resonated well with customers and shareholders alike during a period of economic recovery and adaptation within the restaurant industry. Discover 12 additional exclusive ProTips and comprehensive analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Brinker International, the parent company of Chili's and Maggiano's restaurants, has been the focus of various analyst activities following strong Q1 results. Goldman Sachs initiated coverage on Brinker with a Buy rating, acknowledging Chili's as a dominant revenue stream accounting for nearly 90% of the company's annual revenue. Goldman Sachs also anticipates Chili's will maintain positive traffic, projecting a 1% to 2% increase in fiscal years 2026 and 2027.
Brinker International has also made significant stock-based compensation awards to its top executives, with CEO and President Kevin Hochman receiving performance shares with a target value of $20 million. The shares are based on the company's Total (EPA:TTEF) Shareholder Return relative to peers in the S&P 1500 Hotels, Restaurants, and Leisure Index.
Analysts from Piper Sandler, Stifel, KeyBanc Capital Markets, Evercore ISI, BMO Capital Markets, and JPMorgan have all adjusted their price targets on Brinker shares following the company's strong Q1 results. These adjustments reflect Brinker's confidence in its growth trajectory and commitment to operational efficiency. These are all recent developments that investors should take into account when considering Brinker International.
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