What Happened?
Shares of casual restaurant chain Brinker International (NYSE:EAT) jumped 4.7% in the afternoon session after JPMorgan raised its price target for the company, citing a positive outlook after a meeting with management. The bank increased its price target on the stock to $160 from $155 while it kept its "Overweight" rating. The decision followed discussions with Brinker's leadership that pointed to strong company fundamentals. JPMorgan noted the restaurant operator's effective cost reductions and notable growth in customer traffic as key reasons for its optimism. This positive view was not isolated, as it followed a previous upgrade by Citigroup, which had raised its rating on the stock to "Buy" from "Neutral" in the prior month.
The shares closed the day at $142.46, up 4.5% from previous close.
Is now the time to buy Brinker International? Access our full analysis report here.
What Is The Market Telling Us
Brinker International’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 8.7% on the news that Citigroup upgraded the stock to "Buy" from "Neutral" and increased its price target. The analyst raised the price target to $176 from a previous $144. The upgrade was influenced by several positive factors, including cost reductions from lower food tariffs in Brazil and successful efforts at Chili's to attract and retain younger diners. These initiatives created sustained traffic growth and supported sales expansion. The positive outlook was also backed by the company's strong performance, which included an 18% year-over-year revenue increase and a 19% boost in comparable sales, mainly driven by higher traffic at Chili's.
Brinker International is up 3.5% since the beginning of the year, but at $142.46 per share, it is still trading 24.7% below its 52-week high of $189.14 from February 2025. Investors who bought $1,000 worth of Brinker International’s shares 5 years ago would now be looking at an investment worth $2,671.
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