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UPDATE: Goldman Sachs Downgrades Brinker Int'l (EAT) to Neutral

July 18, 2022 3:48 AM EDT
Get Alerts EAT Hot Sheet
Price: $26.35 --0%

Rating Summary:
    11 Buy, 22 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 8
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(Updated - July 18, 2022 4:17 AM EDT)

Goldman Sachs analyst Jared Garber downgraded Brinker Int'l (NYSE: EAT) from Buy to Neutral with a price target of $28.00 (from $46.00).

The analyst comments "We downgrade EAT to Neutral from Buy as we see greater risk for SSS trends at both Chili’s and Maggiano’s to decelerate as the macro environment deteriorates, and believe that incremental gains (both sales and margins) from EAT’s digital brands (It’s Just Wings and Maggiano’s Italian Classics) may be harder to achieve in a more cost-sensitive environment for consumers. EAT shares are -63% since we initiated with a Buy-rating on Jan 19, 2021 vs Casual Dining peers -16% and the S&P 500 +2%. While the stock is trading at 48% discount to 5-yr historical P/E average, we see risk to Street estimates and are adjusting our estimates to reflect the decelerating consumer spending backdrop, while inflation pressures are likely to persist and impact margins. Despite the implied upside to our 12m price target, we are cognizant of the near-term dynamics as Street #s are too high (our new FY23 EPS of $3.08 is ~23% below Consensus Metrix), and expect the stock could be volatile as estimates reset/macro trends evolve."

For an analyst ratings summary and ratings history on Brinker Int'l click here. For more ratings news on Brinker Int'l click here.

Shares of Brinker Int'l closed at $22.98 yesterday.


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