Brinker Stock Hits Record High on Pre-Earnings Bull Note

Wedbush lifted its price target on Brinker International Inc (NYSE:EAT) to $95 from $68 ahead of the company's fiscal first-quarter earnings report, which is due out before the open on Wednesday, Oct. 30. The shares of the Chili's and Maggiano's Little Italy parent were last seen up 2.1% to trade at $95.72.

Today's pop pushed EAT to a record high of $96.28. The stock has been in rally mode amid competitor McDonald's (MCD) E. coli outbreak, with long-time support stemming from its 20-day moving average. So far in 2024, Brinker International stock added more than 121%.

More bull notes may be in store, as 14 of the 18 firms in coverage still call the equity a tepid "hold" or worse despite its outperformance, while the 12-month consensus target price of $84.06 is a 12.3% discount to current levels. What's more, short interest makes up 15.6% of the stock's available float, meaning it could benefit from a short squeeze.

An unwinding of pessimism in the options pits could generate additional tailwinds, per EAT's 10-day put/call volume ratio of 3.71 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 83% of annual readings.

The equity finished five of its past eight post-earnings sessions lower, however, including a 10.7% drop in August. The shares averaged a swing of 5.3% over the past two years, regardless of direction, but the options pits are pricing in a bigger-than-usual 10.3% move this time.