DALLAS, TX - Brinker International, Inc. (NYSE:EAT), a leader in the casual dining restaurant industry, has announced significant stock-based compensation awards to its top executives, according to a recent SEC filing. The Board of Directors approved the awards under the Fiscal 2025 Executive Performance Share Retention Plan on Wednesday, with the intent to incentivize performance and shareholder value growth.
Kevin Hochman, CEO and President, received performance shares with a target value of $20 million. Aaron White, Executive VP and Chief People Officer, and George Felix, Senior VP and Chief Marketing Officer, were awarded $3 million and $2 million in target value respectively.
The performance shares are based on the company's Total (EPA:TTEF) Shareholder Return (TSR) relative to peers in the S&P 1500 Hotels, Restaurants and Leisure Index, and can range from 0% to 200% of the target, depending on Brinker's TSR ranking over a five-year period.
To earn the full target number of shares, Brinker's TSR must be at the 60th percentile of the peer group. If the TSR is negative at the end of the measurement period, the payout is capped at 100% of the target shares. Executives must stay with the company through September 25, 2029, to earn any shares, with provisions outlined for employment termination scenarios.
At the Annual Meeting of Shareholders on the same day, all management's director nominees were elected, KPMG LLP was ratified as the independent auditor for Fiscal 2025, executive compensation proposals were approved, and the company's new 2024 Stock Option & Incentive Plan was sanctioned.
This news is based on a press release statement and the full details of the compensation plan are detailed in the Form 8-K filed with the SEC.
In other recent news, Brinker International has seen a flurry of analyst activity following strong Q1 results. Piper Sandler raised its stock target for Brinker by over 55%, maintaining a neutral rating, following a robust performance from its Chili's brand which saw a 14.1% increase in same-store sales. Stifel also increased its price target on Brinker shares while maintaining a buy rating, highlighting the company's sales momentum.
KeyBanc Capital Markets adjusted its price target for Brinker to $115, retaining an overweight rating, following Brinker's first-quarter results that surpassed consensus estimates for earnings per share, EBITDA, and same-store sales growth.
Evercore ISI increased its price target for Brinker to $110, maintaining an in line rating, following a reassessment of Brinker's first-quarter results. The firm revised upward its earnings per share estimates for fiscal year 2025 to $5.66, a 38% year-over-year increase. Brinker also reported a 14.1% increase in comparable store sales for Chili's and a 4.2% rise for Maggiano's.
BMO Capital Markets adjusted its stance on Brinker International, shifting its rating from outperform to market perform, while increasing its price target for the company's shares from $80.00 to $105.00. Similarly, JPMorgan shifted from an overweight to a neutral rating, while notably increasing the price target to $100. These recent developments reflect Brinker's confidence in its growth trajectory and its commitment to operational efficiency.
InvestingPro Insights
The recent stock-based compensation awards to Brinker International's executives align with the company's strong financial performance and market position. According to InvestingPro data, Brinker's stock has shown impressive returns, with a 213.59% price total return over the past year and a 90.89% return over the last six months. This performance supports the company's strategy to incentivize its leadership team through performance-based equity awards.
InvestingPro Tips highlight that 17 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for the company's future performance. Additionally, Brinker is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.82 for the last twelve months as of Q1 2025, indicating potential undervaluation despite the recent stock price surge.
It's worth noting that Brinker's stock is currently trading near its 52-week high, with the price at 97.08% of its 52-week peak. This aligns with the company's strong recent performance and the market's positive reaction to its strategic initiatives.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Brinker International, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.