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Brinker International (EAT) Stock Drops Despite Market Gains: Important Facts to Note

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Brinker International (EAT - Free Report) closed at $133.09 in the latest trading session, marking a -0.87% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has climbed by 6.88% in the past month, exceeding the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 0.34%.

Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.48, showcasing a 49.49% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.19 billion, indicating a 10.8% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.64 per share and a revenue of $4.8 billion, demonstrating changes of +37.56% and +8.61%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Brinker International. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.22% upward. Brinker International presently features a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Brinker International is presently trading at a Forward P/E ratio of 23.81. This indicates a discount in contrast to its industry's Forward P/E of 24.91.

It's also important to note that EAT currently trades at a PEG ratio of 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.28.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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