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Brinker International (EAT) Gains But Lags Market: What You Should Know

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Brinker International (EAT - Free Report) closed the most recent trading day at $143.64, moving +0.31% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.83%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.45%.

Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 7.04% over the past month. This has outpaced the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31% in that time.

The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. The company is scheduled to release its earnings on January 29, 2025. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 69.7% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.22 billion, reflecting a 13.65% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.96 per share and a revenue of $4.84 billion, representing changes of +45.37% and +9.64%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 5.73% higher. Brinker International is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Brinker International has a Forward P/E ratio of 24.02 right now. This signifies a premium in comparison to the average Forward P/E of 22.59 for its industry.

We can also see that EAT currently has a PEG ratio of 1.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry had an average PEG ratio of 1.99 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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