Brinker International (EAT) shares have significantly underperformed, dropping 4.13% recently and 18.36% over the last month, lagging both the S&P 500 and its Retail-Wholesale sector. Despite this, the restaurant operator is projected to report robust upcoming earnings, with quarterly EPS expected to surge 78.95% to $1.7 and revenue to grow 15.5% to $1.32 billion. EAT currently trades at a valuation discount, with a Forward P/E of 12.48 and a PEG ratio of 0.85, compared to industry averages of 22.59 and 2.25 respectively, even as its broader industry ranks in the bottom quartile.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Brinker International (EAT) Stock Slides as Market Rises: Facts to Know Before You Trade Read MoreHide Full Article In the latest trading session, Brinker International (EAT - Free Report) closed at $121.88, marking a -4.13% move from the previous day. This change lagged the S&P 500's daily gain of 0.58%. Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy witnessed a loss of 18.36% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 2.75%, and the S&P 500's gain of 3.68%. The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.7, marking a 78.95% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 15.5% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.19 per share and a revenue of $5.68 billion, signifying shifts of +14.49% and +5.46%, respectively, from the last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from 1 (Strong Buy) to 5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with 1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. Currently, Brinker International is carrying a Zacks Rank of 3 (Hold). Digging into valuation, Brinker International currently has a Forward P/E ratio of 12.48. This signifies a discount in comparison to the average Forward P/E of 22.59 for its industry. One should further note that EAT currently holds a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices. The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 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. You can find more information on all of these metrics, and much more, on Zacks.com. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Image: Bigstock Brinker International (EAT) Stock Slides as Market Rises: Facts to Know Before You Trade In the latest trading session, Brinker International (EAT - Free Report) closed at $121.88, marking a -4.13% move from the previous day. This change lagged the S&P 500's daily gain of 0.58%. Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy witnessed a loss of 18.36% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 2.75%, and the S&P 500's gain of 3.68%. The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.7, marking a 78.95% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 15.5% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.19 per share and a revenue of $5.68 billion, signifying shifts of +14.49% and +5.46%, respectively, from the last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from 1 (Strong Buy) to 5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with 1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. Currently, Brinker International is carrying a Zacks Rank of 3 (Hold). Digging into valuation, Brinker International currently has a Forward P/E ratio of 12.48. This signifies a discount in comparison to the average Forward P/E of 22.59 for its industry. One should further note that EAT currently holds a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices. The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 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. You can find more information on all of these metrics, and much more, on Zacks.com. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Brinker International (EAT) has experienced significant market underperformance, with its shares closing down 4.13% in the latest session, contrasting with the S&P 500's 0.58% gain. Over the past month, EAT shares declined 18.36%, notably lagging the Retail-Wholesale sector's 2.75% loss and the S&P 500's 3.68% gain. Despite this recent stock depreciation, the company is poised for strong fundamental results, with anticipated quarterly EPS of $1.7, marking a robust 78.95% year-over-year increase, and projected revenue of $1.32 billion, up 15.5% from the prior year. Analyst sentiment, reflected by a 0.33% rise in the Zacks Consensus EPS estimate over the last month, currently assigns EAT a Zacks Rank of 3 (Hold), indicating a neutral outlook. From a valuation perspective, EAT appears discounted, trading at a Forward P/E ratio of 12.48, significantly below the industry average of 22.59. Additionally, its PEG ratio of 0.85 is substantially lower than the Retail - Restaurants industry average of 2.25, suggesting a potentially attractive valuation relative to its expected growth. However, the broader Retail - Restaurants industry holds a Zacks Industry Rank of 183, placing it in the bottom 26% of over 250 industries, which could present systemic headwinds.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
mixed
Sentiment Score
0.15
Ticker Sentiment
