In the latest trading session, Brinker International (EAT) closed at $151.09, marking a -3.91% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.26% for the day. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.36%.
Heading into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 12.27% over the past month, outpacing the Retail-Wholesale sector's gain of 7.33% and the S&P 500's gain of 5.98%.
Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. The company's earnings report is set to go public on April 29, 2026. The company is forecasted to report an EPS of $2.86, showcasing a 7.52% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.48 billion, indicating a 3.86% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.7 per share and a revenue of $5.81 billion, indicating changes of +20.22% and +7.94%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. Brinker International is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Brinker International has a Forward P/E ratio of 14.7 right now. For comparison, its industry has an average Forward P/E of 19.04, which means Brinker International is trading at a discount to the group.
Also, we should mention that EAT has a PEG ratio of 1.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.92 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Brinker International, Inc. (EAT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).