In the latest trading session, Brinker International (EAT) closed at $209.86, marking a +2.01% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.66%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 2.78%.
Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 19.56% outpaced the Retail-Wholesale sector's gain of 0.61% and the S&P 500's loss of 1.49%.
The investment community will be paying close attention to the earnings performance of Brinker International in its upcoming release. The company is slated to reveal its earnings on August 12, 2026. The company is predicted to post an EPS of $3.07, indicating a 23.29% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 4.64% from the year-ago period.
EAT's full-year Zacks Consensus Estimates are calling for earnings of $10.76 per share and revenue of $5.8 billion. These results would represent year-over-year changes of +20.9% and +7.77%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.34% fall 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 16.62 right now. This indicates a discount in contrast to its industry's Forward P/E of 20.7.
Investors should also note that EAT has a PEG ratio of 1.22 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 189, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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).