Brinker International (EAT) closed the most recent trading day at $199.56, moving -5.25% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.14% for the day. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.69%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen a decrease of 9.79% over the last month, not keeping up with the Retail-Wholesale sector's loss of 8.01% and the S&P 500's loss of 2.85%.
The upcoming earnings release of Brinker International will be of great interest to investors. It is anticipated that the company will report an EPS of $2.46, marking a 27.46% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.45 billion, indicating a 7.26% increase compared to the same quarter of the previous year.
EAT's full-year Zacks Consensus Estimates are calling for earnings of $12.88 per share and revenue of $6.28 billion. These results would represent year-over-year changes of +19.93% and +8.15%, respectively.
Any recent changes to analyst estimates for Brinker International should also be noted by investors. 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 1.86% lower. Brinker International is currently a Zacks Rank #3 (Hold).
In terms of valuation, Brinker International is presently being traded at a Forward P/E ratio of 15.8. This expresses a discount compared to the average Forward P/E of 20.32 of its industry.
We can also see that EAT currently has a PEG ratio of 1.08. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Brinker International, Inc. (EAT): Free Stock Analysis Report
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