Brinker International (EAT) Stock Trades Down, Here Is Why

What Happened?

Shares of casual restaurant chain Brinker International (NYSE:EAT) fell 3.8% in the afternoon session after investor sentiment soured amid weak earnings expectations for the company's upcoming quarterly report. Projections for the restaurant operator pointed to an 8.9% decline in earnings per share compared to the same period in the previous year. Adding to the concern, the consensus estimate for these earnings had been revised downward by 2.8% over the preceding 30 days. This change suggested a more pessimistic outlook on the company's near-term financial performance, which weighed on the stock.

The shares closed the day at $105.01, down 3.3% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Brinker International? Access our full analysis report here.

What Is The Market Telling Us

Brinker International’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock dropped 4.3% on the news that the company's weaker-than-expected full-year guidance continued to weigh on investor sentiment, a day after it reported quarterly results. The decline extended a drop from the previous trading session. While Brinker's first-quarter results beat expectations, its reiterated fiscal 2026 guidance disappointed investors. The company's projected revenue of $5.6 billion to $5.7 billion had a midpoint that fell below analyst consensus. This outlook overshadowed the strong quarterly performance. Adding to the pressure, Barclays lowered its price target for the stock from $145.00 to $135.00, although it kept an 'Equal-Weight' rating. The company also faced challenges from rising costs, such as commodity inflation and increased advertising expenses, which could affect its margins.

Brinker International is down 23.7% since the beginning of the year, and at $105.05 per share, it is trading 44.5% below its 52-week high of $189.14 from February 2025. Investors who bought $1,000 worth of Brinker International’s shares 5 years ago would now be looking at an investment worth $2,268.

The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.