Brinker International (EAT) closed the most recent trading day at $144.45, moving +1.35% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.07%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 1.69%.
Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy witnessed a gain of 21.65% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 1.03%, and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. On that day, Brinker International is projected to report earnings of $2.5 per share, which would represent a year-over-year decline of 10.71%. At the same time, our most recent consensus estimate is projecting a revenue of $1.4 billion, reflecting a 2.83% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.2 per share and a revenue of $5.73 billion, representing changes of +14.61% and +6.35%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Right now, Brinker International possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Brinker International currently has a Forward P/E ratio of 13.97. For comparison, its industry has an average Forward P/E of 21.08, which means Brinker International is trading at a discount to the group.
Investors should also note that EAT has a PEG ratio of 0.98 right now. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.3.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 187, positioning it in the bottom 25% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Brinker International, Inc. (EAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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