In the latest trading session, Brinker International (EAT) closed at $149.48, marking a -1.35% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.
Coming into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 7.88% in the past month. In that same time, the Retail-Wholesale sector lost 1.59%, while the S&P 500 gained 0.55%.
Investors will be eagerly watching for the performance of Brinker International in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.51, reflecting a 10.36% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.4 billion, showing a 3.12% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.23 per share and a revenue of $5.73 billion, demonstrating changes of +14.94% and +6.46%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Brinker International. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. Brinker International currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Brinker International is at present trading with a Forward P/E ratio of 14.81. This denotes a discount relative to the industry average Forward P/E of 18.43.
We can also see that EAT currently has a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 17% 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.
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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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