In the latest market close, Brinker International (EAT) reached $158.53, with a +1.05% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.
Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy witnessed a loss of 0.67% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.21% and the S&P 500's loss of 6.57%.
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 April 29, 2025. The company is predicted to post an EPS of $2.48, indicating a 100% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, up 21.71% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.38 per share and a revenue of $5.24 billion, demonstrating changes of +104.39% and +18.61%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.5% higher. Brinker International currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Brinker International has a Forward P/E ratio of 18.73 right now. Its industry sports an average Forward P/E of 21.33, so one might conclude that Brinker International is trading at a discount comparatively.
It's also important to note that EAT currently trades at a PEG ratio of 0.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2.17 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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