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Brinker International (EAT) Stock Slides as Market Rises: Facts to Know Before You Trade

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Brinker International (EAT - Free Report) closed the most recent trading day at $152.32, moving -5.1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.07% for the day. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq gained 0.18%.

The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has fallen by 9.15% in the past month, lagging the Retail-Wholesale sector's gain of 5.27% and the S&P 500's gain of 5.71%.

The investment community will be paying close attention to the earnings performance of Brinker International in its upcoming release. The company is predicted to post an EPS of $2.43, indicating a 50.93% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 18.56% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.84 per share and a revenue of $5.35 billion, signifying shifts of +115.61% and 0%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Brinker International. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. The Zacks Consensus EPS estimate has moved 1.96% higher within the past month. Brinker International is currently a Zacks Rank #3 (Hold).

In the context of valuation, Brinker International is at present trading with a Forward P/E ratio of 16.43. This signifies a discount in comparison to the average Forward P/E of 22.47 for its industry.

We can additionally observe that EAT currently boasts a PEG ratio of 0.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.63.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 35% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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