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Brinker International (EAT) Declines More Than Market: Some Information for Investors

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Brinker International (EAT - Free Report) closed at $157.60 in the latest trading session, marking a -5% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.74%, while the tech-heavy Nasdaq lost 0.03%.

Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy witnessed a loss of 8.72% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.03%, and the S&P 500's gain of 2.68%.

The upcoming earnings release of Brinker International will be of great interest to investors. The company's earnings report is expected on August 13, 2025. It is anticipated that the company will report an EPS of $2.43, marking a 50.93% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 18.56% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.84 per share and revenue of $5.35 billion. These totals would mark changes of +115.61% and 0%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.39% upward. 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 16.98. This expresses a discount compared to the average Forward P/E of 19.39 of its industry.

Meanwhile, EAT's PEG ratio is currently 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.51 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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