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

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In the latest trading session, Brinker International (EAT - Free Report) closed at $121.88, marking a -4.13% move from the previous day. This change lagged the S&P 500's daily gain of 0.58%.

Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy witnessed a loss of 18.36% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 2.75%, and the S&P 500's gain of 3.68%.

The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.7, marking a 78.95% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 15.5% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.19 per share and a revenue of $5.68 billion, signifying shifts of +14.49% and +5.46%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. Currently, Brinker International is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Brinker International currently has a Forward P/E ratio of 12.48. This signifies a discount in comparison to the average Forward P/E of 22.59 for its industry.

One should further note that EAT currently holds a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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