Here's Why Brinker International (EAT) Fell More Than Broader Market

Brinker International (EAT) ended the recent trading session at $173.42, demonstrating a -5.12% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 0.92%. Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 6.48% outpaced the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 5.22%.The investment community will be paying close attention to the earnings performance of Brinker International in its upcoming release. The company is forecasted to report an EPS of $2.39, showcasing a 48.45% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.4 billion, indicating a 16.17% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $8.79 per share and a revenue of $5.35 billion, demonstrating changes of +114.39% and 0%, respectively, from the preceding year. Investors might also notice recent changes to analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.74% higher. Brinker International is holding a Zacks Rank of #3 (Hold) right now. Valuation is also important, so investors should note that Brinker International has a Forward P/E ratio of 18.96 right now. This signifies a discount in comparison to the average Forward P/E of 22.34 for its industry. One should further note that EAT currently holds a PEG ratio of 0.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 2.57 as trading concluded yesterday. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% of all 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks