Brinker International (EAT) closed at $154.52 in the latest trading session, marking a +1.25% move from the prior day. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 11.24% over the past month, outpacing the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 2.69% in that time.
Market participants will be closely following the financial results of Brinker International in its upcoming release. The company plans to announce its earnings on January 29, 2025. The company's upcoming EPS is projected at $1.68, signifying a 69.7% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.22 billion, up 13.65% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.96 per share and revenue of $4.84 billion. These totals would mark changes of +45.37% and +9.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.94% higher. Brinker International currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Brinker International currently has a Forward P/E ratio of 25.6. For comparison, its industry has an average Forward P/E of 23.24, which means Brinker International is trading at a premium to the group.
Meanwhile, EAT's PEG ratio is currently 1.56. 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.02.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Brinker International, Inc. (EAT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
