Schaeffer's Investment Research turns 44 this month! We are the same age as Kim Kardashian and Justin Timberlake. We want to thank our loyal subscribers and readers for joining us on this journey within the options industry. To show our gratitude, we released a free report on our Top Stock Picks to buy (and hold) for the rest of 2025. Below is a snippet, but click here to access the entirety of the report.Disclaimer: The levels discussed were taken from an EAT chart on July 1, so price action may have shift ...

Subscribers to Schaeffer's Weekend Trader options recommendation service received this EAT commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.Shares of chain restaurant umbrella Brinker International Inc (NYSE:EAT) have pulled back to the 50-day moving average, the site of their April highs. Now the equity is sitting just above its 20% year-to-d ...

Company Performance - Brinker International (EAT) stock increased by 1.02% to $166.18, outperforming the S&P 500's daily gain of 0.32% [1] - Over the past month, shares have depreciated by 8.01%, underperforming the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.51% [1] Financial Projections - Upcoming earnings per share (EPS) are projected at $2.4, reflecting a 49.07% increase from the same quarter last year [2] - Revenue is estimated to be $1.4 billion, indicating a 16.17% increase compared to the same quarter of the previous year [2] Annual Estimates - Zacks Consensus Estimates forecast earnings of $8.81 per share and revenue of $5.35 billion for the year, indicating changes of +114.88% and 0% respectively compared to the previous year [3] - Recent analyst estimate revisions suggest confidence in Brinker International's business performance and profit potential [3] Valuation Metrics - Current Forward P/E ratio is 17.02, which is a discount compared to the industry average Forward P/E of 20.84 [6] - The PEG ratio is currently 0.43, significantly lower than the industry average PEG ratio of 2.65 [6] Industry Context - The Retail - Restaurants industry has a Zacks Industry Rank of 151, placing it in the bottom 39% of over 250 industries [7] - Top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Brinker International (EAT) shares have increased by 1% to $166.25, remaining below the record peak of $192.22 reached on February 4 [1] - The stock has shown a year-to-date gain of 25.8%, but has struggled to maintain levels above $180 [1] - A historically bullish trendline suggests potential for recovery in share price [1] Technical Analysis - EAT is currently within one standard deviation of its 80-day moving average, having traded above this trendline in 8 of the last 10 trading days and spent 80% of the past two months above it [2] - Historical data indicates that similar conditions have led to an 80% probability of the stock being higher one month later, with an average gain of 11.6%, potentially bringing shares to around $185.53 [2] Market Sentiment - The short interest float for EAT stands at 13.7%, indicating potential for a short squeeze [4] - Among the 18 brokerages covering EAT, 14 have a "hold" recommendation, suggesting room for bullish upgrades if bearish sentiment shifts [4] Options Market - Options for EAT are currently considered affordable, with a Schaeffer's Volatility Index (SVI) of 58%, ranking in the low 28th percentile of its annual range [5] - The stock has historically outperformed options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) of 76 out of 100 [5]

Thesis : A recent decline in Brinker International's share prices makes EAT an even better value. Efforts to improve efficiency and consistency should help the company sustain strong growth and could provide a foundation for later expansion.Markets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for ...

Group 1 - The focus of PropNotes is on identifying high-yield investment opportunities for individual investors [1] - The company leverages a background in professional Prop Trading to simplify complex concepts and provide actionable insights [1] - All analyses produced by the company aim to assist investors in making informed market decisions, supported by expert research [1] Group 2 - The article expresses the author's personal opinions and discloses a beneficial long position in the shares of EAT [2] - There is no compensation received for the article other than from Seeking Alpha, and there is no business relationship with any mentioned company [2] Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results and does not provide specific investment recommendations [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

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% a ...

Core Insights - Brinker International, Inc. (EAT) is adopting a volume-driven growth model, focusing on traffic rather than pricing to drive sales growth [1][4] - In Q3 fiscal 2025, Chili's experienced a 20.9% increase in traffic, leading to a 31.6% rise in same-restaurant sales without significant price increases [1][9] - The company is enhancing guest experience through improved service and kitchen execution, resulting in a restaurant-level operating margin of 18.9%, a 470 basis-point increase year-over-year [2] Company Strategy - Brinker is implementing initiatives such as menu simplification, upgraded cooking systems, and enhanced training to improve throughput and consistency [2] - The company is investing in its workforce, particularly in high-turnover roles, to support increased volume [2] - Management is closely monitoring macroeconomic pressures, including potential tariffs on imported goods, while over 80% of its supply chain is domestically sourced [3] Pricing and Growth Outlook - Pricing is expected to moderate to 2-3% in Q4 fiscal 2025, with long-term increases likely to remain within a 3-5% range [4] - By prioritizing value and experience over price, the company aims to grow its market share in a cautious consumer environment [4] - The volume-first approach positions Brinker well for long-term growth without overreliance on pricing strategies [4] Competitor Landscape - Chipotle Mexican Grill, Inc. (CMG) is executing a multi-layered marketing strategy focused on menu innovation and digital targeting, despite facing near-term macro headwinds [5] - BJ's Restaurants, Inc. (BJRI) is leveraging social media trends to enhance brand relevance and guest frequency, with successful product launches like the Pizookie Platter [6] Stock Performance and Valuation - Brinker shares have increased by 18.5% over the past three months, contrasting with a 0.7% decline in the industry [7] - EAT trades at a forward price-to-sales ratio of 1.53, significantly below the industry average of 4.15 [10] - The Zacks Consensus Estimate for EAT's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 114.4% and 9.6%, respectively [11]

Group 1: Short Squeeze Dynamics - Short squeezes can lead to significant gains for traders and investors, but high short interest often indicates underlying issues [1] - Stocks with high short interest may still have fundamentally sound operations and growth outlooks, raising questions about potential catalysts for a squeeze [2][3] - The upcoming earnings release for SoundHound AI is anticipated to be a catalyst that could drive out short sellers, as the company is experiencing hyper growth [2][3] Group 2: SoundHound AI Analysis - SoundHound AI's short interest was at 32% in late June, with recent reports indicating a rise in short interest, increasing the likelihood of a squeeze [2] - MarketBeat's consensus forecast for SoundHound AI's revenue growth in FQ2 is 145%, which is expected to be exceeded [3] - Analysts predict that an improved outlook could lead to raised expectations for future revenue growth and profitability, serving as a catalyst for a potential squeeze [3] Group 3: Etsy's Short-Selling Situation - Etsy's stock has faced persistent high short interest, currently at 23%, which has been rising in Q2 [6] - The company's strategy shift towards AI and automation is expected to enhance user experience and sales, potentially alleviating short-selling pressure [6][7] - Analysts have noted a downtrend in sentiment, but recent price target increases suggest a positive outlook for the company's future performance [7][8] Group 4: Brinker International Overview - Brinker International's short interest was nearly 15% at the end of May, despite signs of accelerating growth from its turnaround efforts [12] - The company reported nearly 30% growth in fiscal Q1, with strong forecasts for Q2 and the year ahead [12][14] - Analysts have increased price targets, with expectations for the stock to reach new highs, indicating bullish sentiment [13][14]

Core Insights - Chili's Grill & Bar is introducing a new lineup of premium frozen margaritas made with PATRÓN Silver tequila, aiming to enhance the quality and flavor of their offerings [1][2][4] - The restaurant sold over 25 million margaritas last year, reinforcing its position as the leading seller of margaritas in the U.S. [2][6] - More than half of casual dining guests are seeking frozen drink options to pair with their meals, indicating a strong market demand [3][4] Product Details - The new frozen margarita lineup includes: - PATRÓN Frozen Marg, featuring PATRÓN Silver, triple sec, lime juice, and agave, starting at $10, with options to add various flavors [7] - Flamingo Freeze, a blend of Tito's Handmade Vodka and Owen's Prickly Pear, swirled with PATRÓN Frozen Marg [7] - Arctic Drift, combining Malibu Coconut Rum, pineapple juice, and Blue Curaçao, also swirled with PATRÓN Frozen Marg [7] Operational Enhancements - Chili's has introduced new frozen margarita machines across the U.S. to streamline the preparation process and ensure consistent quality [4][6] - The company operates 1,600 restaurants in 29 countries and has a workforce of over 70,000 team members [6]