Chili's® Grill & Bar and Spire Motorsports Ride the 'Dente™ Again-te [Accessibility Statement] Skip NavigationThe restaurant brand continues to shine a spotlight on its iconic Presidente Margarita® through its standout NASCAR presenceDALLAS, Feb. 24, 2026 /PRNewswire/ -- [Chili's® Grill & Bar] returns to the track March 1 in Austin, Texas, and it's bringing Ride the 'Denteâ"¢ along for more high-speed circuits with Spire Motorsports and driver Carson Hocevar.Chili's sells more margaritas than any restaurant ...

Industry Overview - Diners are shifting from higher-priced fast food to full-service restaurants as households reconsider their spending habits, leading to a significant rotation in restaurant traffic [1] - The casual dining segment is gaining market share, although steakhouses are still pressured by high beef prices, which are expected to slow down in the latter half of the year, potentially benefiting margins by late 2027 [2] Company Performance: Texas Roadhouse - Texas Roadhouse operates over 600 steakhouses and has shown consistent traffic, outperforming rivals [3] - In the most recent quarter, same-store sales increased by 6.1%, with guest counts up by 4.3%, attributed to a disciplined strategy avoiding aggressive discounting [4] - Restaurant-level margins declined by nearly 170 basis points due to higher beef prices and labor-cost inflation, but management expects easing inflationary pressures in the latter half of the year [5] - The company plans to open 35 new locations in 2026, with a current valuation reflecting some margin recovery, trading at 28 times forward earnings [6] Company Performance: Darden Restaurants - Darden Restaurants operates over 2,100 locations, including brands like Olive Garden and LongHorn Steakhouse, and has seen shares rise by about 11% following a 4.3% comps growth in Q2 2026 [8] - LongHorn Steakhouse reported a stronger performance with comps rising by 5.9%, capturing market share from more expensive steakhouses [9] - Darden's scale allows it to maintain competitive pricing, keeping prices around 320 basis points below inflation at LongHorn, providing a competitive edge [9] Company Performance: Brinker International - Brinker International, which owns over 1,600 restaurants including Chili's, has seen its stock rise 60% since November lows, with Chili's reporting 8.6% comps growth in January [10] - The growth is driven by budget-friendly offerings like the 3 for Me platform, attracting cost-conscious diners [12] - Brinker is increasing its advertising to emphasize its value over fast-food competitors, trading at around 15 times this year's earnings estimates, making it the best value among the three chains discussed [13]

Core Insights - Investors should not rely solely on stock price movements without understanding a company's fundamentals, as this can lead to financial losses. A thorough review of a company's financial health is essential, particularly in an unpredictable market [1] Interest Coverage Ratio - The interest coverage ratio is a critical metric that indicates how effectively a company can pay interest charges on its debt [3][4] - This ratio is calculated by dividing Earnings before Interest & Taxes (EBIT) by Interest Expense, providing insight into a company's ability to meet its interest obligations [4] - A ratio lower than 1 indicates potential default risk, while a higher ratio suggests a company can withstand financial difficulties [6] Investment Strategy - Companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B are likely to yield better investment results [7] - Additional criteria for screening include a minimum stock price of $5, strong historical and projected EPS growth compared to the industry median, and an average trading volume greater than 100,000 [8][9] Company Performance Highlights - Boot Barn Holdings, Inc. (BOOT) has a Zacks Rank of 1, a VGM Score of B, and is projected to have a 17.6% sales growth and 26% EPS growth this fiscal year, with a stock price increase of 36.2% over the past year [10][11] - Brinker International, Inc. (EAT) also holds a Zacks Rank of 1 and a VGM Score of A, with expected sales growth of 7.9% and EPS growth of 19.8%, although its stock has declined by 3.6% in the past year [11][12] - Tapestry, Inc. (TPR) has a Zacks Rank of 1 and a VGM Score of B, with projected sales growth of 9.6% and EPS growth of 23.7%, and a significant stock increase of 72.8% over the past year [12][13] - Cardinal Health, Inc. (CAH) carries a Zacks Rank of 2 and a VGM Score of A, with anticipated sales growth of 16.5% and EPS growth of 25.1%, and a stock surge of 74.8% in the past year [13][14]

Company Overview - Brinker International, Inc. operates well-known restaurant chains like Chili's Grill & Bar and Maggiano's Little Italy, maintaining a strong market presence in the casual dining sector [1] Recent Performance - EAT has shown a modest gain of 0.84% over the past 30 days, indicating steady investor interest [2] - The stock experienced a 0.65% dip in the last 10 days, which may present a strategic entry point for investors anticipating a rebound [2] Growth Potential - EAT's stock price is projected to increase by 13.17%, suggesting that the stock is currently undervalued and could see substantial appreciation [3] - The target price for EAT is set at $182.29, offering considerable upside from its current trading levels [3] Financial Health - EAT has a Piotroski Score of 8, reflecting solid fundamentals including profitability, leverage, liquidity, and operating efficiency, indicating robust financial health [4][6] Strategic Positioning - The recent dip in EAT's price may represent a local minimum, presenting a potential buying opportunity [5] - As a leader in the casual dining industry, Brinker International is well-positioned to benefit from the ongoing recovery in consumer spending and dining out trends [5]

Core Insights - The scenario described regarding Brinker International (EAT) is materializing, resulting in an increase in the company's share price [1] Company Summary - Brinker International is experiencing a positive shift in its market performance, as indicated by the rising share price [1]

Core Viewpoint - Brinker International Inc. (NYSE:EAT) is considered one of the most undervalued mid-cap stocks currently available for investment, with multiple analysts raising their price targets following strong quarterly performance and positive fiscal year guidance [1][2][3]. Group 1: Analyst Ratings and Price Targets - Goldman Sachs analyst Christine Cho raised the price target on Brinker to $200 from $180 while maintaining a Buy rating [1]. - Morgan Stanley increased its price target on Brinker to $205 from $200, citing a strong quarter and improved fiscal year guidance, while keeping an Overweight rating [2]. - Bank of America also raised its price target on Brinker to $210 from $198, maintaining a Buy rating after another strong quarter, and revised its FY 2026 EPS forecast higher to $10.62 from $10.59 [3]. Group 2: Company Overview - Brinker International Inc. operates casual dining restaurants in the US and internationally, owning, developing, and franchising these establishments [3].

Stock Performance - The stock of Brink International (EAT.US) has shown volatility and market attention recently, with a notable increase of 5.04% on January 3, 2026 [1] - On November 25, 2025, Citigroup upgraded Brink International's rating from "Neutral" to "Buy," setting a target price of $176, citing strong performance of its core brand Chili's, improved cost outlook, and effective measures to attract younger customers [1] - Among 22 rating agencies, 59% recommended a "Buy" rating while 41% suggested a "Hold" rating [1] Financial Performance - The latest financial report for the first quarter of fiscal year 2026 (ending September 24, 2025) indicated revenue of $1.349 billion, representing a year-over-year growth of 18.45% [2] - Net profit for the same period was $99.5 million, showing a significant increase of 158.44% compared to the previous year [2] Future Development - Investors should monitor the upcoming financial report release schedule, including the announcement date for the second quarter of fiscal year 2026 [3] - Factors such as the macroeconomic environment, overall trends in the restaurant industry, and any new business developments or announcements from the company may also impact stock prices [3]

Industry Overview - The Zacks Retail – Restaurants industry is facing a challenging macroeconomic environment characterized by high costs and declining traffic, but is experiencing sales growth due to menu price hikes and average check growth [1][3] - Industry participants are leveraging partnerships with delivery channels and digital platforms to enhance sales [1] Industry Description - The industry includes various types of restaurants, from casual to fine dining, and also encompasses operators of specialty coffee and quick-service restaurants [2] Current Trends - The restaurant industry is grappling with persistent inflation and reduced consumer purchasing power, leading to declining traffic due to rising menu prices [3] - Intense competition and high wages are contributing to increased expenses, affecting profit margins [4] Future Outlook - The National Restaurant Association projects U.S. restaurant sales to reach approximately $1.55 trillion by 2026, with slight employment growth expected [5] - Restaurants are investing in technology and workforce development to enhance efficiency and guest experiences [5] Digitalization and Off-Premise Sales - Digital innovation and partnerships with delivery services are driving growth, with operators focusing on cost-saving initiatives [6] - The increase in off-premise sales, including delivery and takeout, is positively impacting the industry [7] Industry Performance - The Zacks Restaurant industry has underperformed the S&P 500, declining 6.6% over the past year compared to the S&P 500's rise of 15.8% [10] - The industry is currently trading at a forward 12-month P/E of 25.08X, higher than the S&P 500's 22.9X [13] Key Company Insights - **Brinker International**: Focused on driving traffic and revenues through menu innovation and better service platforms, with anticipated sales and earnings growth of 8% and 19.8% for fiscal 2026 [16][17] - **Yum China**: Benefiting from strong delivery momentum and plans to open over 1,900 new stores by 2026, with projected sales and earnings growth of 7.4% and 15.9% [20][21] - **BJ's Restaurants**: Enhancing operational efficiency and brand positioning through remodeling and menu innovations, with expected sales and earnings growth of 2.4% and 3.3% for 2026 [24][23]

Core Viewpoint - Brinker International, Inc. (EAT) is demonstrating a credible growth story in the casual dining sector, particularly with Chili's showing strong traffic momentum [1] Company Performance - Chili's has sustained strong traffic momentum, reinforcing the positive outlook for Brinker International [1] Investment Philosophy - The investment philosophy emphasizes buying high-quality stocks and businesses led by disciplined capital allocators that generate exceptional returns on capital and can compound invested capital over long periods [1]

Stock Performance - The stock of Brinker International (EAT.US) has shown volatility and market attention recently, with a rapid price increase noted on January 3, 2026. On November 25, 2025, Citigroup upgraded the stock rating from "Neutral" to "Buy," setting a target price of $176, citing strong performance of its core brand Chili's, improved cost outlook, and effective measures to attract younger customers. At that time, 59% of participating brokers recommended a buy, while 41% suggested holding [2]. Financial Performance - The most recent financial report released by the company is for the first quarter of fiscal year 2026, ending September 24, 2025. The report indicates that the company generated revenue of $1.349 billion, representing a year-over-year growth of 18.45%. The net profit was $99.5 million, showing a significant increase of 158.44% compared to the previous year. This financial data serves as a crucial basis for assessing the company's recent operational status [3]. Future Outlook - Investors should monitor the company's upcoming financial report release schedule, including the announcement date for the second quarter of fiscal year 2026. Additionally, macroeconomic conditions, overall trends in the restaurant industry, and any new business developments or announcements from the company could also impact the stock price [4].