Brinker International, Inc. (NYSE: EAT ) is expected to continue its Chili’s traffic turnaround in the upcoming Q3 report, seeming fair based on management’s remarks and continued interest in the brand. At the same time, the current economic worries may cause spendingI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced s ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 31st: M-tron Industries, Inc. (MPTI) : This company that manufactures frequency and spectrum control products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.8% over the last 60 days. M-tron has a PEG ratio of 0.57 compared with 1.18 for the industry. The company possesses a Growth Score of B. Brinker International, Inc. (EAT) : Thi ...

Company Performance - Brinker International's stock closed at $154.39, reflecting a +0.17% change from the previous trading day, outperforming the S&P 500, which lost 0.33% [1] - Over the last month, Brinker International's shares decreased by 3.72%, which is better than the Retail-Wholesale sector's loss of 6.29% and the S&P 500's loss of 4.03% [2] Earnings Estimates - Analysts predict Brinker International will report an EPS of $2.43, indicating a 95.97% growth compared to the same quarter last year, with revenue expected to be $1.36 billion, showing a 21.65% increase [3] - Full-year estimates call for earnings of $8.30 per share and revenue of $5.24 billion, representing year-over-year changes of +102.44% and +18.65% respectively [4] Analyst Sentiment - Recent changes to analyst estimates for Brinker International reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [5] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Brinker International as 1 (Strong Buy) [7] Valuation Metrics - Brinker International is trading with a Forward P/E ratio of 18.57, which is lower than the industry's average Forward P/E of 23.09 [8] - The company has a PEG ratio of 0.49, significantly lower than the Retail - Restaurants industry's average PEG ratio of 2.2 [8] Industry Context - The Retail - Restaurants industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 165, placing it within the bottom 35% of over 250 industries [9]

Core Insights - Brinker International, Inc. is expanding its Chili's Grill & Bar brand with a new location in Scranton, set to open on April 7, featuring unique menu items and a culturally inspired dining experience [1] - The company is prioritizing both domestic and international expansion, focusing on high-growth markets to drive long-term growth [2][3] Expansion Strategy - Brinker is actively pursuing international expansion through development agreements with franchise partners and is supporting them with virtual brand offerings [3] - For fiscal 2024, Brinker opened nine Chili's restaurants, with plans for 9 to 11 domestic openings and 21 to 25 international openings in fiscal 2025 [3] Financial Performance - Brinker shares have increased by 15.5% over the past three months, outperforming the Zacks Retail - Restaurants industry, which grew by 3.3% [5] - The company's growth is attributed to increased menu pricing, effective marketing strategies, and traffic-driving initiatives [5] Zacks Rank and Comparisons - Brinker holds a Zacks Rank of 1 (Strong Buy), indicating strong market performance [6] - Other top-ranked stocks in the Zacks Retail-Wholesale sector include BJ's Restaurants, On Holding, and Sprouts Farmers Market, with varying performance metrics and growth estimates [6][7][8]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors to consider on March 27th [1][2][3] Group 1: M-tron Industries, Inc. (MPTI) - M-tron Industries manufactures frequency and spectrum control products and has a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for M-tron's current year earnings has increased by 9.3% over the last 60 days [1] - M-tron has a PEG ratio of 0.59, significantly lower than the industry average of 1.23, and possesses a Growth Score of A [1] Group 2: Brinker International, Inc. (EAT) - Brinker International is a franchisor of casual dining restaurants and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for Brinker's current year earnings has increased by 36.8% over the last 60 days [2] - Brinker has a PEG ratio of 0.50 compared to the industry average of 2.54, and it holds a Growth Score of A [2] Group 3: Pitney Bowes Inc. (PBI) - Pitney Bowes provides SaaS shipping solutions, mailing innovation, and financial services, with a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for Pitney Bowes' current year earnings has increased by 8% over the last 60 days [3] - Pitney Bowes has a PEG ratio of 0.52, lower than the industry average of 2.23, and possesses a Growth Score of A [3]

Core Viewpoint - The article highlights Brinker International (EAT) as a strong growth stock, emphasizing its impressive earnings growth, asset utilization efficiency, and positive earnings estimate revisions, making it a solid choice for growth investors [2][10]. Earnings Growth - Brinker International has a historical EPS growth rate of 25.6%, but the projected EPS growth for this year is significantly higher at 103.3%, far exceeding the industry average of 7% [5]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.9, indicating it generates $1.9 in sales for every dollar in assets, compared to the industry average of 0.97, showcasing superior efficiency [7]. Sales Growth - Brinker International's sales are expected to grow by 17.2% this year, which is substantially higher than the industry average growth of 3.9%, indicating strong sales performance [7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Brinker International, with the Zacks Consensus Estimate for the current year increasing by 0.4% over the past month, suggesting favorable market sentiment [8]. Overall Assessment - With a Zacks Rank of 1 (Strong Buy) and a Growth Score of A, Brinker International is positioned as a potential outperformer in the growth investment space, making it an attractive option for investors seeking growth opportunities [10].

Core Insights - Chili's is launching a new restaurant, the Scranton Branch, which aims to connect with fans through nostalgic elements and a unique menu item, the Awesome Blossom [1][3] - The restaurant features a distinct decor that includes a chalk art mural and vintage artwork, creating a time capsule experience for visitors [1][2] - The grand opening will include promotional activities, such as the introduction of the Scranton Marg, a special margarita priced at $5, available nationwide for one day [4][5] Group 1: Restaurant Launch - The Scranton Branch is designed to feel like a familiar home for fans, featuring nostalgic decor and a throwback menu item [1] - The restaurant's opening is supported by a marketing campaign featuring local celebrities to enhance community engagement [2] Group 2: Menu Highlights - The Awesome Blossom, a deep-fried onion appetizer, is making a comeback exclusively at the Scranton Branch after being removed from menus in 2008 [3] - The Scranton Marg, a special margarita, will be available for $5 on the grand opening day, with plans for wider availability at other Chili's locations [4][5] Group 3: Community Engagement - The launch includes merchandise such as t-shirts to celebrate the opening, available through social media giveaways and online [5] - Chili's emphasizes its commitment to community involvement and charitable efforts, having raised over $110 million for St. Jude Children's Research Hospital [7]

Group 1: M-tron Industries, Inc. (MPTI) - M-tron Industries manufactures frequency and spectrum control products and has a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for M-tron's current year earnings has increased by 9.3% over the last 60 days [1] - M-tron has a PEG ratio of 0.49, significantly lower than the industry average of 1.21, and possesses a Growth Score of A [1] Group 2: Brinker International, Inc. (EAT) - Brinker International is a franchisor of casual dining restaurants and holds a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for Brinker's current year earnings has risen by 39.3% over the last 60 days [2] - Brinker has a PEG ratio of 0.46 compared to the industry average of 2.52, and it also has a Growth Score of A [2] Group 3: Pitney Bowes Inc. (PBI) - Pitney Bowes provides SaaS shipping solutions, mailing innovation, and financial services, and carries a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for Pitney Bowes' current year earnings has increased by 12% over the last 60 days [3] - Pitney Bowes has a PEG ratio of 0.52, lower than the industry average of 2.24, and possesses a Growth Score of A [3]

Core Insights - Brinker International, Inc. (EAT) has experienced a significant stock increase of 90.4% over the past six months, outperforming the retail restaurant industry's slight decline of 0.1% and the S&P 500's 0.7% drop [1] - The company is leveraging increased menu pricing, effective marketing strategies, and traffic-driving initiatives to enhance growth [1] - EAT aims to balance value offerings with margin expansion and adaptability to changing consumer preferences [1] Stock Performance - Despite the recent rally, EAT's stock closed at $144.81, which is 33% below its 52-week high of $192.22 but significantly above its 52-week low of $43.37 [2] - EAT has outperformed competitors such as Wingstop Inc. (WING), Shake Shack Inc. (SHAK), and CAVA Group, Inc. (CAVA) [2] Strategic Initiatives - The company is focused on driving traffic and revenue growth through menu innovation, value-driven offerings, enhanced food presentation, targeted advertising, kitchen system upgrades, and improved service platforms [5] - Successful marketing campaigns, including the "Better Than Fast-Food" TV campaign and the "Triple Dipper" social media campaign, have led to a 31.4% increase in sales and a 19.9% rise in traffic year over year at Chili's [6] Growth and Expansion - Brinker is actively expanding its Chili's international footprint through new and existing franchise partnerships, with plans to open 9-11 domestic locations and 21-25 international outlets in fiscal 2025 [9] - The company is investing in a brand-wide reimaging program to enhance guest experience and drive traffic over the next three years [10] Earnings Projections - EAT's earnings are projected to reach $8.30 per share in fiscal 2025, representing a remarkable year-over-year increase of 102.4% [12] - Earnings are expected to continue growing, with a forecast of $9.35 per share in fiscal 2026, indicating a 12.6% increase [12] Valuation - EAT is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.98X, which is lower than the industry average, suggesting a discount [15] - This valuation presents an attractive entry point for investors, given the company's strong stock performance and growth potential [19] Investment Strategy - EAT's strategic initiatives, solid fundamentals, and focus on enhancing the guest experience position it as a compelling investment opportunity [17] - The company's commitment to balancing value with profitability ensures adaptability to shifting consumer preferences, while its improving earnings trajectory signals strong growth potential [18]

Company Overview - Brinker International (EAT) operates restaurant chains including Chili's Grill & Bar and Maggiano's Little Italy [2] - The company's stock closed at $144.81, reflecting a decrease of 0.42% from the previous day, underperforming the S&P 500 which gained 0.08% [1] Recent Performance - Over the last month, Brinker International's shares have decreased by 5.28%, which is better than the Retail-Wholesale sector's loss of 9.1% and the S&P 500's loss of 7.33% [2] - The Zacks Consensus Estimate projects earnings of $2.37 per share for the upcoming financial results, indicating a year-over-year growth of 91.13% [3] - Expected net sales for the same period are $1.36 billion, representing a 21.65% increase from the previous year [3] Full-Year Projections - For the full year, the Zacks Consensus Estimates forecast earnings of $8.15 per share and revenue of $5.24 billion, reflecting year-over-year changes of +98.78% and +18.65%, respectively [4] Analyst Sentiment - Recent changes in analyst estimates indicate a favorable outlook on Brinker International's business health and profitability [5] - The Zacks Rank system currently rates Brinker International as 1 (Strong Buy), which has historically outperformed with an average annual gain of +25% for 1 stocks since 1988 [7] Valuation Metrics - Brinker International has a Forward P/E ratio of 17.84, which is lower than the industry's average Forward P/E of 23.19 [8] - The company also has a PEG ratio of 0.47, significantly below the Retail-Restaurants industry's average PEG ratio of 2.12 [8] Industry Context - The Retail-Restaurants industry is part of the broader Retail-Wholesale sector and currently holds a Zacks Industry Rank of 140, placing it within the bottom 45% of over 250 industries [9]