Core Insights - The article emphasizes that while sales and earnings are important metrics for evaluating a company, they may not be sufficient for long-term investment decisions. A deeper analysis of a company's financial health and stability is necessary for sustainable growth [1] Financial Analysis - A critical analysis of a company's financial background is essential for informed investment decisions, with coverage ratios being a key focus. The Interest Coverage Ratio is highlighted as a crucial indicator of a company's ability to meet its debt interest obligations [2][4] - The Interest Coverage Ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, and companies like Amazon, Stride, Brinker International, and Cardinal Health have strong ratios [3] Importance of Interest Coverage Ratio - The Interest Coverage Ratio indicates how effectively a company can pay interest on its debt, with a ratio below 1.0 suggesting potential default risks. Companies generating earnings significantly above their interest expenses are better positioned to withstand financial difficulties [5][7] Investment Strategy - A winning investment strategy includes selecting stocks with an Interest Coverage Ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B, which can lead to better investment outcomes [8][11] - Stocks that meet criteria such as a minimum price of $5, strong historical and projected EPS growth, and substantial trading volume are more likely to perform well [9][11] Company Performance - Amazon has a Zacks Rank of 2, a VGM Score of B, and a trailing four-quarter earnings surprise of 22.5%, with projected sales and EPS growth of 12% and 29.7% respectively [10][12] - Stride also holds a Zacks Rank of 2 and a VGM Score of B, with projected sales and EPS growth of 4.6% and 3.1% respectively, despite a stock decline of 38.8% over the past year [12][13] - Brinker International has a Zacks Rank of 2 and a VGM Score of A, with projected sales and EPS growth of 6.5% and 14.9% respectively, and a stock increase of 15.7% in the past year [13][14] - Cardinal Health leads with a Zacks Rank of 2 and a VGM Score of A, showing a stock performance increase of 69.1% and projected sales and EPS growth of 16.3% and 20% respectively [10][14][15]

Company Overview - Brinker International, Inc. is a leading casual dining restaurant company, operating brands such as Chili's® Grill & Bar and Maggiano's Little Italy® [3] - The company has over 1,600 restaurants across 29 countries and two U.S. territories, focusing on bold flavors, handcrafted drinks, and genuine hospitality [3] - Brinker has received recognition as one of the top five workplaces in Dallas-Fort Worth and its CEO, Kevin Hochman, was awarded the 2025 IFMA Gold Plate Award [3] Upcoming Earnings Call - Brinker has scheduled its earnings conference call for January 28, 2026, at 10 a.m. Eastern Time to discuss second quarter fiscal 2026 earnings [1] - The earnings announcement will occur before the market opens on the same day, and additional business updates may be provided during the call [1] Access to Information - The live audio webcast of the earnings call can be accessed through Brinker's investor relations website, with a replay available for two weeks post-event [2]

Core Insights - Chili's will debut its partnership with Spire Motorsports at the NASCAR race weekend in Texas on March 1, 2026, marking the beginning of multiple race dates for the No. 77 car [1] - The collaboration between Chili's and Spire Motorsports has evolved significantly, showcasing a commitment to enhancing fan engagement and brand visibility through racing [2][3] Company Overview - Chili's, a leading casual dining brand under Brinker International, operates 1,600 restaurants across 29 countries and has over 70,000 team members [5] - The brand was recognized as Ad Age's 2025 Brand of the Year and has a strong commitment to community support, having raised over $120 million for St. Jude Children's Research Hospital [5] Partnership Development - The relationship between Chili's and Spire Motorsports has grown from a few races to a comprehensive partnership, including sponsorship of various racing teams and events [3] - Chili's has expanded its racing presence by sponsoring not only the NASCAR Cup Series but also dirt late models and sprint cars, indicating a strategic move to enhance brand visibility in motorsports [2][3] Driver Performance - Carson Hocevar, the driver for the No. 77 team, is expected to have a breakout season in 2026 following a successful rookie year and strong finishes in previous races [3] - Hocevar's engaging personality and performance on the track have contributed to a growing fanbase, which benefits both Chili's and Spire Motorsports [3] Future Plans - More details regarding Chili's primary race dates and design for the March 1 weekend will be announced closer to the event, indicating ongoing promotional efforts [4] - Spire Motorsports will field multiple entries in the NASCAR Cup Series and CRAFTSMAN Truck Series in 2026, showcasing the team's competitive strategy [8]

We recently published 9 Stocks on Jim Cramer’s Radar.  Brinker International, Inc. (NYSE:EAT) is one of the stocks on Jim Cramer's radar. Restaurant chain Brinker International, Inc. (NYSE:EAT)’s shares are up by 14% over the past year as the firm has operated in a tough restaurant industry plagued with high prices. Evercore’s David Palmer revealed in December on CNBC that Brinker International, Inc. (NYSE:EAT) was his preferred stock due to consistent execution and strong value. Palmer added that the res ...

Core Insights - Piper Sandler's "Macro Select" stock-picking model significantly outperformed the S&P 500 in 2025, achieving a return of approximately 22% compared to the S&P 500's 16% gain [1] - The updated Macro Select list for 2026 focuses on stocks with strong earnings surprises, earnings revisions, attractive earnings yield, and high return on equity (ROE) [3] Stock Performance - AT&T Inc. (Ticker: T) in the Communication Services sector had a 1-year return of 10% [5] - Graham Holdings (Ticker: GHC) in the Consumer Discretionary sector had a 1-year return of 4% [6] - Par Pacific Holdings (Ticker: EAT) in the Consumer Discretionary sector had a 1-year return of 12% [7] - Deluxe Corporation (Ticker: PARR) in the Energy sector had a 1-year return of 13% [8] - Mueller Water Products (Ticker: MWA) in the Industrials sector had a 1-year return of 14% [10] - Kilroy Realty (Ticker: KRC) in the Real Estate sector had a 1-year return of 6% [11] - UGI Corporation (Ticker: UGI) in the Utilities sector had a 1-year return of 33% [12] - Clearway Energy (Ticker: CWEN) in the Utilities sector had a 1-year return of 23% [13]

Core Viewpoint - Brinker International, Inc. (NYSE:EAT) is recognized as one of the best restaurant stocks to buy currently, with a positive outlook from analysts due to its strong performance in the casual dining segment [1]. Analyst Sentiment - As of January 6, 2026, approximately 45% of analysts are bullish on Brinker International, with a median price target of $170.00, indicating a potential upside of 13.70% [2]. - On December 23, 2025, David Palmer from Evercore ISI highlighted Brinker as a preferred stock, emphasizing its strong execution and effective value positioning in the casual dining segment, which is more resilient compared to fast food amid consumer challenges [3]. - Wells Fargo raised its price target for Brinker from $160 to $175 on December 17, 2025, maintaining an "Overweight" rating, citing favorable conditions for early 2026 due to stimulus effects and attractive valuation [4]. - JPMorgan also holds an "Overweight" rating on Brinker with a price target of $160, indicating confidence in the stock despite industry challenges [4]. Company Focus - Brinker International is primarily engaged in owning, developing, and franchising the Chili's Grill and Bar and Maggiano's Little Italy restaurant brands [5].

Core Insights - The retail sector is stabilizing after a volatile year characterized by inflation, high borrowing costs, and cautious consumer spending, with some retailers achieving double-digit gains driven by holiday optimism and improving fundamentals [1][2] Retail Sector Performance - The recent rally in retail stocks is momentum-driven rather than purely sentiment-driven, with investors favoring companies that show progress in margins, inventory management, and traffic trends [2] - Retail stocks have not reached uncomfortable valuation levels, with many trading below historical price-to-earnings multiples and supported by favorable earnings estimates [3] Notable Retail Stocks - Victoria's Secret & Co. (VSCO) has seen a stock increase of 16.5% due to its successful "Path to Potential" strategy, which revitalizes its core business and enhances profitability [7][8] - Five Below, Inc. (FIVE) has risen 14.4%, benefiting from increased foot traffic and AI-driven inventory management [8][14] - American Eagle Outfitters, Inc. (AEO) has climbed 13.6%, driven by strong performance in its Aerie brand and effective marketing strategies [8][17] - Brinker International, Inc. (EAT) has increased by 11.5%, supported by strong same-store sales and positive traffic growth [8][20] Earnings Estimates and Valuations - Victoria's Secret's earnings estimates have increased by $0.10 to $2.63 for the current fiscal year and by $0.16 to $2.90 for the next fiscal year [10] - Five Below's earnings estimates have risen by $0.31 to $5.84 for the current fiscal year and by $0.14 to $6.12 for the next fiscal year [14] - American Eagle's earnings estimates have increased by $0.03 to $1.33 for the current fiscal year and by $0.04 to $1.58 for the next fiscal year [17] - Brinker International's earnings estimates have increased by $0.03 to $10.23 for the current fiscal year and by $0.03 to $11.74 for the next fiscal year [20] Technical Setup - Victoria's Secret is trading at a forward P/E of 21.18, below its one-year high, indicating supportive valuation [11] - Five Below is trading at a forward P/E of 32.86, which remains reasonable relative to its one-year peak [14] - American Eagle is trading at a forward P/E of 17.35, still below its one-year high [17] - Brinker International is trading at a forward P/E of 14.17, below its one-year peak, suggesting reasonable valuation [21]

Company Overview - Brinker International, Inc. is a leading operator in the U.S. casual dining industry, recognized for its brands Chili's Grill & Bar and Maggiano's Little Italy [1] Industry Insights - The casual dining sector is characterized as mature and highly competitive, influenced by changing consumer preferences and market dynamics [1]

Core Viewpoint - Brinker International (EAT) has shown a positive performance over the past year, with a 14% increase, although recent performance has been more volatile [1] Company Performance - The company has successfully reinvigorated its Chili's brand, making it one of the top-performing brands in the industry [1]

Core Viewpoint - Brinker International, Inc. continues to attract investor interest, with BMO Capital maintaining a "Market Perform" rating and raising its price target from $140 to $170 [1][6] Company Performance - EAT's stock price closed at $149.48, reflecting a 1.35% decrease, contrasting with gains in the broader market [2][6] - Over the past month, EAT's shares have appreciated by 7.88%, significantly outperforming the Retail-Wholesale sector's decline of 1.59% [2][5] Earnings Expectations - Analysts anticipate an earnings per share (EPS) of $2.51, indicating a 10.36% decline year-over-year, while revenue is expected to increase by 3.12% to $1.4 billion [3][6] Stock Volatility - The stock has shown volatility, with daily price fluctuations between $146.54 and $151.99, and a yearly range from $100.30 to $192.22 [4] - Brinker International currently has a market capitalization of approximately $6.64 billion, with a trading volume of 945,919 shares on the NYSE [4]