Here's Why Brinker International Stock Sank Today

Financial Performance - Brinker International reported a 13 5% year-over-year increase in same-store sales for Q4 2024, driven by a 6% jump in restaurant traffic and price increases [2] - Full-year revenue reached $4 4 billion, up nearly 7$4 10, below analyst expectations, and management forecasts a maximum of $4 75 for fiscal 2025, also below expectations [3] Stock Performance - Brinker's stock dropped approximately 13% following the earnings report, despite strong financial metrics [1] - Prior to the Q4 report, the stock had risen roughly 60% year-to-date, significantly outperforming the S&P 500 [4] - The stock currently trades at about 13 times its forward adjusted profit expectations, which is considered reasonable [5] Business Outlook - Brinker is viewed as a modestly growing, mature business, making its recent stock gains somewhat unexpected [4] - The company's ability to sustain higher revenue through increased menu prices, as seen in fiscal 2024, may not be sustainable in the long term [5] - Continued strong restaurant traffic could provide upside potential for the stock in future quarters and years [5]