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Looking for a Growth Stock? 3 Reasons Why Brinker International (EAT) is a Solid Choice
EATBrinker International(EAT) ZACKS·2025-03-26 17:45

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].