FAT Brands Inc., the owner of restaurant chains Fatburger, Johnny Rockets and Twin Peaks, filed for bankruptcy, adding to a string of casual-dining brands that have sought court protection from creditors. The Beverly Hills-based company filed for Chapter 11 bankruptcy in Texas on Monday, court documents show. The company has around $1.45 billion of funded debt obligations outstanding, according to a court filing from FAT Brands’ chief restructuring officer dated Jan. 27. Most Read from Bloomberg The st ...

Core Viewpoint - Morgan Stanley upgraded Brinker International's stock rating to "Overweight" from "Underweight," indicating a more favorable outlook on the company's future performance [1][6]. Group 1: Stock Performance - At the time of the upgrade, EAT's stock price was $157.68, reflecting a decrease of 5.42% or $9.03 [2]. - EAT's stock has shown significant fluctuations, with a daily range between $157.34 and $167, and over the past year, it reached a high of $192.22 and a low of $100.30 [4]. - The trading volume for EAT is 1,374,875 shares on the NYSE, indicating active investor interest [5]. Group 2: Market Position and Ratings - Brinker International is recognized as a significant player in the casual dining industry, with a market capitalization of approximately $7 billion [4][6]. - Zacks Investment Research highlights Brinker as a top-ranked value stock, suggesting it could be a promising addition to investment portfolios [3]. - The recent upgrade by Morgan Stanley and recognition by Zacks may bolster investor confidence in Brinker's future prospects [5][6].

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]

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]

Core Insights - TGI Fridays has launched a new expansion plan aiming for over 1,000 units and $2 billion in annual revenue by 2030 under its "1-2-3 Strategic Vision" [1] - The plan is built on four pillars: activating the brand, enabling flexible growth across markets, strengthening the franchise system, and improving performance through people [1][4] Leadership and Management - Phil Broad has been appointed as president to lead the expansion vision, having previously served as TGI Fridays UK managing director and rejoining as president of international franchising [2] - Broad will oversee growth efforts both domestically and internationally [2] Brand Strategy - CEO Ray Blanchette emphasized the importance of resonating with the next generation of consumers while maintaining the classic Americana feel that has made the brand popular in over 40 countries [3] - The company aims to honor its heritage while appealing to modern guests who seek bold flavors and high-energy experiences [4] Expansion and Development - TGI Fridays has signed new development agreements to support the opening of more than 150 locations worldwide [4] - The expansion plan represents a turnaround for the company following its emergence from bankruptcy, which occurred after filing for Chapter 11 in November 2024 [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]

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Less than one year after spinning off Twin Peaks Hospitality, and two months after Twin Peaks reported a third quarter net loss in the double digits, FAT Brands CEO Andy Wiederhorn is back to lead the struggling casual-dining company.  According to a Dec. 29 SEC filing, Twin Peaks announced the termination of chief executive officer and president Kim Boerema alongside the appointment of Andy Wiederhorn as CEO, effe ...

Core Insights - Brinker International, Inc. (EAT) reported a strong quarter with Chili's achieving 13% traffic growth in Q1 fiscal 2026, significantly outperforming the casual dining industry [1][11] - The sustainability of this growth is questioned, but management suggests it reflects structural gains rather than just promotional timing [2][5] Management Commentary - Chili's has outperformed the industry in traffic for eight consecutive quarters, indicating consistent execution rather than temporary boosts [2] - Traffic growth is attributed to everyday value, improved food quality, and better in-restaurant execution, rather than reliance on short-term discounts [2] - The $10.99 value platform remains stable and profitable, with operational upgrades driving repeat visits [2] Cohort-Level Data - Management tracks monthly guest cohorts, showing stable return rates for both new and existing guests, which counters the idea that traffic spikes are solely due to promotions [3] - This data indicates that advertising-driven traffic is being retained, suggesting sustained engagement [3] Promotional Impact - While promotional timing does influence traffic, management noted that explicit value pricing leads to stronger traffic lifts compared to unpriced promotions [4] - This indicates that marketing strategies can affect traffic dynamics even within a structurally strong base [4] Comparison with Peers - Darden Restaurants (DRI) relies more on limited-time offers, which leads to softer traffic trends when promotions rotate, indicating a dependence on timing [6] - Texas Roadhouse (TXRH) maintains traffic resilience through consistent execution and service culture, but its higher prices make it vulnerable to economic slowdowns [7] - EAT's Chili's stands out as its traffic growth appears more structural, supported by everyday value and operational improvements, placing it between DRI's promotional reliance and TXRH's execution-led model [8] Price Performance and Valuation - EAT's shares have increased by 14.2% over the past three months, outperforming the industry's 1% growth [9] - EAT is currently trading at a forward 12-month price-to-earnings ratio of 12.99, significantly lower than the industry average of 23.94 [12] - The Zacks Consensus Estimate for EAT's fiscal 2026 earnings per share has seen an increase over the past 30 days [15]

Flash | 14 Dec 2025 23:19:17 ET │ 11 pages Haidilao International Holding Ltd (6862.HK) Reiterated Top Buy in China Restaurant Sector; Stabilized Nov restaurant retail sales CITI'S TAKE On Dec 15, NBS released China retail sales data in Nov. YoY growth of China restaurant retail sales stabilized at 3.2% in Nov (vs 3.8% YoY growth in Oct). The 3%-4% YoY growth of China restaurant retail sales in Oct-Nov was noticeably well above the 0.9%-2.1% YoY in Jun-Sept 2025 (when subsidy competition among e-commerce pl ...