Stocks our strategists [music] feel are poised to deliver positive returns are featured now in their top stock picks of the week. Welcome to another edition of Zach's top stock picks. I am Brian Bolan.I'm the aggressive growth stock strategist here at Zachs and I have top stock pick for the week. It's March 10th. That means we're one week away from St.Patrick's Day. That's why I'm in such an early festive mood. mostly because I'm not going to be doing the top stock picks next week.So, I had to get a chance ...

Group 1 - Large restaurant companies often face challenges in scaling smaller concepts that can significantly impact overall earnings [3][6] - Darden Restaurants has decided to close its Bahama Breeze brand, citing it as a smaller concept that is no longer a strategic priority [4][5] - The company plans to close 14 Bahama Breeze locations and convert the remaining 14 into other Darden brands, expecting no material impact on financial results [5][6] Group 2 - The decision to close Bahama Breeze aligns with a broader trend among large restaurant operators focusing on core brands for clearer returns [7] - Cumulative inflation has increased costs by nearly a third since 2019, making it difficult for units to remain viable after losing significant sales [6] - Darden's actions reflect a strategic shift similar to peers like Brinker International and Bloomin' Brands, which prioritize capital on their main brands [7]

Consumer Spending Insights - U.S. consumer spending for Valentine's Day is projected to reach a record $29.1 billion, an increase from last year's $27.5 billion, with an average spend of $199.78 per shopper, the highest ever recorded [1][9] Company-Specific Opportunities Hershey - Hershey is a primary beneficiary of Valentine's Day spending, with its chocolate products being the most popular gifts during the holiday [3] - The company is enhancing its investment case through strategic initiatives such as cost optimization and product innovation, with adjusted EPS projected to grow 30-35% by fiscal 2026, reaching between $8.20 and $8.52 [4] - The Zacks Consensus Estimate for Hershey's 2026 EPS has increased by 96 cents recently, and the stock holds a Zacks Rank 1 (Strong Buy) [5] Brinker International - Brinker, the parent company of Chili's and Maggiano's, is well-positioned to benefit from increased dining out during Valentine's Day, with Chili's being a key growth driver [6] - The company focuses on operational excellence and guest experience, implementing initiatives to enhance engagement and customer satisfaction, which positions it for sustainable traffic growth [7] - The Zacks Consensus Estimate for Brinker's fiscal 2026 EPS indicates a year-over-year growth of 20%, with the stock also holding a Zacks Rank 1 [8] Movado Group - Movado capitalizes on the demand for meaningful gifts during Valentine's Day, appealing to younger consumers with fresh designs [9] - The growth of e-commerce and direct-to-consumer sales has improved margins, positioning Movado for both seasonal and long-term growth opportunities [11] - The Zacks Consensus Estimate for Movado's fiscal 2027 EPS suggests a year-over-year growth of 32%, with the stock rated Zacks Rank 2 (Buy) [12] Inter Parfums - Inter Parfums benefits from the demand for luxury fragrances during Valentine's Day, with core brands like Jimmy Choo and Coach driving sales [13] - The introduction of new high-margin products and strengthening e-commerce channels are expected to enhance growth [14] - The Zacks Consensus Estimate for Inter Parfums' fourth-quarter 2025 EPS has seen a slight increase, and the stock carries a Zacks Rank 2 [15] Airbnb - Airbnb is positioned to capture seasonal demand for travel experiences during Valentine's Day, reporting a strong increase in bookings [16] - The company is enhancing its platform with new features to improve user experience and is expected to achieve low double-digit revenue growth in 2026 [17] - The Zacks Consensus Estimate for Airbnb's 2026 EPS indicates a year-over-year growth of 14%, with the stock rated Zacks Rank 2 [18]

Stock Performance - The stock of Brink International (EAT.US) has shown volatility and market attention recently, with a notable increase of 5.04% on January 3, 2026 [1] - On November 25, 2025, Citigroup upgraded Brink International's rating from "Neutral" to "Buy," setting a target price of $176, citing strong performance of its core brand Chili's, improved cost outlook, and effective measures to attract younger customers [1] - Among 22 rating agencies, 59% recommended a "Buy" rating while 41% suggested a "Hold" rating [1] Financial Performance - The latest financial report for the first quarter of fiscal year 2026 (ending September 24, 2025) indicated revenue of $1.349 billion, representing a year-over-year growth of 18.45% [2] - Net profit for the same period was $99.5 million, showing a significant increase of 158.44% compared to the previous year [2] Future Development - Investors should monitor the upcoming financial report release schedule, including the announcement date for the second quarter of fiscal year 2026 [3] - Factors such as the macroeconomic environment, overall trends in the restaurant industry, and any new business developments or announcements from the company may also impact stock prices [3]

Core Viewpoint - Brinker International, Inc. (EAT) is demonstrating a credible growth story in the casual dining sector, particularly with Chili's showing strong traffic momentum [1] Company Performance - Chili's has sustained strong traffic momentum, reinforcing the positive outlook for Brinker International [1] Investment Philosophy - The investment philosophy emphasizes buying high-quality stocks and businesses led by disciplined capital allocators that generate exceptional returns on capital and can compound invested capital over long periods [1]

Stock Performance - The stock of Brinker International (EAT.US) has shown volatility and market attention recently, with a rapid price increase noted on January 3, 2026. On November 25, 2025, Citigroup upgraded the stock rating from "Neutral" to "Buy," setting a target price of $176, citing strong performance of its core brand Chili's, improved cost outlook, and effective measures to attract younger customers. At that time, 59% of participating brokers recommended a buy, while 41% suggested holding [2]. Financial Performance - The most recent financial report released by the company is for the first quarter of fiscal year 2026, ending September 24, 2025. The report indicates that the company generated revenue of $1.349 billion, representing a year-over-year growth of 18.45%. The net profit was $99.5 million, showing a significant increase of 158.44% compared to the previous year. This financial data serves as a crucial basis for assessing the company's recent operational status [3]. Future Outlook - Investors should monitor the company's upcoming financial report release schedule, including the announcement date for the second quarter of fiscal year 2026. Additionally, macroeconomic conditions, overall trends in the restaurant industry, and any new business developments or announcements from the company could also impact the stock price [4].

Core Viewpoint - Brinker International, Inc. reported strong second-quarter results driven by menu updates, competitive pricing, and effective advertising, leading to increased customer acquisition and repeat visits Quarterly Sales - The company achieved adjusted earnings per share of $2.87, surpassing the analyst consensus estimate of $2.62 [2] - Quarterly sales reached $1.452 billion, exceeding the expected $1.411 billion [2] - Comparable restaurant sales increased by 7.5%, with Chili's showing an 8.6% increase, while Maggiano's experienced a decline of 2.4% [2] Operational Performance - Chili's reported a two-year comparable sales growth of 43%, with 19 consecutive quarters of same-store sales growth [3] - Operating income for the quarter was $168.4 million, up from $156 million a year ago, with an operating margin increase to 11.6% from 11.5% [3] - Adjusted restaurant operating margin decreased to 18.8% from 19.1% year-over-year [4] - Adjusted EBITDA was $223.5 million, compared to $215.8 million in the previous year [4] - The company ended the quarter with $15 million in cash and equivalents [4] Outlook - Brinker raised its fiscal 2026 adjusted earnings forecast to a range of $10.45 to $10.85 per share, up from $9.90 to $10.50, aligning with analysts' average estimate of $10.46 [5] - The fiscal 2026 revenue guidance was increased to $5.76 billion to $5.83 billion, from $5.60 billion to $5.70 billion, compared to the Street estimate of $5.761 billion [5] - The company anticipates a negative impact on fiscal 2026 results due to Winter Storm Fern, estimating a $20 million revenue loss and a 15 cents per-share hit to non-GAAP earnings [6]

Core Insights - Brinker International reported a revenue of $1.45 billion for the quarter ended December 2025, reflecting a year-over-year increase of 6.9% and surpassing the Zacks Consensus Estimate by 3.44% [1] - The company's EPS for the quarter was $2.87, which is an increase from $2.80 in the same quarter last year, and it exceeded the consensus EPS estimate by 13.39% [1] Financial Performance Metrics - Comparable Restaurant Sales for Chili's increased by 8.6%, outperforming the average estimate of 5.2% [4] - Total restaurants operated by Brinker International stood at 1,627, slightly below the average estimate of 1,633 [4] - Company-owned restaurants totaled 1,160, which is lower than the average estimate of 1,240 [4] - Comparable Restaurant Sales for Maggiano's decreased by 2.4%, better than the average estimate of -5.5% [4] - Company sales revenue was reported at $1.44 billion, exceeding the average estimate of $1.39 billion, marking a 6.9% increase year-over-year [4] - Franchise and other revenues reached $13.4 million, surpassing the average estimate of $13.25 million, with a year-over-year increase of 10.7% [4] - Revenue from Chili's was $1.32 billion, exceeding the average estimate of $1.26 billion, representing a 9% year-over-year increase [4] - Revenue from Maggiano's was reported at $134.9 million, below the average estimate of $137.94 million, indicating a year-over-year decline of 9.7% [4] Stock Performance - Shares of Brinker International have returned +10.2% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Q2 F26 January 28, 2026 SAME STORE SALES – F25, F26 | | Brinker | Chili's | Maggiano's | Domestic Franchise | International Franchise | | --- | --- | --- | --- | --- | --- | | Q1 F25 | 13.0% | 14.1% | 4.2% | 12.3% | 3.7% | | Q2 F25 | 27.4% | 31.4% | 1.8% | 21.1% | (1.0%) | | Q3 F25 | 28.2% | 31.6% | 0.4% | 24.1% | 5.8% | | Q4 F25 | 21.3% | 23.7% | (0.4%) | 15.5% | 9.0% | | FY F25 | 22.7% | 25.3% | 1.5% | 19.9% | 6.8% | | | Brinker | Chili's | Maggiano's | Domestic Franchise | International Franchise | | Q1 ...

Core Insights - Brinker International reported an 8.6% increase in same-store sales for its Chili's brand in Q2, driven by higher traffic, menu enhancements, competitive pricing, advertising initiatives, and improved operations [1][2] Group 1: Chili's Performance - Chili's total sales for Q2 exceeded $1.31 billion, up from $1.2 billion in Q2 2025, with a restaurant operating margin of 19.1%, compared to 18.7% in the same quarter last year [2] - The brand achieved a two-year comp sales growth of 43%, with 19 consecutive quarters of same-store sales growth, attributed to improvements in guest experience [3] - The quarterly performance from Q1 2025 to Q1 2026 showed same-store sales increases of 14.1%, 31.4%, 31.6%, 23.7%, and 21.4% respectively [3] Group 2: Financial Guidance and Impact - Brinker raised its full-year fiscal 2026 guidance, reflecting a stronger sales and profit outlook for Chili's, despite an estimated $20 million revenue impact from Winter Storm Fern [4] Group 3: Maggiano's Performance - Maggiano's experienced a same-store sales decline of 2.4% in Q2, with total revenues dropping by 14.5% to $134.9 million from $149.4 million in Q2 2025, and a decline in restaurant operating margin to 16% [5] - The company is implementing a "Back to Maggiano's" strategy to improve performance, following a leadership transition in August [6]