Company Performance - Brinker International (EAT) stock increased by 1.02% to $166.18, outperforming the S&P 500's daily gain of 0.32% [1] - Over the past month, shares have depreciated by 8.01%, underperforming the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.51% [1] Financial Projections - Upcoming earnings per share (EPS) are projected at $2.4, reflecting a 49.07% increase from the same quarter last year [2] - Revenue is estimated to be $1.4 billion, indicating a 16.17% increase compared to the same quarter of the previous year [2] Annual Estimates - Zacks Consensus Estimates forecast earnings of $8.81 per share and revenue of $5.35 billion for the year, indicating changes of +114.88% and 0% respectively compared to the previous year [3] - Recent analyst estimate revisions suggest confidence in Brinker International's business performance and profit potential [3] Valuation Metrics - Current Forward P/E ratio is 17.02, which is a discount compared to the industry average Forward P/E of 20.84 [6] - The PEG ratio is currently 0.43, significantly lower than the industry average PEG ratio of 2.65 [6] Industry Context - The Retail - Restaurants industry has a Zacks Industry Rank of 151, placing it in the bottom 39% of over 250 industries [7] - Top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Brinker International (EAT) ended the recent trading session at $173.42, showing a -5.12% change from the previous day's closing price, underperforming the S&P 500 which had a daily loss of 0.79% [1] - Prior to today's trading, shares of Brinker International had gained 6.48%, outperforming the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 5.22% [2] - The company is forecasted to report an EPS of $2.39, reflecting a 48.45% increase from the same quarter of the previous year, with a revenue estimate of $1.4 billion, indicating a 16.17% increase year-over-year [3] Earnings Estimates - For the full year, Zacks Consensus Estimates project earnings of $8.79 per share and revenue of $5.35 billion, showing changes of +114.39% and 0% respectively from the previous year [4] - Recent changes to analyst estimates for Brinker International indicate optimism regarding the business and profitability, as positive revisions reflect near-term business trends [4][5] Valuation Metrics - Brinker International has a Forward P/E ratio of 18.96, which is a discount compared to the industry average Forward P/E of 22.34 [7] - The company holds a PEG ratio of 0.47, significantly lower than the Retail - Restaurants industry average PEG ratio of 2.57 [7] Industry Context - The Retail - Restaurants industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - Brinker International operates restaurant chains including Chili's Grill & Bar and Maggiano's Little Italy, and has recently gained attention from investors [1][2] Stock Performance - Over the past month, Brinker International's shares have returned +25.3%, significantly outperforming the Zacks S&P 500 composite's +7.2% and the Zacks Retail - Restaurants industry's +2.7% [2] Earnings Estimates - The expected earnings for the current quarter are $2.36 per share, reflecting a year-over-year increase of +46.6%. The consensus estimate for the current fiscal year is $8.76, indicating a +113.7% change [5][6] - For the next fiscal year, the consensus earnings estimate is $9.57, representing a +9.2% change from the previous year [6] Revenue Growth - The consensus sales estimate for the current quarter is $1.4 billion, showing a year-over-year change of +15.7%. For the current and next fiscal years, sales estimates are $5.34 billion and $5.51 billion, indicating +20.9% and +3.2% changes, respectively [10] Recent Results - In the last reported quarter, Brinker International achieved revenues of $1.43 billion, a +27.2% year-over-year increase, and an EPS of $2.66 compared to $1.24 a year ago. The revenue exceeded the Zacks Consensus Estimate by +3.35% [11][12] Valuation - Brinker International is graded B in the Zacks Value Style Score, suggesting it is trading at a discount compared to its peers [16]

Core Viewpoint - Brinker International (EAT) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Brinker International suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Earnings Estimate Revisions - For the fiscal year ending June 2025, Brinker International is expected to earn $8.76 per share, reflecting a year-over-year increase of 113.7% [8]. - Over the past three months, the Zacks Consensus Estimate for Brinker International has risen by 5.5%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - Brinker International's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

Core Insights - Brinker International has promoted Aaron White to Executive Vice President, Chief Operating Officer, and Chief People Officer, overseeing operations and people strategy for Chili's and Maggiano's [1][2][3] Group 1: Leadership and Experience - Aaron White has a 29-year tenure with Chili's, starting as a server and bartender, and has held various leadership roles, including Co-Chief Operating Officer [4][5] - White has a proven track record in operational improvements and cultural initiatives that have contributed to the brand's success over the past 50 years [4][5] Group 2: Strategic Focus - In her new role, White will focus on enhancing operational efficiency and improving both team member and guest experiences [2][5] - The leadership team under White aims to simplify processes and elevate the restaurant culture, ensuring a rewarding environment for operators and guests alike [5][6] Group 3: Recognition and Reporting Structure - White was recently recognized in the Nation's Restaurant News Power List: Women in Foodservice for her impact on company culture and organizational change [5] - She will continue to report directly to Brinker CEO and President Kevin Hochman [6] Group 4: Company Overview - Brinker International operates over 1,600 restaurants across 29 countries and two U.S. territories, focusing on casual dining with brands like Chili's and Maggiano's [7]

Core Viewpoint - Brinker International's stock price fell nearly 17% over the past week due to a quarterly earnings report that did not meet investor expectations, compounded by several analyst price target cuts [1][6]. Financial Performance - For the fiscal third quarter of 2025, Brinker reported revenue of just under $1.43 billion, marking a 27% year-over-year increase and surpassing the average analyst estimate of $1.37 billion [2]. - The company's GAAP net income more than doubled to $119 million, while non-GAAP adjusted earnings per share rose to $2.66 from $1.24, exceeding the consensus projection of $2.49 [4]. Market Sentiment - Investors are concerned about the impact of the current trade war on the U.S. economy, particularly regarding nonessential spending like restaurant meals, which are often the first to be cut from household budgets during economic tightening [5]. - Analysts from Wells Fargo and Barclays have reduced their price targets for Brinker, with Wells Fargo lowering its target to $150 from $165 and Barclays to $155 from $165, while both maintained hold recommendations [6]. Growth Potential - Despite current market concerns, Brinker has demonstrated impressive growth in a challenging restaurant industry, suggesting that it has the potential to survive and thrive during economic downturns [7].

Financial Data and Key Metrics Changes - For Q3 2025, Brinker reported total revenues of $1.425 billion with consolidated comp sales growth of 28.2% [19] - Adjusted diluted EPS for the quarter was $2.66, up from $1.24 in the previous year [20] - Restaurant operating margins improved to 18.9%, a 470 basis points increase year over year [21] Business Line Data and Key Metrics Changes - Chili's reported same restaurant sales growth of 31.6%, driven by a 20.9% increase in traffic, a 6.3% positive mix, and a 4.4% price increase [20] - Maggiano's reported comp sales growth of 0.4%, driven by a 7.3% price increase and a 1.3% positive mix, but offset by an 8.2% decline in traffic [21] Market Data and Key Metrics Changes - Chili's sales performance significantly outpaced the industry despite no new food or value news, indicating strong operational performance [6] - The company noted that consumer sentiment remains cautious, impacting overall restaurant traffic across the industry [18] Company Strategy and Development Direction - The company is focused on improving the fundamentals of food, service, and atmosphere to sustain growth and market share [31] - Chili's is launching new menu items and marketing campaigns to enhance brand value and customer experience, including the Big QP burger [10][11] - Maggiano's is following a similar turnaround strategy as Chili's, focusing on menu simplification and eliminating unprofitable discounting [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive same-store sales growth despite upcoming tougher comparisons [30] - The company is optimistic about its ability to maintain or grow restaurant-level margins through strategic investments and improved productivity [48] Other Important Information - Capital expenditures for the quarter were approximately $80 million, driven by investments in kitchen equipment and maintenance [25] - The company repaid $125 million in funded debt, leaving a remaining balance of $90 million on its revolver [25] Q&A Session Summary Question: Concerns about sustainability of same-store sales growth - Management acknowledged the challenges of maintaining growth but emphasized their focus on improving fundamentals to drive continued success [31] Question: Notable contributors to recent momentum - Management noted that traffic remains strong year over year, with no significant slowdown observed [38] Question: Clarification on traffic trends - Management confirmed that traffic trends in April were similar to Q3, indicating sustained momentum [42] Question: Impact of tariffs on cost of sales - Management indicated that over 80% of their supply chain is sourced domestically, minimizing tariff impacts [56] Question: Future menu upgrades - Management highlighted upcoming upgrades to the rib platform and nachos, aiming to enhance customer experience and drive sales [62] Question: Capacity improvements and constraints - Management is learning from high-performing restaurants to improve capacity and traffic handling across the system [120]

Financial Data and Key Metrics Changes - For Q3 2025, Brinker International reported total revenues of $1.425 billion with consolidated comp sales growth of 28.2% [21] - Adjusted diluted EPS for the quarter was $2.66, up from $1.24 in the previous year [22] - Restaurant operating margins improved to 18.9%, a 470 basis points increase year-over-year [24] Business Line Data and Key Metrics Changes - Chili's reported same restaurant sales growth of 31.6%, driven by a 20.9% increase in traffic, a 6.3% positive mix, and a 4.4% price increase [22] - Maggiano's reported comp sales growth of 0.4%, driven by a 7.3% price increase, a 1.3% positive mix, but offset by an 8.2% decline in traffic [23] Market Data and Key Metrics Changes - Chili's sales performance significantly outpaced the industry despite no new food or value news, indicating strong operational performance [7] - The company noted that guests are pulling back on restaurant visits, favoring brands that deliver superior experiences [20] Company Strategy and Development Direction - The company is focused on improving the fundamentals of food, service, and atmosphere to sustain growth [32] - Chili's is launching new menu items and marketing campaigns to enhance brand value and customer experience, including the Big QP burger [12][13] - Maggiano's is following a similar turnaround strategy as Chili's, focusing on menu simplification and eliminating unprofitable discounting [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive same-store sales growth despite upcoming tougher comparisons [29] - The company is committed to investing in labor and operational improvements to enhance guest experiences and drive traffic [74][76] - Management acknowledged the competitive environment but believes that their value proposition and guest experience will help maintain market share [110] Other Important Information - Capital expenditures for the quarter were approximately $80 million, driven by investments in kitchen equipment and maintenance [26] - The company repaid approximately $125 million in funded debt, reducing overall leverage [26] Q&A Session Summary Question: Concerns about sustainability of same-store sales growth - Management acknowledged the challenges of tougher comparisons but emphasized their focus on improving fundamentals to sustain growth [32] Question: Notable contributors to recent momentum - Management noted that traffic remains strong year-over-year, with no significant slowdown observed [40] Question: Clarification on Chili's maintained momentum in April - Management confirmed that trends in April were similar to Q3, with strong traffic and sales results [43] Question: Expectations for restaurant level margins moving into FY 2026 - Management expects to maintain or grow restaurant margins through strategic investments and improved productivity [49] Question: Estimated tariff impact on cost of sales - Management indicated that over 80% of their supply chain is sourced domestically, minimizing tariff impacts [56] Question: Upgrading the menu platform - Management is excited about upcoming upgrades to the rib and nacho offerings, aiming to enhance customer appeal [64][66] Question: Investments in labor and operator feedback - Management is focused on strategic investments in labor to improve guest experiences and manage increased traffic [74] Question: Breakdown of traffic increase sources - Management stated that traffic growth is coming from both new guests and increased frequency from existing customers [82] Question: Pricing expectations for Chili's - Management expects pricing to moderate to 2% to 3% in the fourth quarter, with a longer-term range of 3% to 5% [88] Question: Advertising spend expectations - Management anticipates advertising spend to increase to approximately 3% of sales in the fourth quarter [97]

DALLAS, April 16, 2025 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) has scheduled its earnings conference call at 10 a.m. Eastern Time on Tuesday, April 29, 2025, to review third quarter fiscal 2025 earnings, which will be announced before the market opens on April 29, 2025. The company may also provide other business updates. The live audio webcast can be accessed through Brinker's investor relations website. A replay of the conference call will be available on the website for two weeks after th ...

Group 1: Dana (DAN) - Dana is a provider of technology driveline, sealing, and thermal-management products with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Dana's current year earnings has increased by 23.1% over the last 60 days [1] - Dana has a PEG ratio of 0.46 compared to the industry average of 1.67 and possesses a Growth Score of A [1] Group 2: Brinker International (EAT) - Brinker International owns, operates, develops, and franchises restaurants under the Chili's and Maggiano's brands, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Brinker International's current year earnings has increased by 39.8% over the last 60 days [2] - Brinker International has a PEG ratio of 0.46 compared to the industry average of 2.46 and possesses a Growth Score of A [2] Group 3: BGC Group, Inc. (BGC) - BGC Group is a brokerage and financial technology company specializing in a broad range of products, holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for BGC Group's current year earnings has increased by 9.4% over the last 60 days [3] - BGC Group has a PEG ratio of 0.32 compared to the industry average of 1.07 and possesses a Growth Score of B [4]