Core Insights - Brinker International, Inc. operates casual dining restaurants, primarily known for its brands Chili's Grill & Bar and Maggiano's Little Italy [1] Company Overview - Brinker International, Inc. is involved in owning, franchising, and operating various restaurant brands globally, aiming to create a welcoming atmosphere for guests [1] Industry Context - The company is part of the casual dining sector, which is influenced by macroeconomic trends and consumer behavior [1]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies trends in stock prices and earnings estimates, helping investors time their positions effectively [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator for stock selection alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify stocks with high return potential, with 1 (Strong Buy) stocks averaging a +23.64% annual return since 1988, outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Brinker International (EAT) - Brinker International operates restaurants like Chili's and Maggiano's and currently holds a Zacks Rank of 3 (Hold) with a VGM Score of A [11] - The company is positioned well for growth, with a Growth Style Score of A and a projected year-over-year earnings growth of 14.2% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase to $10.16 per share further enhance its attractiveness to investors [12]

Company Performance - Brinker International's stock closed at $144.18, reflecting a -5.67% change from the previous day's closing price, underperforming compared to the S&P 500's daily loss of 0.13% [1] - Over the last month, the company's shares decreased by 1.94%, lagging behind the Retail-Wholesale sector's gain of 2.5% and the S&P 500's gain of 2.71% [2] Earnings Forecast - The upcoming earnings release is anticipated, with an expected EPS of $1.71, indicating an 80% increase from the same quarter last year, and projected revenue of $1.32 billion, reflecting a 15.5% rise year-over-year [3] - For the entire fiscal year, earnings are projected at $10.16 per share and revenue at $5.68 billion, representing increases of +14.16% and +5.46% respectively from the prior year [4] Analyst Estimates and Valuation - Recent changes in analyst estimates suggest a positive outlook for Brinker International, with the Zacks Rank system indicating a current rank of 3 (Hold) [4][6] - The company is currently trading at a Forward P/E ratio of 15.04, which is lower than its industry's Forward P/E of 20.14, indicating a potential valuation discount [7] - Brinker International has a PEG ratio of 0.99, significantly lower than the Retail - Restaurants industry's average PEG ratio of 2.32 [8] Industry Context - The Retail - Restaurants industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 182, placing it in the bottom 27% of over 250 industries [9]

Company Performance - Brinker International reported quarterly earnings of $2.49 per share, exceeding the Zacks Consensus Estimate of $2.43 per share, and up from $1.61 per share a year ago, indicating strong year-over-year growth [1] - The company achieved revenues of $1.46 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.06% and up from $1.21 billion in the same quarter last year [3] - Over the last four quarters, Brinker International has consistently surpassed consensus EPS and revenue estimates [2][3] Stock Performance - Brinker International shares have increased approximately 17.1% since the beginning of the year, outperforming the S&P 500's gain of 9.6% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.54 on revenues of $1.29 billion, and for the current fiscal year, it is $9.77 on revenues of $5.59 billion [8] - The estimate revisions trend for Brinker International was mixed ahead of the earnings release, which may influence future stock movements [6][7] Industry Context - The Retail - Restaurants industry, to which Brinker International belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, which may impact stock performance [9] - Another company in the same industry, Dave & Buster's, is expected to report a year-over-year earnings decline of 19.6% in its upcoming quarterly report [10]

Core Insights - Brinker International, Inc. reported strong financial results for the fourth quarter of fiscal 2025, with Chili's sales increasing by 24% driven by a 16% increase in traffic, leading to a two-year sales growth of 39% and a three-year growth of 45% [2][4][17] - The company achieved total sales of $1,448.9 million in Q4 2025, up from $1,196.5 million in Q4 2024, with comparable restaurant sales increasing by 21.3% overall and 23.7% for Chili's [2][4][5] - The company’s operating income margin improved to 9.8%, with a restaurant operating margin (non-GAAP) of 17.8% for the fourth quarter [4][22] Financial Performance - Total revenues for Q4 2025 were $1,461.9 million, compared to $1,208.2 million in Q4 2024, marking a variance of $253.7 million [4][22] - Net income for Q4 2025 was $107.0 million, up from $57.3 million in Q4 2024, resulting in a diluted net income per share of $2.30 compared to $1.24 [4][23] - For the full fiscal year 2025, total revenues reached $5,384.2 million, an increase of $969.1 million from $4,415.1 million in fiscal 2024 [4][22] Operational Highlights - Chili's company sales increased to $1,326.8 million in Q4 2025 from $1,072.9 million in Q4 2024, while Maggiano's sales decreased slightly [10][17] - The company authorized an additional $400.0 million for its share repurchase program, bringing the total available authority to $507.0 million [3] - The company plans to invest in capital expenditures ranging from $270.0 million to $290.0 million for fiscal 2026 [9] Guidance for Fiscal 2026 - Brinker International expects total revenues for fiscal 2026 to be in the range of $5.60 billion to $5.70 billion, with net income per diluted share, excluding special items, projected between $9.90 and $10.50 [6][9] - The company anticipates a weighted average of 45.0 million to 46.0 million shares outstanding for the upcoming fiscal year [9]

Company Overview - Brinker International (EAT) closed at $151.97, down 4.71% from the previous trading session, underperforming the S&P 500 which gained 0.78% [1] - Over the past month, shares of Brinker International have depreciated by 4.34%, while the Retail-Wholesale sector gained 1.32% and the S&P 500 gained 1.86% [2] Upcoming Financial Results - Brinker International is set to announce its earnings on August 13, 2025, with projected earnings per share (EPS) of $2.43, reflecting a 50.93% increase year-over-year [3] - The consensus estimate for revenue is $1.43 billion, which represents an 18.56% increase from the prior-year quarter [3] Full-Year Estimates - The full-year Zacks Consensus Estimates for Brinker International are earnings of $8.84 per share and revenue of $5.35 billion, indicating year-over-year changes of +115.61% for earnings and 0% for revenue [4] Analyst Estimates and Stock Performance - Recent adjustments to analyst estimates for Brinker International are crucial as they reflect changing business trends, with positive revisions indicating analysts' confidence in performance [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Brinker International at 3 (Hold) [6] Valuation Metrics - Brinker International has a Forward P/E ratio of 16.32, which is below the industry average Forward P/E of 19.44 [7] - The company has a PEG ratio of 0.38, significantly lower than the Retail - Restaurants industry's average PEG ratio of 2.43 [8] Industry Context - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 181, placing it in the bottom 27% of all industries [9]

Core Insights - Dutch Bros (BROS) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of +44.44% [1] - The company achieved revenues of $415.81 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.45% and up from $324.92 million year-over-year [2] - Dutch Bros has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $407.71 million, and for the current fiscal year, it is $0.59 on revenues of $1.58 billion [7] Industry Context - The Retail - Restaurants industry, to which Dutch Bros belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Dutch Bros may be influenced by the overall outlook of the industry, as top-ranked industries tend to outperform lower-ranked ones significantly [8]

Company Performance - First Watch Restaurant Group, Inc. (FWRG) reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.14 per share a year ago, representing an earnings surprise of -57.14% [1] - The company posted revenues of $307.89 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.55%, compared to year-ago revenues of $258.56 million [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates, but has topped consensus revenue estimates two times [2] Stock Performance - First Watch Restaurant Group shares have lost about 7.4% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $304.98 million, and $0.19 on revenues of $1.21 billion for the current fiscal year [7] Industry Outlook - The Zacks Industry Rank for Retail - Restaurants is currently in the top 41% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for First Watch Restaurant Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Company Overview - Brinker International (EAT) closed at $157.60, experiencing a -5% change from the previous day, which is less than the S&P 500's daily loss of 0.37% [1] - The company's stock has seen an 8.72% decline over the past month, underperforming the Retail-Wholesale sector's gain of 2.03% and the S&P 500's gain of 2.68% [1] Earnings Expectations - The upcoming earnings report is expected on August 13, 2025, with an anticipated EPS of $2.43, representing a 50.93% increase compared to the same quarter last year [2] - Revenue is projected to be $1.43 billion, reflecting an 18.56% increase from the prior-year quarter [2] Full Year Projections - For the full year, analysts expect earnings of $8.84 per share and revenue of $5.35 billion, indicating a +115.61% change in earnings and no change in revenue compared to last year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts are crucial as they often indicate changes in short-term business dynamics, with upward revisions suggesting positive sentiment towards the company's operations [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Brinker International as 3 (Hold) [6] - Over the past month, the Zacks Consensus EPS estimate has increased by 1.39% [6] Valuation Metrics - Brinker International has a Forward P/E ratio of 16.98, which is below the industry average Forward P/E of 19.39 [7] - The company's PEG ratio stands at 0.39, significantly lower than the Retail - Restaurants industry's average PEG ratio of 2.51 [7] Industry Context - The Retail - Restaurants industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 158, placing it in the bottom 37% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Industry Overview - U.S. restaurant sales reached $98.7 billion in June, marking a 0.6% increase from May's revised total of $98.2 billion, indicating strong consumer spending despite inflationary pressures [4][9] - The increase in restaurant sales is attributed to a broader rise in retail sales, which also grew by 0.6% in June after a decline in the previous month [5][6] Investment Opportunities - Investment in restaurant stocks such as Yum China Holdings, Inc. (YUMC), Brinker International, Inc. (EAT), and Cracker Barrel Old Country Store, Inc. (CBRL) is recommended due to positive earnings estimate revisions over the last 60 days [3][9] - Yum China Holdings has an expected earnings growth rate of 12.8% for the next year, with a 0.4% improvement in current-year earnings estimates [7] - Brinker International is projected to have a 10.5% earnings growth rate for the next year, with a 0.9% increase in current-year earnings estimates [10] - Cracker Barrel Old Country Store shows a 9.4% expected earnings growth rate for the next year, with a significant 14.3% improvement in current-year earnings estimates [12]