What's Next for Brinker International? While Brinker International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a stron ...

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]

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].