Track market-moving stories before they get noisy

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Brinker International?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Brinker International (EAT - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $3.10 a share, just 22 days from its upcoming earnings release on August 12, 2026.

By taking the percentage difference between the $3.10 Most Accurate Estimate and the $3.08 Zacks Consensus Estimate, Brinker International has an Earnings ESP of +0.60%. Investors should also know that EAT is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

EAT is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Wingstop (WING - Free Report) is another qualifying stock you may want to consider.

Wingstop is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 29, 2026. WING's Most Accurate Estimate sits at $1.05 a share eight days from its next earnings release.

For Wingstop, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.02 is +2.28%.

EAT and WING's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Brinker International (EAT - Free Report) Brinker International, Inc. is based in Dallas, TX. The company owns, operates, develops and franchises restaurants under the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983. It completed the acquisition of Maggiano’s in August 1995.

EAT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EAT has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.8% for the current fiscal year.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $10.75 per share. EAT boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EAT should be on investors' short list.

In the latest trading session, Brinker International (EAT - Free Report) closed at $189.35, marking a +2.09% move from the previous day. This move outpaced the S&P 500's daily loss of 1.01%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.4%.

The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 12.48% in the past month, leading the Retail-Wholesale sector's gain of 0.78% and the S&P 500's gain of 0.32%.

The upcoming earnings release of Brinker International will be of great interest to investors. It is anticipated that the company will report an EPS of $3.09, marking a 24.1% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 4.7% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.75 per share and a revenue of $5.81 billion, indicating changes of +20.79% and +7.89%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.13% increase. Brinker International presently features a Zacks Rank of #2 (Buy).

With respect to valuation, Brinker International is currently being traded at a Forward P/E ratio of 14.91. This denotes a discount relative to the industry average Forward P/E of 20.78.

We can also see that EAT currently has a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 2 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 24% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EAT in the coming trading sessions, be sure to utilize Zacks.com.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Brinker International (EAT - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Brinker International is 34.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 15.7% this year, crushing the industry average, which calls for EPS growth of 5.7%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Brinker International is 72.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 2.8%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.9% over the past 3-5 years versus the industry average of 14.4%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Brinker International. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.

Bottom LineBrinker International has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Brinker International well for outperformance, so growth investors may want to bet on it.

Seattle is no longer Chili's-less, and to celebrate, Chili's is offering airfare for some of its biggest fans to experience the new Seattle-Tacoma International Airport location

, /PRNewswire/ -- For years, thousands of Seattle-area fans have flooded Chili's social channels, inboxes, and comment sections with one simple question: when are you coming back? The moment is finally here. Chili's® Grill & Bar has returned to the area for the first time in a decade with a new location inside Seattle-Tacoma International Airport, bringing fan-favorites like the Triple Dipper® and Presidente® Margaritas to SEA Airport's newly expanded Concourse C.

For the first time in a decade, Seattle is Chili's-less no more with a new location inside Seattle-Tacoma International Airport.

Through Friday, July 17 at 3 p.m. PT, fans who respond to prompts posted on Chili’s Facebook, Instagram, and X will have the chance to receive a $500 flight credit to grab a pre-boarding marg and Big QP in Concourse C before heading wherever they please. If getting through TSA is the only thing standing between guests and their Triple Dipper, Chili's is helping by buying flights for select fans to visit.

Through Friday, July 17 at 3 p.m. PT, fans who respond to prompts posted on Chili's Facebook, Instagram, and X will have the chance to receive a $500 flight credit to grab a pre-boarding marg and Big QP in Concourse C before heading wherever they please. To support the giveaway, Chili's launched a social video inspired by a certain iconic Seattle-based '90s film, announcing that the city is Chili's-less no more.

"Seattle-area guests have been hungry for Chili's for years, and after thousands of requests, we're back in the region," said George Felix, Brinker International chief marketing officer. "Whether guests are heading out, coming home, or passing through, we're ready to bring a little Chili's energy – in the form of Triple Dippers and Presidente margs – back to the Seattle area."

Chili's is ready to welcome Seattle-area fans and travelers from around the world to Concourse C. Guests can visit the new restaurant, operated by SSP America, and follow Chili's on Facebook, Instagram and X for giveaway details and official rules.

About Chili's® Grill & Bar
Hi, welcome to Chili's! A proud leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), Chili's was honored in 2025 as one of Fast Company's Brands that Matter and Inc.'s Best in Business. The brand was also named Ad Age's Brand of the Year in 2025 and 2026. Founded in 1975, Chili's is known for serving Big Mouth Burgers®, Crispy Chicken Crispers®, and sizzling fajitas, while hand-shaking more margaritas than any other restaurant brand in the United States. Chili's operates 1,600 restaurants in 29 countries and two territories with over 70,000 team members. With a purpose to make everyone feel special, Chiliheads take food, drink and service seriously – but not themselves. Chili's was a proud winner at the 2025 MenuMasters Awards for Best New Menu Item for Nashville Hot Mozz, the breakout addition to the social media-famous Triple Dipper. For more than 20 years, Chili's has been a proud supporter of St. Jude Children's Research Hospital and has raised more than $120 million for the organization through generous guest and team member donations. Find more information at chilis.com, follow on X or Instagram, like on Facebook, or join Chili's on TikTok. 

SOURCE Chili's Grill & Bar

Brinker International (EAT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy have returned +21.1%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Retail - Restaurants industry, which Brinker International falls in, has gained 0.8%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Brinker International is expected to post earnings of $3.08 per share, indicating a change of +23.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $10.75 points to a change of +20.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $12.42 indicates a change of +15.6% from what Brinker International is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Brinker International is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Brinker International, the consensus sales estimate for the current quarter of $1.53 billion indicates a year-over-year change of +4.7%. For the current and next fiscal years, $5.81 billion and $6.11 billion estimates indicate +7.9% and +5.3% changes, respectively.

Last Reported Results and Surprise HistoryBrinker International reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $2.9 for the same period compares with $2.66 a year ago.

Compared to the Zacks Consensus Estimate of $1.48 billion, the reported revenues represent a surprise of -0.59%. The EPS surprise was +1.75%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Brinker International is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Brinker International. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Brinker International (EAT - Free Report) ended the recent trading session at $185.26, demonstrating a +2.56% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.

The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 13.8% in the past month, leading the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 2.2%.

Market participants will be closely following the financial results of Brinker International in its upcoming release. The company is predicted to post an EPS of $3.08, indicating a 23.69% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.53 billion, indicating a 4.7% increase compared to the same quarter of the previous year.

EAT's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +20.79% and +7.89%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Brinker International. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Brinker International boasts a Zacks Rank of #2 (Buy).

Looking at valuation, Brinker International is presently trading at a Forward P/E ratio of 14.54. Its industry sports an average Forward P/E of 19.93, so one might conclude that Brinker International is trading at a discount comparatively.

We can also see that EAT currently has a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.94.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 27% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Brinker International (EAT - Free Report) Brinker International, Inc. is based in Dallas, TX. The company owns, operates, develops and franchises restaurants under the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983. It completed the acquisition of Maggiano’s in August 1995.

EAT is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.08; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $10.75 per share. EAT boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EAT should be on investors' short list.

Brinker International (EAT - Free Report) closed the most recent trading day at $172.07, moving +2.42% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.

The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 21.56% in the past month, leading the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 1.21%.

Market participants will be closely following the financial results of Brinker International in its upcoming release. The company is expected to report EPS of $3.08, up 23.69% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.53 billion, reflecting a 4.7% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.75 per share and revenue of $5.81 billion. These totals would mark changes of +20.79% and +7.89%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Brinker International. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Brinker International is currently a Zacks Rank #2 (Buy).

Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 15.63. For comparison, its industry has an average Forward P/E of 20.37, which means Brinker International is trading at a discount to the group.

We can also see that EAT currently has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.03.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Inspired by the energy of reality TV's summer romances and unforgettable connections, the July Margarita of the Month arrives nationwide

, /PRNewswire/ -- This month, Chili's® Grill & Bar is making an entrance with the Bombshell Margarita of the Month, available nationwide through July 31 for just $6. Whether celebrating a new couple or unpacking TV drama, the Bombshell Marg is the perfect complement to every debrief.

Chili’s® Grill & Bar is making an entrance with the Bombshell Margarita of the Month, available nationwide through July 31 for just $6. Made with el Jimador® Blanco Tequila, Monin® Dragonfruit, triple sec, strawberry puree and house-made sour, the Bombshell Marg delivers a vibrant blend of sweet and citrusy flavors. Proudly display where your loyalty lies with the custom Bombshell vs. OG swizzle stick served in each Bombshell Marg, while supplies last.

"We know our guests are breaking down the drama of the summer's biggest romances with their friends, often sitting around booths right here at Chili's," said George Felix, chief marketing officer and executive vice president of Brinker International. "The Bombshell Marg is a fun way for us to recognize that passion and be part of the conversation in a way only we can — serving a great, affordable margarita."

The Bombshell Marg is the latest addition to Chili's fan-favorite Margarita of the Month lineup. After serving nearly 30 million margaritas in 2025, Chili's continues to keep the marg conversation flowing with monthly drops inspired by trending flavors, seasonality and culture's biggest moments, from nostalgic throwbacks to trending obsessions.

Guests who plan their calendars around each Margarita of the Month can join Chili's Margarita of the Month Club at chilis.com/motmclub. Members can track their monthly margarita journey with collectible digital stickers, build streaks throughout the year and shop exclusive Margarita of the Month Club merchandise, including a new Bombshell Marg "I got a marg!" tank top, available at welcometochilis.com on July 1, while supplies last.

Fans can make their bombshell (marg) debut now at participating Chili's locations nationwide for just $6. For more information and to find a Bombshell Marg at a location near you, visit chilis.com. At participating locations only. Must be 21+ to purchase or consume alcohol.

About Chili's® Grill & Bar     
Hi, welcome to Chili's! A proud leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), Chili's was honored in 2025 as one of Fast Company's Brands that Matter and Inc.'s Best in Business. The brand was also named Ad Age's Brand of the Year in 2025 and 2026. Founded in 1975, Chili's is known for serving Big Mouth Burgers®, Crispy Chicken Crispers®, and sizzling fajitas, while hand-shaking more margaritas than any other restaurant brand in the United States. Chili's operates 1,600 restaurants in 29 countries and two territories with over 70,000 team members. With a purpose to make everyone feel special, Chiliheads take food, drink and service seriously – but not themselves. Chili's was a proud winner at the 2025 MenuMasters Awards for Best New Menu Item for Nashville Hot Mozz, the breakout addition to the social media-famous Triple Dipper. For more than 20 years, Chili's has been a proud supporter of St. Jude Children's Research Hospital and has raised more than $120 million for the organization through generous guest and team member donations. Find more information at chilis.com, follow on X or Instagram, like on Facebook, or join Chili's on TikTok. 

SOURCE Chili's Grill & Bar

Brinker International (EAT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy have returned +18.3% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Retail - Restaurants industry, to which Brinker International belongs, has gained 1.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Brinker International is expected to post earnings of $3.08 per share for the current quarter, representing a year-over-year change of +23.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $10.75 for the current fiscal year indicates a year-over-year change of +20.8%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $12.42 indicates a change of +15.6% from what Brinker International is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Brinker International is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Brinker International, the consensus sales estimate for the current quarter of $1.53 billion indicates a year-over-year change of +4.7%. For the current and next fiscal years, $5.81 billion and $6.11 billion estimates indicate +7.9% and +5.3% changes, respectively.

Last Reported Results and Surprise HistoryBrinker International reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $2.9 for the same period compares with $2.66 a year ago.

Compared to the Zacks Consensus Estimate of $1.48 billion, the reported revenues represent a surprise of -0.59%. The EPS surprise was +1.75%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Brinker International is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Brinker International. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Brinker International (EAT - Free Report) ended the recent trading session at $173.41, demonstrating a +2.08% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has climbed by 20.07% in the past month, exceeding the Retail-Wholesale sector's loss of 5.64% and the S&P 500's loss of 1.4%.

Market participants will be closely following the financial results of Brinker International in its upcoming release. On that day, Brinker International is projected to report earnings of $3.08 per share, which would represent year-over-year growth of 23.69%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.53 billion, indicating a 4.7% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.75 per share and revenue of $5.81 billion, indicating changes of +20.79% and +7.89%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Right now, Brinker International possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Brinker International is at present trading with a Forward P/E ratio of 15.81. This expresses a discount compared to the average Forward P/E of 19.32 of its industry.

We can additionally observe that EAT currently boasts a PEG ratio of 1.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry had an average PEG ratio of 1.91 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 22% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Brinker International (EAT - Free Report) Brinker International, Inc. is based in Dallas, TX. The company owns, operates, develops and franchises restaurants under the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983. It completed the acquisition of Maggiano’s in August 1995.

EAT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Retail-Wholesale stock. EAT has a Momentum Style Score of B, and shares are up 21.6% over the past four weeks.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $10.75 per share. EAT boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EAT should be on investors' short list.

Brinker International is rated a 'buy' with a conservative price target of $160, citing strong Chili's performance and resilient consumer demand. Chili's, comprising over 90% of EAT's business, posted its 20th consecutive quarter of same-restaurant sales growth, offsetting Maggiano's ongoing turnaround. Management raised EPS guidance to $10.60–$10.85 and expects free cash flow to exceed $475 million, supporting aggressive buybacks and a robust balance sheet.

Brinker International, Inc. (EAT) Q3 2026 Earnings Call Transcript

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Casual dining used to be a tough place to make money. Then Kevin Hochman took over Brinker International (NYSE:EAT), and Chili’s started behaving like a growth stock in an apron. On Jim Cramer’s Mad Money on April 29, 2026, the same evening Brinker reported fiscal Q3 results, Hochman summed up the moment: “We’re now the number 2 casual dining brand in the U.S. on sales. We retained our number one stance as the number one traffic brand. We are now the number one alcohol restaurant brand in America. So we are firing on all cylinders and it starts with our team members taking care of our guests.”

Cramer’s framing got at why investors care: “20 quarters, 20 consecutive quarters of same-store sales growth, 31% comp from last year for Chili’s. How is that possible?” He called the consistency “cadence”, and that is the right word for what the numbers show.

The Streak in Numbers Chili’s posted its 20th consecutive quarter of same-store sales growth, +4.0%, on top of a 31.6% comp a year ago. The intra-quarter cadence matters: January came in at +0.6% as Winter Storm Fern hit traffic, then February and March each printed +5.9% with positive traffic. Hochman told Cramer April started strong.

Brinker delivered adjusted EPS of $2.90 against a $2.86 estimate, the fourth straight EPS beat, on revenue of $1.47 billion (+3.16% YoY). The company raised the low end of FY2026 non-GAAP EPS guidance to $10.60-$10.85 and narrowed revenue guidance to $5.78B-$5.82B. The earnings release spells out the rest.

What “Firing on All Cylinders” Means Hochman’s playbook is uncomplicated. “We just keep rolling with the food service and atmosphere, the fundamentals of casual dining.” Combine that with “extreme value that’s working in the marketplace,” and Chili’s has converted lapsed guests into repeat ones. It is working against a tough consumer backdrop. The University of Michigan Consumer Sentiment Index sat at 53.3 in March 2026, down 5.5% from February, well into pessimistic territory.

Capital allocation has reinforced the story. Brinker repurchased $108.0 million of stock in Q3 and $343.4 million year-to-date. Raymond James reiterated Buy with a $195 price target, and the consensus analyst target sits at $186.86. EAT trades at roughly 11x forward earnings, which is modest for a brand throwing off this kind of momentum.

What Could Trip It Up Maggiano’s remains the soft spot, with comps -4.6% and operating margin compressed to 9.6% from 14.3%. Beef inflation, delivery fees, wage pressure, and tariffs all sit on the risk list. Comparisons get harder as Chili’s laps last year’s gaudy stack. For now, the cadence is the story, and the stock is up 8.13% over the past month to $150.82 as the market rewards consistency.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Brinker International (EAT - Free Report) Based in Dallas, TX, Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983 and completed the acquisition of Maggiano’s in August 1995.

EAT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.82; value investors should take notice.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $10.72 per share. EAT boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EAT should be on investors' short list.

On May 13, 2026, Brinker International Inc EAT shares fell 6.6%, now trading at $126.36. The stock has experienced a considerable downturn, with a 52-week range of $100.30 to $187.12.

GF Value™ verdict: Current price at $126.36 is 0.1% below GF Value™ of $126.47.GF Score™ of 90/100 indicates a strong performance across key metrics.Most notable signal: Momentum rank of 10/10 suggests robust recent price performance. Is EAT Overvalued or Undervalued? Brinker International Inc EAT currently has a GF Value™ of $126.47, indicating that the stock is fairly valued at its current price of $126.36, with only a slight 0.1% margin of safety. This proximity to fair value suggests limited downside risk, but also a lack of significant upside potential. The GF Valuation label of "Fairly Valued" implies that EAT is trading close to its estimated intrinsic value, calculated using historical trading multiples, past business growth, and future performance estimates.

While the stock is not significantly overvalued, the current price reflects a cautious sentiment among investors, particularly in light of recent price declines. The minimal margin of safety means that potential investors should carefully consider market conditions and future performance forecasts before committing capital.

How Does EAT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.4x 17.2x Forward P/E 10.1x N/A Currently, EAT's P/E (TTM) of 12.4x is significantly below its 5-year median P/E of 17.2x, suggesting that the stock is trading at a discount relative to its historical valuation. This finding aligns with the GF Value™ assessment, indicating that the stock may be undervalued relative to its earnings potential. The forward P/E of 10.1x further supports this view, suggesting a favorable outlook for future earnings.

What Does EAT's GF Score™ Tell Us? Metric Rating GF Score™ 90 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 7/10 Momentum 10/10 The GF Score™ of 90/100 reflects strong performance across multiple dimensions, particularly in momentum (10/10), indicating recent strength in price action. Profitability (8/10) and growth (8/10) also suggest that Brinker International is performing well in generating profits and expanding its business. However, the financial strength rating of 6/10 indicates some areas for improvement. Overall, the high GF Score™ suggests that EAT is a robust company, albeit with some financial challenges to address.

What Are Insiders Doing with EAT Stock? There have been no insider transactions reported in the last three months for Brinker International Inc EAT . This lack of insider activity may suggest that executives and board members are maintaining their positions and confidence in the company's current strategy. However, it also indicates that insiders may not see an immediate opportunity to buy into the stock at current levels, which could be interpreted as a cautious stance.

What This Means for Investors Based on the GF Value™ assessment, Brinker International Inc EAT is currently fairly valued. The slight 0.1% undervaluation indicates that the stock is trading very close to its intrinsic value, presenting limited opportunity for upside. Investors may want to monitor the company's performance and market conditions before making any decisions.

For the complete analysis, visit the Brinker International Inc EAT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is EAT's GF Score™?

EAT's GF Score™ is 90/100, indicating a strong overall performance across key financial metrics.

Is EAT overvalued or undervalued?

According to the GF Value™, EAT is fairly valued, with its current price closely aligning with its estimated intrinsic value.

What is EAT's P/E ratio?

EAT's P/E (TTM) is 12.4x, which is significantly below its 5-year median P/E of 17.2x, suggesting that the stock is trading at a discount relative to historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Brinker International (EAT - Free Report) Brinker International, Inc. is based in Dallas, TX. The company owns, operates, develops and franchises restaurants under the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983. It completed the acquisition of Maggiano’s in August 1995.

EAT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.76; value investors should take notice.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $10.74 per share. EAT boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EAT should be on investors' short list.

The reimagined earworm celebrates Chili's fan-favorite Baby Back Ribs and puts a modern spin on one of the most well-known jingles — including a new verse, flute solo and more

, /PRNewswire/ -- Chili's Grill & Bar is celebrating the recent updates made to its popular ribs with a new take on its most recognizable tune — the Baby Back Ribs jingle. Together with four-time Grammy® Award and Emmy® Award-winning artist and longtime Chili's superfan, Lizzo, the song gets a bold new take, co-written and co-produced by the artist, alongside a video that blends Chili's signature energy with Lizzo's unmistakable, upbeat sound.

Together with four-time Grammy® Award and Emmy® Award-winning artist and longtime Chili’s superfan, Lizzo, Chili's iconic Baby Back Ribs jingle gets a bold new remix.

The remixed Baby Back Ribs jingle blends Chili’s signature energy with Lizzo’s unmistakable, upbeat sound — featuring an all-new verse that puts a spin on what “baby back, baby back” can mean.

The video shows Lizzo, an accomplished artist and classically trained flautist, busting out a flute custom designed to look like a Chili’s Baby Back Rib.

Chili's and Lizzo pay homage to the classic commercial with shot-for-shot references that call back to the original spot. Lizzo also recorded an acapella rendition of the original jingle, with the artist performing every part herself.

Chili's recently upgraded Baby Back Ribs are now available as meatier, full- or half-rack portions that give guests up to 50% more ribs, finished with a new caramelized barbecue sauce crust. The video shows Lizzo adding her own voice to the classic, including shot-for-shot references that call back to the original spot that first got "I want my baby back, baby back…" stuck in everyone's heads. Things quickly get quintessentially-Lizzo, though, as the accomplished artist and classically trained flautist busts out a flute custom designed to look like a Chili's Baby Back Rib. From there, Lizzo further infuses her distinctive style with an all-new verse that puts a spin on what "baby back, baby back" can mean.

Alongside the remix, Lizzo also recorded an acapella rendition of the original, staying true to the classic everyone knows and loves, with the artist performing every part herself.

"Weekends at Chili's were a huge part of my childhood and I've stayed a fan — you may have even seen me dress up as a Fried Mozzarella cheese pull on Halloween — so when they reached out about collaborating, I couldn't say yes fast enough," said Lizzo. "I don't think there's a more memorable jingle, so when putting my own spin on it, I really wanted to honor that history while also making it feel fun and very me."

Chili's Baby Back Ribs have been a menu mainstay for decades and, like all great hits, they've evolved over time. The brand's recently upgraded Baby Back Ribs are now available as meatier, full- or half-rack portions that give guests up to 50% more ribs, finished with a new caramelized barbecue sauce crust. Since hitting menus, Chili's is serving more ribs to guests — proving fans are more obsessed than ever.

"When we refreshed our ribs, our goal was to give guests more of what they love without straying too far from where we started," said George Felix, Chili's Chief Marketing Officer. "And with a jingle that has lived in pop culture for decades — in movies, on TV, and in people's heads — we knew the refresh had to do it justice. Lizzo nailed it by bringing something familiar and beloved into the moment with her signature creativity and energy." 

Both versions of the jingle are now live on YouTube, giving longtime fans and new audiences alike a new way to experience a song that's been stuck in America's head for decades.

Starting today, My Chili's rewards members can also enter an exclusive giveaway for a chance to win a limited-edition t-shirt signed by Lizzo and a Chili's gift card (contest rules). Lizzo recently released the title track to her forthcoming album releasing on June 5, which can be pre-ordered here.

Fans can head to their local Chili's to experience the upgraded Baby Back Ribs for themselves — just don't be surprised if you leave humming, "I want my baby back, baby back…" For more information or to find a Chili's near you, visit chilis.com.

About Chili's® Grill & Bar     
Hi, welcome to Chili's! A proud leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), Chili's was honored in 2025 as one of Fast Company's Brands that Matter and Inc.'s Best in Business. The brand was also named Ad Age's Brand of the Year in 2025 and 2026. Founded in 1975, Chili's is known for serving Big Mouth Burgers®, Crispy Chicken Crispers®, and sizzling fajitas, while hand-shaking more margaritas than any other restaurant brand in the United States. Chili's operates 1,600 restaurants in 29 countries and two territories with over 70,000 team members. With a purpose to make everyone feel special, Chiliheads take food, drink and service seriously – but not themselves. Chili's was a proud winner at the 2025 MenuMasters Awards for Best New Menu Item for Nashville Hot Mozz, the breakout addition to the social media-famous Triple Dipper. For more than 20 years, Chili's has been a proud supporter of St. Jude Children's Research Hospital and has raised more than $120 million for the organization through generous guest and team member donations. Find more information at chilis.com, follow on X or Instagram, like on Facebook, or join Chili's on TikTok. 

About Lizzo
Lizzo is a four-time GRAMMY® Award–winning, Emmy Award–winning superstar singer, songwriter, rapper, and actress, who has left an indelible and incomparable mark on popular culture. She has garnered numerous accolades, notched two Hot 100 #1 smashes, earned dozens of gold, platinum, and multi-platinum certifications, packed arenas worldwide, and shined in blockbuster films. Lizzo notably made history in 2023 when she emerged as "the first black woman to receive Record of the Year at the GRAMMY® Awards since 1994" for the 2x-platinum "About Damn Time." Prior, she shook the charts with the Diamond record "Truth Hurts." It enshrined her as both "the third female rapper to top the Hot 100 without a featured artist" and "the first black solo female R&B singer to claim the top spot since 2012." It dominated the Hot 100 for seven weeks, becoming "the longest running #1 by a solo female rap artist ever." Rolling Stone hailed it as one of the 500 Greatest Songs of All Time. She has appeared on a myriad of television shows, including Saturday Night Live, TODAY, Watch What Happens Live with Andy Cohen, Jimmy Kimmel Live!, CBS Sunday Morning, and more. She also headlined her own Emmy nominated HBO special Lizzo: Live In Concert, capturing her sold-out show at Kia Forum in Los Angeles. Along the way, her presence could be felt at the box office and on streaming networks, spanning roles in The Simpsons and Hustlers in addition to producing and starring in the #1 multi-Emmy Award–Winning, Prime reality TV show: Lizzo's Watch Out for the Big Grrrls. She founded her own activewear brand, Yitty, designed for every type of body. In 2026, she kicked off the year with the announcement of her first ever children's book, Lil Lizzo Meets Sasha B. Flootin,' hitting bookshelves this September & will be starring in the newly announced film "Rosetta" from Amazon MGM Studios.

SOURCE Chili's Grill & Bar

A month has gone by since the last earnings report for Brinker International (EAT - Free Report) . Shares have lost about 8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Brinker International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Brinker Q3 Earnings Beat Estimates, Revenues Rise Y/YBrinker reported third-quarter fiscal 2026 results, with earnings beating the Zacks Consensus Estimate while revenues missed the same. Both the top and bottom lines increased on a year-over-year basis.

In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $2.90, surpassing the Zacks Consensus Estimate of $2.85. The company reported an adjusted EPS of $2.66 in the prior-year quarter.

In the fiscal third quarter, total revenues of $1.47 billion missed the consensus mark of $1.48 billion. The top line increased 3.2% on a year-over-year basis.

During the quarter, performance was supported by continued momentum at Chili’s, where comparable restaurant sales rose 4%, and guest demand improved meaningfully as weather-related headwinds in January eased.

Brinker’s Q3 Chili’s Results Stay a Bright SpotChili’s total revenues increased 4.5% year over year to $1,362.6 million. Company sales rose 4.3% to $1,348.1 million, while franchise revenues advanced 21.8% to $14.5 million from $11.9 million a year ago.

Comparable restaurant sales for Chili’s increased 4.0% year over year. Management noted that February and March comparable sales each rose 5.9% with positive traffic, contrasting with January’s 0.6% gain, which was pressured by Winter Storm Fern and one fewer operating day tied to a holiday shift.

EAT’s Q3 Maggiano’s Trends Remain ChallengedMaggiano’s results moved in the opposite direction. Total revenues declined 11.1% year over year to $107.6 million, and company sales fell 11.1% to $107.4 million.

Comparable restaurant sales decreased 4.6% year over year, reflecting pressure from lower traffic. Management cited unfavorable comparable restaurant sales and the impact of restaurant closures as the primary drivers, partially offset by menu pricing.

Brinker’s Q3 Operating Results ImprovedIn the fiscal third quarter, operating income increased 6.2% year over year to $166.6 million, while operating income as a percentage of total revenues expanded 30 basis points to 11.3%. Net income rose 7.4% to $127.9 million.

On a per-share basis, GAAP diluted earnings increased 12.1% year over year to $2.87 from $2.56. Restaurant operating margin (non-GAAP) edged up 0.2% to $267.4 million, though the margin rate slipped 50 basis points to 18.4% of company sales. Adjusted EBITDA increased 1.4% to $223.7 million from $220.6 million a year ago.

EAT’s Q3 Cost Lines Shift YoYFood and beverage costs increased 5.7% year over year in the fiscal third quarter to $373.1 million and rose 60 basis points to 25.6% of company sales. Management attributed the rate increase to unfavorable commodity costs and menu mix, partially offset by menu pricing.

Restaurant labor rose 0.9% year over year to $456.4 million, but improved 60 basis points to 31.4% of company sales, aided by sales leverage and lower hourly labor. Restaurant expenses increased 5.2% to $358.6 million and rose 50 basis points to 24.6% of company sales, reflecting higher repairs and maintenance, delivery fees and to-go supplies, rent and other restaurant expenses, with leverage only partially offsetting those pressures.

Brinker’s Liquidity & Guidance UpdateCash and cash equivalents at the end of the thirty-nine-week period were $57.1 million, up 226.3% from $17.5 million a year ago. Net cash provided by operating activities rose 16.0% year over year to $571.8 million.

Management updated select fiscal 2026 guidance. Total revenues are still expected in the $5.78-$5.82 billion range. Non-GAAP net income per diluted share is now projected between $10.60 and $10.85, versus the prior outlook of $10.45-$10.85. Capital expenditures are expected to be $240-$250 million, down from $250-$260 million.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

VGM ScoresCurrently, Brinker International has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Brinker International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Brinker International (EAT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy have returned +1.3% over the past month versus the Zacks S&P 500 composite's +1.9% change. The Zacks Retail - Restaurants industry, to which Brinker International belongs, has lost 4.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Brinker International is expected to post earnings of $3.08 per share for the current quarter, representing a year-over-year change of +23.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

The consensus earnings estimate of $10.75 for the current fiscal year indicates a year-over-year change of +20.8%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $12.42 indicates a change of +15.6% from what Brinker International is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Brinker International.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Brinker International, the consensus sales estimate of $1.53 billion for the current quarter points to a year-over-year change of +4.7%. The $5.81 billion and $6.11 billion estimates for the current and next fiscal years indicate changes of +7.9% and +5.3%, respectively.

Last Reported Results and Surprise HistoryBrinker International reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $2.9 for the same period compares with $2.66 a year ago.

Compared to the Zacks Consensus Estimate of $1.48 billion, the reported revenues represent a surprise of -0.59%. The EPS surprise was +1.75%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Brinker International is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Brinker International. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

On June 08, 2026, Brinker International Inc EAT shares rose 4.0% today, closing at $146.14. The stock has experienced a range of price performance, achieving a 52-week high of $187.12 and a low of $100.30 over the past year.

GF Value™ verdict: Current price of $146.14 is 14.7% overvalued compared to the GF Value™ of $127.38.GF Score™: 80/100 (Strong), indicating solid performance across various financial metrics.Most notable signal: Insider activity shows that insiders sold $0.4M in the last 3 months with no buying observed. Is EAT Overvalued or Undervalued? Brinker International Inc's current stock price of $146.14 is above the GF Value™ estimate of $127.38, indicating that the stock is approximately 14.7% overvalued. This valuation suggests a lack of margin of safety for potential investors, as the price exceeds the calculated intrinsic value. The GF Valuation label categorizes the stock as "Modestly Overvalued," which poses a risk to investors considering entering a position at this level. If the stock price continues to remain elevated without corresponding improvements in company performance, it could lead to a decline in share price, aligning it more closely with its intrinsic value.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While there may be opportunities for growth within the company, the current overvaluation signals caution for investors weighing potential entry points.

How Does EAT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.3x 16.8x Forward P/E 11.7x N/A The current P/E ratio of 14.3x is 14% below its 5-year median P/E of 16.8x, indicating that the stock is trading below its historical valuation. However, the forward P/E of 11.7x suggests potential for growth, as it reflects optimistic future earnings expectations. This P/E analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that investors may not find favorable entry points at the current price level.

What Does EAT's GF Score™ Tell Us? Metric Rating GF Score™ 80/100 Financial Strength 5/10 Profitability 8/10 Growth 6/10 Valuation 7/10 Momentum 5/10 The GF Score™ of 80/100 indicates a strong overall performance for Brinker International Inc. The profitability rank of 8/10 is the strongest area, suggesting that the company maintains healthy profit margins and returns. However, the financial strength score of 5/10 shows that there is room for improvement in managing liabilities and capital structure. The growth rank of 6/10 indicates moderate potential for future expansion, while the momentum rank of 5/10 suggests a stable yet unspectacular performance in recent price movements.

What Are Insiders Doing with EAT Stock? In the last three months, insiders of Brinker International Inc sold $0.4 million worth of shares with no reported buying activity. This pattern may be interpreted as a signal of caution, suggesting that those who are closest to the company may not view the current valuation as attractive for new investments. Insider selling can sometimes indicate a lack of confidence in the company's near-term performance or a belief that shares are currently overvalued.

What This Means for Investors Based on the current GF Value™ assessment, Brinker International Inc is considered overvalued at its current price of $146.14. While the company shows strong profitability metrics and a respectable GF Score™, the intrinsic value analysis suggests cautious consideration for new investments at this price level.

For the complete analysis, visit the Brinker International Inc EAT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is EAT's GF Score™?

EAT's GF Score™ is 80/100, indicating a strong performance across key financial metrics and higher potential for long-term returns.

Is EAT overvalued or undervalued?

According to the GF Value™ verdict, EAT is overvalued, with the current price exceeding the estimated intrinsic value.

What is EAT's P/E ratio?

EAT's P/E (TTM) is 14.3x, which is below its 5-year median of 16.8x, suggesting the stock is trading at a lower valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].