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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.

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 also includes the Zacks Style Scores.

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 given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

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 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 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 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 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.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% 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.

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 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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall 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 #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 17.69; value investors should take notice.

10 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.59 to $13.01 per share. EAT also boasts an average earnings surprise of +6.2%.

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

Key Takeaways Brinker expanded restaurant operating margins to 18% as sales leverage offset higher costs.Chili's comparable sales rose 5.6%, with traffic up 1.5% and July momentum accelerating.EAT expects 20-40 basis points of margin expansion in fiscal 2027, with more upside possible. Brinker International, Inc. (EAT - Free Report) demonstrated resilience in fiscal 2026, expanding profitability despite persistent inflationary pressures. The company reported fiscal fourth-quarter restaurant operating margins of 18%, up 20 basis points year over year. Sales leverage was the primary driver, helping offset higher food, advertising and insurance costs. Food and beverage expenses increased 80 basis points amid 4.4% commodity inflation, while labor costs benefited from strong sales growth despite roughly 3.1% wage inflation.

The momentum was particularly notable at Chili’s. Fiscal fourth-quarter comparable sales increased 5.6%, supported by 1.5% traffic growth. Management also said July sales and traffic accelerated meaningfully, suggesting the brand entered fiscal 2027 with solid momentum. The Big Crispy Chicken Sandwich, everyday value offerings and operational improvements are helping attract and retain guests.

There could be further room for margin expansion. Management expects 20-40 basis points of restaurant-level margin improvement on a 52-week basis in fiscal 2027, potentially reaching 50 basis points with the benefit of the 53rd week. Importantly, the company has built relatively conservative inflation assumptions into its outlook, leaving potential upside if sales outperform or costs moderate.

EAT also believes its restaurants retain capacity to accommodate more traffic, while higher average unit volumes could support additional leverage. However, management plans to reinvest part of the gains into guest experience rather than maximize near-term flow-through.

With fiscal 2027 guidance of $12.60-$13.40 per share and continued sales momentum, EAT appears positioned for further earnings growth if execution remains strong.

Darden and Texas Roadhouse Also Show Margin ResilienceDarden Restaurants (DRI - Free Report) and Texas Roadhouse (TXRH - Free Report) are two notable casual-dining peers that provide useful benchmarks for Brinker as investors assess margin expansion amid inflation. The company’s diversified portfolio and scale provide an advantage in managing labor, food and operating costs. Darden’s trailing operating margin stood at about 12.2%, above EAT’s 10.8%, highlighting its strong profitability profile.

Texas Roadhouse, meanwhile, has demonstrated resilience despite exposure to beef and other commodity costs. With an operating margin of about 7.9%, Texas Roadhouse’s revenue growth remained strong, reflecting continued consumer demand.

For EAT, the key differentiator is its improving margin trajectory. Management expects restaurant-level margin expansion in fiscal 2027 despite incorporating low-single-digit commodity and wage inflation. If sales momentum remains strong and inflation eases faster than anticipated, EAT could potentially outperform its margin outlook.

EAT’s Price Performance, Valuation and EstimatesBrinker’s shares have gained 67.4% over the past six months, against the industry’s 11.7% decrease.

Price Performance
Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 17.25, down from the industry average of 22.14.

P/E (F12M)
Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2026 earnings per share has increased, as shown in the chart.

Image Source: Zacks Investment Research

EAT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Brinker International shares surged 69.4% in three months as Chili's turnaround gained traction.Chili's posted 6% comparable-sales growth, with traffic up 1.5% and menu launches driving momentum.Brinker expects fiscal 2027 EPS of $12.60-$13.40 as margins, reimages and new-unit growth support expansion. Brinker International, Inc. (EAT - Free Report) has delivered an impressive run, with shares advancing about 69.4% over the past three months. Over the same period, the industry and the S&P 500 have gained 1.3% and fallen 0.4%, respectively.

The sharp gain reflects improving fundamentals at its Chili’s business, where sustained traffic growth, successful menu launches and stronger restaurant economics have strengthened Brinker’s growth outlook. The company’s latest results suggest that the turnaround is gaining traction.

Notably, Brinker has outperformed peers such as Wingstop Inc. (WING - Free Report) , Shake Shack Inc. (SHAK - Free Report) and Domino's Pizza, Inc. (DPZ - Free Report) during this period.

Price Performance
Image Source: Zacks Investment Research

Chili’s Continues to Drive GrowthChili’s remains the centerpiece of Brinker’s investment story. The brand generated 6% comparable-sales growth in the fourth quarter, marking its 21st consecutive quarter of same-store sales growth. The result was particularly impressive, as Chili’s delivered another solid increase after posting a strong 24% comparable-sales gain in the year-ago quarter. Over the past three years, Chili’s comparable sales have grown roughly 50%.

Traffic is becoming an increasingly important component of that growth. Fourth-quarter comparable sales increased 5.6%, driven by 1.5% traffic growth and 4.3% pricing, with a 0.2% negative mix impact. Management also noted that sales and traffic accelerated significantly in July and August, offering an encouraging start to fiscal 2027.

Chili’s focus on value is helping the brand attract consumers across income groups. Management noted that the average per-person spend at Chili’s remains $3-$4 below competitors, reinforcing its value positioning and helping generate a cycle of higher traffic, sales growth, margin improvement and reinvestment.

Big Crispy Strengthens the BrandMenu innovation is another important growth driver. The Big Crispy Chicken Sandwich has significantly exceeded management’s initial expectations. Daily sales climbed from around 20 sandwiches per restaurant before its launch to 55 by the end of the fourth quarter, representing a 175% increase. Management said sales continued to build during the quarter.

The product joins other successful offerings, including the Big Smasher, Big QP and Triple Dipper, which have helped Chili’s attract new customers. Marketing initiatives such as Margarita of the Month and refreshed advertising campaigns are also helping maintain the brand’s visibility and relevance.

Improving Margins Could Support EarningsBrinker is also benefiting from better operating leverage. Fiscal 2026 revenues increased 7.9%, restaurant operating margin expanded 30 basis points and adjusted EPS advanced 20.6%. In the fourth quarter, revenues totaled $1.536 billion, while adjusted EPS rose 23% year over year to $3.07.

Restaurant operating margin improved to 18% from the prior year, aided by sales leverage. Labor costs were particularly favorable, improving 90 basis points year over year despite wage inflation and higher health-insurance costs.

Management expects further margin improvement as the business grows. Rather than simply maximizing near-term profitability, Brinker plans to reinvest in food, restaurant atmosphere and the overall guest experience. This approach could help sustain traffic gains and strengthen the brand over time.

Expansion Adds to the Long-Term OpportunityBrinker’s fiscal 2027 outlook also supports the bullish case. The company expects revenues of $6.15 billion to $6.27 billion and adjusted EPS of $12.60 to $13.40. Its assumptions include mid-single-digit comparable-sales growth and positive traffic at Chili’s for the remainder of the year. The outlook also includes the benefit of a 53rd operating week.

EAT is simultaneously investing in its restaurant base. After completing 11 Chili’s reimages in fiscal 2026, Brinker plans to complete another 60 to 80 in fiscal 2027. New-unit growth is expected to be modest initially but accelerate from fiscal 2028, with a stronger development pipeline already taking shape.

Brinker’s Bottom Line Continues to StrengthenBrinker’s earnings outlook remains encouraging, with estimates pointing to solid profit growth over the next two fiscal years. The company is expected to generate $13.01 in earnings per share in fiscal 2027, representing a 21.1% year-over-year increase. Earnings are projected to rise further in fiscal 2028, reaching $13.90 per share, up 6.8% from the prior-year level.

Image Source: Zacks Investment Research

The continued improvement in earnings reflects Brinker’s strong operating momentum, particularly at Chili’s, where healthy traffic, menu innovation and improved restaurant-level economics are supporting profitability. If the company maintains this momentum, sustained earnings growth could provide further support for EAT shares.

EAT Offers Attractive ValuationDespite its strong stock performance over the past three months, Brinker does not appear excessively valued relative to several restaurant peers. EAT currently trades at 17.32X forward 12-month earnings, which is below the industry average and suggests that the stock still offers a relatively reasonable valuation.

The valuation looks even more appealing when compared with several high-growth restaurant stocks. Wingstop, Shake Shack and Domino’s Pizza trade at forward P/E of 22.35X, 53.53X and 17.19X, respectively. While each company has its own growth profile, EAT’s lower valuation multiple, combined with its strong earnings outlook, could make the stock an attractive option for investors seeking a balance between growth and valuation.

EAT P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Does EAT Still Have Room to Run?Brinker’s rally appears to be supported by a meaningful improvement in its underlying business rather than short-term market enthusiasm alone. Chili’s continues to strengthen its competitive position through compelling value, successful menu innovation, rising traffic and a more engaging guest experience, while improving restaurant economics are translating into stronger profitability.

The company also has additional growth opportunities through restaurant reimaging, new-unit development and disciplined capital allocation. At the same time, the stock’s valuation remains relatively reasonable compared with several restaurant peers, making the risk-reward profile appealing. With earnings momentum, a strengthening core brand and multiple avenues for future growth, investors may consider adding EAT to their portfolios as Brinker’s turnaround story continues to mature.

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Brinker International (EAT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Brinker International currently has an average brokerage recommendation (ABR) of 1.62, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.62 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 16 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 64% and 8% of all recommendations.

Brokerage Recommendation Trends for EAT

Check price target & stock forecast for Brinker International here>>>

The ABR suggests buying Brinker International, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is EAT Worth Investing In?In terms of earnings estimate revisions for Brinker International, the Zacks Consensus Estimate for the current year has increased 6.8% over the past month to $13.01.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

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

Therefore, the Buy-equivalent ABR for Brinker International may serve as a useful guide for investors.

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 also includes the Zacks Style Scores.

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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and 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 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 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.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% 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.

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.

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.

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 #2 (Buy) 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 7.2% over the past four weeks.

10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.59 to $13.01 per share. EAT boasts an average earnings surprise of +6.2%.

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

, /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) will host an investor day on Thursday, September 17, 2026, at its headquarters in Dallas, TX. During the investor day presentation, Brinker's senior leadership team will discuss the company's long-term strategy, initiatives, and outlook. The presentation will begin at 8:30 a.m. CT and end at approximately 11:15 a.m. CT.

Due to limited capacity, in-person attendance is by invitation only. For those not attending the event in-person, a live public webcast can be accessed through Brinker's investor relations website. A replay of the event will be available on Brinker's investor relations website until at least October 17, 2026.

ABOUT BRINKER
Brinker International, Inc. (NYSE: EAT) is one of the world's leading casual dining restaurant companies and proud home to two beloved brands: Chili's® Grill & Bar and Maggiano's Little Italy®. Brinker has grown to own, operate or franchise more than 1,600 restaurants across 29 countries and two U.S. territories – serving bold flavors, handcrafted drinks, and genuine hospitality along the way. Brinker is proud to have been named the top workplace in Dallas-Fort Worth by both the Dallas Business Journal and The Dallas Morning News in 2025, and CEO Kevin Hochman was awarded the 2025 IFMA Gold Plate Award and named a Barron's 2025 Top 25 CEO in the world. Brinker brands continue to earn national recognition as well with Chili's being honored in 2025 with placements on the Fast Company Brands that Matter and Inc. Best in Business lists and named Ad Age Brand of the Year among other honors. The purpose is simple: to make everyone feel special – whether it's a celebration over sizzling fajitas or a casual night enjoying Italian favorites with family. Learn more about our brands, our culture, and our people at brinker.com and on LinkedIn. 

SOURCE Brinker International, Inc.

Key Takeaways Four stocks stand out for strong interest coverage ratios and earnings growth prospects amid volatility.Vertiv Holdings' sales and EPS are projected to grow 36.6% and 58.1%, respectively, this financial year.Garrett Motion's sales and EPS are projected to grow 7.2% and 25.7%; the stock rose 94.9% in the past year. In a market shaped by shifting macroeconomic factors, investors should avoid relying solely on stock price movements when making decisions. Instead, reviewing a company’s fundamentals — financial strength, earnings trends and business outlook — is essential for identifying stocks that can better withstand uncertainty. U.S. equities delivered mixed performance on Monday as investors balanced geopolitical developments, commodity moves and expectations around a major technology earnings event.

The Dow Jones Industrial Average gained 140.16 points, while the S&P 500 and Nasdaq Composite slipped 21.51 and 200.31 points, respectively, as technology stocks faced pressure ahead of NVIDIA Corporation’s (NVDA) earnings report. A decline in oil prices provided some relief to bond markets by easing concerns over rising yields, even as investors assessed Washington’s intensified economic pressure campaign against Iran.

Against this backdrop, assessing a company’s debt-servicing ability becomes especially important, as elevated borrowing costs can pressure profitability and financial flexibility. While sales and earnings are often the primary metrics investors track, they may not fully reflect whether a company can comfortably meet its financial obligations. This is where the interest coverage ratio becomes particularly important, as it measures how easily a company can pay interest expenses on its outstanding debt.

Garrett Motion Inc. (GTX - Free Report) , Brinker International, Inc. (EAT - Free Report) , Vertiv Holdings Co (VRT - Free Report) and Mueller Water Products, Inc. (MWA - Free Report) stand out for their strong interest coverage ratios.

Why Interest Coverage Ratio?The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt.

Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.

Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.

The interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest.

An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over time.

The Winning StrategyApart from having an interest coverage ratio that is more than the industry average, adding a favorable Zacks Rank and a VGM Score of A or B to your search criteria should lead to better results.

Interest coverage ratio greater than X-Industry Median

Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.

5-Year Historical EPS Growth (%) greater than X-Industry Median: Stocks with a strong EPS growth history.

Projected EPS Growth (%) greater than X-Industry Median: This is the projected EPS growth over the next three to five years. This shows that the stock has near-term earnings growth potential.

Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

VGM Score of less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Here are four of the 17 stocks that qualified the screening:

Garrett Motion, a global leader in differentiated turbocharging and electrification technologies for mobility and industrial applications, carries a Zacks Rank #2 and has a VGM Score of A. GTX has a trailing four-quarter earnings surprise of 16.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Garrett Motion’s current financial-year sales and EPS calls for growth of 7.2% and 25.7%, respectively, from the year-ago period. The stock has soared 94.9% over the past year.

Brinker International, one of the world's leading casual dining restaurant companies, carries a Zacks Rank #2 and has a VGM Score of A. EAT has a trailing four-quarter earnings surprise of 6.2%, on average.

The Zacks Consensus Estimate for Brinker International’s current financial-year sales and EPS indicates growth of 7.7% and 20.6%, respectively, from the year-ago period. The stock has advanced 56.9% over the past year.

Vertiv Holdings, a global leader in critical digital infrastructure, carries a Zacks Rank #2 and has a VGM Score of B. VRT has a trailing four-quarter earnings surprise of 12.6%, on average.

The Zacks Consensus Estimate for Vertiv Holdings’ current financial-year sales and EPS implies growth of 36.6% and 58.1%, respectively, from the year-ago period. The stock has soared 99.3% over the past year.

Mueller Water Products, a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 13.2%, on average.

The Zacks Consensus Estimate for Mueller Water Products’ current financial-year sales and EPS suggests growth of 3.5% and 16.8%, respectively, from the year-ago period. The stock has fallen 7.3% over the past year.

The grill & bar is celebrating the ritual of the 19th hole with the Chili's Golf Club, complete with a clubhouse experience and a limited-edition apparel collection with Rhoback

, /PRNewswire/ -- As golf's biggest names wrap up the season chasing trophies, Chili's® Grill & Bar is celebrating the everyday golfer — the ones who love this game the most, occasionally play it the worst and have the best time doing it — with the Chili's Golf Club.

Chili’s is celebrating the everyday golfer — the ones who love this game the most, occasionally play it the worst and have the best time doing it — with the Chili’s Golf Club. Open August 28 to 29 at DeBell Golf Club in Burbank, California, Chili's first-ever location on a golf course welcomes golfers and fans alike.

The campaign pays homage to the people who may never shoot under par but somehow always have the best stories by the time they reach the 19th hole. The film features cameos from Wesley Bryan, Caleb Pressley, Jena Sims Koepka, Chaz Bowker, Josh Kelley, and JaNa Craig.

Not everyone can make it to the Chili’s Golf Club, but everyone can dress the part. Fans can shop the limited-edition Rhoback X Chili's collection, custom-designed exclusively for the Chili’s Golf Club.

The Rhoback X Chili's collection is inspired by golf’s favorite post-round tradition, the 19th hole, and blends Rhoback's premium apparel with Chili's unmistakable personality.

Chili's is taking over DeBell Golf Club in Burbank, California, turning the clubhouse into the ultimate 19th hole — the post-round tradition where golfers gather to relive the round over food, drinks and stories about shots from the day that somehow get a little better every time they're told. Open August 28 to 29 from 9 a.m. to 5 p.m., Chili's first-ever location on a golf course welcomes golfers and fans alike. Whether guests are wrapping up 18 holes or simply stopping by for Chili's favorites like the Triple Dipper®, guests can browse the limited-edition Rhoback X Chili's gear in the pro shop and enjoy Chili's take on popular golf course drinks, including the Transfusion Marg and Tee Time Marg, available only at the Chili's Golf Club.

Not everyone can make it to the Chili's Golf Club at DeBell, but everyone can dress the part. That's why Chili's partnered with Rhoback, one of the fastest growing active-lifestyle apparel brands, to collaborate on a custom-designed collection, exclusively for the Chili's Golf Club. Inspired by golf's favorite post-round tradition and featuring the official Chili's Golf Club crest, the limited-edition collection blends Rhoback's premium apparel with Chili's unmistakable personality.

"Chili's is the people's clubhouse, so it only made sense to bring that spirit to the course by building the Chili's Golf Club on a public muni, complete with the 19th hole of every golfer's dreams," said George Felix, chief marketing officer and executive vice president of Brinker International. "Our friends at Rhoback created the ultimate Chili's Golf Club gear that's ready for wherever the round takes you, from the first tee to the 19th hole, and every swing – good or bad – in between."

Fans can shop the Rhoback X Chili's collection at rhoback.com/chilis while supplies last, including:

The Rhoback X Chili's Presidente Margarita Performance Polo | $132 (Men's), $96 (Women's): Available in both Men's and Women's styles with breathable, wrinkle-resistant fabric, it's the perfect uniform for going from the golf course to a round of Presidente Margaritas. The Rhoback X Chili's Mulligan Performance Polo | $132: Named after every golfer's game-saving shot, this signature polo has enough style to distract from your eighth mulligan. The Rhoback X Chili's Champion's Dinner Performance Polo | $132: Dress like a champion (even if your scorecard says otherwise) in this breathable, four-way stretch polo inspired by one of golf's greatest traditions. The Rhoback X Chili's Hesi Performance Hoodie | $142: Rhoback's best-selling lightweight performance hoodie that's built for early tee times and late stays at the clubhouse. The Rhoback X Chili's Horizon Block Performance Q-Zip | $158: Whether hitting the links or perfecting your cheese pull, this ultra-soft Q-Zip is for cooler days on and off the course. The Rhoback X Chili's Ready Crewneck | $135: Made for the drive home, the Chili's booth and explaining why that triple bogey wasn't entirely your fault. The Rhoback X Chili's Performance Q-Zip | $154 (Men's), $118 (Women's): Available in both Men's and Women's styles, this lightweight performance layer is built for chilly mornings, long rounds and pretending that last hole never happened. The Rhoback X Chili's Poly Hat | $54: Lightweight, breathable and moisture-wicking, the Poly Hat is available in two colors and designed to keep you cool. The Rhoback X Chili's Retro Rope Hat | $54: A lightweight hat with a rope design that'll keep the sun out of your eyes (yes, you can still blame the sun for being in your eyes). The collection is also featured in Chili's campaign film that pays homage to the everyday golfer, featuring cameos from Wesley Bryan, Caleb Pressley, Jena Sims Koepka, Chaz Bowker, Josh Kelley, and JaNa Craig. Shared across Chili's and partner social handles, the film is a tribute to the people who may never shoot under par but somehow always have the best stories by the time they reach the 19th hole.

To learn more about Chili's Golf Club, visit chilis.com/chilisgolfclub, and follow along on Chili's social channels for chances to win a tee time. Head to rhoback.com/chilis to shop the collection.

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 Rhoback
Rhoback, the active lifestyle brand known for its distinctive dog logo and premium apparel was born in Charlottesville, Virginia in 2016, named after the real inspiration behind it all, the Rhodesian Ridgeback. Having started out selling from a wooden camper, to becoming one of the fastest growing apparel brands in the country, they have built a loyal community through fun content, creative designs, and the highest quality fabrics. With the goal to create apparel that kept up with their active lives, Rhoback has focused on their ecom business and are now introducing wholesale partners and their own retail footprint. With a strong focus on creating content, check out Rhoback's social media pages on Instagram, TikTok, X, YouTube, and Facebook. To check out more of their products, head to Rhoback.com.

SOURCE Chili's Grill & Bar

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Baird analyst Chris O’Cull initiated coverage on Brinker International Inc (NYSE:EAT) with an Outperform rating and announced a price target of $325. Brinker closed at $246.06 on Friday. See how other analysts view this stock. Wolfe Research analyst Margaret-May Binshtok initiated coverage on Jersey Mike’s Subs (NYSE:JMKE) with a Peer Perform rating. Jersey Mike’s Subs shares closed at $23.86 on Friday. See how other analysts view this stock. Goldman Sachs analyst Mark Delaney initiated coverage on Aeva Technologies Inc (NASDAQ:AEVA) with a Neutral rating and announced a price target of $20. Aeva Technologies closed at $18.29 on Friday. See how other analysts view this stock. Morgan Stanley analyst Alain Gabriel initiated coverage on ArcelorMittal SA (NYSE:MT) with an Overweight rating and announced a price target of $82. ArcelorMittal shares closed at $72.20 on Friday. See how other analysts view this stock. Cantor Fitzgerald analyst Pete Stavropoulos initiated coverage on Nuvectis Pharma Inc (NASDAQ:NVCT) with an Overweight rating. Nuvectis Pharma closed at $23.56 on Friday. See how other analysts view this stock. Considering buying EAT stock? Here’s what analysts think:

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Danske Bank A S acquired a new stake in Brinker International, Inc. (NYSE:EAT – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 4,261 shares of the restaurant operator’s stock, valued at approximately $716,000.

A number of other institutional investors also recently bought and sold shares of the stock. UBS Group AG increased its stake in Brinker International by 103.2% during the 4th quarter. UBS Group AG now owns 2,975,655 shares of the restaurant operator’s stock valued at $427,066,000 after purchasing an additional 1,511,266 shares in the last quarter. Balyasny Asset Management L.P. raised its holdings in shares of Brinker International by 667.5% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,142,263 shares of the restaurant operator’s stock worth $163,938,000 after buying an additional 993,435 shares during the last quarter. Norges Bank acquired a new stake in shares of Brinker International during the fourth quarter worth $83,603,000. Capital World Investors lifted its stake in shares of Brinker International by 96.5% during the fourth quarter. Capital World Investors now owns 1,137,863 shares of the restaurant operator’s stock worth $163,306,000 after buying an additional 558,799 shares during the period. Finally, Samlyn Capital LLC grew its holdings in shares of Brinker International by 104.9% during the third quarter. Samlyn Capital LLC now owns 878,584 shares of the restaurant operator’s stock valued at $111,299,000 after buying an additional 449,871 shares during the last quarter.

Brinker International Trading Up 5.6% NYSE EAT opened at $246.06 on Friday. The company has a market capitalization of $10.28 billion, a PE ratio of 22.60, a P/E/G ratio of 1.27 and a beta of 1.24. The company has a fifty day moving average of $195.50 and a 200 day moving average of $163.52. Brinker International, Inc. has a 1 year low of $100.30 and a 1 year high of $253.71. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.35.

Brinker International (NYSE:EAT – Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing the consensus estimate of $3.09 by ($0.02). The business had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.53 billion. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. Brinker International’s revenue for the quarter was up 5.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.30 earnings per share. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. Research analysts forecast that Brinker International, Inc. will post 13.24 earnings per share for the current year. Insider Transactions at Brinker International In related news, SVP Daniel S. Fuller sold 9,960 shares of Brinker International stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $243.43, for a total transaction of $2,424,562.80. Following the completion of the transaction, the senior vice president directly owned 32,086 shares in the company, valued at approximately $7,810,694.98. This trade represents a 23.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Kevin Hochman sold 40,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $243.15, for a total value of $9,726,000.00. Following the completion of the transaction, the chief executive officer directly owned 144,090 shares of the company’s stock, valued at $35,035,483.50. The trade was a 21.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 133,105 shares of company stock valued at $32,070,729. 1.43% of the stock is owned by insiders.

Analysts Set New Price Targets EAT has been the topic of several research reports. Barclays upped their target price on Brinker International from $170.00 to $175.00 and gave the company an “equal weight” rating in a research report on Thursday, April 30th. DA Davidson boosted their price target on Brinker International from $160.00 to $260.00 and gave the company a “neutral” rating in a research note on Thursday, August 13th. UBS Group increased their price objective on Brinker International from $190.00 to $260.00 and gave the company a “buy” rating in a report on Monday, August 10th. TD Cowen raised their price objective on Brinker International from $210.00 to $270.00 and gave the stock a “buy” rating in a research note on Wednesday, August 12th. Finally, Stephens lifted their target price on Brinker International from $220.00 to $300.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. Sixteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Brinker International has an average rating of “Moderate Buy” and a consensus target price of $238.05.

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Brinker International, Inc (NYSE: EAT) is a leading global operator of casual dining restaurants. The company’s portfolio is anchored by its flagship Chili’s® Grill & Bar concept and Maggiano’s® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili’s brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.

Read More Five stocks we like better than Brinker International 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit? Want to see what other hedge funds are holding EAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Brinker International, Inc. (NYSE:EAT – Free Report).

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Brinker International (EAT - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The upward trend in estimate revisions for this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Brinker International, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $2.29 per share, which is a change of +18.7% from the year-ago reported number.

Over the last 30 days, three estimates have moved higher for Brinker International compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 5.2%.

Current-Year Estimate RevisionsFor the full year, the company is expected to earn $12.77 per share, representing a year-over-year change of +18.9%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Brinker International. Over the past month, seven estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 6.28%.

Favorable Zacks RankThanks to promising estimate revisions, Brinker International currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

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

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Brinker International because of its solid estimate revisions, as evident from the stock's 24% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

Aaron M. White, the EVP, COO and CPO of Brinker International, Inc. (EAT +1.92%), disposed of 25,736 shares of common stock at $239.51 per share on August 13 and August 14, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$6.2 millionShares sold (direct)25,736Post-transaction shares (directly held)42,756Post-transaction value$10.1 millionTransaction value based on SEC Form 4 weighted average sale price ($239.51); post-transaction value based on the August 14 market close ($237.15).

Key questionsWhat is the primary composition of this disposition?
The transaction included 16,220 shares sold directly on the open market and 9,516 shares withheld to cover tax liabilities associated with a simultaneous vesting event on August 13.How has the stock performed leading up to this executive sale?
Brinker International shares generated a roughly 50% total return over the 12-month period ending on the August 14 transaction date.What level of equity interest does the executive retain?
Following the disposal, White retains 42,756 shares representing a 0.1% insider ownership stake.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$237.15Market Capitalization$10.2 billionRevenue (TTM)$5.7 billionNet Income (TTM)$462.9 millionCompany SnapshotBrinker International operates and licenses casual dining restaurants under two primary brands: Chili's Grill & Bar and Maggiano's Little Italy, generating revenue through food and beverage sales across owned, managed, and franchised locations.The company operates a multi-unit restaurant business model with a portfolio of approximately 1,648 restaurants, leveraging both company-operated and franchise structures to expand market presence while managing capital efficiency.The company serves casual-dining consumers in domestic and international markets, targeting middle-income diners seeking affordable, high-quality dining experiences in a relaxed restaurant environment.Brinker International is a substantial casual dining operator with a market capitalization of $10.2 billion and TTM revenue of $5.7 billion, positioning it as a significant player in the North American restaurant industry. The company's dual-brand portfolio and diversified geographic footprint provide operational leverage and brand diversification, while its franchise model enables capital-efficient expansion. With a strong recent performance trajectory reflected in a roughly 50% one-year share price appreciation, Brinker demonstrates resilience and operational execution in the consumer cyclical dining sector.

What this transaction means for investorsLike the CEO on one of the same days last week, White sold part of his stock outright and had the rest withheld for taxes. In other words, this is the company's operating chief taking some gains after Chili's turnaround carried the shares up about 50% in a year. He kept nearly 43,000 shares, and as the executive who runs the restaurants day-to-day, White perhaps sits closest to what actually drove those gains.

Chili's grew comparable sales 5.6% last quarter and kept outrunning the casual-dining industry, which the company credits to steadier operations, better food, and everyday value rather than any single promotion. Company sales reached $1.52 billion. The harder part of White's job now is protecting profit while holding those prices. On the earnings call, CFO Mika Ware said the company is "very protective of our value proposition" and mindful about where it reinvests, a signal that Brinker would rather guard traffic than chase margin.

That balance is the real story under the stock. Chili's is winning by giving diners more for their money, and the test ahead is whether it can keep doing that without letting the value that fuels the traffic eat into its profits.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Daniel S. Fuller, chief legal officer of Brinker International, Inc. (EAT +1.92%), disposed of 13,481 shares of common stock on August 13 and August 17 in a transaction valued at about $3.3 million, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold11,281Shares gifted2,200Transaction value~$3.3 millionPost-transaction shares42,098Post-transaction shares (directly held)42,046Post-transaction shares (indirectly held)52Post-transaction value$10.18 millionTransaction value based on SEC Form 4 weighted average sale price ($243.31); post-transaction value based on the August 17 market close ($241.71).

Key questionsWhat portion of the reported activity was non-discretionary?
A total of 5,480 shares were withheld to satisfy tax obligations associated with the vesting of 15,440 shares on August 13, representing a routine component of the insider's equity compensation management.What is the composition of the remaining equity stake?
Fuller maintains a direct position of 42,046 shares alongside an indirect holding of 52 shares through the company 401(k) plan, resulting in a total ownership stake of 0.1% of the firm.How does the current disposition relate to the stock's performance?
The weighted average execution price of $243.31 occurred after the shares delivered a roughly 50% total return over the 12 months preceding the August 17 transaction date.Were any derivative securities involved in this filing?
While the filing detailed the disposal of common stock, it also noted the acquisition of 15,440 shares through an award vesting, though no outstanding derivative security counts were reported in the specific transaction tables.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$237.15Market Capitalization$10.2 billionRevenue (TTM)$5.7 billionNet Income (TTM)$462.9 millionCompany SnapshotBrinker International operates and franchises casual dining restaurants under two primary brands: Chili's Grill & Bar and Maggiano's Little Italy, generating revenue through restaurant operations, food and beverage sales, and franchise licensing fees across domestic and international markets.The company operates a franchise-based business model that combines company-owned and managed locations with franchised establishments, enabling capital-efficient expansion while maintaining brand consistency and operational control across its portfolio.Brinker International targets middle-market consumers seeking casual dining experiences, with a primary customer base comprising families and social diners in North America and select international markets.Brinker International is a leading casual dining operator with a market capitalization of $10.2 billion and TTM revenues of $5.7 billion, operating over 1,600 restaurants globally. The company has demonstrated strong operational momentum, with its stock appreciating 50% over the past year, reflecting investor confidence in its brand portfolio and execution strategy. Brinker's competitive advantages include established brand recognition, an efficient franchise model, and a diversified geographic footprint that positions it favorably within the casual dining segment.

What this transaction means for investorsFuller is just one of several Brinker executives to sell in the same short window, and the trend is clear enough that the individual filing barely matters. Several leaders had stock vest on the same August date, and each sold part while the rest went to taxes, all with Chili's shares near a high.

What that clustered selling sits on top of is a company heading into its hardest comparison in years. Brinker just closed fiscal 2026 having grown Chili's same-store sales for a fifth straight year, a run the company pegs at a cumulative 71%, with fourth-quarter company sales of $1.52 billion. The natural question is what fiscal 2027 looks like against that, and management has been cautious. On the earnings call, CFO Mika Ware described building "a little bit of upside for July" into the outlook while assuming a tougher road after, signaling guidance the company hopes to beat rather than merely meet. That framing is more notable than any of these insider sales. Brinker is setting expectations it can clear, which suggests confidence, but lapping a 71% surge means fiscal 2027 is where the market and the consumer decide whether Chili's momentum has staying power.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Cindy L. Davis, a director at Brinker International, Inc. (EAT +1.92%), disclosed a sale of 1,775 shares of common stock on August 13, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$442,000Shares sold (directly held)1,775Post-transaction shares (directly held)8,973Post-transaction value$2.1 millionTransaction value based on SEC Form 4 weighted average sale price ($248.92); post-transaction value based on the August 13 market close ($238.61).

Key questionsWhat is the scale of this transaction relative to the insider's total direct equity position?
The sale of 1,775 shares represents a 17% reduction of the insider's direct common stock holdings, leaving a remaining balance of 8,973 shares held directly.How did the execution price compare to the market valuation on the day of the trade?
The shares were sold at a weighted average price of $248.92 per share, which was higher than the $238.61 price at the August 13 market close.What brand operations currently drive the underlying business value for Brinker International?
The company manages and licenses casual dining establishments primarily through two brands, Chili's Grill & Bar and Maggiano's Little Italy, with a total footprint of over 1,600 restaurants.What is the current market value of the insider's remaining direct investment?
As of the August 14 market close of $237.15, the insider's remaining 8,973 directly held shares have a market value of approximately $2.1 million.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$237.15Market Capitalization$10.2 billionRevenue (TTM)$5.7 billionNet Income (TTM)$462.9 millionCompany SnapshotBrinker International operates and licenses casual dining restaurants under two primary brands: Chili's Grill & Bar and Maggiano's Little Italy, generating revenue through restaurant operations, food and beverage sales, and licensing arrangements across domestic and international markets.The company operates a franchised and company-operated restaurant model, generating revenue from company-operated restaurant sales, franchise royalties, and rental income, while leveraging brand recognition and operational expertise to drive profitability.Brinker International targets casual dining consumers seeking moderately priced, full-service dining experiences, with a primary customer base in North America and an expanding international presence.Brinker International is a leading casual dining restaurant operator with a portfolio of over 1,600 restaurants generating $5.7 billion in TTM revenue. The company's diversified brand portfolio and established market presence position it competitively within the casual dining segment, supported by strong operational execution and brand loyalty. With a market capitalization of $10.2 billion and a 52% one-year stock price appreciation, the company demonstrates robust investor confidence and operational momentum.

What this transaction means for investorsMost of the Brinker insiders who filed this past week had stock vest and had to give a slice away for taxes. However, Davis reported an outright sale of shares with no vesting involved, and she timed it well given that the stock has been effectively collecting new record highs in recent months. A director choosing to sell into a peak warrants a bit more notice than routine withholding, but she still holds about 9,000 shares.

It helps to know what she sold into. Brinker just finished a banner fiscal year, with Chili's posting a fifth straight year of same-store sales growth totaling a cumulative 71%, and fourth-quarter sales reaching $1.52 billion. The stock has roughly doubled the casual-dining sector's fortunes, climbing near 52% in a year to record territory. After a run like that, a director trimming a stake reads less as worry about the business than as ordinary diversification when a holding has swelled. Still, the timing invites the question of valuation. Brinker now trades near its highs after lapping an enormous multiyear surge, and a sale at the top is the kind of move that looks prescient only if the comparisons ahead prove as hard as the numbers suggest.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Kevin Hochman, the president and CEO of Brinker International, Inc. (EAT +1.92%), reported the disposition of 100,152 shares of common stock on August 13, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$24.4 millionShares sold100,152Post-transaction shares (directly held)184,090Post-transaction value$43.93 millionTransaction value based on SEC Form 4 weighted average sale price ($243.63); post-transaction value based on the August 13 market close ($238.61).

Key questionsWhat was the mechanism behind this equity disposition?
The transaction was executed through two primary channels: a non-discretionary tax withholding of 60,152 shares to satisfy obligations arising from a vesting event, and an open-market sale of 40,000 shares conducted under a Rule 10b5-1 plan adopted on March 4.How does this move align with recent share performance?
The transaction occurred after a period of equity appreciation, with the stock delivering a one-year return of 52% as of the August 13 transaction date.What is the insider's remaining direct equity position?
Hochman maintains direct ownership of 184,090 shares following this transaction, representing a total beneficial ownership interest of approximately 0.4% in the company as of the August 14 market close.What is the current scale of the company's operations?
Headquartered in Dallas, the company manages a portfolio including 1,648 restaurant locations under the Chili's and Maggiano's brands, generating $5.7 billion in trailing twelve-month revenue as of the August 13 transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$237.15Market Capitalization$10.2 billionRevenue (TTM)$5.7 billionNet Income (TTM)$462.9 millionCompany SnapshotBrinker International operates and licenses casual dining restaurants under two primary brands: Chili's Grill & Bar and Maggiano's Little Italy, generating revenue through restaurant operations, food and beverage sales, and licensing arrangements across domestic and international markets.The company operates a franchised and company-operated restaurant model, generating revenue from company-operated restaurant sales, franchise royalties, and rental income, while leveraging brand recognition and operational expertise to drive profitability.Brinker International targets casual dining consumers seeking moderately priced, full-service dining experiences, with a primary customer base in North America and an expanding international presence.Brinker International is a leading casual dining restaurant operator with a portfolio of approximately 1,648 restaurants generating $5.7 billion in TTM revenue. The company's diversified brand portfolio and established market presence position it competitively within the casual dining segment, supported by strong operational execution and brand loyalty. With a market capitalization of $10.2 billion and a 52% one-year stock price appreciation, the company demonstrates robust investor confidence and operational momentum.

What this transaction means for investorsHalf of what Hochman filed is the usual tax withholding, but the other half is a real choice, an open-market sale of 40,000 shares under a plan he set in March, his to make after Chili's turnaround sent the stock up more than 50% in a year. He still holds 184,090 shares, though, so he's got a fair amount still tied to company performance

Meanwhile, Brinker closed fiscal 2026 with a fourth quarter that, in Hochman's words, "completes five consecutive years of Chili's same-store sales growth, delivering an unprecedented 71% cumulative increase over that time." Company sales rose to $1.52 billion in the quarter, comps climbed 5%, and Chili's specifically grew 5.6%, still taking share from the broader casual-dining industry. Adjusted EBITDA reached $227.6 million, up from $212.4 million a year earlier.

The question the sale quietly raises is durability. Lapping five years and a 71% surge means the comparisons only get harder from here, and fiscal 2027 is where investors find out whether Chili's momentum is a lasting reset or a run that eventually meets gravity.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities 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 task of finding cutting-edge growth stocks is made easy with the help of 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.

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 for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy a great growth pick right now.

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 38.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 18.1% this year, crushing the industry average, which calls for EPS growth of 6.2%.

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 13.5%, 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 18.8% 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 6% 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 indicates that Brinker International is a potential outperformer and a solid choice for growth investors.

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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.

Momentum investors should take note of this Retail-Wholesale stock. EAT has a Momentum Style Score of A, and shares are up 25.2% over the past four weeks.

For fiscal 2027, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.26 to $12.68 per share. EAT boasts an average earnings surprise of +6.2%.

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

Posted by Defense World Staff on Aug 15th, 2026

Bank of America Corp DE increased its holdings in Brinker International, Inc. (NYSE:EAT – Free Report) by 37.7% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 242,648 shares of the restaurant operator’s stock after purchasing an additional 66,383 shares during the quarter. Bank of America Corp DE owned approximately 0.57% of Brinker International worth $34,643,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Transamerica Financial Advisors LLC raised its holdings in Brinker International by 570.4% during the 4th quarter. Transamerica Financial Advisors LLC now owns 181 shares of the restaurant operator’s stock worth $26,000 after purchasing an additional 154 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Brinker International during the third quarter valued at $25,000. Allworth Financial LP boosted its position in Brinker International by 58.5% during the third quarter. Allworth Financial LP now owns 225 shares of the restaurant operator’s stock valued at $28,000 after acquiring an additional 83 shares during the last quarter. Salomon & Ludwin LLC grew its holdings in Brinker International by 45.1% during the 4th quarter. Salomon & Ludwin LLC now owns 299 shares of the restaurant operator’s stock worth $45,000 after acquiring an additional 93 shares during the period. Finally, First Horizon Corp grew its holdings in Brinker International by 116.0% during the 4th quarter. First Horizon Corp now owns 337 shares of the restaurant operator’s stock worth $48,000 after acquiring an additional 181 shares during the period.

Analyst Ratings Changes EAT has been the topic of a number of recent analyst reports. Weiss Ratings raised Brinker International from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Barclays lifted their target price on Brinker International from $170.00 to $175.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th. KeyCorp raised their price objective on shares of Brinker International from $204.00 to $275.00 and gave the stock an “overweight” rating in a research report on Thursday. Mizuho increased their target price on shares of Brinker International from $175.00 to $275.00 and gave the stock an “outperform” rating in a research note on Thursday. Finally, Wells Fargo & Company raised their target price on Brinker International from $220.00 to $280.00 and gave the company an “overweight” rating in a research note on Thursday. Sixteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $234.35.

Read Our Latest Stock Analysis on Brinker International

Brinker International Stock Performance Shares of EAT stock opened at $237.42 on Friday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.35 and a current ratio of 0.45. The firm has a market cap of $10.18 billion, a price-to-earnings ratio of 21.80, a P/E/G ratio of 1.34 and a beta of 1.24. Brinker International, Inc. has a 52 week low of $100.30 and a 52 week high of $253.71. The firm’s 50-day simple moving average is $186.95 and its two-hundred day simple moving average is $160.73.

Brinker International (NYSE:EAT – Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing the consensus estimate of $3.09 by ($0.02). The firm had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.53 billion. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. Brinker International’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.30 EPS. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. As a group, equities analysts forecast that Brinker International, Inc. will post 13.07 earnings per share for the current year.

Key Headlines Impacting Brinker International Here are the key news stories impacting Brinker International this week:

Positive Sentiment: Fiscal fourth-quarter results were broadly encouraging: revenue exceeded expectations, EPS increased 23.3% year over year, and Chili’s delivered strong sales and traffic growth with expanding margins. However, reported EPS was slightly below consensus in the company’s earnings release. Brinker Q4 Earnings Meet Estimates, Revenues Beat on Chili’s Growth Positive Sentiment: Management’s fiscal 2027 outlook calls for $12.60-$13.40 in EPS, supported in part by an extra 53rd operating week. Continued Chili’s traffic gains, restaurant reimages and cost control will determine whether the company can meet or exceed that guidance. EAT’s Fiscal 2027 Guidance Gets a Boost From the 53rd Operating Week Positive Sentiment: Several firms raised their price targets following the results, including Bank of America to $310 with a Buy rating, Stephens to $300, Citi to $282, Wells Fargo to $280 and KeyCorp to $275. These revisions reflect increased confidence in Chili’s execution and earnings growth. Neutral Sentiment: Brinker’s stock has risen 28.7% over the past month and reached a new 52-week high, raising expectations. Investors may now require continued traffic growth, margin delivery and guidance execution for further upside. EAT Jumps 28.7% in a Month Negative Sentiment: Northcoast Research downgraded EAT from Buy to Neutral, signaling that the recent rally may have priced in much of the expected improvement. Negative Sentiment: Analysts continue to flag elevated valuation, inflation and labor-cost risks, while Maggiano’s slower turnaround could limit consolidated growth. These concerns are contributing to profit-taking despite the favorable operating trends. Is EAT a Buy Now as Chili’s Growth Meets Cost and Valuation Risks? Brinker International Profile (Free Report)

Brinker International, Inc (NYSE: EAT) is a leading global operator of casual dining restaurants. The company’s portfolio is anchored by its flagship Chili’s® Grill & Bar concept and Maggiano’s® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili’s brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.

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Key Takeaways EAT's Chili's posted five straight years of same-store sales gains, with a 71% cumulative increase.Brinker expects fiscal 2027 revenue of $6.15-$6.27B and adjusted EPS of $12.60-$13.40.Margin expansion is expected to be modest as 4.4% commodity inflation pressures costs and pricing.
Brinker International, Inc. (EAT - Free Report) offers investors a trade-off between durable Chili's growth and risks tied to valuation, inflation and Maggiano's slower turnaround. The question is whether improving operating trends leave enough room for attractive returns.

Chili's remains the center of the case. Fiscal 2027 guidance extends the growth outlook, but modest expected margin expansion and a valuation above EAT's historical median argue against treating the stock as an obvious bargain.

Brinker's Chili's Engine Supports the Bull CaseChili's generated roughly 92% of Brinker sales in fiscal 2026, making the brand the company's primary growth driver. Fourth-quarter same-store sales rose 5.6%, marking the 21st consecutive quarter of growth.

The brand has delivered five consecutive years of same-store sales gains, producing a 71% cumulative increase. Fiscal 2026 traffic also rose 3.6%, while average annual unit volumes reached $5 million, reinforcing Chili's operating momentum.

EAT's Fiscal 2027 Outlook Extends GrowthBrinker expects fiscal 2027 revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. The guidance includes a 53rd operating week, which management estimates will add about 2% to revenues and 70 cents to adjusted earnings per share.

For Chili's, management assumes mid-single-digit same-store sales growth and positive traffic for the remainder of fiscal 2027. Those assumptions give investors clear benchmarks as the company works through tougher comparisons and continues investing in the guest experience.

Brinker's Valuation Is Not an Obvious BargainEAT trades at 19.1X forward 12-month earnings, below the restaurant sub-industry's 21.9X and the S&P 500's 20.8X. The relative discount is favorable, but EAT's current multiple remains well above its five-year median of 11.6X.

Darden Restaurants, Inc. (DRI - Free Report) , which operates full-service brands including Olive Garden and LongHorn Steakhouse, provides one useful restaurant comparison. Texas Roadhouse, Inc. (TXRH - Free Report) , which operates predominantly in casual dining, is another relevant peer when investors weigh restaurant growth against valuation.

EAT Faces Margin and Commodity PressureManagement expects restaurant-level margin expansion of only 20-40 basis points on a 52-week basis in fiscal 2027. The extra week could lift the year-over-year improvement to as much as 50 basis points, but underlying expansion is still expected to be measured.

Fourth-quarter food and beverage costs increased 80 basis points as commodity inflation reached 4.4%, driven mainly by beef. Management expects pricing near the low end of its 3-5% range to preserve Chili's value proposition, limiting one avenue for offsetting higher costs.

Brinker's Maggiano's Risk Keeps Caution AliveMaggiano's fiscal 2026 comparable sales declined 3.9% and traffic fell 9.3%. Restaurant operating margin dropped to 10.1% from 16.3% in fiscal 2025, showing that the brand's recovery remains incomplete.

Maggiano's represents only about 8% of Brinker sales, limiting its effect on consolidated results. Still, management has described the turnaround as slower than planned, and continued weakness remains an execution risk while expectations for Chili's stay elevated.

EAT's Style Scores Favor Growth Over ValueThe bottom line is that Chili's sales, traffic and fiscal 2027 outlook support the growth case, but valuation and cost pressures leave less room for execution missteps. The setup therefore favors patience over an aggressive entry.

EAT carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of A and VGM Score of A. Its Value Score is C. The favorable Growth, Momentum and VGM readings support the stock's profile, while the Zacks #3 Rank and weaker Value Score fit a more selective stance rather than an unqualified buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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On Wednesday, August 12, 2026, Jim Cramer used his Mad Money platform to celebrate Brinker International (NYSE:EAT), the parent of Chili’s Grill & Bar and Maggiano’s Little Italy. His enthusiasm had a factual anchor: Brinker has had 21 consecutive quarters of same-store sales growth. Comps were up 6%, stellar against exceptionally difficult comparisons, all thanks to offering good value like a $10.99 meal with bottomless chips, salsa, and a drink. Cramer is directionally right. He is also incomplete.

Brinker actually missed adjusted EPS for the fiscal fourth quarter, and the stock rose anyway. Shares closed at $238.61 on August 13, up 5.0% over one week and 66.3% year to date. The market bought the guidance and the Chili’s traffic story rather than the quarter itself.

What Cramer Got Right
The 21-quarter streak checks out. So does the value framing. Chili’s per-person average is $3 to $4 below competition, and CEO Kevin Hochman noted that “The American consumer demands experience and great value, and they are showing up for those brands who consistently deliver that.” Chili’s ranked as the number one casual dining traffic brand in the quarter, and the Big Crispy chicken sandwich lifted average daily chicken sandwich sales from 20 to 55 per restaurant.

Margins moved with the story. Chili’s restaurant operating margin expanded to 18.6%, up from 18.2%. Consolidated operating margin reached 10.9%, up 110 basis points. On the CPI backdrop Cramer flagged, national chains have real pricing discipline advantages when food inflation cools.

What the Filing Complicates
Chili’s comparable sales were reported at 5.6%, not the rounded 6% figure. That is a small point. The bigger point is composition: 4.3% menu pricing and 1.5% traffic, partly offset by 0.2% unfavorable mix. Traffic remains positive in a difficult casual-dining environment, which supports Cramer’s value thesis. Pricing did more of the work in the quarter, though, and the comp decelerated sharply against a tough 23.7% year-ago comparison.

Then the miss. Adjusted EPS came in at $3.07 versus $3.09 consensus, snapping a five-quarter beat streak. Revenue of $1.536 billion squeaked past estimates. Higher beef costs and a temporary produce cost increase resulting from a late-season Florida freeze pressured food and beverage margins.

Fiscal 2027 guidance calls for revenue of $6.15 billion to $6.27 billion and adjusted EPS of $12.60 to $13.40. An important caveat is that fiscal 2027 is a 53-week year, and Brinker states the extra week adds approximately 2.0% to total revenue and approximately $0.70 to adjusted diluted EPS. Strip that out before drawing conclusions about organic growth. Brinker also did not provide a GAAP reconciliation for the adjusted EPS guidance range.

The Part Nobody Is Talking About: Maggiano’s
Maggiano’s comparable sales fell 2.5% on a 5.3% traffic decline. GAAP operating margin at the concept collapsed to 0.9% from 11.0%. Management described it as a “mixed turnaround” and assumed flat revenues and flat operating profit for fiscal 2027. That is a real drag hiding inside a Chili’s-flavored headline.

What to Watch Next
Three things matter for retirement-focused investors. First, whether Chili’s holds positive traffic as it laps the Big Crispy launch and easier comparisons fade. Second, whether Maggiano’s stabilizes. Third, what fiscal 2027 looks like once the 53rd week is stripped out.

Wall Street’s analyst target price is $202.00, well below where shares now trade. The forward P/E is 19x. Capital return remains generous, with a $750 million buyback authorization in place. Details are in the earnings release filed with the SEC, and management hosts an Investor Day on September 17, 2026, in Dallas.

This is analysis, not investment advice. Consider your own situation before acting.

Contact [email protected] for any questions or corrections.

Key Takeaways Brinker's Q4 adjusted EPS rose 23.3% to $3.07 as Chili's comparable sales increased 5.6%.Chili's traffic rose 1.5%, while Big Crispy sales reached 55 sandwiches per restaurant per day by quarter-end.Brinker expects fiscal 2027 revenues of $6.15-$6.27 billion and adjusted EPS of $12.60-$13.40.
Brinker International, Inc. (EAT - Free Report) reported fourth-quarter fiscal 2026 results, with earnings in line with the Zacks Consensus Estimate while revenues surpassed 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 $3.07, up 23.3% year over year and in line with the Zacks Consensus Estimate.

Brinker International, Inc. Price, Consensus and EPS Surprise

Brinker International, Inc. price-consensus-eps-surprise-chart | Brinker International, Inc. Quote

Total revenues rose 5.1% year over year to $1.54 billion and beat the consensus mark by 0.4%.

The quarter benefited from sustained momentum at Chili’s, supported by positive traffic, menu pricing, strong everyday value, the Big Crispy launch and continued operational improvements. However, results were partly pressured by weaker traffic and restaurant closures at Maggiano’s, along with higher commodity, advertising and insurance costs.

Following the results, EAT stock gained 11.1% during after-hours yesterday.

EAT's Chili's Momentum Extends in Q4Chili’s total revenues increased 6.2% year over year to $1.423 billion. Company sales rose 6.2% to $1.409 billion, while franchise revenues advanced 12.5% to $14.4 million. The brand continued to benefit from its value platform and menu innovation.

Comparable restaurant sales for Chili's increased 5.6% year over year, reflecting 4.3% pricing and 1.5% traffic growth, partly offset by a 0.2% negative mix impact. Management said the Big Crispy chicken sandwich helped sustain momentum, with sales rising to 55 sandwiches per restaurant per day by quarter-end from 20 before the launch.

Brinker's Maggiano's Trends Remain ChallengedMaggiano’s total revenues declined 7.8% year over year to $112.8 million. Company sales also fell 7.8% to $112.6 million, reflecting lower traffic and restaurant closures, partly offset by menu pricing.

Comparable restaurant sales decreased 2.5%. Traffic dropped 5.3% and mix was down 0.1%, while price contributed 2.9%. The brand’s non-GAAP restaurant operating margin contracted to 10.3% from 13.3%. Management said the turnaround is progressing more slowly than planned and modeled flat revenues and profits for fiscal 2027.

EAT's Q4 Margins Expand Despite Food InflationOperating income increased 17% year over year to $167 million, while operating income margin expanded 110 basis points to 10.9%. Non-GAAP restaurant operating margin improved 20 basis points to 18% of company sales. Net income rose 22.5% to $131.1 million, and GAAP earnings advanced to $2.99 from $2.30. Adjusted EBITDA increased 7.2% to $227.6 million.

Food and beverage costs rose to 26.3% of company sales from 25.5%, pressured by 4.4% commodity inflation, mainly higher beef costs and a temporary spike in tomato prices. Restaurant labor improved 90 basis points to 31.3%, as sales leverage offset 3.1% wage inflation and other investments. Restaurant expenses edged down 10 basis points to 24.4%. Advertising expense was 3% of sales, up 20 basis points, supporting the Big Crispy campaign.

Brinker's Cash Flow Supports Capital ReturnsFor fiscal 2026, net cash provided by operating activities rose 16.3% year over year to $789.4 million. Cash and cash equivalents ended the year at $110 million compared with $18.9 million a year earlier. Payments for property and equipment totaled $231.9 million.

Brinker used operating cash flow to repurchase $400 million of common stock during fiscal 2026. The board subsequently authorized total repurchase capacity of $750 million. After year-end, the company redeemed $350 million of 8.25% notes using its revolving credit facility, which management expects to generate interest savings in fiscal 2027. Brinker also plans to acquire 12 Chili’s franchise restaurants in Alabama and Mississippi.

EAT's FY27 Outlook Targets Continued GrowthFor fiscal 2027, EAT expects total revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. Capital expenditures are projected at $265-$285 million, with diluted weighted average shares of 42-43 million. The company plans 60-80 Chili’s reimages after completing 11 in fiscal 2026.

The outlook includes a 53rd operating week, which is expected to add about 2% to revenues and $0.70 to adjusted earnings per share. Management assumes low-single-digit commodity and wage inflation and three net new company-owned restaurant openings. For Chili’s, the plan assumes mid-single-digit same-store sales growth and positive traffic for the remainder of the year, along with 20-40 basis points of restaurant-level margin improvement on a 52-week basis.

EAT’s Zacks Rank & Key PicksBrinker currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.

BJ's Restaurants, Inc. (BJRI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has surged 76.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

 The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each.

Five Below, Inc. (FIVE - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 29.6% year to date.

The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels.

 FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 26.8% year to date.

 The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 18.2% and 57.9%, respectively, from the prior-year levels.

Brinker International, Inc. (NYSE:EAT) on Wednesday reported mixed fiscal fourth-quarter results and issued a stronger-than-expected fiscal 2027 outlook.

Brinker reported adjusted earnings of $3.07 per share, narrowly missing the $3.09 analyst estimate. Total revenue rose to $1.536 billion from $1.462 billion a year earlier, edging past the $1.534 billion estimate.

For fiscal 2027, Brinker expects adjusted earnings of $12.60 to $13.40 per share, above the $12.52 analyst estimate.

The company forecast revenue of $6.15 billion to $6.27 billion, compared with the $6.145 billion estimate. The outlook includes a 53rd operating week, which Brinker expects to add about 2% to revenue and 70 cents to adjusted earnings per share.

“Q4 2026 completes five consecutive years of Chili’s same-store sales growth, delivering an unprecedented 71% cumulative increase over that time,” said Kevin Hochman, President and CEO of Brinker International. “Our strong brand relevance, industry-leading value proposition, streamlined operations, and significant restaurant investments have created a competitive moat that positions Chili’s to deliver sustainable, profitable growth.”

Brinker shares gained 11.1% to close at $245.89 on Wednesday.

These analysts made changes to their price targets on Brinker following earnings announcement.

Stephens & Co. analyst Jim Salera maintained the stock with an Overweight rating and raised the price target from $220 to $300. Mizuho analyst Nick Setyan maintained the stock with an Outperform rating and raised the price target from $175 to $275. Considering buying EAT stock? Here’s what analysts think:

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Brinker International, Inc. (EAT) Q4 2026 Earnings Call August 12, 2026 10:00 AM EDT

Company Participants

Kim Sanders - Vice President of Investor & Government Relations
Kevin Hochman - President, CEO & Director
Mika Ware - Executive VP & CFO

Conference Call Participants

Dennis Geiger - UBS Investment Bank, Research Division
David Palmer - Evercore ISI Institutional Equities, Research Division
Jeffrey Farmer - Gordon Haskett Research Advisors
Andrew Strelzik - BMO Capital Markets Equity Research
John Ivankoe - JPMorgan Chase & Co, Research Division
Brian Harbour - Morgan Stanley, Research Division
Brian Vaccaro - CGS International
Andrew Charles - TD Cowen, Research Division
Sara Senatore - BofA Securities, Research Division
Christopher Carril - KeyBanc Capital Markets Inc., Research Division
Jon Tower - Citigroup Inc. Exchange Research
Margaret-May Binshtok - Wolfe Research, LLC

Presentation

Operator

Good day, and welcome to the Brinker Q4 F '26 Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours.

Kim Sanders
Vice President of Investor & Government Relations

Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, Chief Executive Officer and President of Brinker International and President of Chili's; and Mika Ware, Chief Financial Officer.

Results for our fourth quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.

Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items, which are not based entirely on historical facts. Any such items should be considered forward-looking statements within the meaning of the Private Securities

Brinker Serves Up Earnings Beat, Sidesteps Cost PressuresBrinker International NYSE: EAT reported fourth-quarter fiscal 2026 results marked by continued same-store sales growth at Chili’s, higher earnings and restaurant margin expansion, while management said it expects another year of sales and traffic gains in fiscal 2027.

Chili’s same-store sales increased 6% in the fourth quarter, extending the brand’s streak to 21 consecutive quarters of same-store sales growth, Chief Executive Officer Kevin Hochman said. The result followed a 24% gain in the prior year and a 15% gain two years earlier, producing a three-year cumulative comp gain of 50%, according to Hochman.

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3 Summer Short-Squeeze Candidates With Catalysts for CoveringFor the full fiscal year, Brinker reported revenue growth of 7.9%, restaurant operating margin expansion of 30 basis points and adjusted earnings-per-share growth of 20.6%, Chief Financial Officer Mika Ware said. Chili’s average annual unit volumes rose to $5 million from just over $4.5 million at the end of the prior fiscal year.

Fourth-Quarter Results Brinker reported fourth-quarter revenue of $1.536 billion and consolidated comparable sales growth of 5%. Adjusted diluted earnings per share rose 23% to $3.07 from $2.49 a year earlier. Adjusted EBITDA increased 7.1% to approximately $228 million.

Is Wingstop The Perfect Fast Casual Restaurant Model?Chili’s comparable sales rose 5.6%, driven by 4.3% price and 1.5% positive traffic, partly offset by 0.2% negative mix. Ware said sales and traffic accelerated in July compared with the fourth quarter, though the company did not provide a specific quarter-to-date comp figure.

Maggiano’s comparable sales declined 2.5% in the quarter, reflecting a 5.3% traffic decline and 0.1% negative mix, partially offset by 2.9% price. Hochman said the Maggiano’s turnaround has been mixed, with progress in operational and culinary improvements partly offset by losses among core guests tied to its prior strategy. The brand represents 8% of Brinker sales, he said.

Restaurant operating margin reached 18%, up 20 basis points from the prior year. Sales leverage was partly offset by higher food and beverage costs, advertising and insurance costs. Food and beverage costs increased 80 basis points, driven by 4.4% commodity inflation, including higher beef prices and a temporary rise in tomato costs after a late freeze in Florida. Ware said tomato costs have normalized and are not expected to affect first-quarter costs.

Labor expense improved 90 basis points year over year, while restaurant expenses improved 10 basis points. Fourth-quarter advertising expense was 3% of sales, up 20 basis points, as Brinker supported the launch of Chili’s Big Crispy Chicken Sandwich.

Big Crispy Launch and Traffic Strategy Hochman said the Big Crispy Chicken Sandwich has exceeded the company’s expectations since its launch. Chili’s was selling about 20 chicken sandwiches per restaurant per day before the launch; by the end of the fourth quarter, that figure had reached 55 per day, a 175% increase. He said the product’s sales continued to build in the current quarter.

The company is continuing its “Better Than Fast Food” positioning, emphasizing its value proposition and a per-person average spend that management said is $3 to $4 below competitors. Hochman said Chili’s is using marketing, menu innovation and operating improvements to support traffic and repeat visits.

Management also pointed to the Margarita of the Month program, including the July “Bombshell Marg,” and a social-media-driven addition allowing customers to add a Molten dessert to a skillet cookie. Hochman said the latter initiative helped reverse a decline in dessert incidence alongside upgrades to other desserts.

Ware said the 3 For Me value platform remained stable. Just over 21% of guests used the platform in the fourth quarter, compared with just under 21% in the third quarter, and approximately 40% of those guests selected the $10.99 tier.

Fiscal 2027 Outlook and Investment Plans For fiscal 2027, Brinker forecast revenue of $6.15 billion to $6.27 billion and adjusted diluted EPS of $12.60 to $13.40. The guidance includes a 53rd operating week in the fourth quarter, which the company expects will add about 2% to total revenue and $0.70 to earnings per share.

Ware said the outlook assumes mid-single-digit same-store sales growth and positive traffic at Chili’s for most of the year, with some upside included for July. The company expects Chili’s pricing to be slightly above 3% for the full year, with mix approximately flat.

Capital expenditures are projected at $265 million to $285 million. The company expects low-single-digit commodity and wage inflation, with commodity inflation expected to moderate through the year. Brinker expects three net new company-owned restaurant openings. Management expects 20 to 40 basis points of restaurant-level margin expansion on a 52-week basis; the 53rd week could lift the year-over-year increase to as much as 50 basis points. Brinker plans to complete 60 to 80 Chili’s restaurant reimages in fiscal 2027 after completing 11 during fiscal 2026. The company expects to begin reimaging roughly 10% of the fleet annually in fiscal 2028. New-unit growth is expected to be modest in fiscal 2027 before ramping more significantly in fiscal 2028, with a new run rate planned for fiscal 2029.

The company also expects to acquire 12 Chili’s franchise restaurants in Alabama and Mississippi, including real estate at six locations, in a transaction expected to close at the end of August. Ware said the restaurants are below the brand average in performance and are expected to add about $30 million in annual revenue, with an approximately flat EPS impact.

Capital Allocation and Operations Brinker repurchased $100 million of common stock during the fourth quarter, bringing fiscal-year repurchases to nearly $400 million. The board authorized additional repurchase capacity in August, bringing the amount available under the program to $750 million.

After year-end, the company redeemed its outstanding $350 million of 8.25% bonds using liquidity from its $1 billion revolver. Ware said the move is expected to reduce interest expense in fiscal 2027 and provide flexibility for further leverage reduction.

Management said it is also working to improve restaurant throughput and service. Chili’s reduced its manager shift-line-check process from eight pages to one page, which Hochman said frees approximately 30 minutes of manager time per day. The company upgraded its HotSchedules labor-planning tool and simplified loyalty-reward redemptions through Ziosk tablets.

Looking ahead, Hochman said Chili’s will focus on host-stand operations, table seating and bussing, drink-refill bottlenecks, dessert preparation and off-premise execution. He said the company sees several years of opportunity to improve the dining experience and accelerate its takeout business.

About Brinker International (NYSE:EAT)Brinker International, Inc NYSE: EAT is a leading global operator of casual dining restaurants. The company's portfolio is anchored by its flagship Chili's® Grill & Bar concept and Maggiano's® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili's brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Brinker International (EAT - Free Report) came out with quarterly earnings of $3.07 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.49 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy would post earnings of $2.85 per share when it actually produced earnings of $2.9, delivering a surprise of +1.75%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Brinker International, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.54 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.39%. This compares to year-ago revenues of $1.46 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Brinker International shares have added about 54.3% since the beginning of the year versus the S&P 500's gain of 12.9%.

What's Next for Brinker International?While Brinker International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Brinker International was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.18 on $1.4 billion in revenues for the coming quarter and $12.38 on $6.1 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Arcos Dorados (ARCO - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13.

This restaurant owner is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +36.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Arcos Dorados' revenues are expected to be $1.28 billion, up 12.1% from the year-ago quarter.