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Wall Street expects a year-over-year increase in earnings on higher revenues when Brinker International (EAT - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of +29%.

Revenues are expected to be $1.45 billion, up 7.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Brinker International?For Brinker International, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.59%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Brinker International will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Brinker International would post earnings of $3.07 per share when it actually produced earnings of $3.07, delivering no surprise.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Brinker International appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Retail - Restaurants industry, Cheesecake Factory (CAKE - Free Report) , is soon expected to post earnings of $0.92 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +35.3%. Revenues for the quarter are expected to be $998.45 million, up 10.1% from the year-ago quarter.

The consensus EPS estimate for Cheesecake Factory has been revised 6.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.34%.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Cheesecake Factory will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Brinker International (EAT) is rated 'Buy' with a price target of ~$236, offering ~20% upside and 3-5% annual shareholder returns. EAT's operational flywheel, driven by value platforms like '3-For-Me' and 'Triple Dipper,' has boosted AUVs, margins, and traffic, outpacing industry peers. Restaurant-level margins surged from 11.2% to 17.8% in three years, with AUVs rising from $3.3M to $5M and further expansion targeted.

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

Shares of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy have returned +2.7% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Retail - Restaurants industry, to which Brinker International belongs, has remained unchanged over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

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

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

For the current quarter, Brinker International is expected to post earnings of $2.49 per share, indicating a change of +29% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.

The consensus earnings estimate of $13.17 for the current fiscal year indicates a year-over-year change of +22.6%. This estimate has changed +1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $14.2 indicates a change of +7.9% from what Brinker International is expected to report a year ago. Over the past month, the estimate has changed +1.1%.

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

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

12 Month EPS

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

For Brinker International, the consensus sales estimate for the current quarter of $1.45 billion indicates a year-over-year change of +7.2%. For the current and next fiscal years, $6.27 billion and $6.47 billion estimates indicate +8% and +3.1% changes, respectively.

Last Reported Results and Surprise HistoryBrinker International reported revenues of $1.54 billion in the last reported quarter, representing a year-over-year change of +5.1%. EPS of $3.07 for the same period compares with $2.49 a year ago.

Compared to the Zacks Consensus Estimate of $1.53 billion, the reported revenues represent a surprise of +0.39%. The EPS surprise was 0%.

Over the last four quarters, Brinker International surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

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

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

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

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

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

Shares of Brinker International, Inc. (NYSE:EAT – Get Free Report) have received a consensus rating of “Moderate Buy” from the twenty-four brokerages that are presently covering the firm, MarketBeat reports. Five equities research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $243.38.

A number of brokerages have weighed in on EAT. Robert W. Baird began coverage on Brinker International in a research note on Monday, August 24th. They set an “outperform” rating and a $325.00 price objective for the company. Weiss Ratings upgraded Brinker International from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, September 11th. Northcoast Research raised Brinker International from a “neutral” rating to a “buy” rating and set a $275.00 target price on the stock in a research report on Tuesday, September 22nd. Piper Sandler increased their target price on Brinker International from $166.00 to $240.00 and gave the company a “neutral” rating in a research note on Monday, August 17th. Finally, Freedom Broker upgraded Brinker International to a “strong-buy” rating in a research note on Friday, September 18th.

Read Our Latest Stock Analysis on EAT

Insiders Place Their Bets In other Brinker International news, Director Joseph DePinto sold 25,000 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $230.39, for a total transaction of $5,759,750.00. Following the transaction, the director directly owned 77,812 shares in the company, valued at $17,927,106.68. This represents a 24.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Michaela M. Ware sold 3,030 shares of the firm’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $233.48, for a total transaction of $707,444.40. Following the transaction, the executive vice president directly owned 17,494 shares of the company’s stock, valued at approximately $4,084,499.12. This represents a 14.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 173,694 shares of company stock valued at $41,568,690. 1.18% of the stock is owned by insiders. Hedge Funds Weigh In On Brinker International A number of hedge funds have recently bought and sold shares of the company. Balyasny Asset Management L.P. grew its stake in Brinker International by 667.5% during the 4th 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. Freestone Grove Partners LP bought a new stake in Brinker International in the second quarter valued at $91,237,000. Bank of America Corp DE bought a new stake in Brinker International in the second quarter valued at $39,687,000. Wellington Management Group LLP lifted its stake in Brinker International by 63.7% in the second quarter. Wellington Management Group LLP now owns 413,472 shares of the restaurant operator’s stock valued at $69,463,000 after buying an additional 160,939 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of Brinker International by 53.7% during the first quarter. Assenagon Asset Management S.A. now owns 456,565 shares of the restaurant operator’s stock valued at $65,184,000 after acquiring an additional 159,606 shares during the period.

Brinker International Stock Performance Shares of EAT stock opened at $193.91 on Tuesday. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.40. The company’s fifty day moving average price is $218.13 and its two-hundred day moving average price is $179.41. The firm has a market capitalization of $8.10 billion, a P/E ratio of 17.81, a P/E/G ratio of 1.01 and a beta of 1.25. Brinker International has a 12 month low of $100.30 and a 12 month high of $254.99.

Brinker International (NYSE:EAT – Get Free Report) last announced its earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share for the quarter, missing the consensus estimate of $3.09 by ($0.02). Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The business had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same quarter in the prior year, the business earned $2.30 earnings per share. The firm’s revenue was up 5.1% on a year-over-year basis. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. On average, research analysts anticipate that Brinker International will post 13.16 earnings per share for the current fiscal year.

Brinker International Company Profile (Get Free Report)

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining establishments. Its portfolio is led by Chili’s Grill & Bar, a full-service restaurant brand known for burgers, steaks, fajitas, ribs and other American-style menu items, and Maggiano’s Little Italy, which specializes in Italian-American cuisine and operates both restaurants and catering services.

Brinker also developed It’s Just Wings, a virtual restaurant brand offering chicken wings, fries and related items through delivery and takeout.

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

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

The Style Scores are broken down into four categories:

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

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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.

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

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

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

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

11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.78 to $13.16 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 Four stocks qualified with interest coverage ratios above their industry medians and solid growth metrics.Clean Harbors' current-year sales and EPS are estimated to grow 7.8% and 34.3%, respectively.Brinker International's current-year sales and EPS are projected to rise 7.9% and 22.5%, respectively. U.S. stocks finished Friday higher as softer-than-expected labor data lowered concerns that the Federal Reserve would raise interest rates at its October meeting. Nonfarm payrolls increased just 29,000 in September. The unemployment rate also edged up to 4.2% from 4.1% in August. Investors responded positively to the weaker employment picture, viewing it as supportive of a pause in monetary tightening. The shift in expectations comes after the Federal Reserve lifted its benchmark interest-rate range to 3.75%-4.00% last month.

The Dow Jones Industrial Average rose 250.36 points, or 0.49%, to 51,176.96, while the S&P 500 advanced 0.73% to 7,722.72. The Nasdaq Composite led the major indexes with a 1.19% gain to 27,190.86, reflecting improved sentiment as near-term rate-hike expectations faded.

Against this backdrop, stocks with higher interest coverage ratios may merit investor attention. Companies better positioned to comfortably service debt can face less pressure from borrowing costs and preserve more resources for operations and growth. With monetary-policy expectations still influencing market sentiment, financially resilient businesses may offer investors a more attractive risk-reward profile. L.B. Foster Company (FSTR - Free Report) , Clean Harbors, Inc. (CLH - Free Report) , Brinker International, Inc. (EAT - Free Report) and Mueller Water Products, Inc. (MWA - Free Report) have impressive 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 16 stocks that qualified the screening:

L.B. Foster Company, a global technology solutions provider of products and services for the rail and infrastructure markets, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 19.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for L.B. Foster Company’s current financial-year sales and EPS implies growth of 4.1% and 134.8%, respectively, from the year-ago period. FSTR has a VGM Score of A. The stock has risen 40.9% over the past year.

Clean Harbors, a leading provider of environmental and industrial services throughout North America, carries a Zacks Rank #2 and VGM Score of A. The company has a trailing four-quarter earnings surprise of 4%, on average.

The Zacks Consensus Estimate for Clean Harbors’ current financial-year sales and EPS indicates growth of 7.8% and 34.3%, respectively, from the year-ago period. The stock has advanced 37.1% over the past year.

Brinker International, one of the world's leading casual dining restaurants, 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 calls for growth of 7.9% and 22.5%, respectively, from the year-ago period. The stock has soared 59.6% 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 A. 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 declined 15.8% over the past year.

Key Takeaways CAKE's current-year earnings growth is expected at 20.2%, with estimates up 2.3%.BJRI offers varied dining options, while its current-year earnings growth is expected at 4.9%.EAT's earnings growth is expected at 22.5%, with estimates improving 6.3% in 60 days. Surging oil prices have made goods and services costlier, pushing inflation up as tensions in the Middle East show no signs of easing. However, Americans have continued to spend aggressively on dining out, which has been helping the restaurant industry sail smoothly amid the ongoing price challenges and inflationary pressures.

Sales have been steadily growing at U.S. restaurants over the past several months, which proves that Americans are still willing to spend despite high prices.

Given this situation, it would be ideal to invest in restaurant stocks with a strong online presence. We have selected four stocks, namely, The Cheesecake Factory Incorporated (CAKE - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) , Brinker International, Inc. (EAT - Free Report) and Aramark (ARMK - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Restaurant Sales Jump

Sales at eating and drinking places in the United States totaled $108.6 billion, up 1.2% in August after rising 0.5% in July, according to data released by the Commerce Department. Year over year, sales at U.S. restaurants rose 4.2%.

Restaurant sales totaled $820.7 billion in the first eight months of the year, suggesting that customers spent without hesitation on eating out despite inflationary pressures.

Restaurant sales are a key indicator the Federal Reserve uses to gauge the financial health of U.S. households.

Surging energy prices since the U.S.-Iran war began in late February have created significant pressure on the restaurant industry. While energy costs somewhat eased in June, they have resumed their northbound journey as the Middle East conflict intensified last month, with no clear signs of peace negotiations between the two sides.

Inflation moderated in July as oil prices eased but rose again in August. The Federal Reserve hiked interest rates by a quarter percentage point last month, which is likely to make borrowing costs higher. 

Elevated prices have continued to weigh on restaurant operators as consumers become more selective with their spending and increasingly seek value. Quick-service restaurants, particularly those offering low-cost meals, have generally held up better than many other restaurant operators in the difficult environment.

With more consumers watching their budgets and seeking inexpensive dining choices, competition in the value segment has intensified. Restaurant chains are responding by rolling out additional promotions, discounts and value meal deals to draw in customers.

Still, demand for affordable dining remains solid. Many restaurant chains are increasing their marketing efforts, pursuing partnerships and introducing new menu items as they compete for customers and seek to drive repeat visits.

4 Restaurant Stocks With UpsideThe Cheesecake FactoryThe Cheesecake Factory Incorporated owns and operates 370 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory and North Italia, Flower Child and a collection within the Fox Restaurant Concepts subsidiary. Internationally, CAKE operates 36 Cheesecake Factory restaurants under licensing agreements. It operates two bakery production facilities as well.

The Cheesecake Factory’s expected earnings growth rate for the current year is 20.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days.

BJ's RestaurantsBJ's Restaurants, Inc. owns and operates a chain of high-end casual dining restaurants in the United States. BJRI’s menu offers a wide range of dining options, including everyday lunch and dinner, special occasions and late-night business.

BJ's Restaurants’ expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the past 60 days.

Brinker International, Inc.Brinker International, Inc. primarily owns, operates, develops and franchises various restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brands. EAT took over Chili’s, Inc., a Texas corporation, in September 1983 and completed the acquisition of Maggiano’s in August 1995. Chili’s is a preeminent leader in the bar & grill category of casual dining. The brand has been functioning for over 40 years.

Brinker International’s expected earnings growth rate for the current year is 22.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days.

Aramark Aramark offers food services, facilities management, uniform and career apparel to health care institutions, universities, school districts, stadiums and businesses. ARMK operates primarily in three segments: Food and Support Services North America, Food and Support Services International and Uniform and Career Apparel. 

Aramark’s expected earnings growth rate for the current year is 20.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days.

 After spending years upgrading the food, service and atmosphere of Chili's, it's time to give fans a fresh look of their own with merch that celebrates the grill & bar's place in suburban culture

, /PRNewswire/ -- For more than 50 years, Chili's® Grill & Bar has been the mainstay for first dates, post-game dinners, birthday celebrations and parking lot hangs. And lately, the grill & bar has been bringing fresh energy to that familiar experience with craveable menu updates, better service and livelier restaurants. With Chili's gaining new fans like never before and tasting, looking and feeling better than ever, it's time to give guests a new way to wear their Chili's love beyond the booth.

Meet the Suburban Collection, where comfort is king and the only real dress code is that you show up dressed. Think oversized fits, cozy layers and easy pieces made for wherever the day takes you, from running errands to sliding into a red booth for dinner and margs with friends.

The lineup mixes rugby shirts, hoodies and tees with delightfully specific pieces that could only come from Chili’s, including a crewneck that turns your arms into a Fried Mozz cheese pull and a Baby Backs necklace. Nostalgic, proudly unserious and uniquely cool, Chili’s pride has never looked better.

The Suburban Collection will be available beginning Wednesday, Sept. 30 at 11 a.m. ET on WelcomeToChilis.com. My Chili's members can get a head start and shop the collection now using the exclusive early-access code sent via email.

"Streetwear has dominated mainstream fashion for years, but now we're starting to see suburban wear have its moment as more consumers are drawn to relaxed, comfort-first fits," said Jesse Johnson, vice president of marketing at Chili's. "For decades, Chili's has shaped suburban culture with our come-as-you-are relaxed atmosphere, so who better to celebrate suburban style with our new merch collection."

Meet the Suburban Collection, where comfort is king and the only real dress code is that you show up dressed. Think oversized fits, cozy layers and easy pieces made for wherever the day takes you, from running errands to sliding into a red booth for dinner and margs with friends. The lineup mixes rugby shirts, hoodies and tees with delightfully specific pieces that could only come from Chili's, including a crewneck that turns your arms into a Fried Mozz cheese pull and a Baby Backs necklace. Nostalgic, proudly unserious and uniquely cool, Chili's pride has never looked better.

From oversized everyday staples to conversation-starting accessories, the Suburban Collection has something for every level of Chili's fandom:

Vintage Rugby Shirts ($50): Available in red and green, these Chili's rugby shirts bring a sporty spin to suburban style. Made for game day, Marg day or any day that calls for Chili's. Chenille Pepper Hoodies ($60): Available in classic Chili's red, green and white with a chenille heritage logo design and embroidered chili pepper on the sleeve. Cozy enough for the couch, cool enough for your regular booth. Varsity Jerseys ($35): Available in green and white with an oversized, true-to-jersey fit. No team affiliation required, unless you count Team Triple Dipper®. Suburban Tees ($30): Classic Chili's logo tees available in both oversized and cropped fits for fans who prefer to let the pepper do the talking. 100% cotton and ready for repeat wear. Cropped Cheese Pull Quarter Zip ($55): A heavyweight pullover that turns your arms into a cheese pull – made for anyone who believes the best accessory is several feet of mozzarella. Chili's Logo Hat ($30): A classic Chili's cap with a 3D puffy logo that proudly answers the question, "Where should we go?" Cheese Pull Hat ($30): The ultimate cheese pull hat, complete with embroidered details and a chili pepper on the back. Peak suburbia. Accessories ($3-30): Because Chili's pride shouldn't stop at your closet, the collection includes a 14k gold-plated Margs necklace and Baby Backs necklace, bumper stickers, ribs-jingle keychain and Chili's stickers made for laptops, water bottles and anywhere else that could use a little more Chili's. The Suburban Collection will be available beginning Wednesday, Sept. 30 at 11 a.m. ET on WelcomeToChilis.com. My Chili's members can get a head start and shop the collection now using the exclusive early-access code sent via email. For more information about Chili's, visit Chilis.com or follow along on Facebook, Instagram and X. 

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 $130 million for the organization through generous guest and team member donations. Find more information at chilis.com, follow on X or Instagram, like on Facebook, or join Chili's on TikTok. 

SOURCE Chili's Grill & Bar

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Brinker International (EAT - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

Brinker International is a member of the Retail-Wholesale sector. This group includes 190 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Brinker International is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for EAT's full-year earnings has moved 6.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that EAT has returned about 44.1% since the start of the calendar year. At the same time, Retail-Wholesale stocks have lost an average of 1.3%. This shows that Brinker International is outperforming its peers so far this year.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Global-e Online Ltd. (GLBE - Free Report) . The stock is up 5.7% year-to-date.

For Global-e Online Ltd., the consensus EPS estimate for the current year has increased 18.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Brinker International belongs to the Retail - Restaurants industry, a group that includes 36 individual stocks and currently sits at #162 in the Zacks Industry Rank. This group has lost an average of 11.2% so far this year, so EAT is performing better in this area.

Global-e Online Ltd., however, belongs to the Internet - Commerce industry. Currently, this 35-stock industry is ranked #157. The industry has moved +2.2% so far this year.

Brinker International and Global-e Online Ltd. could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.

Shares of Brinker International (EAT +3.13%), the parent of Chili's, were moving higher today after the casual dining chain got an upgrade from a Wall Street analyst.

As of 11:29 a.m. ET, the stock was up 4% after gaining as much as 6.5% earlier in the session.

Image source: Getty Images.

Brinker continues to impress Northcoast upgraded the restaurant stock from neutral to buy, citing strong growth at Chili's. Analyst Jim Sanderson gave the stock a price target of $275, implying upside of 37% over the next year.

He also said Chili's is well-positioned for long-term growth under new management, and that menu improvements and better marketing put the company in a position to exceed in-store margins of 20%.

Chili's has been one of the top-performing restaurant stocks, both on the market and in its results, as it's taken market share thanks to savvy ad campaigns touting better value than fast-food options like McDonald's, and a refreshed menu.

Same-store sales growth has cooled off from earlier in its surge when it was up above 20%, but it finished fiscal 2026, which ended in July, with 8.1% comparable sales growth across the company and 9.2% at Chili's. Brinker also owns Maggiano's, which has struggled lately with negative comparable sales.

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What's next for Brinker Brinker's days of hypergrowth may be coming to an end, but Sanderson makes a good point about the company's ability to sustain superior margins. Through fiscal 2029, the company is targeting 4%-6% annual revenue growth, including 2%-3% unit growth with 30 new restaurants annually. It also called for double-digit annual adjusted EPS growth, boosted by repurchasing 3%-5% of its shares annually.

If Brinker can execute on those goals, the stock should continue to move higher.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Key Takeaways Chili's AUVs rose to about $5M in fiscal 2026 as comps gained 9.2% and traffic increased 3.6%.Brinker is reinvesting in value, food, service and menu innovation rather than relying solely on pricing.Brinker plans 60-80 Chili's reimages in fiscal 2027, with about 10% of the fleet annually from fiscal 2028. Brinker International, Inc. (EAT - Free Report) is entering its next phase of Chili’s growth from a stronger unit-economics base. Average annual unit volumes (AUVs) climbed from just over $4.5 million at the end of fiscal 2025 to about $5 million in fiscal 2026, supported by a second consecutive year of traffic gains and five straight years of same-store sales growth. Management views this combination of higher volumes and sustained traffic as evidence that its focus on food, service, value and restaurant operations is gaining traction.

Importantly, the $5 million AUV level may not represent the ceiling. Chili’s comparable sales increased 9.2% in fiscal 2026, including a 3.6% traffic contribution. In the fiscal fourth quarter, comps advanced 5.6%, with traffic remaining positive at 1.5% despite comparison with a 16.3% traffic increase in the prior-year period. Chili’s company sales also reached about $1.41 billion in the fiscal fourth quarter, up from roughly $1.33 billion a year earlier.

Brinker is looking to build on these volumes through continued reinvestment rather than relying solely on pricing. Its strategy centers on strengthening Chili’s everyday value proposition, improving food and service, and using menu innovation to generate incremental visits. The Big Smasher, Big QP and Big Crispy Chicken Sandwich have supported this approach, with management noting that sales and traffic accelerated further in July following the Big Crispy rollout.

Higher AUVs also provide more flexibility to reinvest. Brinker plans 60-80 Chili’s reimages in fiscal 2027 and expects to begin reimaging about 10% of the fleet annually in fiscal 2028. With additional traffic capacity, improving throughput and continued restaurant reinvestment, the $5 million AUV level could become an important foundation for Chili’s next stage of growth.

AUV Growth Highlights Competitive Restaurant ProductivityBrinker’s Chili’s concept has pushed average annual unit volumes to about $5 million, up from just over $4.5 million a year earlier, giving the brand a stronger base for traffic growth, margin leverage and future development. Peers Chipotle Mexican Grill, Inc. (CMG - Free Report) and Shake Shack Inc. (SHAK - Free Report) are also emphasizing restaurant productivity and unit economics as important growth drivers.

Chipotle continues to focus on increasing restaurant productivity through higher throughput, menu innovation and digital engagement. CMG’s high-efficiency equipment package has been installed in more than 1,000 restaurants, with those locations producing two to three more entrees during peak 15-minute periods and generating hundreds of basis points of comparable-sales improvement. Management also views menu innovation as a multiyear lever for increasing AUVs over time.

Shake Shack is similarly relying on high AUVs and restaurant-level productivity to support expansion. Management said strong cash-on-cash returns are being driven by low build costs, healthy margins and high AUVs, while newer Shacks continue to track toward targeted returns. SHAK generated roughly $78,000 in average weekly sales in the second quarter and remains focused on maintaining strong unit volumes as it expands its footprint.

EAT’s Price Performance, Valuation and EstimatesBrinker’s shares have gained 33.9% over the past six months against the industry’s 13.5% decline.

EAT Stock’s Six-Month Price Performance

Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 14.84, down from the industry average of 20.51.

EAT’s P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2026 earnings per share has decreased, as shown in the chart. However, the estimate for EAT’s fiscal 2026 earnings per share implies a year-over-year uptick of 21%.

Image Source: Zacks Investment Research

EAT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Brinker targets 4-6% annual revenue growth and double-digit adjusted EPS growth through fiscal 2029.Chili's development is set to ramp to about 30 new restaurants annually by fiscal 2029.Brinker plans 60-80 Chili's reimages in fiscal 2027, then about 10% of the fleet annually from fiscal 2028. Brinker International, Inc. (EAT - Free Report) has outlined a long-term growth strategy focused on sustaining Chili’s momentum while accelerating restaurant development, remodeling its existing estate and returning excess capital to shareholders. The strategy builds on five consecutive years of Chili’s same-store sales growth, improving restaurant economics and continued traffic gains, giving management confidence that the brand still has meaningful runway for expansion.

Chili’s Expansion and Reinvestment Drive GrowthAt its 2026 Investor Day, Brinker introduced targets through fiscal 2029 that call for 4-6% annual revenue growth, supported by 2-3% annual unit growth, along with double-digit annual growth in adjusted earnings per share. The company also expects to repurchase 3-5% of its shares annually, subject to board approval of incremental authorizations under its existing share repurchase program.

A key part of the strategy is expanding Chili’s physical footprint. Brinker plans to ramp development to about 30 new restaurants annually across significant new trade areas by fiscal 2029. This marks a meaningful acceleration from fiscal 2027, when the company expects three net new company-owned restaurants. Management had previously indicated that unit growth would remain modest in fiscal 2027, accelerate significantly in fiscal 2028 and reach its targeted run rate in fiscal 2029.

Brinker is also stepping up investment in its existing Chili’s restaurants. After completing 11 reimages in fiscal 2026, the company plans another 60-80 in fiscal 2027 before moving to a cadence of roughly 10% of the fleet annually beginning in fiscal 2028. These investments are intended to enhance restaurant atmosphere and the overall guest experience while supporting the brand’s broader traffic-growth strategy. Strong cash generation should help support these initiatives. In 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, up from $18.9 million a year earlier.

EAT’s Stock Price PerformanceShares of EAT have gained 38% in the past six months, outperforming the Zacks Retail - Restaurants industry’s 0.7% rise. The company’s prospects are supported by sustained traffic growth at Chili’s, a strong everyday value proposition, successful menu innovation and continued investments in food quality, service, atmosphere and restaurant operations. However, commodity inflation, particularly higher beef costs, along with wage inflation, elevated advertising expenses, insurance costs and broader restaurant expense inflation remain concerns.

Image Source: Zacks Investment Research

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

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

Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 25.7% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.

Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 128.6%, on average. CBRL stock has surged 72.2% year to date.

 The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 5.3% and 97.8%, respectively, from the prior-year 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 14.9% year to date.

 The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.7% and 89.5%, respectively, from the prior-year levels.

When a customer sits down at a neighborhood Chili's for a meal, they are participating in a massive, real-time experiment in efficiency. Brinker International (EAT -1.64%) has transformed itself from a struggling restaurant operator into a precision-engineered machine that uses data to squeeze every ounce of value from its menu. With a recent stock price of $210.28 as of Sept. 16, 2026, the company has seen its market value surge 46% over the past year, reflecting a market that is finally buying into its back-to-basics turnaround.

Our proprietary Hidden Gems scoring system assigns Brinker International an overall Superscore of 77 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39).

A score of 77 puts the company in the Top ~10% of all companies we score. This article pairs the drivers of that high score with the structural constraints that keep it from climbing higher, serving as a starting point for your own deeper investigation.

Why EAT Has an 77 SuperscoreExceptional revenue growth: The company achieved 8% revenue growth in fiscal 2026 (ending in June), signaling that its strategic focus on core menu items and improved digital throughput is successfully capturing market share.Operational margin expansion: Operating margins reached 11% in fiscal 2026 because management simplified the kitchen workflow and successfully navigated inflationary pressures that sidelined smaller competitors.Data-driven execution: The rollout of new ERP systems and handheld ordering tablets allows the company to make real-time decisions on labor scheduling and menu pricing, converting higher traffic directly into bottom-line growth.Disciplined capital allocation: Management focuses on a 10% annual fleet reimage cadence while simultaneously reducing debt and executing $400 million in share repurchases during fiscal 2026, creating a clear path for sustainable shareholder returns.Why Is EAT's Superscore Not Higher?Casual dining headwinds: The sector remains highly fragmented and vulnerable to shifts in consumer spending, and the company's dependence on in-store foot traffic makes it sensitive to broader macroeconomic cycles, such as rising food and labor costs.Performance at Maggiano's: The secondary brand continues to face structural challenges that drag on the flagship Chili's brand's overall momentum and profitability.Limited AI integration: As a traditional restaurant operator, the company lacks proprietary data sets or agentic AI assets, leaving it unable to differentiate itself through advanced technological innovation in the way software-native companies can.Hidden Gems Database Scores at a GlanceScoreScore (out of 100)RankSupporting Data PointProduct (1Y)82Top ~10%Revenue growth of 22% and consistent same-store sales gains validate the recent operational shift.Product (5Y)63Top ~36%The 5-year period reflects a difficult strategic reset followed by a successful pivot to menu simplification.Financial (1Y)77Top ~5%Fiscal 2025 net income reached $383 million, marking a major inflection point in profitability.Financial (5Y)63Top ~21%Steady 13% revenue CAGR from 2021 to 2025 reflects resilient brand recovery after pandemic volatility.Leaders89Top ~6%Management provides precise guidance and demonstrates a disciplined approach to capital allocation and debt reduction.AI13Bottom ~27%The company lacks AI-native growth drivers, relying on standard operational software for inventory and logistics.Valuation Risk71Top ~6%The stock trades at a trailing P/E of 19, reflecting recent growth without signs of extreme overvaluation.Is EAT Right For Your Portfolio?This stock warrants a closer look if...

You are looking for exposure to consumer discretionary stocks that have successfully turned around their operations through menu and technology simplification.You value a company that prioritizes aggressive share repurchases and debt reduction alongside consistent same-store sales growth.You may want to keep researching before buying if...

You are concerned that high labor and commodity costs in the casual dining sector will compress margins during an economic slowdown.You prefer companies that hold a structural competitive moat built on proprietary technology rather than brand loyalty and scale.The Superscore is just one data point, and you should weigh it against your own financial goals and risk tolerance before making any investment decisions.

My 5-year prediction for EAT stockThe stock has already had a strong run and trades at a fair P/E of 19. There could still be upside for this restaurant stock, given recent execution and momentum at Chili's.

Fourth-quarter Chili's same-store sales grew 6% year over year, marking the 21st consecutive quarter of growth. Chili's is the company's strongest brand and continues to gain market share in a challenging consumer spending environment.

Meanwhile, Maggiano's has a more inconsistent operating history. In fiscal 2026, Maggiano's same-store sales fell 4% year over year, while Chili's posted a 9% increase in same-store sales over the same period.

But the growth engine is Chili's. This brand was the No. 1 casual dining brand by traffic in fiscal 2026. Brinker is compounding the value from Chili's with solid execution that is driving higher restaurant efficiency and margins, which is fueling solid earnings growth.

Analysts expect the company's earnings to grow at an annualized rate of 15% in the next several years. With a reasonable valuation, the stock should deliver a return comparable to earnings performance in the next five years.

The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.

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.

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

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

The Style Scores are broken down into four categories:

Value 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.

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

Additionally, the company could be a top pick for growth investors. EAT has a Growth Style Score of A, forecasting year-over-year earnings growth of 19.9% for the current fiscal year.

10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.43 to $12.88 per share. EAT boasts an average earnings surprise of +6.2%.

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

Key Takeaways Brinker is revamping Chili's kids menu to attract young families and strengthen traffic.EAT's Chili's posted 5.6% Q4 comparable sales growth, including 1.5% traffic growth.New kids offerings include grilled chicken tenders, mini Moltens, quesadillas, floats and mocktails. Brinker International, Inc. (EAT - Free Report) is expanding Chili’s growth strategy beyond its highly successful chicken sandwich platform by targeting a valuable customer group: young families. Management said the company has launched a revamped kids menu to attract more families, responding partly to growing social-media interest in Chili’s among children and youth groups.

The updated menu brings back Grilled Chicken Tenders, which management described as a parent-and-kid favorite. Chili’s also plans to add mini Moltens and cheese quesadillas, while new floats featuring Blue Bell ice cream and a kid-focused Shirley Temple mocktail broaden the offering.

This initiative comes as Chili’s already has strong traffic momentum. Fourth-quarter fiscal 2026 comparable sales rose 5.6%, including 1.5% traffic growth, while July sales and traffic accelerated further. The brand also ended fiscal 2026 with its 21st consecutive quarter of same-store sales growth.

For EAT, the kids menu could become a longer-term traffic engine if families return frequently and children develop an affinity for the brand. However, management has not quantified the expected sales contribution, making execution and sustained customer adoption key factors to watch.

Overall, the move fits Chili’s broader strategy of bringing in new guests and giving them more reasons to return, potentially strengthening the brand’s traffic trajectory beyond its current menu-led momentum.

Family Dining Competition: Can EAT Keep Its Traffic Edge?As Chili’s looks to strengthen its appeal among families, Darden Restaurants (DRI - Free Report) and Bloomin’ Brands (BLMN - Free Report) are two relevant competitors. Darden Restaurants operates family-oriented casual dining concepts, including Olive Garden, which competes for occasions where value, broad menus and family appeal influence restaurant choice. Its scale and established brand recognition could make Darden Restaurants a formidable rival for family traffic.

Bloomin’ Brands, through Outback Steakhouse and other concepts, also competes for casual family dining occasions. Outback’s broad menu and group-oriented dining experience provide another alternative for households seeking an affordable sit-down meal.

For EAT, the revamped kids menu adds another lever to differentiate Chili’s while complementing its value positioning. Management’s focus on attracting young families could help generate repeat visits if children become familiar with and enthusiastic about the brand. Still, sustained traffic gains will depend on menu execution, value and the broader guest experience rather than the kids offering alone.

EAT’s Price Performance, Valuation and EstimatesBrinker’s shares have gained 47.5% over the past six months, against the industry’s 13.6% decrease.

Price Performance
Image Source: Zacks Investment Research

In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 15.85, down from the industry average of 21.33.

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.

A month has gone by since the last earnings report for Brinker International (EAT - Free Report) . Shares have lost about 10% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Brinker International due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Brinker International, Inc. before we dive into how investors and analysts have reacted as of late.

Brinker Q4 Earnings Meet Estimates, Revenues Beat on Chili's GrowthBrinker 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.

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.

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.

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

The consensus estimate has shifted 13.04% due to these changes.

VGM ScoresCurrently, Brinker International has a strong Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

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

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Brinker International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerBrinker International is part of the Zacks Retail - Restaurants industry. Over the past month, Chipotle Mexican Grill (CMG - Free Report) , a stock from the same industry, has gained 10.8%. The company reported its results for the quarter ended June 2026 more than a month ago.

Chipotle reported revenues of $3.35 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $0.33 for the same period compares with $0.33 a year ago.

Chipotle is expected to post earnings of $0.29 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Chipotle. Also, the stock has a VGM Score of C.

Together millions of Chili's guests and Team Members have raised over $130 million for St. Jude since 2002, now Chili's Create-a-Pepper returns this September - with a new goal in mind

, /PRNewswire/ -- Over the past 24 years, Chili's® Grill & Bar guests and Team Members across the country have embraced Chili's decades-long commitment to St. Jude Children's Research Hospital®. Today, that tradition continues with a new pledge to help raise $150 million over the next 15 years to help support children and families facing cancer and other life-threatening diseases.

Over the past 24 years, Chili’s guests and Team Members have raised over $130 million for St. Jude. Now, the tradition continues with a new pledge to help raise $150 million over the next 15 years, supporting the new Chili’s Clinical Center set to open in February 2027.

During Childhood Cancer Awareness Month, the annual Create-A-Pepper campaign returns to Chili’s restaurants nationwide. Throughout September, guests can purchase a Create-A-Pepper coloring sheet for a $1, $5, $10 or $25 donation, with 100% of proceeds benefiting St. Jude. The partnership has always been powered by people. From Team Members who launched the first Create-A-Pepper fundraiser in Memphis in 2002 to the millions of guests who have donated in restaurants across the country, each contribution has helped St. Jude push the overall childhood cancer survival rate in the U.S. from 20% in 1962 to more than 80% today. Together, that generosity has helped fund spaces on the St. Jude campus that drive research, patient care and education every day. One is the Chili's Care Center, the first medical building on campus to bear the name of a St. Jude corporate partner, which has impacted thousands of patients since opening in 2007. Another is the St. Jude Imagine Academy by Chili's, an on-campus preschool through grade 12 school program run by St. Jude that helps ensure St. Jude patients have the tools they need to thrive academically and keep up with classes back home.

The new $150 million commitment will build on what Chili's guests and Team Members have made possible together. Distributed over the next 15 years, the funding will help support the new Chili's Clinical Center at St. Jude, which will carry forward the Chili's name when it opens in February 2027. The center will bring major outpatient services together under one roof and help St. Jude as it now cares for more than 600 new cancer patients annually, with family-centered spaces designed to make care easier to navigate and help families maintain as much normalcy as possible during treatment.

"Our guests and Team Members have been incredible supporters of St. Jude. With over 3 million individual donations in the last year alone, they continue to show how much this mission means to the Chili's community," said Kevin Hochman, chief executive officer and president of Brinker International, and president of Chili's. "Together, we've raised more than $130 million over the past 24 years, and we couldn't have done it without them. Our new $150 million commitment to support the Chili's Clinical Center builds on everything we've accomplished together. We've created a lot of special moments at Chili's, but what we've done together for St. Jude and for children with cancer is something we'll be proud of for decades to come."

"This extraordinary commitment from our friends at Chili's is a powerful example of how generosity can change lives," said Ike Anand, President and CEO of ALSAC, the fundraising and awareness organization for St. Jude Children's Research Hospital. "For more than 20 years, Chili's guests and Team Members have helped support families facing some of life's toughest challenges and fuel the research that is helping drive childhood cancer survival rates higher in the U.S. and around the world. We are profoundly grateful for Chili's steadfast partnership and unwavering support of the St. Jude mission."

This September, Chili's guests have another opportunity to be part of what comes next. During Childhood Cancer Awareness Month, the annual Create-A-Pepper campaign returns to Chili's restaurants nationwide, continuing the tradition that started the partnership 24 years ago.

Throughout September, guests can purchase a Create-A-Pepper coloring sheet for a $1, $5, $10 or $25 donation, with 100% of proceeds benefiting St. Jude. Every dollar supports groundbreaking research and treatment while ensuring families never receive a bill from St. Jude for treatment, travel, housing or food. Completed Create-A-Pepper designs will once again fill Chili's restaurant walls throughout the month, giving guests of all ages a way to add their support to the millions who have participated before them.

To learn more about Chili's partnership with St. Jude, visit chilis.com/st-jude, and stop by a participating Chili's location to Create-A-Pepper throughout September.

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 $130 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 St. Jude Children's Research Hospital
St. Jude Children's Research Hospital is leading the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. Its purpose is clear: Finding cures. Saving children.® It is the only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children. When St. Jude opened in 1962, childhood cancer was considered largely incurable. Since then, St. Jude has helped push the overall survival rate in the U.S. from 20% to more than 80%, and it won't stop until no child dies from cancer. St. Jude shares the breakthroughs it makes to help doctors and researchers at local hospitals and cancer centers around the world improve the quality of treatment and care for even more children. Because of generous donors, families never receive a bill from St. Jude for treatment, travel, housing or food, so they can focus on helping their child live. Visit St. Jude Inspire to discover powerful St. Jude stories of hope, strength, love and kindness. Support the St. Jude mission by donating at stjude.org, liking St. Jude on Facebook, following St. Jude on X, Instagram, LinkedIn and TikTok, and subscribing to its YouTube channel.

SOURCE Chili's Grill & Bar

Chili's® Announces Historic $150 Million Commitment to St. Jude Children's Research Hospital®, Fueled by Guests and Team Members PR Newswire

DALLAS, Sept. 8, 2026

Together millions of Chili's guests and Team Members have raised over $130 million for St. Jude since 2002, now Chili's Create-a-Pepper returns this September - with a new goal in mind

, /PRNewswire/ -- Over the past 24 years, Chili's® Grill & Bar guests and Team Members across the country have embraced Chili's decades-long commitment to St. Jude Children's Research Hospital®. Today, that tradition continues with a new pledge to help raise $150 million over the next 15 years to help support children and families facing cancer and other life-threatening diseases.

The partnership has always been powered by people. From Team Members who launched the first Create-A-Pepper fundraiser in Memphis in 2002 to the millions of guests who have donated in restaurants across the country, each contribution has helped St. Jude push the overall childhood cancer survival rate in the U.S. from 20% in 1962 to more than 80% today. Together, that generosity has helped fund spaces on the St. Jude campus that drive research, patient care and education every day. One is the Chili's Care Center, the first medical building on campus to bear the name of a St. Jude corporate partner, which has impacted thousands of patients since opening in 2007. Another is the St. Jude Imagine Academy by Chili's, an on-campus preschool through grade 12 school program run by St. Jude that helps ensure St. Jude patients have the tools they need to thrive academically and keep up with classes back home.

The new $150 million commitment will build on what Chili's guests and Team Members have made possible together. Distributed over the next 15 years, the funding will help support the new Chili's Clinical Center at St. Jude, which will carry forward the Chili's name when it opens in February 2027. The center will bring major outpatient services together under one roof and help St. Jude as it now cares for more than 600 new cancer patients annually, with family-centered spaces designed to make care easier to navigate and help families maintain as much normalcy as possible during treatment.

"Our guests and Team Members have been incredible supporters of St. Jude. With over 3 million individual donations in the last year alone, they continue to show how much this mission means to the Chili's community," said Kevin Hochman, chief executive officer and president of Brinker International, and president of Chili's. "Together, we've raised more than $130 million over the past 24 years, and we couldn't have done it without them. Our new $150 million commitment to support the Chili's Clinical Center builds on everything we've accomplished together. We've created a lot of special moments at Chili's, but what we've done together for St. Jude and for children with cancer is something we'll be proud of for decades to come."

"This extraordinary commitment from our friends at Chili's is a powerful example of how generosity can change lives," said Ike Anand, President and CEO of ALSAC, the fundraising and awareness organization for St. Jude Children's Research Hospital. "For more than 20 years, Chili's guests and Team Members have helped support families facing some of life's toughest challenges and fuel the research that is helping drive childhood cancer survival rates higher in the U.S. and around the world. We are profoundly grateful for Chili's steadfast partnership and unwavering support of the St. Jude mission."

This September, Chili's guests have another opportunity to be part of what comes next. During Childhood Cancer Awareness Month, the annual Create-A-Pepper campaign returns to Chili's restaurants nationwide, continuing the tradition that started the partnership 24 years ago.

Throughout September, guests can purchase a Create-A-Pepper coloring sheet for a $1, $5, $10 or $25 donation, with 100% of proceeds benefiting St. Jude. Every dollar supports groundbreaking research and treatment while ensuring families never receive a bill from St. Jude for treatment, travel, housing or food. Completed Create-A-Pepper designs will once again fill Chili's restaurant walls throughout the month, giving guests of all ages a way to add their support to the millions who have participated before them.

To learn more about Chili's partnership with St. Jude, visit chilis.com/st-jude, and stop by a participating Chili's location to Create-A-Pepper throughout September.

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 $130 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 St. Jude Children's Research Hospital
St. Jude Children's Research Hospital is leading the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. Its purpose is clear: Finding cures. Saving children.® It is the only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children. When St. Jude opened in 1962, childhood cancer was considered largely incurable. Since then, St. Jude has helped push the overall survival rate in the U.S. from 20% to more than 80%, and it won't stop until no child dies from cancer. St. Jude shares the breakthroughs it makes to help doctors and researchers at local hospitals and cancer centers around the world improve the quality of treatment and care for even more children. Because of generous donors, families never receive a bill from St. Jude for treatment, travel, housing or food, so they can focus on helping their child live. Visit St. Jude Inspire to discover powerful St. Jude stories of hope, strength, love and kindness. Support the St. Jude mission by donating at stjude.org, liking St. Jude on Facebook, following St. Jude on X, Instagram, LinkedIn and TikTok, and subscribing to its YouTube channel.

View original content to download multimedia:https://www.prnewswire.com/news-releases/chilis-announces-historic-150-million-commitment-to-st-jude-childrens-research-hospital-fueled-by-guests-and-team-members-302870564.html

SOURCE Chili's Grill & Bar

The GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Growth Metrics

A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.

Another metric that growth and GARP investors consider is return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes popular value metrics, the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.

Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.

Along with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)

P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)

Here are four stocks from the 12 that made it through the screening process.

Fortinet's investment case rests on a broadening product portfolio and accelerating strategic momentum. The company raised its full-year 2026 revenue growth guidance to 19%, with full-year billings guided between $9.35 billion and $9.55 billion. The July 2026 launch of the FortiGate 1200G with FortiSASE Outpost introduces a convergent SASE Firewall architecture, a newly defined market opportunity addressing hybrid deployment demands.

Concurrently, the expanded FortiEndpoint platform consolidates AI visibility, data security, and endpoint protection into a single agent and license, deepening wallet share per customer. In August 2026, Fortinet acquired Virtue AI to enhance its Security Fabric with agentic AI runtime protection, directly addressing the fast-growing AI security segment. Fortinet Federal's CMMC Level 2 certification opens the U.S. government market.

The Zacks Consensus Estimate for FTNT’s 2026 earnings has moved north by 8.3% to $3.40 per share in the past 60 days. This Zacks Rank #1 company surpassed the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 20.34%.

Brinker International enters fiscal 2027 with a clear growth runway, underpinned by company-issued guidance targeting revenues of $6.15 billion to $6.27 billion and adjusted EPS of $12.60 to $13.40. Chili's brand momentum visibly accelerated in July 2026, powered by the sustained success of the Big Crispy chicken sandwich.

On July 16, the company redeemed $350 million in 8.25% notes, lowering its interest expense profile. Its board then expanded the share repurchase authorization to $750 million in August, reflecting management's confidence in free cash flow generation. A 60-to-80 restaurant reimage plan, mid-single-digit same-store sales guidance, and expected positive traffic at Chili's further support the outlook. An Investor Day set for Sept. 17, 2026 could serve as an additional near-term catalyst.

The Zacks Consensus Estimate for EAT’s fiscal 2027 earnings has moved north by 4.8% to $13.01 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.21%.

Lincoln Electric is well-positioned for near-term outperformance, driven by converging demand and strategic catalysts. The company's RISE framework targets revenues exceeding $6 billion by 2030, peak adjusted operating margins above 20%, and mid-teens EPS CAGR. For the second half of 2026, management anticipates continued margin improvement, with mid-20% incremental operating margins and a neutral price-cost environment. Improved demand and capital spending across the Americas and Asia Pacific are broadening the growth base. The July 2026 declaration by the board of a 79 cents per share quarterly dividend reinforces steady shareholder returns, while the company's scheduled September 2026 investor engagements signal management's confidence in execution. With 71 manufacturing facilities across 20 countries and proprietary automation capabilities, Lincoln Electric's infrastructure supports durable earnings growth.

The consensus estimate for LECO’s 2026 earnings has moved north by 3% to $11.16 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 3.92%.

AI-driven semiconductor demand is structurally reshaping Lam Research's near-term growth outlook. The company's guidance for the September 2026 quarter projects revenues of $8.10 billion and a non-GAAP operating margin of 39.5%, reflecting strong sequential momentum. Deferred revenues of $2.43 billion at June quarter-end signal a healthy forward demand pipeline supporting continued execution.

In August 2026, Lam Research announced plans to invest more than $3 billion over the next five years to expand its global R&D lab network, with experiment capacity targeted to grow by over 50%. Groundbreaking of a new 120,000-square-foot Oregon facility marks the investment's first concrete milestone. A 27% quarterly dividend hike to $0.33 per share further signals management's confidence in sustained cash generation and long-term shareholder returns.

The consensus estimate for LRCX’s 2026 earnings has moved north by 18.7% to $9.33 per share in the past 30 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.12%.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

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

Brinker International (EAT - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it 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.

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

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. 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 21.2% this year, crushing the industry average, which calls for EPS growth of 7.5%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on 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 RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Brinker International have been revising upward. The Zacks Consensus Estimate for the current year has surged 6.8% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Brinker International a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

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.

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Brinker International (EAT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

Brinker International is a member of the Retail-Wholesale sector. This group includes 190 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Brinker International is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for EAT's full-year earnings has moved 6.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, EAT has gained about 63% so far this year. In comparison, Retail-Wholesale companies have returned an average of 1.2%. This shows that Brinker International is outperforming its peers so far this year.

Target (TGT - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 67.5%.

The consensus estimate for Target's current year EPS has increased 5.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Brinker International belongs to the Retail - Restaurants industry, a group that includes 36 individual stocks and currently sits at #157 in the Zacks Industry Rank.

In contrast, Target falls under the Retail - Discount Stores industry. Currently, this industry has 7 stocks and is ranked #23.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Brinker International and Target as they could maintain their solid performance.

Key Takeaways Bloomin' Brands is gaining momentum as Outback's turnaround boosts checks, sales and restaurant-level margins.BJ's Restaurants is seeing stronger traffic, menu innovation and technology investments that support growth.EAT benefits from Chili's strength, labor productivity, cash generation and further growth plans. The U.S. restaurant industry has faced a challenging environment over the past six months, with the sector down 10.6% as consumers remain cautious about discretionary spending and operators contend with elevated labor, food and other operating costs. Restaurant traffic has also been uneven, increasing the pressure on companies to offer compelling value while protecting margins. Despite these headwinds, the industry is now ranked relatively favorably. The Zacks Retail – Restaurants industry is ranked 97 out of 248 industries, or in the top 39%.

The relatively favorable industry ranking suggests that opportunities remain despite the recent weakness in restaurant stocks. Operators are focusing on initiatives such as menu innovation, targeted promotions, cost controls and productivity improvements to navigate a more selective consumer. Meanwhile, restaurant sales continue to grow in nominal terms, although inflation-adjusted growth remains modest. The National Restaurant Association's latest outlook projects 4.3% growth in U.S. restaurant and foodservice sales in 2026, while inflation-adjusted sales are expected to rise 0.8%, pointing to a moderate-growth environment for the industry.

Against this backdrop, the performance of a select group of restaurant stocks has been particularly notable. Bloomin' Brands, Inc. (BLMN - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) , Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) and Brinker International, Inc. (EAT - Free Report) have each gained more than 50% over the past six months, significantly outperforming the broader industry. Their strong rallies highlight how company-specific factors can outweigh broader sector pressures, particularly when investors see improving earnings prospects, better operational execution or opportunities for margin expansion.

Price Performance
Image Source: Zacks Investment Research

After advancing more than 50% in six months, these stocks have already delivered substantial returns, yet their investment cases remain supported by expectations for further improvement in their underlying businesses. Stronger earnings estimate revisions and operational initiatives could provide additional support for the stocks. Let's examine the key factors that make BLMN, BJRI, CBRL and EAT attractive investments even after their substantial six-month gains.

The Case for These 4 Restaurant StocksBloomin' Brands: It is gaining momentum from the ongoing Outback turnaround, with improvements in food quality, service and affordability helping strengthen the brand. Customers are also showing a greater willingness to trade up to premium steak cuts and higher-priced meal options, driving higher average checks and supporting comparable sales despite softer traffic. At the same time, productivity initiatives and better restaurant-level margins are improving profitability, while the company’s decision to raise its 2026 earnings outlook signals greater confidence in the turnaround.

In the past 60 days, earnings estimates for 2026 and 2027 have increased to 98 cents and 98 cents from 89 cents and 90 cents, respectively. Sales are also expected to witness growth of 0.5% and 1.6% in 2026 and 2027, respectively. The company carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Image Source: Zacks Investment Research

BJ's Restaurants: It is benefiting from stronger customer traffic, supported by the popularity of its seasonal Pizookies, PMD offerings and the Pizookie Meal Deal, along with ongoing menu innovation and marketing efforts. BJRI is also working to improve guest engagement and restaurant execution through employee training, upgraded point-of-sale systems, enhanced tablets and an AI-enabled labor model. In addition, investments in restaurant remodels and plans to expand its unit base could provide further support to growth.

In the past 60 days, earnings estimates for 2026 and 2027 have witnessed upward revisions of 7.2% and 6.7% to $2.37 and $2.72 per share, respectively. Earnings are projected to increase 4.9% in 2026 and 14.9% in 2027. Sales are also expected to remain on a growth trajectory, with estimates calling for increases of 4.3% and 4.1% in 2026 and 2027, respectively. The company carries a Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

Cracker Barrel: It is benefiting from ongoing menu enhancements, operational improvements, value-oriented offerings and tighter cost controls. CBRL is also using its loyalty program, digital initiatives and AI-based tools to deepen customer engagement and improve operating efficiency. Its Cracker Barrel Rewards program continued to gain traction in the third quarter of fiscal 2026, with membership approaching 12 million and rewards members accounting for more than 40% of tracked sales.

In the past 60 days, earnings estimates for 2026 and 2027 have increased to 7 cents and $1.28 from a loss of 83 cents and earnings per share of 67 cents, respectively. Sales are expected to witness a decline of 5.3% and a gain of 4% in 2026 and 2027, respectively. The company carries a Zacks Rank #2.

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Brinker International: It is benefiting from the continued strength of Chili’s, driven by healthy traffic, pricing, everyday value and ongoing menu innovation. Better restaurant execution and labor productivity are helping protect margins even as commodity costs remain elevated. Strong cash generation also gives Brinker flexibility to invest in its business, repurchase shares and reduce debt. EAT’s fiscal 2027 outlook calls for further revenue and earnings growth, with continued traffic gains and restaurant reimages at Chili’s expected to support performance.

In the past 60 days, earnings estimates for fiscal 2027 and 2028 have increased to $13.01 and $13.90 from $12.42 and $13.43, respectively. Earnings are projected to increase 21.1% in fiscal 2027 and grow 6.8% in fiscal 2028. Sales are also expected to remain on a growth trajectory, with estimates calling for increases of 7.5% and 2.8% in fiscal 2027 and 2028, respectively. The company carries a Zacks Rank #2.

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Key Takeaways YUMC, BJRI, EAT, CAKE and TXRH stand out as restaurant sales surged 4.2% year over year.YUMC, BJRI and EAT posted expected current-year earnings growth of 17.5%, 4.9% and 20.6%.CAKE and TXRH expect earnings growth of 18.6% and 8.7%, respectively, this year. The U.S. restaurant industry is growing at a steady pace amid price challenges and inflationary pressures. Sales at food services and drinking places have been rising at a rapid pace as consumers continue to spend lavishly.

Although retail sales unexpectedly declined in July, the restaurant industry maintained its momentum, with sales surging. Restaurants have also been rapidly revamping their menus and introducing special deals, discounts and value meals to better align with customer demands and preferences.

Given this situation, it would be ideal to invest in restaurant stocks with a strong online presence. We have selected five stocks, namely, Yum China Holdings, Inc. (YUMC - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) , Brinker International, Inc. (EAT - Free Report) , The Cheesecake Factory Incorporated (CAKE - Free Report) and Texas Roadhouse, Inc. (TXRH - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Restaurant Sales SurgeSales at eating and drinking places in the United States totaled $107.2 billion, increasing 0.5% in July after growing 0.4% in the prior month, the Commerce Department reported last week.

Year over year, sales at U.S. restaurants jumped 4.2%, suggesting that consumers have been spending aggressively on eating out despite higher energy and food prices. Restaurant sales are a key gauge for the Federal Reserve to assess household finances.

Higher energy costs since the U.S.-Iran war began in late February have posed a major challenge for restaurants. Although energy costs declined in June, they have once again been on the rise with the Middle East crisis intensifying earlier this month, with no signs of peace talks between the two warring nations.

However, consumers have still been spending lavishly at food and drinking places, with sales totaling $711. 8 billion between January and July.

Also, tax refunds have been helping consumers to spend more freely at restaurants. Inflation eased in July as oil prices eased, prompting the Federal Reserve to keep interest rates unchanged at its July FOMC meeting.

At the same time, higher prices have put added pressure on restaurant operators as customers become more cautious about their spending and look for better value. Quick-service restaurants, especially those known for affordable meals, have generally fared better than many of their peers in the challenging environment.

As more budget-conscious consumers look for affordable dining options, competition in the value segment has grown tougher. Restaurant chains are responding with more promotions, discounts and value-focused meal deals to attract customers.

Despite the challenges, demand for affordable dining remains robust. Many restaurant chains are stepping up their marketing, forming partnerships and adding new items to their menus to stay competitive and encourage repeat visits.

5 Restaurant Stocks With Growth PotentialYum China HoldingsYum China Holdings operates both company-owned and franchised restaurants. YUMC’s brands include KFC, Pizza Hut and Taco Bell. The company also owns East Dawning, Little Sheep and COFFii & JOY.

Yum China Holdings’ expected earnings growth rate for the current year is 17.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 90 days.

BJ's RestaurantsBJ's Restaurants, Inc. owns and operates a chain of high-end casual dining restaurants in the United States. BJRI’s menu offers a wide range of dining options, including everyday lunch and dinner, special occasions and late-night business.

BJ's Restaurants’ expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 7.2% over the past 90 days.

Brinker International, Inc.Brinker International, Inc. primarily owns, operates, develops and franchises various restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brands. EAT took over Chili’s, Inc., a Texas corporation, in September 1983 and completed the acquisition of Maggiano’s in August 1995. Chili’s is a preeminent leader in the bar & grill category of casual dining. The brand has been functioning for over 40 years.

Brinker International’s expected earnings growth rate for the current year is 20.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the past 90 days.

The Cheesecake FactoryThe Cheesecake Factory Incorporated owns and operates 370 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory and North Italia, Flower Child and a collection within the Fox Restaurant Concepts subsidiary. Internationally, CAKE operates 36 Cheesecake Factory restaurants under licensing agreements. It operates two bakery production facilities as well.

The Cheesecake Factory’s expected earnings growth rate for the current year is 18.6%. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the past 90 days.

Texas RoadhouseTexas Roadhouse, Inc. is a full-service, casual dining restaurant chain, which offers assorted seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills. TXRH operates restaurants under the Texas Roadhouse and Aspen Creek names.

Texas Roadhouse’s expected earnings growth rate for the current year is 8.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.8% over the past 90 days. 

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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.

Additionally, the company could be a top pick for growth investors. EAT has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.6% for the current fiscal year.

Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.53 to $12.95 per share. EAT boasts an average earnings surprise of +6.2%.

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

Algert Global LLC lowered its position in Brinker International, Inc. (NYSE:EAT – Free Report) by 5.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 35,489 shares of the restaurant operator’s stock after selling 2,230 shares during the quarter. Algert Global LLC owned about 0.08% of Brinker International worth $5,962,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. NewEdge Advisors LLC lifted its position in shares of Brinker International by 1,118.9% in the 1st quarter. NewEdge Advisors LLC now owns 1,158 shares of the restaurant operator’s stock worth $173,000 after purchasing an additional 1,063 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Brinker International by 271.1% during the second quarter. EverSource Wealth Advisors LLC now owns 846 shares of the restaurant operator’s stock worth $153,000 after buying an additional 618 shares during the period. First Trust Advisors LP raised its stake in shares of Brinker International by 1.9% in the second quarter. First Trust Advisors LP now owns 52,249 shares of the restaurant operator’s stock worth $9,422,000 after purchasing an additional 978 shares during the last quarter. Baird Financial Group Inc. purchased a new position in shares of Brinker International during the second quarter worth $3,222,000. Finally, Brown Advisory Inc. increased its holdings in shares of Brinker International by 33.0% during the 2nd quarter. Brown Advisory Inc. now owns 1,789 shares of the restaurant operator’s stock valued at $323,000 after purchasing an additional 444 shares in the last quarter.

Brinker International Trading Down 3.3% Shares of EAT stock opened at $240.52 on Thursday. The stock has a market cap of $10.05 billion, a P/E ratio of 22.09, a P/E/G ratio of 1.28 and a beta of 1.24. The company has a quick ratio of 0.40, a current ratio of 0.45 and a debt-to-equity ratio of 0.95. Brinker International, Inc. has a fifty-two week low of $100.30 and a fifty-two week high of $254.99. The business has a fifty day simple moving average of $200.98 and a 200-day simple moving average of $165.34.

Brinker International (NYSE:EAT – Get Free Report) last released its earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.09 by ($0.02). Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The firm had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.53 billion. During the same quarter last year, the company posted $2.30 earnings per share. Brinker International’s revenue for the quarter was up 5.1% on a year-over-year basis. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. On average, analysts forecast that Brinker International, Inc. will post 13.24 earnings per share for the current fiscal year. Wall Street Analysts Forecast Growth Several brokerages have issued reports on EAT. Robert W. Baird assumed coverage on shares of Brinker International in a research note on Monday. They set an “outperform” rating and a $325.00 target price on the stock. Citigroup lifted their price target on shares of Brinker International from $227.00 to $282.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. TD Cowen upped their target price on shares of Brinker International from $210.00 to $270.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. UBS Group upped their price objective on shares of Brinker International from $190.00 to $260.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Finally, Stephens boosted their target price on Brinker International from $220.00 to $300.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Seventeen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $242.19.

Get Our Latest Stock Analysis on EAT

Insider Buying and Selling at Brinker International In other Brinker International news, SVP James M. Butler sold 10,000 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $240.37, for a total value of $2,403,700.00. Following the completion of the sale, the senior vice president owned 9,064 shares of the company’s stock, valued at $2,178,713.68. This trade represents a 52.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Aaron M. White sold 16,220 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $236.22, for a total value of $3,831,488.40. Following the completion of the transaction, the executive vice president directly owned 42,756 shares of the company’s stock, valued at $10,099,822.32. This represents a 27.50% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 145,014 shares of company stock worth $34,958,437. Corporate insiders own 1.43% of the company’s stock.

Brinker International News Roundup Here are the key news stories impacting Brinker International this week:

Positive Sentiment: Brinker’s latest results showed solid operating momentum: quarterly revenue rose 5.1% year over year to approximately $1.54 billion, while comparable restaurant sales increased 5.0% and Chili’s comparable sales climbed 5.6%. Management also issued fiscal 2027 EPS guidance of $12.60–$13.40 and expanded its share-repurchase authorization to $750 million. Positive Sentiment: Robert W. Baird initiated coverage with an “outperform” rating and a $325 price target, offering a bullish view that the company’s growth outlook can support additional upside. Robert W. Baird Initiates Coverage on Brinker International Neutral Sentiment: Chili’s launched a promotional “Chili’s Golf Club” activation at DeBell Golf Club in California. The campaign could support brand engagement, but its near-term financial impact is unclear. Chili’s Golf Club announcement Negative Sentiment: A recent analyst downgrade to a neutral stance suggested that much of Brinker’s strong earnings news may already be reflected in the stock following its sharp rally. Valuation concerns are more prominent with shares near their 52-week high, while several older analyst targets remain below the current trading level. Negative Sentiment: Insider selling is adding short-term pressure. Senior Vice President Daniel S. Fuller sold 1,909 shares for approximately $484,000 on August 25, following other disclosed sales, including SVP James Butler’s 10,000-share sale valued at roughly $2.4 million. Across the past six months, reported insider activity included 15 sales and no purchases. Daniel Fuller insider sale Brinker International Company 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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