NYSE:EAT

Brinker International (EAT)

187.65
+7.02 (3.88%)
as of Jul 10, 2026, 5:12:09 pm Market Open.
6 watching
0
Investor Insights
star iconJul 10, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Brinker International, with the symbol EAT-N, has recently reported its Q3 results, which surpassed expectations and led to a 14% surge in its share price. Despite concerns regarding costs and unfavorable weather affecting January's sales, management has raised the lower end of their full-year forecast, which bodes well for investor confidence. Notably, the company recorded a remarkable 23.7% growth in same-store sales, contributing to a year-long increase of 124% in its shares. Although trading at a low price-to-earnings ratio of 10, restaurant stocks generally remain out of favor, presenting a potential buying opportunity for investors. However, with the prices of gas and other commodities declining, experts advise taking profits if already invested in the stock.

consensus icon
Consensus
Positive
valuation icon
Valuation
Undervalued
review icon
Similar
Darden,DRI
PAST TOP PICK

(A Top Pick March 26/13. Up 12.49%.) Have roughly 1500 restaurants and all but 44 are under the Chili’s brand. This is primarily a capital return to shareholders story. Management intends to buy back $1 billion worth of stock between now and the end of 2017. 2.3% dividend yield.

TOP PICK

US restaurant company with over 1500 stores with the vast majority being Chili’s. Balance sheet problems in 2008 have been fixed and they are now investment grade. Same-store sales was very weak coming out of the financial crisis but have turned positive in the last 6 quarters. A $2.5 billion company and they just gave guidance that they are going to buy back $1 billion of stock and going to pay $300 million in dividends. You’ll get half your money back between now and 2017 and you’ll own more of the business than you do today. Dividend yield of 2.19%.

DON'T BUY

Main restaurant is Chili's in the US. Have done some good things in turning things around and getting margins up. In the restaurant business you are better to find newer concepts with potential future store growth. Restaurants are going to be pressured over the next few years by rising food and commodity costs. Trades at a steep multiple of 15-16 times earnings.

Showing 16 to 18 of 18 entries