NYSE:EAT

Brinker International (EAT)

216.82
-5.67 (2.55%)
as of Sep 9, 2026, 3:48:29 pm Market Open.
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Investor Insights
star iconSep 9, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

Brinker International (EAT) experienced a significant surge in its shares today, marking a 14% increase after unexpectedly positive Q3 results. Despite investor concerns leading into the quarter, the company's management reported better-than-anticipated performance driven by improved conditions in February and March, raising the lower end of their forecasts. The financial results included a top and bottom line beat, along with a notable increase in same-store sales. This has led some experts to suggest that there could be a buying opportunity as the shares are currently priced at only 10 times earnings, indicating potential undervaluation despite the overall unfavorable sentiment towards restaurant stocks. Additionally, with recent dips in commodity prices, investors are advised to weigh profit-taking options if currently holding shares.

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Consensus
Positive
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Valuation
Undervalued
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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.

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