EAT Brinker International Inc

Brinker International (EAT) is identified as a strong growth stock due to its favorable Zacks Growth Style Score and top Zacks Rank. The company shows promising financial growth with projected EPS growth of 14.9% this year, significantly outperforming the industry average. Additionally, Brinker International exhibits strong cash flow growth, with a year-over-year increase of 72.1% and positive earnings estimate revisions, making it a potential outperformer for growth investors.

Oak Harvest Investment Services has acquired a new stake of 17,161 shares in Brinker International (NYSE: EAT), valued at approximately $2.17 million. This acquisition follows Brinker International's strong Q3 earnings beat and positive FY2026 guidance, which have led to a "Moderate Buy" consensus rating from analysts with an average target price of $170.29. Several other institutional investors have also adjusted their holdings in the restaurant operator.

This article advises investors to avoid Brinker International (EAT) due to its flat restaurant count, slim projected revenue growth of 3.5%, and low gross margin of 17% which indicates weak structural profitability. Instead, the author recommends investing in fast-growing restaurant franchises, highlighting Nvidia and Comfort Systems as examples of high-quality stocks that have delivered market-beating returns. The author suggests that despite a reasonable valuation, EAT's underlying fundamentals present too much downside risk.

Brinker International (EAT) is experiencing strong performance from its Chili's brand, driven by increased traffic, effective marketing, and continuous improvements in food quality and in-restaurant experience. Despite facing rising costs and inflationary pressures, the company has seen its shares gain 18.1% in the past three months, outperforming its industry. Fiscal 2026 earnings estimates have been adjusted upward, reflecting improving operating efficiencies and anticipated absolute earnings growth.

Burney Co. recently acquired 32,637 shares of Brinker International, Inc. (NYSE:EAT) during the third quarter, a stake valued at approximately $4.13 million. This purchase reflects increasing institutional interest in Brinker, which recently exceeded Q3 earnings expectations with $1.93 EPS and reported $1.35 billion in revenue, up 18.5% year-over-year. The restaurant operator has also issued optimistic FY2026 guidance, attracting a "Moderate Buy" consensus rating from analysts.

Brinker International, the parent company of Chili's, also owns Maggiano's Little Italy, a popular Italian-American casual dining chain. Initially, Maggiano's tried to elevate its atmosphere and menu to be more high-end, but after a decline in sales, it decided to pivot to a more casual, Chili's-like approach. This shift aims to focus on marketing and operational improvements rather than an upscale dining experience.