Buy the Post-Earnings Surge in Brinker International (EAT) Stock?

I’ve found myself covering Brinker International’s EAT stock quite a bit because of its incredible price performance. And here it is, the iconic operator of Chili’s Bar & Grille and Maggiano’s has now seen its stock skyrocket over +300% in the last year.Able to crush earnings expectations for its fiscal second quarter on Wednesday, EAT hit new 52-week peaks of $184 a share today.Image Source: Zacks Investment Research Brinker’s Strong Q2 ResultsContinuing an impeccable turnaround that has been primarily driven by improved guest experience and favorable menu pricing at Chili’s, Brinker reported Q2 sales of $1.35 billion. Brinker’s top line expanded 26% from $1.07 billion in the prior year quarter while topping Q2 sales estimates of $1.24 billion.Notably, Brinker stated Chili’s significantly outperformed the industry with same-restaurant sales up 31% versus a year ago. Brinker’s improved operating performance stood out even more with Q2 EPS of $2.80 soaring from $0.99 a share in the comparative quarter and beating expectations of $1.80 by 55%.Image Source: Zacks Investment Research Brinker’s Positive EPS Guidance Following its pleasant EPS surprise, Brinker now expects fiscal 2025 earnings in the range of $7.50-$8.00 per share which came in well above the current Zacks Consensus of $6.23 or 52% growth. Based on Zacks estimates, Brinker’s bottom line is projected to expand another 14% next year.Image Source: Zacks Investment ResearchCorrelating with the extensive rally in EAT, it’s noteworthy that the trend of positive earnings estimate revisions has been extremely compelling for Brinker with a 58% increase in FY25 EPS projections since January of last year.Image Source: Zacks Investment Research Bottom Line Following its over-achieving Q2 report, Brinker International stock sports a Zacks Rank #1 (Strong Buy). With the company’s EPS guidance coming in above the Zacks Consensus, the trend of rising earnings estimate revisions is likely to continue which could lead to even more upside for EAT.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks