Should Investors Buy Brinker International (EAT) Stock Near All-Time Highs?

Hitting fresh all-time highs of nearly $140 a share on Friday, Brinker International EAT stock has now soared over +240% in the last year.As one of the stock market’s top performers, investors are surely wondering if the incredible rally can continue for the operator and franchiser of Chili’s Grill & Bar and Maggiano’s Little Italy.Image Source: Zacks Investment Research Why Brinker Stock is Doing So Well Brinker’s success can be traced to its competitive menu pricing, particularly at Chili’s. This has started to draw consumers from competitors such as Texas Roadhouse TXRH and Darden Restaurants DRI which operates Olive Garden and Long-Horn Steakhouse.Complementing its pricing strategies, Brinker has continued to focus on Chili’s international expansion with a growing presence in Mexico, Canada, and the Middle East.Image Source: Zacks Investment Research Tracking Brinker’s Growth Trajectory Based on Zacks estimates, Brinker’s total sales are now expected to rise 9% in fiscal 2025 and are projected to increase another 4% in FY26 to $5.01 billion. More impressive, annual earnings are expected to climb 44% in FY25 to $5.91 versus EPS of $4.10 last year. Plus, FY26 EPS is projected to increase another 14%.Image Source: Zacks Investment Research Monitoring Brinker’s Valuation Magnifying Brinker’s attractive growth trajectory is the company’s reasonable valuation. Brinker’s stock still trades at 23.3X forward earnings which is slightly beneath its Zacks Retail-Restaurants Industry average with Texas Roadhouse and Darden at 25.1X and 19.6X respectively. Furthermore, Brinker trades under the optimum level of less than 2X sales.Image Source: Zacks Investment Research Takeaway Even after such an incredible rally, it's hard to count Brinker International’s stock out in terms of more upside. To that point, Brinker’s stock currently sports a Zacks Rank #2 (Buy) based on a trend of positive earnings estimate revisions for FY25 and FY26. In addition to this, Brinker has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH): 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