Key Stats for Brinker International Stock
- Price Change for $EAT stock: 7%
- $EAT Share Price as of Nov. 17: $121
- 52-Week High: $192
- $EAT Stock Price Target: $159
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What Happened?
Brinker International (EAT) stock jumped almost 7% yesterday, marking its largest single-day gain since April. The rally comes as Brinker International continues to recover from a sharp selloff that followed its earnings report on October 29.
The stock’s strong performance appears driven by renewed investor confidence in the company’s turnaround strategy, particularly at its flagship Chili’s brand.
With short interest sitting at 12% of the float, some of these gains may also reflect short covering as pessimistic traders exit their positions.
Recent investor meetings in New York, featuring CEO Kevin Hochman, CFO Mika Ware, and VP of Investor Relations Kim Sanders, highlighted several positive developments that are getting investors excited again.
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What the Market Is Telling Us About EAT Stock
The bounce in EAT stock reflects growing confidence in Chili’s momentum. Management shared compelling data showing that nearly 50% of Chili’s guests are either new or haven’t visited in over a year.
Even better, both new and returning customers are visiting at stable frequencies, which suggests the brand’s marketing is working and the improved dining experience is bringing people back.
Chili’s posted a remarkable 21.4% same-store sales growth in the fiscal first quarter, crushing the casual dining industry average by 1,650 basis points. Traffic was up 13%, marking the brand’s 18th consecutive quarter of positive same-store sales growth.
The company’s “better than fast food” value messaging continues to resonate, especially with lower-income households under $60,000 annually. While other restaurants report weakness with this group, Chili’s is actually gaining market share.
Analysts remain bullish on EAT stock despite recent volatility. Stifel maintained its “Buy” rating with a $200 price target, while Freedom Capital Markets initiated coverage with a “Buy” rating and $145 target.
The optimism stems from Chili’s proven ability to attract new guests through world-class marketing while delivering consistent food quality and hospitality that keeps them coming back.
The company also reported strong Q1 financial results with EPS of $1.93 (beating estimates of $1.77) and revenue of $1.35 billion (topping expectations of $1.33 billion). Restaurant operating margins expanded 270 basis points year-over-year to 16.2%.
While Maggiano’s continues to struggle with a 6.4% comp decline, management has launched a “Back to Maggiano’s” turnaround plan focused on scratch-made Italian favorites, improved service, and facility upgrades.
For now, Chili’s strength more than offsets Maggiano’s challenges, giving investors reasons to remain optimistic about EAT stock heading into 2025.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
