Bear of the Day: Brinker (EAT)

·2 min read

It does not take a stock market analyst to realize that COVID put a hurting on restaurant business. Now, coming out of the pandemic, the industry still faces huge headwinds. Of the thousands, if not millions, of staff that were let go during the pandemic, many found ways to make money outside of the business. It’s creating a labor shortage that is driving up wages. Unable to find staff, restaurants across the country are working with skeleton crews and it’s hurting the bottom line.

One such company is today’s Bear of the Day, Brinker International EAT. Brinker International engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. The company operates in two segments, Chili's and Maggiano's. As of June 30, 2021, it owned, operated, or franchised 1,648 restaurants comprising 1,594 restaurants under the Chili's Grill & Bar name and 54 restaurants under the Maggiano's Little Italy brand name.

Brinker International, Inc. Price and Consensus

Brinker International, Inc. Price and Consensus
Brinker International, Inc. Price and Consensus

Brinker International, Inc. price-consensus-chart | Brinker International, Inc. Quote

Brinker is currently a Zacks Rank #5 (Strong Sell) in the Retail – Restaurants industry which ranks in the Bottom 30% of our Zacks Industry Rank. The reason for the bearish rank is several analysts across Wall Street have cut their earnings estimates for the stock. Over the last sixty days, six analysts have cut their numbers for the current quarter and current year, while two have dropped their numbers for next year. The moves have cut our Zacks Consensus Estimates for the current year from $5.11 to $4.68 while next year is off from $5.83 to $5.54.

Investors looking for other stocks in the same industry have a few choices to research further which are in the good graces of our Zacks Rank. These include Zacks Rank #1 (Strong Buy) Denny’s DENN and Zacks Rank #2 (Buy) Chipotle CMG.

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