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A week ago, Brinker International, Inc. (NYSE:EAT) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 2.7% to hit US$1.4b. Statutory earnings per share (EPS) came in at US$2.56, some 3.7% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 16 analysts covering Brinker International are now predicting revenues of US$5.59b in 2026. If met, this would reflect a meaningful 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 32% to US$9.87. Before this earnings report, the analysts had been forecasting revenues of US$5.49b and earnings per share (EPS) of US$9.60 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Brinker International
The average the analysts price target fell 5.0% to US$164, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Brinker International at US$200 per share, while the most bearish prices it at US$144. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Brinker International's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 10.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Brinker International is also expected to grow slower than other industry participants.