Summary
- Brinker International remains a Buy with a $155 price target, offering over 50% upside despite recent stock declines and industry headwinds.
- EAT delivered strong FQ1 2026 results: 18.45% revenue growth, doubled EPS, and robust same-store sales at Chili’s, outpacing industry peers.
- The stock trades at a forward P/E of 10x, a steep discount to sector and S&P 500 averages, signaling substantial undervaluation and room for multiple expansions.
- Risks include dependency on Chili’s and macroeconomic pressures, but EAT’s operational momentum and consumer preference support a bullish long-term outlook.
RiverNorthPhotography/iStock Unreleased via Getty Images
Following [my last article](http…
Summary
- Brinker International remains a Buy with a $155 price target, offering over 50% upside despite recent stock declines and industry headwinds.
- EAT delivered strong FQ1 2026 results: 18.45% revenue growth, doubled EPS, and robust same-store sales at Chili’s, outpacing industry peers.
- The stock trades at a forward P/E of 10x, a steep discount to sector and S&P 500 averages, signaling substantial undervaluation and room for multiple expansions.
- Risks include dependency on Chili’s and macroeconomic pressures, but EAT’s operational momentum and consumer preference support a bullish long-term outlook.
RiverNorthPhotography/iStock Unreleased via Getty Images
Following my last article on Brinker International (EAT), the stock price dropped by roughly 18%, mainly driven by industry headwinds tied to the softening US consumer, who is pulling back on discretionary spending, affecting dining out.
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