For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Brinker International (EAT) ten years ago? It may not have been easy to hold on to EAT for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Brinker International's main business drivers.
Based in Dallas, TX, Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983 and completed the acquisition of Maggiano’s in August 1995.
Chili’s is a preeminent leader in the bar & grill category of casual dining. The brand has been functioning for over the last 40 years. With a global presence in 31 countries and two territories outside the United States, the brand features a typical American menu. It is known for gourmet burgers, sizzling fajitas, baby back ribs and hand-shaken margaritas. In the fiscal 2018, Brinker relaunched its My Chili’s Rewards program and began offering free chips and salsa or soft drinks to members at every visit.
Maggiano’s is a full-service, national, casual dining Italian restaurant brand featuring individual and family-style menus and most restaurants. The brand also has extensive banquet facilities designed to host large party business or social events. The menu features a classic Italian-American range of appetizers and entrees, with portions of pasta, chicken, seafood, veal, prime steaks and desserts.
During fiscal 2024, Chili’s contributed 88.8% to total revenues, while Maggiano’s contributed 11.2%. As of Dec. 25, 2024, the company owned, operated or franchised 1,624 restaurants. Among these, 1,571 were Chili's and the remaining 53 were Maggiano's units.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Brinker International ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2015 would be worth $3,169.48, or a gain of 216.95%, as of February 6, 2025, and this return excludes dividends but includes price increases.
The S&P 500 rose 193.89% and the price of gold increased 122.63% over the same time frame in comparison.
Going forward, analysts are expecting more upside for EAT.
Brinker reported second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate by 55.6% and 9.3%, respectively. The top and the bottom line increased on a year-over-year basis. This upside was driven by increased menu pricing, higher traffic and a favorable menu item mix. The solid performance of Chili's added to this upside. During the fiscal quarter, sales at Chili’s rose 31.4% and traffic increased 19.9% year over year. Also, the focus on effective marketing strategies and menu innovation bodes well. Owing to strong quarterly results, the company has raised its fiscal 2025 guidance for total revenues and earnings. Shares of Brinker have outperformed the industry in the past six months. Although high costs and macro risks are headwinds, the tailwinds mentioned above are flushing out the negatives.
The stock is up 34.71% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2025. The consensus estimate has moved up as well.Want 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
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