EAT

Brinker International is expected to report Q3 2026 earnings on October 28 with consensus EPS of $2.49 (up 29% YoY) and revenues of $1.45 billion (up 7.3% YoY). The company has a positive Earnings ESP of +0.59% with a Zacks Rank #3, suggesting it is likely to beat consensus estimates. Comparatively, Cheesecake Factory is expected to report $0.92 EPS (up 35.3% YoY) but has a negative Earnings ESP of -0.34%.

Brinker International (EAT) declined 3.06% to $197.89 on October 19, 2026, underperforming the broader market despite positive sector gains. The company is expected to report earnings on October 28, 2026, with analysts projecting $2.49 EPS (up 29% YoY) and quarterly revenue of $1.45 billion (up 7.19% YoY). EAT trades at a Forward P/E of 15.49, below the industry average of 20.65, and holds a Zacks Rank of #3 (Hold).

Brinker International (EAT), operator of Chili's Grill & Bar and Maggiano's Little Italy, has attracted investor attention with stock returns of +2.7% over the past month. The company shows strong earnings growth expectations of +22.6% for the current fiscal year and +7.9% for the next fiscal year, with revenue growth forecasts of +8% and +3.1% respectively.

However, the stock holds a Zacks Rank #3 (Hold) rating, suggesting it may perform in line with the broader market in the near term. The company trades at a discount to peers with a B valuation grade.

Brinker International (EAT), which operates Chili's Grill & Bar and Maggiano's Little Italy restaurants, has been rated a #1 Strong Buy by Zacks with a B VGM Score. The company shows strong growth potential with a Growth Style Score of A and forecasted year-over-year earnings growth of 22.5% for fiscal 2027. Eleven analysts have raised their earnings estimates in the last 60 days, with the consensus estimate increasing to $13.16 per share, and the company maintains an average earnings surprise of +6.2%.

Brinker International (EAT), operator of Chili's Grill & Bar and Maggiano's Little Italy, has been trending on Zacks.com. Despite a -12.3% return over the past month, the company shows strong earnings growth expectations of +26.9% for the current quarter and +22.5% for the fiscal year. With a Zacks Rank #2 (Buy) rating and a B valuation grade indicating the stock trades at a discount to peers, analysts suggest it may outperform the broader market in the near term.

The Zacks Retail-Restaurants industry faces headwinds from value-conscious consumers and elevated operating costs, but companies are adapting through menu innovation, digital engagement, loyalty programs, and strategic expansion. The industry ranks #163 among 247 Zacks industries with a negative earnings outlook, underperforming the S&P 500 by 13.8% over the past year. Key players like Bloomin' Brands, Brinker International, BJ's Restaurants, and Cracker Barrel are showing resilience through improved traffic, pricing strategies, and operational efficiencies.

Despite inflationary pressures and rising energy costs from Middle East tensions, U.S. restaurant sales continue to grow, with August sales up 1.2% month-over-month and 4.2% year-over-year. Four restaurant stocks with strong online presence and Zacks Rank #2 (Buy) ratings are highlighted as investment opportunities: The Cheesecake Factory, BJ's Restaurants, Brinker International, and Aramark.

Cracker Barrel (CBRL) and Brinker International (EAT) both carry Zacks Rank #2 (Buy) ratings, but EAT is positioned as the slightly better investment. Brinker's Chili's brand achieved 21 consecutive quarters of same-store sales growth with 6% comps and improving margins, while Cracker Barrel is executing a turnaround strategy focused on menu improvements and guest experience. EAT's established momentum and visibility give it an edge over CBRL's turnaround potential.

Chipotle is set to report Q3 2026 results on October 28, with revenues expected to rise 9.5% to $3.29 billion driven by menu innovation, digital rewards, and restaurant expansion. However, elevated costs in beef, freight, and wages are projected to compress margins by 80 basis points to 25%, offsetting some gains from pricing strategies.

The Cheesecake Factory is expected to report Q3 2026 earnings on October 27, with consensus estimates showing EPS growth of 35.3% to 92 cents and revenue growth of 10.1% to $998.5M. Positive factors include menu innovation, digital engagement, guest traffic growth, and six planned restaurant openings. However, rising labor, commodity, and marketing costs may pressure margins. The company's earnings ESP of -0.34% and Zacks Rank #2 suggest it may not beat expectations this quarter.

The Cheesecake Factory reported Q2 FY2026 comparable sales growth of 5.8% driven by 2.7% traffic growth and 3% pricing, with restaurant-level profit margins reaching a decade-high of 20%. However, the company faces ongoing cost inflation in commodities and labor. Management expects inflation to remain in the low to mid-single-digit range for the full year, with sustained margin improvement dependent on maintaining sales momentum and productivity gains.

El Pollo Loco (LOCO) shares have surged 53.4% over the past year, driven by improved operating execution, restaurant-level profitability reaching 19.5%, and digital sales growth of 13% year-over-year. The company plans to open 18-20 restaurants in 2026, primarily outside California, while menu innovation and loyalty programs support traffic growth. Trading at a forward P/E of 13.45, a discount to peers, the stock is rated Zacks Rank #2 (Buy), though sustained upside depends on stronger traffic trends and successful geographic expansion.