Brinker International (EAT): My Favorite “Buy the Dip” Stock

I added Brinker International (EAT) to my Zen Investor portfolio on May 7th when shares were only at $129.96. That proved to be spectacular timing as EAT soon raced up to $187 by the start of July. 

That much gain that quickly would certainly prompt some traders to take some money off the table. But now we find shares all the way back down to $155 making it a ripe “Buy the Dip” opportunity. 

Here is the rest of the attractive investment story….

You know Brinker better as the restaurant company that owns Chili’s. They are on a hell of an earnings momentum run since late 2022 where EPS has risen 3X and the share price has rallied 6X from valley to recent peak.

Management has been very focused on improving food quality and value. Clearly this is resonating with customers as foot traffic has increased by 21% whereas same store sales are up 31.6% (which is a clear sign that folks are spending more per person). This is a tasty recipe for profit growth. 

From what I see their only concern with tariffs is the cost of avocados. If that is your biggest problem...then you don’t really have a problem as the growth prospects for the Chili’s brand should remain quite robust.

This is best seen in the $8.84 EPS estimate for this year which is more than twice as good as last year at only $4.10. The pace of growth is expected to moderate into 2026 yet still impressive with a $9.92 outlook.

The Zen Ratings are certainly picking up on the fundamental attractiveness of shares with an A rating overall. Even better than that it is in the top 2% of all stocks analyzed plus;

Top 21% Sentiment

Top 16% Value

Top 7% Growth

Top 6% Financials

In my book Growth and Financials are the most important components of the Zen Ratings to increase the odds of more earnings beats ahead to propel shares higher. Thus, good to see how well they score on that front. 

Top Wall Street analysts are also picking up what EAT is putting down. Like the $208 target from Goldman Sachs. Or even better is the street high $215 target from Chris O’Cull of Stifel Nicolaus (top 8% of all analysts). 

With shares trading around $155, and such a bright earnings outlook, then you should be happy to EAT up these shares on the fortunate dip given their stellar upside prospects.   

What To Do Next?

Brinker Intl (EAT) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each of these 20 stocks was selected based on my stringent process that helps pinpoint those with 100%+ upside potential. 

To learn more about my investment process…and to see my current top 20 stock recommendations…then just click the link below: 

Discover the Zen Investor portfolio & Top 20 Stocks Now >

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

What to Do Next?

• 9 Special Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

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