Why Did Brinker International’s Stock Fall?

by Trefis Team
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Brinker International’s stock (NYSE:EAT) declined by 14% in the last twenty-one trading days. In comparison, the broader S&P500 index rose by 2.6% over the same period. The fall was triggered after the company released preliminary earnings where it was seen that the company’s margins were much lower than anticipated due to higher labor and food costs. The company’s diluted EPS was $0.34 which was less than half of consensus estimates of $0.78. Now, is EAT stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 67% chance of a rise in EAT stock over the next month (twenty-one trading days). See our analysis on Brinker International’s Stock Chance Of Rise for more details.

Five Days: EAT -7.9%, vs. S&P500 1.9%; Underperformed market

(3% event probability)

  • Brinker International’s stock declined 7.9% over a five day trading period ending 10/25/2021, compared to the broader market (S&P500) which rose by 1.9%
  • A change of -7.9% or more over five trading days has a 3% event probability, which has occurred 71 times out of 2516 in the last ten years

Ten Days: EAT -11%, vs. S&P500 4.8%; Underperformed market

(2% event probability)

  • Brinker International’s stock declined 11% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 4.8%
  • A change of -11% or more over ten trading days has a 2% event probability, which has occurred 55 times out of 2516 in the last ten years

Twenty-One Days: EAT -14%, vs. S&P500 2.6%; Underperformed market

(2% event probability)

  • Brinker International’s stock declined 14% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 2.6%
  • A change of -14% or more over twenty-one trading days has a 2% event probability, which has occurred 58 times out of 2516 in the last ten years

While Brinker International’s stock may move higher in the near term, there are several peers in the sector that look like a Better Bet Than EAT Stock. Also, Brinker International’s Peer Comparison summarizes how the company fares against peers on metrics that matter.

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