BRINKER INTERNATIONAL INC (NYSE:EAT) – A Strong Growth Candidate Meeting Minervini’s Criteria

BRINKER INTERNATIONAL INC (NYSE:EAT) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, which operates Chili’s Grill & Bar and Maggiano’s Little Italy, demonstrates strong technical and fundamental characteristics that make it a compelling candidate for growth-focused investors.

Why EAT Fits the Minervini Trend Template

Minervini’s strategy focuses on stocks exhibiting strong uptrends, supported by key technical criteria. EAT meets these requirements:

• Price Above Key Moving Averages:

  • Current price ($168.47) is above the 50-day ($147.59), 150-day ($141.20), and 200-day SMA ($124.83).
  • The 50-day SMA is above both the 150-day and 200-day SMAs, confirming bullish momentum.

• Upward-Trending Moving Averages:

  • The 200-day SMA has been rising, indicating a sustained long-term uptrend.

• Strong Relative Strength:

  • EAT has a ChartMill Relative Strength (CRS) score of 96.97, meaning it outperforms nearly 97% of all stocks.

• Price Near 52-Week High:

  • The stock is trading within 12.3% of its 52-week high ($192.22), a sign of continued strength.

• Significant Recovery from Lows:

  • EAT is up 138.5% over the past year, far exceeding the 30% threshold Minervini looks for.

High Growth Momentum Fundamentals

Beyond technical strength, EAT shows robust growth metrics:

• Earnings Growth:

  • EPS (TTM) grew 105.6% year-over-year.
  • Quarterly EPS growth accelerated, with the latest quarter up 114.5% YoY.

• Revenue Expansion:

  • Revenue (TTM) increased 19.8% YoY.
  • Recent quarterly sales grew 26.1% compared to the same quarter last year.

• Profitability Improvements:

  • Profit margins expanded to 8.35% in the latest quarter, up from 3.51% in the prior fiscal year.
  • Free cash flow per share surged 517.3% over the past year.

• Positive Revisions & Estimate Beats:

  • Analysts have raised next-year EPS estimates by 4.66% over the past three months.
  • The company has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 21.2%.

Technical Report Summary

EAT has a perfect technical rating of 10/10, reflecting strong price momentum and trend consistency. While the stock is extended in the short term, its long-term uptrend remains intact. Key support levels are found between $146.60 and $150.20, backed by multiple moving averages and trendlines.

For a deeper analysis, review the full technical report on EAT.

Our High Growth Momentum + Trend Template screener lists more stocks that fit this strategy.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.