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 moving averages and relative strength. EAT meets these criteria:
- Price Above Key Moving Averages: The stock trades above its 50-day ($155.15), 150-day ($147.88), and 200-day ($132.24) moving averages, confirming a bullish trend.
- Upward-Sloping Averages: Both the 150-day and 200-day moving averages are rising, reinforcing long-term strength.
- Relative Strength: With a ChartMill Relative Strength score of 97.17, EAT outperforms 97% of all stocks, indicating strong market leadership.
- Proximity to 52-Week High: Currently trading at $178.31, EAT is within 7% of its 52-week high ($192.22), a sign of sustained momentum.
High Growth Fundamentals
Beyond technical strength, EAT exhibits robust earnings and revenue growth, making it attractive for growth investors:
- Earnings Growth: EPS surged 105.6% year-over-year (TTM), with recent quarterly growth exceeding 114.5%.
- Revenue Expansion: Sales grew 19.8% (TTM), with consistent quarterly beats (4 out of 4 last quarters).
- Profit Margin Improvement: Net margins expanded to 8.36% in the latest quarter, up from 3.38% a year ago.
- Free Cash Flow Growth: FCF per share skyrocketed 516.7% year-over-year, reflecting strong operational efficiency.
Technical Outlook
EAT’s technical rating of 10/10 reflects its strong uptrend and leadership in the restaurants sector. Key support levels are found near $168, while resistance sits around $180. The stock’s setup rating of 6 suggests a consolidation phase, potentially offering a favorable entry point.
For a deeper technical breakdown, review the full technical report here.
Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.
