Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

Brinker International демонстрирует смешанную картину по фундаментальным метрикам. С одной стороны, компания обладает высокой рентабельностью с ROE и ROI, значительно превышающими медианные значения по отрасли, что свидетельствует о сильной эффективности использования капитала. Однако, с другой стороны, высокие значения P/E, P/B и P/S указывают на возможную переоцененность, что является негативным сигналом для инвесторов. Долговая нагрузка также вызывает опасения: высокий коэффициент долга к капиталу указывает на значительные финансовые риски. При этом стабильный рост выручки и прибыли, а также положительная динамика маржи прибыли подчеркивают здоровые операционные показатели компании. Дивидендная доходность на уровне 1.25% добавляет некоторую привлекательность для инвесторов, ищущих стабильный доход. Тем не менее, ухудшение текущего и быстрой ликвидности может свидетельствовать о потенциальных проблемах с денежными потоками в будущем. Компании необходимо сосредоточиться на улучшении своей балансовой структуры и снижении долговой нагрузки, чтобы увеличить свою привлекательность для инвесторов.

Brinker International, Inc.

Key Points
The cost of a meal at Chili's now rivals that of fast-casual chains, and consumers are responding.
Three years of operational improvements doubled the profit each Chili's produces.
Its parent company Brinker trades well below casual-dining peers Darden and Texas Roadhouse.
Chili's is the main brand inside Brinker International (NYSE: EAT), and management has turned it into one of casual dining's strongest operators. More than 90% of Chili's restaurants in the U.S. are company-owned, which means management controls everything from menu changes to kitchen upgrades.
Before the turnaround, the average Chili's generated around $370,000 in restaurant-level profit. At the end of fiscal 2025, that figure stood at $790,000. Despite the underlying progress, the stock still trades at a below-market multiple.
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3 For Me
Chili's was repositioned at exactly the right time. In recent years, quick-service and fast-casual chains pushed prices so high that consumers started looking elsewhere for value.
Chili's already had its 3 For Me menu in place, starting at $10.99 for a full-service meal at a discount to most fast-food joints. The result was traffic-led growth, with same-store visits (comps) up 16.3% in 2025.
That strength carried into the new fiscal year. Brinker reported second-quarter 2026 results on Jan. 28, with comps growing 8.6% and traffic up 2.7%. That's on top of 31% comps growth in the year-ago quarter.
When a sit-down meal at Chili's costs about the same as a Chipotle bowl, consumers are choosing table service. That's how Brinker fills the seats. The pricing strategy is disciplined, too. The $10.99 promotion accounts for under 8% of total sales.
Twice the profit, same discount
The risk is straightforward. Chili's is now lapping comps growth of 31.6% from the year-ago quarter. The rate of increase is moderating, and that's what investors are worried about in the near term. Management guided for comps growth in each quarter of fiscal 2026 and has delivered through the second, but this quarter is the toughest comparison yet.
Profitability tells a similar story. Restaurant-level margins have expanded from 11.9% in 2022 to 19.1% in the most recent quarter, but the gains are getting tougher to come by. Over the same period, free cash flow grew at an average annual rate of 60% (recalculated through the second quarter of 2026), even as management reinvested heavily in store redesigns and kitchen upgrades.
Brinker is refreshing about 10% of its restaurants each year with updated kitchens and dining rooms and plans to start growing Chili's net store count in fiscal 2027. With the higher restaurant-level profitability today, the return on those new builds should be greater than ever before.
At roughly 14 times forward earnings, Brinker trades at a significant discount to peers Darden Restaurants and Texas Roadhouse, which trade at 20 and 28 times, respectively. That looks reasonable for a business that keeps delivering. Comps could go flat tomorrow, and you would still own twice the restaurant.
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Bryan White has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Texas Roadhouse. The Motley Fool recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chili's Is Winning on Value, Yet Its Parent Company's Stock Still Looks Cheap

Tariffs News & Market Chaos

Brinker International EAT continues to benefit from strong same-store sales momentum, marking its 19th consecutive quarter of comparable sales growth. Performance was driven by effective marketing and brand-building efforts that attracted guests, alongside improvements in food, service and restaurant atmosphere that encouraged repeat visits. Strong performance at Chili’s remains a key driver, supported by compelling value offerings, brand marketing and ongoing menu enhancements. Additionally, remodeling initiatives are enhancing the guest experience and supporting sustained engagement.
Shares of this casual dining chain have declined 4.4% in the past year compared with the Zacks Retail - Restaurants industry’s 3.2 fall. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise being 8.2%.
Image Source: Zacks Investment Research
The fiscal 2026 earnings estimate has edged up to $10.68 per share from $10.56 over the past 30 days. Although lingering inflation pressures and high costs are concerning, menu innovation and remodel activity have been driving growth.
Brinker International — a Zacks Rank #2 (Buy) stock — has a favorable VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities to investors.
Let’s delve deeper into the major driving factors.
Factors Aiding EAT Stock
Strong Same-Store Sales Growth: Brinker International delivered exceptional same-store sales growth during the second quarter of fiscal 2026, marking its 19th consecutive quarter of positive gains and outperforming the casual dining industry by a significant 680 basis points. This performance was spearheaded by Chili’s, which reported an 8.6% increase in comparable restaurant sales. This growth was fundamentally healthy, fueled by a robust 2.7% increase in guest traffic, strategic 4.4% price adjustments and a 1.5% positive mix shift.
The brand’s sustained momentum has resulted in an impressive 43% two-year cumulative comparable sales growth, driven by impactful marketing and core menu upgrades. Enhancements such as a premium bacon upgrade boosted burger sales and helped attract new guests while increasing visit frequency, supporting consistent top-line growth in a competitive restaurant environment.
Focus on Menu Innovation: Brinker International is driving traffic and brand relevance through targeted menu innovation focused on core offerings. In the second quarter of fiscal 2026, Chili’s upgraded key items, including thicker bacon strips and an enhanced Bacon Cheeseburger with triple the bacon, which generated about 43% higher sales than the prior version. The return of fan favorites like Skillet Queso also delivered strong sales growth.
The company continues to employ a “barbell” pricing strategy, anchored by the $10.99 “3 For Me” value platform while introducing premium items such as a new super-premium chicken sandwich lineup to support margins and check growth. At Maggiano’s, the brand has refocused on culinary fundamentals by bringing back classic dishes such as Gigi’s Butter Cake, Eggplant Parmesan, Baked Ziti and the traditional Meat Sauce, while increasing pasta portion sizes by 20% to enhance value perception.
Strong Chili’s Brand Momentum: Brinker International continues to benefit from strong momentum at Chili’s, which remains the primary driver of the company’s performance. The brand’s growth is supported by effective marketing campaigns, a compelling everyday value platform and improvements in food quality and service execution. In the fiscal second quarter, Chili’s same-store sales increased 8.6%, outperforming the casual dining industry by roughly 680 basis points. The brand’s bold signature flavors, generous portions and attractive entry-level pricing within its three-tier value lineup continue to resonate with guests and drive traffic.
The company also plans to significantly expand advertising efforts to leverage this sharp price positioning and further boost awareness and visits. Encouraged by the brand’s trajectory, management raised its full-year outlook and plans to add additional “sales layers” through premium menu innovation and investments in technology to ensure long-term relevance and consistent execution.
Higher ROE: Brinker International’s trailing 12-month return on equity (ROE) is indicative of its growth potential. The company’s ROE of 134.9% compares favorably with the industry’s 22.9%, which signals more efficiency in using shareholders’ funds than peers.
Other Key Picks
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has gained 15.8% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Expedia Group’s 2026 sales and EPS indicates growth of 7.3% and 20.7%, respectively, from the prior-year levels.
Five Below, Inc. FIVE presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 62.1%, on average. Five Below's stock has rallied 46.5% in the past six months.
The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 22.1% and 25%, respectively, from the year-ago period’s levels.
Yum China Holdings, Inc. YUMC carries a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 3.7%, on average. YUMC stock has climbed 17.9% in the past six months.
The Zacks Consensus Estimate for Yum China's 2026 sales and EPS indicates growth of 7.7% and 15.9%, respectively, from the year-ago period’s levels.
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Here's Why You Should Add EAT Stock to Your Portfolio Right Now

Cracker Barrel Old Country Store CBRL reported second-quarter fiscal 2026 results, wherein the bottom line surpassed the Zacks Consensus Estimate, but revenues missed the same. Both metrics declined on a year-over-year basis. However, shares of CBRL gained 4% in the after-hours yesterday.
Cracker Barrel's second-quarter fiscal 2026 results were pressured by a decline in total revenues, primarily due to lower comparable restaurant and retail sales. Profitability was further affected by higher labor and store operating expenses as a percentage of revenues, which weighed on overall margins.
Management noted that the company is currently focused on operational excellence to drive improvements in key guest metrics and traffic indicators. To bolster financial performance and regain prior momentum, the company is taking additional strategic actions and executing a corporate restructuring initiative. Despite these ongoing headwinds, management remains confident that the brand is well-positioned for recovery.
Q2 Earnings & Revenues of Cracker Barrel
For second-quarter fiscal 2026, the company reported adjusted earnings per share (EPS) of 25 cents, surpassing the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company reported an adjusted EPS of $1.38.
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Cracker Barrel Old Country Store, Inc. price-consensus-eps-surprise-chart | Cracker Barrel Old Country Store, Inc. Quote
Quarterly revenues of $874.8 million missed the consensus mark of $896 million. The top line decreased 7.9% year over year.
CBRL's Comps Details
Comparable-store restaurant sales decreased 7.1% in the reported quarter compared with the same period in fiscal 2025. Comparable-store retail sales decreased 9.2% year over year.
Q2 Operating Highlights of CBRL
In the fiscal second quarter, the cost of goods sold (excluding depreciation and rent) was $292.7 million, which was down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 90 basis points year over year to 33.5%. Per our model, the metric was pegged at 32.7%.
General and administrative expenses totaled $48 million, down 22% year over year. Our prediction for the metric was $53.8 million.
Adjusted net income in the fiscal second quarter amounted to $5.6 million against $30.9 million reported in the year-ago quarter. Our prediction for the metric was $0.5 million.
Balance Sheet of CBRL
As of Jan. 30, 2026, cash and cash equivalents were $8.6 million compared with $10.3 million as of Jan. 31, 2025.
Inventory at the fiscal second-quarter end reached $180.3 million, up 4.3% year over year.
Long-term debt as of Jan. 30, 2026, was $381.8 million compared with $471.5 million as of Jan. 31, 2025.
Cracker Barrel declared a cash dividend of 25 cents per share. The dividend will be paid out on May 13, 2026, to its shareholders on record as of April 10.
CBRL’s FY26 Revised Guidance
For fiscal 2026, the company expects revenues in the range of $3.24-$3.27 billion compared with the prior estimate of $3.2-$3.3 billion. Adjusted EBITDA is projected to be $85 million to $100 million, versus the earlier guidance range of $70 million to $110 million.
Management now anticipates commodity inflation of 2-2.5%, down from the previous expectation of 2.5-3.5%. Hourly wage inflation is also expected to moderate to 2.5-3%, compared with the prior estimate of 3-4%.
Capital expenditures are envisioned in the range of $105-$115 million, down from the earlier projection of $110 million to $125 million.
CBRL’s Zacks Rank & Key Picks
Cracker Barrel currently has a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector:
Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has gained 2.1% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Expedia Group’s 2026 sales and EPS indicates growth of 7.3% and 20.7%, respectively, from the prior-year levels.
Brinker International EAT presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 8.2%, on average. EAT stock has declined 11.9% in the past six months.
The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS indicates growth of 7.9% and 20%, respectively, from the year-ago period’s levels.
Yum China Holdings, Inc. YUMC carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 3.7%, on average. YUMC stock has climbed 17.8% in the past six months.
The Zacks Consensus Estimate for Yum China's 2026 sales and EPS indicates growth of 7.7% and 15.9%, respectively, from the year-ago period’s levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cracker Barrel Q2 Earnings Beat Estimates, Revenues Down Y/Y

Domino's Pizza, Inc. DPZ reported fourth-quarter fiscal 2025 results with earnings missing the Zacks Consensus Estimate but increasing on a year-over-year basis. However, total revenues surpassed the estimate and increased from the prior year's reported figure. Following the announcement, the company’s shares gained 5.6% in the pre-market trading session.
Domino’s fourth-quarter results were underpinned by robust top-line momentum, franchise-led expansion and effective operating leverage. This performance was further bolstered by growth in operating income, driven by higher franchise royalties, increased fees and enhanced gross margin dollars within the company’s supply chain. Furthermore, the company successfully scaled its global footprint through consistent net new store openings throughout the quarter.
Management emphasized that DPZ’s strategic consistency and execution excellence position it to capture additional QSR pizza market share globally in 2025 and beyond, while expanding long-term value for franchisees and shareholders.
DPZ's Q4 Earnings & Revenue Discussion
In the quarter under discussion, Domino's reported adjusted earnings per share (EPS) of $5.35, missing the Zacks Consensus Estimate of $5.38. The bottom line rose 9.4% from $4.89 reported in the year-ago quarter.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Revenues of $1,535.7 million beat the consensus mark of $1,516 million. Moreover, the top line increased 6.4% on a year-over-year basis. This upside is driven by strong contributions from U.S. franchise royalties and fees and higher supply-chain revenues.
In fourth-quarter fiscal 2025, Domino's had 392 net store openings.
DPZ’s Other Metrics
Global retail sales (excluding foreign currency impact) rose 4.9% on a year-over-year basis. This upside was driven by a year-over-year increase in international (4.5%) and U.S. store sales (5.5%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 3.7% year over year. We estimated the metric to increase 2.5% year over year.
At domestic company-owned stores, Domino’s comps increased 2.7% compared with the 0.7% decline reported a year ago. We estimated the metric to increase 1.3% year over year.
Domestic franchise store comps rose 3.7% compared with a 0.5% increase reported in the prior-year quarter. We estimated the metric to increase 2.5% year over year.
Comps at international stores, excluding foreign currency translation, rose 0.7% compared with a 2.7% improvement reported in the prior-year quarter. We estimated the metric to increase 0.1% year over year.
DPZ’s Q4 Margins
In the fiscal fourth quarter, Domino’s gross margin expanded 50 basis points (bps) year over year to 39.7%. However, the U.S. company-owned store gross margin contracted 540 bps year over year to 10.1%. This downside can be attributed to the increase in the company’s food basket pricing to stores, higher insurance costs and higher wage costs.
Balance Sheet of DPZ
As of Dec. 28, 2025, cash and cash equivalents totaled $125.7 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal fourth quarter totaled $4.81 billion compared with $3.83 billion reported in the previous quarter. Inventory amounted to $79.2 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal fourth quarter totaled $120.6 million, up from $112.9 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 188,526 shares for an aggregate cost of $80 million. As of Dec. 28, 2025, DPZ stated the availability of $459.7 million under its repurchase program.
Management declared a cash dividend of $1.99 per share. The dividend will be paid on March 30, 2026, to its shareholders of record as of March. 15.
DPZ’s 2025 Highlights
Total revenues for 2025 came in at $4.94 billion compared with $4.71 billion reported in 2024.
Net income in 2025 came in at $601.7 million compared with $584.2 million reported in 2024.
In 2025, adjusted EPS came in at $17.57 compared with $16.69 reported in the previous year.
DPZ’s Zacks Rank & Key Picks
Domino's currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector:
Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has declined 11.9% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 7.5% and 20.7%, respectively, from the prior-year levels.
Brinker International EAT presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 8.2%, on average. EAT stock has lost 9.1% in the past six months.
The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS indicates growth of 7.9% and 19.8%, respectively, from the year-ago period’s levels.
Dillard's DDS carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has climbed 17.9% in the past six months.
The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales indicates growth of 1.1%, while EPS indicates a decline of 9.4% from the year-ago period’s levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Domino's Q4 Earnings Miss Estimates, Revenues Beat, Stock Up

Key Points
Texas Roadhouse impressed in its most recent quarter, posting 6.1% growth in same-restaurant sales (comps).
In December, Darden Restaurants reported a 4.3% rise in comps, driven by strength at its Olive Garden brand.
Brinker International raised its guidance for the year after its Chili’s chain delivered industry-leading 8.6% comps growth in its latest release.
The restaurant industry is seeing a serious rotation in traffic as households rethink their spending habits. It appears that some fast-food and fast-casual chains have raised prices so much that they lost their traditional cost advantage, making the move to a sit-down meal an easy choice.
Although the casual dining segment is taking market share, steakhouses still face pressure from elevated beef prices. However, the rise in the cost of beef is expected to slow down by the second half of the year, and potentially become a tailwind for margins by the back half of 2027.
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Texas Roadhouse traffic leads its rivals
Texas Roadhouse (NASDAQ: TXRH) operates over 600 namesake steakhouses alongside its Bubba's 33 and Jaggers concepts. While Darden Restaurants (NYSE: DRI) leverages its scale, Texas Roadhouse wins on consistent traffic.
In its most recent quarter, same-store sales (comps) rose 6.1%, with guest counts rising 4.3%. The steakhouse maintains this steady performance through a disciplined strategy that avoids the aggressive, short-term discounting common among its competitors.
Restaurant-level margins declined by nearly 170 basis points in the quarter due to higher beef prices and labor-cost inflation. Given the chain's reliance on beef, margin compression is difficult to avoid, but pressure is expected to ease as inflationary pressures ease in the back half of the year. Management has completed its systemwide transition to digital kitchens, a move designed to maximize throughput and improve order accuracy at its high-volume locations.
And its expansion pipeline remains active with plans to open 35 company-owned locations in 2026. The valuation currently reflects some margin recovery, trading at 28 times forward earnings, compared to its typical multiple in the low 20s.
Darden uses scale to keep prices competitive
Darden Restaurants operates a portfolio of over 2,100 locations, including household names like Olive Garden, LongHorn Steakhouse, and Chuy's Tex-Mex. Shares are up by about 11% since reporting second-quarter 2026 comps growth of 4.3%, with every concept contributing positive results. While the industry struggled with declining guest counts, its anchor Olive Garden remained resilient, posting comps of 4.7%.
Performance at LongHorn was even stronger, with comps rising 5.9% as the brand captured market share from more-expensive steakhouse peers. At a time when customers are seeking value, Darden's scale and efficiency allow it to discount, as it did in the second quarter by keeping prices around 320 basis points below inflation at LongHorn Steakhouse, a competitive edge over smaller rivals. With a 2.8% dividend yield and a forward price-to-earnings ratio of 20, the current valuation is slightly above its historical average of around 18.
Chili's continues to take market share
Brinker International (NYSE: EAT) owns or franchises more than 1,600 restaurants, primarily under the Chili's Grill & Bar and Maggiano's Little Italy brands. The stock has been on a tear, up 60% since its November lows.
Chili's reported second-quarter comps growth of 8.6% in January, fueled by higher traffic. This period marks the 19th consecutive quarter of comps growth for the brand, a run that certifies the turnaround story.
Growth is led by its 3 for Me platform, which brings in budget-conscious diners with a drink, chips and salsa, and an entree with fries, starting at $10.99. The Triple Dipper menu also attracts younger guests with a shareable choice of three appetizers and dipping sauces.
Unlike peers that are cutting back on marketing, Brinker boosts its advertising to highlight its value advantage over fast-food competitors. Despite the stock's recent strength, it still trades for around 15 times this year's earnings estimates, making it the best value of these three chains.
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Bryan White has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Texas Roadhouse. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Casual Dining's Awakening: Chili's 8.6% Same-Store Sales Growth Leads the Way

For Immediate Release
Chicago, IL – February 18, 2026 – Stocks in this week’s article Boot Barn Holdings, Inc. BOOT, Brinker International, Inc. EAT, Tapestry, Inc. TPR and Cardinal Health, Inc. CAH.
BOOT & 3 Other Stocks with Strong Interest Coverage to Buy Now
Relying solely on stock price movements without understanding the company’s fundamentals can cause investors to lose money. Investors must carefully review a company's financial health to make informed decisions, especially in today’s unpredictable market. While sales and earnings are often the go-to metrics, they can sometimes be misleading and may not show whether a company has the financial strength to cover its obligations. This is where the coverage ratio holds the key.
Boot Barn Holdings, Inc., Brinker International, Inc., Tapestry, Inc. and Cardinal Health, Inc. boast impressive interest coverage ratios.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt.
Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.
Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.
The interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest.
An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over time.
Here are four of the 14 stocks that qualified the screening:
Boot Barn Holdings, a leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children, sports a Zacks Rank #1 and has a VGM Score of B. BOOT has a trailing four-quarter earnings surprise of 4.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS indicates growth of 17.6% and 26%, respectively, from the year-ago period. The stock has gained 36.2% in the past year.
Brinker International, one of the leading casual dining restaurant companies, sports a Zacks Rank #1 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 8.2%, on average.
The Zacks Consensus Estimate for Brinker International’s current financial-year sales and EPS calls for growth of 7.9% and 19.8%, respectively, from the year-ago period. The stock has declined 3.6% in the past year.
Tapestry, a house of iconic accessories and lifestyle brands, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 12.8%, on average.
The Zacks Consensus Estimate for Tapestry’s current financial-year sales and EPS implies growth of 9.6% and 23.7%, respectively, from the year-ago period. TPR has a VGM Score of B. The stock has soared 72.8% in the past year.
Cardinal Health, a global healthcare company that distributes pharmaceuticals, manufactures and supplies medical and laboratory products, carries a Zacks Rank #2 and has a VGM Score of A. CAH has a trailing four-quarter earnings surprise of 9.3%, on average.
The Zacks Consensus Estimate for Cardinal Health’s current financial-year sales and EPS indicates growth of 16.5% and 25.1%, respectively, from the year-ago period. The stock has surged 74.8% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. You can also create your own strategies and back test them first before taking the investment plunge.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2870581/boot-3-other-stocks-with-strong-interest-coverage-to-buy-now
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks.com featured highlights include Boot Barn, Brinker International, Tapestry and Cardinal Health

Key Points
Diners are ditching fast-casual restaurants for dine-in chains.
Heavy price hikes at fast-casual eateries have made dine-in restaurants more affordable.
Fast-food chains are now heavily discounting their prices.
For years, the future looked to be fast casual. Led by the likes of Chipotle Mexican Grill (NYSE: CMG), American eaters transitioned from traditional restaurants or fast-food giants to these concepts that bridged the gap between sit-down and fast food, typically focused on a specific ethnic cuisine.
In 2026, this trend is reversing. Price hikes on fast-food and fast-casual meals have led to a resurgence in diners visiting sit-down chains such as Chili's, owned by Brinker International (NYSE: EAT). This is a reason why Brinker International stock is up close to 300% in the last three years, while Chipotle stock is down close to 50% from all-time highs.
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Here's the skinny on changing dining traffic in the United States, and what it means for investors in 2026.
Fast-casual losses, dine-in gains
The return to dine-in options is no better exemplified by the performance of the Chili's brand under Brinker International. Last quarter, Chili's same-store sales growth of 8.6%, leading to an impressive two-year same-store sales growth of 43%. This was driven by increased traffic to Chili's locations. At the same time, Chipotle's same-store sales growth declined by 2.5% in the fourth quarter, signaling a decline in customer traffic.
diners are likely shifting away from fast casual because of price. Two decades ago, there was a clear price distinction between fast food (such as McDonald's), fast-casual, and sit-down restaurants, with the price of a meal rising the more "formal" the setting was. However, as fast-food and fast-casual brands raise prices, a $15 meal at Chipotle is no longer much different from a sit-down deal at Chili's.
Brands like Chili's have begun marketing this fact, which is slowly incentivizing diners to switch. Fast-food brands have realized they've taken too much pricing power for what is supposed to be a cheap meal and have begun heavily discounting their food items yet again.
This puts fast-casual chains like Chipotle in a bind. For years, it gained share as an affordable, tastier option than the competition. Now, it is being attacked by heavy discounts at the low end (fast food) and by equal pricing from higher-end sit-down chains.
What should investors do?
Dynamic changes to the restaurant market have greatly impacted share prices. Brinker's stock has risen dramatically, while Chipotle's has fallen. McDonald's has begun to rebound after its latest price reset, recently hitting a three-year high with its share price.
The question remains whether this is a short-term blip in the restaurant landscape, with a peak in fast-casual concepts, or a permanent shift. That is a hard question to ask, because it means analyzing which specific brands will execute product strategies better than the competition.
For investors, it is best to focus not on which restaurant category is doing well, but on which specific restaurants have built the best value proposition for customers. Right now, Chipotle is struggling due to its price hikes and declining product quality, while Texas Roadhouse and Brinker International are thriving. Why? Because the latter two brands offer great value to consumers at reasonable prices.
Focusing on this concept will help you find great restaurant stocks to buy in 2026.
Should you buy stock in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, consider this:
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Texas Roadhouse. The Motley Fool recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Restaurant Stocks See Traffic-Driven Rotation as Dining Patterns Shift

For Immediate Release
Chicago, IL – February 9, 2026 – Stocks in this week’s article are Owlet OWLT, Texas Capital Bancshares TCBI, Western Digital WDC and Brinker International EAT.
4 Top-Ranked Highly Efficient Stocks to Strengthen Portfolios in 2026
The efficiency ratio is an indication of a company’s financial health. It analyzes how efficiently a company uses its assets and liabilities internally.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.
To that end, Owlet, Texas Capital Bancshares, Western Digital and Brinker International have made it through the screen process:
Here are the top four stocks that made it through the screen:
Owlet
Owlet provides a digital parenting platform that aims to give parents real-time data and insights to help them feel calmer and more confident. OWLT has an average four-quarter positive earnings surprise of 87.8%.
Texas Capital Bancshares
Texas Capital Bancsharesis a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and high-net-worth individuals in five major metropolitan areas of TX: Dallas, Houston, Fort Worth, Austin and San Antonio. TCBI has an average four-quarter positive earnings surprise of 15.1%.
Western Digital
Western Digital is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies. WDC has an average four-quarter positive earnings surprise of 11.2%.
Brinker International
Brinker Internationalowns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. EAT has an average four-quarter positive earnings surprise of 8.2%.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks.com featured highlights include Owlet, Texas Capital, Western Digital and Brinker

Key Points
CFO Michaela Ware sold 5,000 shares for a total of ~$812,000 on Feb. 5, 2026, reflecting the SEC Form 4 weighted average price.
The sale represented 17.74% of Ms. Ware's total pre-transaction holdings.
No indirect or derivative transactions were reported; indirect holdings in her 401(k) plan remain unchanged at 3,259 shares.
The trade size is in line with Ms. Ware's historical sale cadence and reflects reduced available capacity following prior dispositions.
Michaela M. Ware, Chief Financial Officer of Brinker International (NYSE:EAT), executed an open-market sale of 5,000 directly-held shares at a weighted average price of $162.40 per share on Feb. 5, 2026, according to the SEC Form 4 filing.
Transaction summary
Shares sold (direct)
5,000
Transaction value
~$812,000.0
Post-transaction shares (direct)
19,923
Post-transaction shares (indirect)
3,259
Post-transaction value (direct ownership)
~$3.2 million
Transaction value based on SEC Form 4 weighted average purchase price ($162.40); post-transaction value based on Feb. 5, 2026 market close ($160.64).
Key questions
How significant was this sale relative to Ms. Ware's historical trading activity?
This 5,000-share sale is comparable to Ms. Ware's historical median for open-market sales (5,356 shares in the recent period), suggesting the transaction is consistent with her established disposition pattern.
What impact does this trade have on Ms. Ware's ownership position?
The transaction reduced Ms. Ware's direct holdings by 17.74%, leaving her with 19,923 directly held shares and maintaining 3,259 shares indirectly through her 401(k) plan.
Was there any indirect or derivative involvement in this transaction?
No; the trade was executed solely from direct holdings, with no indirect transfers or stock option exercises reported in this filing.
How does the sale align with available share capacity?
Ms. Ware's direct holdings have declined substantially over the past year, which explains the smaller absolute trade size as a function of remaining share capacity rather than a shift in disposition strategy.
Company overview
Price (as of market close Feb. 5, 2026)
$160.64
Revenue (TTM)
$5.7 billion
Net income (TTM)
$454.1 million
1-year price change
0.63%
* 1-year price change calculated using Feb. 5, 2026 as the reference date.
Company snapshot
Brinker International operates and franchises casual dining restaurants, primarily under the Chili's Grill & Bar and Maggiano's Little Italy brands, generating revenue through food and beverage sales.
Its business model centers on direct restaurant operations and franchising, with income streams from company-owned outlets and franchise fees.
The company serves a broad consumer base seeking casual dining experiences in the United States and select international markets.
Brinker International is a leading operator in the casual dining segment, with a substantial presence through its Chili's and Maggiano's restaurant brands. The company leverages a dual approach of company-owned and franchised locations to maximize market reach and operational flexibility. Scale, brand recognition, and a diversified revenue model support its competitive positioning in the restaurant industry.
What this transaction means for investors
Brinker International CFO Michaela Ware’s sale of 5,000 shares in company stock is not a red flag. She still has nearly 20,000 directly-held shares, suggesting she is not in a rush to sell her stock.
Ms. Ware’s transaction comes at a time when Brinker International shares are surging. The stock rose after the company reported strong results for its fiscal second quarter ended Dec. 24.
Fiscal Q2 sales totaled $1.5 billion, up from the previous year’s $1.4 billion. Its Chili's restaurants enjoyed 19 consecutive quarters of same-store sales growth as it notched a 9% increase in Q2.
As a result of the strong performance, Brinker International raised its fiscal 2026 full-year guidance to a range between $5.76 billion and $5.83 billion compared to the previous forecast of between $5.6 billion and $5.7 billion in sales.
This has led to Brinker International stock approaching its 52-week high of $187.12 reached last July. With the rising share price, it’s understandable why Ms. Ware would want to sell, and for shareholders, it’s a good time to sell as well.
That said, the company’s price-to-earnings ratio of 17 is lower than it was a year ago, suggesting it’s not a bad time to consider buying Brinker stock either.
Should you buy stock in Brinker International right now?
Before you buy stock in Brinker International, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brinker International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	14.97 20.02
Price/Sales	1.16 0.68
P/B	17.00 1.89
P/FCF	14.36 14.51

Indicator	TTM Median
ROE	134.52 14.81
ROA	16.99 5.17
ROI	55.57 8.61
Net Worth	6.44 0.87
Quick Ratio	0.31 0.88
Current Ratio	0.36 1.44

Indicator	TTM Median
Net Profit Margin	8.00 5.71
Operating Margin	10.30 8.20
Gross Margin	18.69 38.48
Return on tangible equity	360.40 21.87

Indicator	TTM Median
EPS	2.87 0.45
EPS Forecast	2.53 0.44
Revenue	1.45B 185.00M
Gross Profit	283.00M —
EBITDA	223.00M —

Brinker International, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue