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, Inc.

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Brinker EAT Q2 2026 Earnings Call Transcript

The S&P 500 Index ($SPX) (SPY) today is up +0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.81%. March E-mini S&P futures (ESH26) are up +0.25%, and March E-mini Nasdaq futures (NQH26) are up +0.79%.
Stock indexes are moving higher today, with the S&P 500 posting a new all-time high and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is leading the overall market higher today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, better-than-expected earnings results from Seagate Technology Holdings NV and Texas Instruments added to the bullish market sentiment.
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The dollar index (DXY00) is slightly higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-meeting comments from Fed Chair Powell on Wednesday will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down -0.52%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -2 ticks. The 10-year T-note yield is up +1.2 bp to 4.245%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -2.5 bp to 2.849%. The 10-year UK gilt yield rose to a 5-week high of 4.540% and is up by +0.4 bp at 4.529%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC) and Sandisk (SNDK) are up more than +8%, and Western Digital (WDC), Microchip Technology (MCHP), and Texas Instruments (TXN) are up more than +6%. In addition, Micron Technology (MU) and NXP Semiconductors NV (NXPI) are up more than +3%, and Analog Devices (ADI) and Marvell Technology (MRVL) are up more than +2%.
F5 Inc. (FFIV) is up more than +8% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Starbucks (SBUX) is up more than +4% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Brinker International (EAT) is up more than +3% after reporting Q2 adjusted EPS of $2.87, stronger than the consensus of $2.62.
AT&T (T) is up more than +2% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
GE Vernova (GEV) is up more than +2% after raising its 2026 revenue forecast to $44 billion-$45 billion from a previous forecast of $41 billion-$42 billion.
Corning (GLW) is up more than +2% after reporting Q4 core sales of $4.41 billion, greater than the consensus of $4.36 billion.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -7% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -6% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -5% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -1% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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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.

Stocks Rally on AI Spending Optimism

Starbucks Corporation SBUX reported mixed first-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased, but the bottom line declined from the prior-year quarter’s figure.
Following the results, the company’s shares are up 8% in the pre-market trading session today. Starbucks’ management said first-quarter fiscal 2026 results show the “Back to Starbucks” strategy is gaining traction sooner than expected, with sales improving as more customers return and visit often. The company is confident this momentum will translate into sustainable earnings growth and support long-term profitability.
Discussion on Q1 Earnings, Revenues & Comps of SBUX
In the fiscal first quarter, the company reported earnings per share (EPS) of 56 cents, missing the Zacks Consensus Estimate of 58 cents. The bottom line also decreased 19% from 69 cents reported in the prior-year quarter.
Net revenues of $9.91 billion beat the consensus mark of $9.64 billion. The reported value was up 5.5% year over year.
Global comparable store sales increased 4% year over year. The upside was backed by a 3% increase in comparable transactions and a 1% increase in average ticket.
During first-quarter fiscal 2026, the company added 128 net new locations, bringing the total store count to 41,118, with 52% operated by it and 48% run by licensed partners.
Starbucks Corporation Price, Consensus and EPS Surprise
Starbucks’ Overall Margin Contracts in Q1
The company’s non-GAAP operating margin contracted 180 basis points (bps) to 10.1% from the prior-year quarter. This was largely due to increased labor spending to support the “Back to Starbucks” strategy, along with inflationary headwinds stemming from tariffs and higher coffee costs.
SBUX’s Segmental Details
Starbucks has three reportable operating segments: North America, International and Channel Development.
North America: The segmental net revenues were $7.28 billion, up 3% year over year. Its comparable store sales rose 4% against a decline of 4% in the prior-year quarter. Average transactions increased 3%, whereas the change in tickets rose 1% year over year.
Operating margin contracted 480 bps to 11.9% from 16.7% in the prior-year quarter.
International: This segment’s net revenues of $2.06 billion increased 10% year over year. Comparable store sales increased 5% in contrast to a 4% fall reported in the prior-year quarter. Average transactions increased 3%, whereas the change in tickets fell 2% year over year.
Operating margin expanded 100 bps year over year to 13.7%. The improvement was mainly supported by sales leverage and reduced store operating as well as depreciation and amortization expenses, following the classification of Starbucks’ China retail assets as held for sale and the halt of related depreciation. These benefits were partly offset by restructuring charges tied to store closures and ongoing inflationary pressures, largely from higher coffee costs.
In the fiscal first quarter, comps in China were up 7% against a 6% decline reported in the prior-year quarter. Transactions rose 5%, whereas the change in tickets was up 2% year over year.
Channel Development: Net revenues in the segment increased 20% year over year to $522.7 million. The upside was driven by an increase in contributions to the Global Coffee Alliance.
Operating margin declined to 41.3% from 47.7% a year earlier, mainly due to an unfavorable sales mix and higher global product costs, though this was partly cushioned by higher income from the North American Coffee Partnership joint venture.
SBUX’s Financial Details
The company ended the fiscal first quarter with cash and cash equivalents of $3.41 billion compared with $3.22 billion at the end of Sept. 28, 2025. As of Dec. 28, long-term debt totaled $14.6 billion, almost flat compared with Sept. 28, 2025.
Meanwhile, management declared a quarterly cash dividend of 62 cents per share. The dividend is payable on Feb. 27, 2026, to its shareholders of record as of Feb. 13.
Fiscal 2026 Outlook of SBUX
Starbucks has outlined its expectations for fiscal 2026, signaling steady growth and gradual margin improvement. The company anticipates global and U.S. comparable store sales to rise at least 3%, with overall net revenues increasing at a similar pace. Management also expects a modest year-over-year expansion in non-GAAP operating margin.
Non-GAAP earnings per share are projected to be between $2.15 and $2.40. In terms of expansion, Starbucks plans to open roughly 600 to 650 net new coffeehouses worldwide across both its company-operated and licensed formats.
SBUX’s Zacks Rank
Starbucks currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI, Brinker International, Inc. EAT and Yum China Holdings, Inc. YUMC.
BJ's Restaurants currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BJ's Restaurants has gained 15.8% in the past six months. The Zacks Consensus Estimate for BJ's Restaurants' fiscal 2026 sales and EPS indicates a rise of 2.4% and 3.3%, respectively, year over year.
Brinker presently carries a Zacks Rank #2. The stock has declined 1.4% in the past six months.
The Zacks Consensus Estimate for EAT’s 2026 sales and EPS implies growth of 6.5% and 16.6%, respectively, from the year-ago levels.
Yum China presently carries a Zacks Rank #2. The stock has gained 7.9% in the past six months.
The Zacks Consensus Estimate for Yum China’s 2026 sales and EPS indicates an increase of 6.5% and 15.5%, respectively, from the year-ago 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.

Starbucks Q1 Earnings Miss Estimates, Revenues Increase Y/Y, Stock Up

For the quarter ended December 2025, Brinker International (EAT) reported revenue of $1.45 billion, up 6.9% over the same period last year. EPS came in at $2.87, compared to $2.80 in the year-ago quarter.
The reported revenue represents a surprise of +3.44% over the Zacks Consensus Estimate of $1.4 billion. With the consensus EPS estimate being $2.53, the EPS surprise was +13.39%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Brinker International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable Restaurant Sales - Chili's - YoY change: 8.6% compared to the 5.2% average estimate based on six analysts.
Total restaurants - Brinker International: 1,627 versus 1,633 estimated by six analysts on average.
Company owned restaurants - Total: 1,160 versus the six-analyst average estimate of 1,240.
Comparable Restaurant Sales - Maggiano's - YoY change: -2.4% versus the five-analyst average estimate of -5.5%.
Revenue- Company sales: $1.44 billion versus $1.39 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.
Revenue- Franchise and other revenues: $13.4 million versus $13.25 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
Revenue- Company sales- Chili's: $1.3 billion compared to the $1.25 billion average estimate based on four analysts. The reported number represents a change of +9% year over year.
Revenue- Company sales- Maggiano's: $134.7 million versus the four-analyst average estimate of $135.44 million. The reported number represents a year-over-year change of -9.7%.
Revenue- Franchise revenues- Chili?s: $13.2 million compared to the $13.06 million average estimate based on three analysts. The reported number represents a change of +10.9% year over year.
Revenue- Chili's: $1.32 billion versus $1.26 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9% change.
Revenue- Franchise revenues- Maggiano's: $0.2 million versus the two-analyst average estimate of $0.2 million. The reported number represents a year-over-year change of 0%.
Revenue- Maggiano's: $134.9 million versus $137.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -9.7% change.
Shares of Brinker International have returned +10.2% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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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.

Brinker International (EAT) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Brinker International, Inc. EAT is scheduled to report second-quarter fiscal 2026 results on Jan. 28, before the opening bell.
In the last reported quarter, adjusted earnings and revenues beat the Zacks Consensus Estimate by 9.7% and 1.2%, respectively. On a year-over-year basis, both metrics increased 103.1% and 18.4%, respectively.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 18.7%.
EAT’s Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal second-quarter EPS has remained unchanged at $2.51 in the past 30 days. The expected figure indicates a decline of 10.4% from the year-ago quarter’s $2.80.
Brinker International, Inc. Price and EPS Surprise
The consensus mark for revenues is pegged at $1.4 billion. The metric implies growth of 3.1% from the year-ago quarter’s figure.
Factors Likely to Shape EAT’s Quarterly Results
Revenues
Brinker International’s fiscal second-quarter revenues are expected to increase year over year, supported by solid performance at Chili’s and higher guest traffic. Effective marketing and brand-building initiatives are driving guest acquisition, while continued improvements in food quality, service and restaurant atmosphere are strengthening repeat visitation. Additionally, ongoing menu innovation, combined with a compelling value proposition and disciplined execution, is expected to sustain momentum and contribute meaningfully to sales growth.
The first four remodel pilot restaurants, along with the modern Greenville prototype that reinforces Chili’s differentiated brand identity and guest appeal, are likely to have supported improved performance. Our model predicts fiscal second-quarter comps to rise 2.9% year over year.
While Maggiano’s revenues are estimated to decrease 7.4% to $138.3 million, our model predicts Chili’s revenues to grow 3.9% year over year to $1.26 billion. The combined impact of strong Chili’s performance, higher traffic, effective value-driven marketing and continued menu innovation is expected to support solid topline growth in the second quarter of fiscal 2026.
Margins
Brinker International’s bottom-line performance is likely to be constrained by softer results at Maggiano’s, alongside margin pressure from mid-single-digit commodity inflation, up from prior expectations, driven primarily by tariffs on beef and ground beef, with some impact from shrimp. These factors have resulted in higher food and beverage costs and an unfavorable menu mix. Margins also faced pressure from approximately 3.8% wage inflation, increased staffing levels to support higher traffic, and rising workers’ compensation and health insurance costs.
However, these headwinds might have been partially offset by strong performance at Chili’s, strategic pricing initiatives and disciplined cost management, which together are expected to support margin resilience. Our model predicts total operating costs to increase 4.5% year over year to $1.24 billion.
What Our Model Says About EAT Stock
Our proven model does not conclusively predict an earnings beat for Brinker International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see below.
EAT’s Earnings ESP: Brinker International has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
EAT’s Zacks Rank: The company has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some stocks worth considering from the Zacks Retail-Wholesale sector, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
BJ's Restaurants, Inc. BJRI has an Earnings ESP of +7.26% and a Zacks Rank of 2 at present.
BJRI is expected to register a 27.7% increase in earnings for the to-be-reported quarter. It reported an earnings beat in each of the trailing four quarters, delivering an average surprise of 155.6%.
Bath & Body Works, Inc. BBWI currently has an Earnings ESP of +4.07% and a Zacks Rank of 2.
BBWI reported an earnings beat in two of the trailing four quarters, missing on one occasion, met on one occasion, and delivering an average negative surprise of 1.5%. Its earnings for the to-be-reported quarter are expected to decrease 16.3%.
Abercrombie & Fitch Co. ANF has an Earnings ESP of +0.37% and a Zacks Rank of 3 at present.
ANF is expected to register a 0.3% decrease in earnings for the to-be-reported quarter. It reported an earnings beat in each of the trailing four quarters, delivering an average surprise of 8.2%.
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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.

What Should You Expect From Brinker International's Q2 Earnings?

The S&P 500 Index ($SPX) (SPY) on Tuesday closed down -2.06%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -1.76%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.12%. March E-mini S&P futures (ESH26) fell -2.02%, and March E-mini Nasdaq futures (NQH26) fell -2.10%.
Stock indexes plummeted on Tuesday, with the S&P 500 and Nasdaq 100 falling to 1-month lows, and the Dow Jones Industrial falling to a 2-week low. Rising geopolitical tensions between the US and Europe over control of Greenland have led to a risk-off mood in asset markets. President Trump’s push to take over Greenland is reviving fears of trade confrontations between the US and its European allies, with little sign of de-escalation. Overnight, President Trump threatened steep tariffs on French champagne after French President Macron ruled out joining a US-led peace initiative. President Trump over the weekend announced a 10% tariff on goods from eight European countries starting February 1, rising to 25% in June, unless there’s a deal for the “purchase of Greenland.”
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Rising bond yields also weighed on stocks on Tuesday. The 10-year T-note yield jumped to a 4.75-month high of 4.31% on Tuesday, driven by concern about an independent Fed and negative carryover from soaring Japanese government bond yields. Japan’s 10-year JGB bond yield rose to a 27-year high on Tuesday of 2.359% on Japanese fiscal concerns after Prime Minister Sanae Takaichi promised a temporary sales tax cut on food if she wins a fresh mandate for her new coalition.
The strength of gold and silver mining companies on Tuesday was a positive factor for stocks, as the Greenland crisis prompted safe-haven buying of precious metals and pushed their prices to all-time highs. Also, concerns that Japan's expansionary fiscal policies will lead to soaring deficits are boosting demand for precious metals as a store of value.
US natural gas-producing stocks soared on Tuesday as the price of nat-gas (NGG26) surged more than +26% to a 3-week high.
The market’s focus this week will be on economic news and any fresh tariff developments, the next Fed Chair, and Greenland. On Wednesday, Dec pending home sales are expected to fall -0.5% m/m. On Thursday, initial weekly unemployment claims are expected to climb by +12,000 to 210,000. Also, Q3 GDP is expected to be unrevised at +4.3% (q/q annualized). In addition, Nov personal spending is expected to be up +0.5% m/m, and Nov personal income is expected to rise +0.4% m/m. Finally, the Nov core PCE price index (the Fed’s preferred inflation gauge) is expected to rise by +0.2% m/m and +2.8% y/y. On Friday, the Jan S&P US manufacturing PMI is expected to be up by +0.2 to 52.0. Also, the final University of Michigan Jan US consumer sentiment index is expected to be unrevised at 54.0.
Q4 earnings season begins in earnest this week and, so far, has been a positive factor for stocks, with 88% of the 33 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The Supreme Court on Tuesday did not issue a ruling on challenges to President Trump’s reciprocal tariffs. The court did not say when it will issue its next opinions, meaning it will likely be at least another month before ruling on the tariffs, as the court begins a four-week recess.
The markets are discounting the odds to 5% for a -25 bp rate cut at the FOMC’s next meeting on January 27-28.
Overseas stock markets settled lower on Tuesday. The Euro Stoxx 50 fell to a 2-week low and closed down by -0.57%. China’s Shanghai Composite dropped to a 1.5-week low and closed down by -0.01%. Japan’s Nikkei Stock 225 closed down by -1.11%.
Interest Rates
March 10-year T-notes (ZNH6) on Tuesday closed down by -10.5 ticks. The 10-year T-note yield rose by +7.0 bp to 4.293%. Mar T-notes tumbled to a 5-month low on Tuesday, and the 10-year T-note yield rose to a 4.75-month high of 4.307%. Rising inflation expectations are bearish for T-notes after the 10-year breakeven inflation rate climbed to a 3.25-month high of 2.342% on Tuesday. Also, negative carryover from a surge in global bond yields, triggered by Tuesday's jump in the 10-year Japan bond yield to a 27-year high, of 2.359%, weighed on T-notes. Markets are concerned that if JGB yields continue to rise, Japanese investors, the largest holders of US debt securities, will sell their US assets and move capital back to Japan.
T-notes are also under pressure after President Trump last Friday expressed reluctance to name Keven Hassett as the next Fed Chair and said he would prefer to keep him as National Economic Council director. The markets saw Hassett as the most dovish candidate and the top contender for the Fed Chair nomination, so nominating someone like Kevin Warsh, a known hawk and the second-most-likely Fed Chair candidate, would be bearish for T-note prices.
European government bond yields moved higher on Tuesday. The 10-year German bund yield rose to a 2-week high of 2.894% and finished up +1.9 bp to 2.859%. The 10-year UK gilt yield climbed to a 2-week high of 4.495% and finished up +4.3 bp to 4.458%.
The German Jan ZEW survey expectations of economic growth rose +13.8 to a 4.5-year high of 59.6, stronger than expectations of 50.0.
German Dec PPI fell -2.5% y/y, weaker than expectations of -2.4% y/y and the largest drop in 20 months.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
The Magnificent Seven technology stocks sold off on Tuesday, weighing on the overall market. Nvidia (NVDA) and Tesla (TSLA) closed down more than -4%. Also, Apple (AAPL) and Amazon.com (AMZN) closed down by more than -3%, and Meta Platforms (META) and Alphabet (GOOGL) closed down by more than -2%. In addition, Microsoft (MSFT) closed down more than -1%.
Cryptocurrency-exposed stocks slid on Tuesday, as Bitcoin (^BTCUSD) tumbled more than -3% to a 2-week low. Mara Holdings (MARA) closed down more than -8%, and Strategy (MSTR) closed down more than -7% to lead losers in the Nasdaq 100. Also, Galaxy Digital Holdings (GLXY) closed down by more than -6%, Coinbase Global (COIN) closed down by more than -5%, and Riot Platforms (RIOT) closed down by more than -4%.
Gold and silver mining stocks rallied on Tuesday as gold and silver prices soared to new all-time highs. Hecla Mining (HL) closed up more than +7%, and Newmont Mining (NEM) closed up more than +4%. Also, Barrick Mining (B) closed up more than +2%, and Coeur Mining (CDE) and Freeport McMoRan (FCX) closed up by more than +1%.
US natural gas-producing stocks soared on Tuesday as the price of nat-gas surged more than +26% to a 3-week high. Expand Energy (EXE) closed up more than +4%. Also, Coterra Energy (CTRA), Antero Resources (AR), Range Resources (RRC), CNX Resources (CNX), and EQT Corp (EQT) closed up more than +1%.
Defensive beverage makers rose on Tuesday amid the broader market's plunge. Monster Beverage (MNST) closed up more than +4% to lead gainers in the Nasdaq 100. Also, Constellation Brands (STZ) closed up more than +4%, and Brown Forman Corp (BF.B) and Molson Coors Beverage (TAP) closed up more than +2%. In addition, Keurig Dr Pepper (KDP) and Coca-Cola Co (KO) closed up more than +1%.
NetApp (NTAP) closed down more than -9% to lead losers in the S&P 500 after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $89.
3M Co. (MMM) closed down more than -6% to lead losers in the S&P 500 and Dow Jones Industrials after forecasting 2026 adjusted EPS of $8.50-$8.70, the midpoint below the consensus of $8.64.
Rockwell Automation (ROK) closed down more than -4% after Oppenheimer downgraded the stock to perform from outperform.
Fastenal (FAST) closed down more than -3% after reporting Q4 net sales of $2.03 billion, below the consensus of $2.04 billion.
AppLovin (APP) closed down by more than 1% after a negative research report from CapitalWatch raised concerns about systemic compliance risks and suspicions of financial crimes.
RAPT Therapeutics (RAPT) closed up more than +62% after GSK Plc agreed to buy the company for about $2.2 billion, or $58 a share.
Albemarle (ALB) closed up by more than +5% after HSBC upgraded the stock to buy from hold with a price target of $200.
Intel (INTC) closed up more than +3% after Seaport Global Securities upgraded the stock to buy from neutral with a price target of $65.
Brinker International (EAT) closed up more than +1% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $200.
Earnings Reports(1/21/2026)
Charles Schwab Corp/The (SCHW), Citizens Financial Group Inc (CFG), Halliburton Co (HAL), Johnson & Johnson (JNJ), Kinder Morgan Inc (KMI), Prologis Inc (PLD), TE Connectivity PLC (TEL), Teledyne Technologies Inc (TDY), Travelers Cos Inc/The (TRV), Truist Financial Corp (TFC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Plunge on Greenland Crisis and Soaring Bond Yields

The S&P 500 Index ($SPX) (SPY) today is down -1.23%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -1.07%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.36%. March E-mini S&P futures (ESH26) are down -1.16%, and March E-mini Nasdaq futures (NQH26) are down -1.20%.
Stock indexes are sharply lower today, with the S&P 500, the Dow Jones Industrials, and the Nasdaq 100 falling to 2-week lows. Rising geopolitical tensions between the US and Europe over control of Greenland have led to a risk-off mood in asset markets. President Trump’s push to take over Greenland is reviving fears of trade confrontations between the US and its European allies, with little sign of de-escalation. Overnight, President Trump threatened steep tariffs on French champagne after French President Macron ruled out joining a US-led peace initiative. President Trump over the weekend announced a 10% tariff on goods from eight European countries starting February 1, rising to 25% in June, unless there’s a deal for the “purchase of Greenland.”
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Rising bond yields are also weighing on stocks today. The 10-year T-note yield jumped to a 4.75-month high of 4.31% today, driven by concern about an independent Fed and negative carryover from soaring Japanese government bond yields. Japan’s 10-year JGB bond yield rose to a 27-year high today of 2.359% on Japanese fiscal concerns after Prime Minister Sanae Takaichi promised a temporary sales tax cut on food if she wins a fresh mandate for her new coalition.
The strength of gold and silver mining companies today is a positive factor for stocks, as the Greenland crisis prompted safe-haven buying of precious metals and pushed their prices to all-time highs. Also, concerns that Japan's expansionary fiscal policies will lead to soaring deficits are boosting demand for precious metals as a store of value.
US natural gas-producing stocks are soaring today as the price of nat-gas (NGG26) surged more than +22% to a 3-week high.
The market’s focus this week will be on economic news and any fresh developments on tariffs, the next Fed Chair, and Greenland. On Wednesday, Dec pending home sales are expected to fall -0.5% m/m. On Thursday, initial weekly unemployment claims are expected to climb by +12,000 to 210,000. Also, Q3 GDP is expected to be unrevised at +4.3% (q/q annualized). In addition, Nov personal spending is expected to be up +0.5% m/m, and Nov personal income is expected to rise +0.4% m/m. Finally, the Nov core PCE price index (the Fed’s preferred inflation gauge) is expected to rise by +0.2% m/m and +2.8% y/y. On Friday, the Jan S&P US manufacturing PMI is expected to be up by +0.2 to 52.0. Also, the final University of Michigan Jan US consumer sentiment index is expected to be unrevised at 54.0.
Q4 earnings season begins in earnest this week and, so far, has been a positive factor for stocks, with 88% of the 33 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The Supreme Court today did not issue a ruling on challenges to President Trump’s reciprocal tariffs. The court did not say when it will issue its next opinions, meaning it will likely be at least another month before ruling on the tariffs, as the court begins a four-week recess.
The markets are discounting the odds to 5% for a -25 bp rate cut at the FOMC’s next meeting on January 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 2-week low and is down by -0.73%. China’s Shanghai Composite dropped to a 1.5-week low and closed down by -0.01%. Japan’s Nikkei Stock 225 closed down by -1.11%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -6 ticks. The 10-year T-note yield is up by +4.6 bp to 4.269%. Mar T-notes tumbled to a 5-month low today, and the 10-year T-note yield rose to a 4.75-month high of 4.307%. Rising inflation expectations are bearish for T-notes after the 10-year breakeven inflation rate climbed to a 3.25-month high of 2.342% today. Also, negative carryover from a surge in global bond yields, triggered by today's jump in the 10-year Japan bond yield to a 27-year high, of 2.359%, is weighing on T-notes. Markets are concerned that if JGB yields continue to rise, Japanese investors, the largest holders of US debt securities, will sell their US assets and move capital back to Japan.
T-notes are also under pressure after President Trump last Friday expressed reluctance to name Keven Hassett as the next Fed Chair and said he would prefer to keep him as National Economic Council director. The markets saw Hassett as the most dovish candidate and the top contender for the Fed Chair nomination, so nominating someone like Kevin Warsh, a known hawk and the second-most-likely Fed Chair candidate, would be bearish for T-note prices.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 2-week high of 2.894% and is up +2.0 bp to 2.860%. The 10-year UK gilt yield climbed to a 2-week high of 4.495% and is up +3.8 bp to 4.452%.
The German Jan ZEW survey expectations of economic growth rose +13.8 to a 4.5-year high of 59.6, stronger than expectations of 50.0.
German Dec PPI fell -2.5% y/y, weaker than expectations of -2.4% y/y and the largest drop in 20 months.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
The Magnificent Seven technology stocks are sliding today and weighing on the overall market. Nvidia (NVDA) and Tesla (TSLA) are down more than -2%. Also, Amazon.com (AMZN), Meta Platforms (META), Alphabet (GOOGL), Microsoft (MSFT), and Apple (AAPL) are down more than -1%.
Cryptocurrency-exposed stocks are sliding today, with Bitcoin (^BTCUSD) down more than -2% at a 1-week low. Strategy (MSTR) is down more than -7% to lead losers in the Nasdaq 100. Also, Mara Holdings (MARA) is down more than -5%, and Riot Platforms (RIOT), Coinbase Global (COIN), and Galaxy Digital Holdings (GLXY) are down by more than -3%.
Gold and silver mining stocks are climbing today as gold and silver prices climb to new all-time highs. Newmont Mining (NEM) is up more than +3%, and Barrick Mining (B) is up more than +2%. Also, Hecla Mining (HL), Coeur Mining (CDE), and Freeport McMoRan (FCX) are up more than +1%.
US natural gas-producing stocks are soaring today as the price of nat-gas surged more than +25% to a 3-week high. Coterra Energy (CTRA) is up by more than +3%. Also, Antero Resources (AR) and Range Resources (RRC) are up more than +2%. In addition, CNX Resources (CNX) and EQT Corp (EQT) are up more than +1%.
NetApp (NTAP) is down more than -8% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $89.
3M Co. (MMM) is down more than -7% to lead losers in the S&P 500 and Dow Jones Industrials after forecasting 2026 adjusted EPS of $8.50-$8.70, the midpoint below the consensus of $8.64.
Fastenal (FAST) is down more than -4% after reporting Q4 net sales of $2.03 billion, below the consensus of $2.04 billion.
Rockwell Automation (ROK) is down more than -4% after Oppenheimer downgraded the stock to perform from outperform.
AppLovin (APP) is down by more than -1% after a negative research report from CapitalWatch, which raised concerns about systemic compliance risks and suspicions of financial crimes.
RAPT Therapeutics (RAPT) is up more than +62% after GSK Plc agreed to buy the company for about $2.2 billion, or $58 a share.
Intel (INTC) is up more than +4% to lead gainers in the Nasdaq 100 after Seaport Global Securities upgraded the stock to buy from neutral with a price target of $65.
Albemarle (ALB) is up by more than +4% after HSBC upgraded the stock to buy from hold with a price target of $200.
Micron Technology (MU) is up more than +2% after Stifel raised its price target on the stock to $360 from $300.
Brinker International (EAT) is up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $200.
Earnings Reports(1/20/2026)
3M Co (MMM), DR Horton Inc (DHI), Fastenal Co (FAST), Fifth Third Bancorp (FITB), Interactive Brokers Group Inc (IBKR), KeyCorp (KEY), Netflix Inc (NFLX), United Airlines Holdings Inc (UAL), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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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.

Stocks Pressured by US and European Standoff Over Greenland

Shares of Darden Restaurants, Inc. DRI have gained 14.2% in the past three months, outperforming the Zacks Retail - Restaurants industry’s 7.6% growth.
Image Source: Zacks Investment Research
The company continues to strengthen its market position by leveraging solid sales performance across its portfolio, supported by strong guest demand, effective pricing actions and resilient traffic, particularly at its largest brands. Darden’s disciplined expansion strategy, partnership with Uber Direct and ongoing menu innovation, combined with a well-executed pricing approach, are driving strong results, underscoring the resilience of the company’s operational execution and reinforcing its long-term relevance in the competitive restaurant industry.
However, DRI has had its 2026 EPS estimate revised downward to $10.58 from $10.61 over the past 60 days. Darden faces near-term headwinds from elevated beef and commodity costs, margin pressure stemming from pricing below inflation, and ongoing macroeconomic uncertainty that continues to weigh on consumer demand.
Darden currently has a Zacks Rank #3 (Hold). Let’s take a closer look at the key factors supporting the stock’s performance and the challenges that may hold it back.
Factors Aiding DRI Stock
Brand-Led Growth: Darden’s results continue to be anchored by the strong performance of its core brands, which remain the primary engines of growth and profitability. In the second quarter of fiscal 2026, Olive Garden sales increased 5.4% year over year to $1.36 billion, driven by strong same-restaurant sales and traffic growth, along with the addition of 11 net new restaurants. LongHorn Steakhouse also delivered strong results, with sales rising 9.3% year over year to $775.9 million, supported by same-restaurant sales growth of 5.9% and the addition of 21 new restaurants. This sustained outperformance once again placed same-restaurant sales and traffic in the top decile during the quarter.
Beyond the core brands, Fine Dining sales increased 3.3% year over year to $316.4 million, driven by positive same-restaurant sales and the addition of three net new restaurants. Sales in the Other Business segment grew 11.3% year over year to $647.3 million, reflecting positive same-restaurant sales growth of 3.1% and a partial-quarter contribution from the Chuy’s acquisition.
Expansion Efforts: Darden continues to execute a disciplined and methodical expansion strategy that remains a meaningful driver of revenue growth and long-term value creation. During the second quarter of fiscal 2026, the company opened 17 new restaurants and raised its full-year outlook to 65-70 new openings, reflecting confidence in site availability, development pacing and capital allocation discipline. Accelerated build timelines are generating incremental operating weeks, enhancing near-term revenue contributions, while management remains focused on balancing growth with operational consistency, labor availability and return thresholds. This measured approach enables Darden to scale its leading brands efficiently while preserving margin integrity and capital efficiency, supporting sustainable long-term growth.
Focus on Menu Innovation: Darden continues to prioritize menu innovation as a key growth driver, leveraging targeted product launches and limited-time offerings to sustain guest interest and support traffic and check growth. At Olive Garden, momentum was driven by the success of the $13.99 Never Ending Pasta Bowl, alongside the limited-time return of two fan favorites — Ravioli di Portobello and Braised Beef Tortellini — brought back in response to strong guest demand, including widespread online petitions. LongHorn Steakhouse also leaned into proven favorites, reintroducing the 14-ounce, 7-Pepper Crusted New York Strip with brown butter sauce for the holidays, which generated enthusiastic guest feedback and strong engagement across social media. Additional offerings, including a popular $5 refillable beer stein and a value-oriented lineup featuring a new 8-ounce Prime Fit Cut Strip and returning favorites such as Stuffed Chicken and Salmon & Shrimp, further reinforced the brand’s value proposition.
Factor Likely to Hurt DRI Stock
Elevated Beef Cost: Elevated beef costs remained a notable headwind for the company. Management highlighted that beef inflation was higher and more persistent than initially expected, contributing to overall commodity cost inflation and limiting margin expansion despite solid sales performance. While disciplined pricing actions, menu mix management and operational efficiencies helped partially offset the impact, Darden intentionally priced below inflation to preserve guest value and traffic.
Key Picks
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
Dillard's, Inc. DDS flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 43.2% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has surged 53.7% in the past six months.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.4% and 21.1%, respectively, from the prior-year levels.
Brinker International, Inc. EAT presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 18.7%, on average. Brinker stock has declined 3.1% in the past six months.
The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS indicates a decline of 6.5% and 14.9%, respectively, from the year-ago period’s levels.
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Darden Stock Rises 14% in 3 Months: Can the Rally Continue?

We often judge a company based on its sales and earnings. However, these metrics may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass estimates in a particular quarter, offering a lucrative opportunity for short-term investors to cash in. Relying solely on sales and earnings numbers may not yield the desired long-term returns. For those seeking sustainable investment growth, a deeper dive into the company’s financial health and stability is essential.
A critical analysis of a company’s financial background is a prerequisite for an informed investment decision. Coverage ratios, which assess whether a company is robust enough to meet its financial obligations, play a crucial role in this analysis. A higher ratio generally indicates a stronger financial position. This article focuses on the Interest Coverage Ratio, a key indicator used to evaluate a company's ability to pay interest on its debt, ensuring that the company is not over-leveraged and can comfortably meet its interest obligations from its operating earnings.
Interest Coverage Ratio is equal to Earnings before Interest & Taxes (EBIT) divided by Interest Expense. Amazon.com, Inc. AMZN, Stride, Inc. LRN, Brinker International, Inc. EAT and Cardinal Health, Inc. CAH have impressive interest coverage ratios.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay the interest charges on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on a company's profitability, and its creditworthiness depends on how effectively it meets interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.
The interest coverage ratio suggests the number of times the interest could be paid from earnings and gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is 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.
The Winning Strategy
Apart from having an Interest Coverage Ratio that is more than the industry average, adding a favorable Zacks Rank and a VGM Score of A or B to your search criteria should lead to better results.
Interest Coverage Ratio greater than X-Industry Median
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
5-Year Historical EPS Growth (%) greater than X-Industry Median: Stocks that have a strong EPS growth history.
Projected EPS Growth (%) greater than X-Industry Median: This is the projected EPS growth over the next three to five years. This shows that the stock has near-term earnings growth potential.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
VGM Score of less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the 17 stocks that qualified the screening:
Amazon, a multinational technology company, carries a Zacks Rank #2 and has a VGM Score of B. AMZN has a trailing four-quarter earnings surprise of 22.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS implies growth of 12% and 29.7%, respectively, from the year-ago period. The stock has risen 5.3% in the past year.
Stride, a technology-based education company, carries a Zacks Rank #2 and has a VGM Score of B. LRN has a trailing four-quarter earnings surprise of 12.1%, on average.
The Zacks Consensus Estimate for Stride’s current financial-year sales and EPS indicates growth of 4.6% and 3.1%, respectively, from the year-ago period. The stock has plummeted 38.8% in the past year.
Brinker International, one of the leading casual dining restaurant companies, carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 18.7%, on average.
The Zacks Consensus Estimate for Brinker International’s current financial-year sales and EPS calls for growth of 6.5% and 14.9%, respectively, from the year-ago period. The stock has advanced 15.7% 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 9.4%, on average.
The Zacks Consensus Estimate for Cardinal Health’s current financial-year sales and EPS indicates growth of 16.3% and 20%, respectively, from the year-ago period. The stock has soared 69.1% 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. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
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Amazon & 3 More Stocks With Strong Interest Coverage Worth Buying

Restaurant Brands International Inc. QSR continues to strengthen its market position by leveraging its brand value through innovative menu offerings, enhanced operational efficiency and strategic restaurant remodels. Disciplined cost management, combined with strong performance from Tim Hortons in Canada and Burger King in the United States, underscores the resilience of the company’s business model and reinforces its long-term relevance in the competitive quick-service restaurant industry.
Shares of this casual quick-service restaurant chain have gained 15.5% in the past year, outperforming the Zacks Retail - Restaurants industry’s 6.8% growth. Its earnings topped the Zacks Consensus Estimate in two of the trailing four quarters, and missed on two occasions, with an average being negative 0.4%.
Image Source: Zacks Investment Research
Currently, QSR has had its 2026 EPS estimate revised upward to $3.99 from $3.97 over the past 60 days. Although lingering inflation pressures and a challenging macro backdrop are concerning, the company’s organic and inorganic strategies have been driving growth.
Restaurant Brands — a Zacks Rank #2 (Buy) stock — has a favorable VGM Score of B. 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 into the major driving factors.
Factors Aiding QSR Stock
Core Brands Drive Growth: Restaurant Brands is strategically capitalizing on the strength of its three core brands — Tim Hortons, Burger King and Popeyes — to drive sustained growth and operational excellence across markets. Tim Hortons, contributing about 44% of operating profit, delivered 4.2% comparable sales growth in the third quarter of 2025, outperforming the Canadian QSR industry by roughly three points, supported by strong brand affinity, menu innovation and operational execution. Burger King U.S. continues to gain traction under the Reclaim the Flame strategy, supported by menu innovation, operational improvements and restaurant remodels, resulting in 3.2% comparable sales growth.
Meanwhile, Popeyes is accelerating its international expansion across EMEA and China, generating the strongest system-wide sales growth among RBI’s scaled global peers.
Remodeling & Refranchising Initiative: Restaurant Brands continues to advance its remodeling and refranchising initiatives to modernize its restaurant base, enhance the guest experience and strengthen franchisee economics. At Burger King U.S., the company is making steady progress under the Reclaim the Flame strategy, with approximately 400 remodels expected in 2025. In parallel, RBI is progressing with the refranchising of Burger King restaurants through its Crown Your Career program and with experienced franchise partners and remains on track to refranchise between 50 and 100 restaurants in 2025. Together, these initiatives support a more modern, capital-light and franchise-led system positioned for sustainable long-term growth.
Focus on Menu Innovation: Restaurant Brands continues to leverage menu innovation to drive traffic, strengthen customer engagement and keep its brands relevant. At Tim Hortons, breakfast food sales rose 6.5%, fueled by the 100% Canadian freshly cracked Scrambled Egg platform and the successful introduction of the Loaded Croissant breakfast sandwich. Seasonal baked goods, including the Spice Vanilla-filled Donut and Halloween Timbits Bucket, saw strong consumer demand, while the fall beverage lineup — featuring Chai Lattes, the return of Pumpkin Spice and protein lattes — has performed well, particularly among health-conscious guests.
At Burger King, the Barbecue Brisket and Crispy Onion Whoppers delivered better-than-expected results, highlighting the continued strength of the Whopper franchise, with the expansion into Whopper Junior helping attract women and Gen-Z consumers. Together, these focused innovation initiatives support evolving consumer tastes, reinforce value propositions, and sustain sales momentum across markets.
Higher ROE: QSR’s trailing 12-month return on equity (ROE) is indicative of its growth potential. The company’s ROE of 32.4% compares favorably with the industry’s 23.3%, which signals more efficiency in using shareholders’ funds than peers.
Other Key Picks
Other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Dillard's, Inc. DDS flaunts a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 47.1% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 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.
Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has surged 63.1% in the past six months.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, from the prior-year levels.
Brinker International, Inc. EAT presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 18.7%, on average. Brinker's stock has declined 0.3% in the past six months.
The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS indicates a decline of 6.5% and 14.9%, respectively, from the year-ago period’s levels.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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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.

Indicator	TTM Median
P/E	16.30 20.72
Price/Sales	1.29 0.69
P/B	20.31 1.91
P/FCF	15.39 15.39

Indicator	TTM Median
ROE	160.94 14.63
ROA	16.92 5.12
ROI	55.14 8.44
Net Worth	7.20 0.90
Quick Ratio	0.29 0.88
Current Ratio	0.35 1.45

Indicator	TTM Median
Net Profit Margin	7.95 5.72
Operating Margin	10.26 8.45
Gross Margin	18.75 38.39
Return on tangible equity	698.04 21.87

Indicator	TTM Median
EPS	1.93 0.42
EPS Forecast	2.53 0.38
Revenue	1.35B 185.00M
Gross Profit	230.00M —
EBITDA	172.00M —

Brinker International, Inc.

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

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