EAT Surges 69% in 3 Months: Is the Stock Still Attractive?

EAT has rallied 69.4% over the past three months, fueled by a turnaround at its Chili's brand. The chain posted 6% comparable-sales growth and 1.5% traffic increases, supported by menu innovations including the Big Crispy Chicken Sandwich.

Brinker International now projects fiscal 2027 earnings per share of $12.60 to $13.40, underpinned by margin expansion, restaurant reimaging efforts, and new-unit development. The guidance signals management confidence in sustaining momentum beyond near-term promotional wins.

Despite the sharp three-month advance, EAT trades at 17.32 times forward earnings—below both broader industry averages and comparable restaurant peers. The valuation discount persists even as operational metrics improve, creating a potential setup for multiple expansion if the company continues to deliver on traffic and margin targets.

The Chili's turnaround represents a test case for legacy casual dining: whether product innovation and unit-level economics can offset structural headwinds in the segment.