In this article we discuss the 5 best restaurant stocks to invest in. If you want to read our detailed analysis of the restaurant industry, go directly to the 12 Best Restaurant Stocks to Invest In.
5. Brinker International, Inc. (NYSE: EAT)
Number of Hedge Fund Holders: 31
Brinker International, Inc. (NYSE: EAT) is one of the world’s leading restaurant companies headquartered in Coppell, Texas. The company owns Chili’s and Maggiano’s Little Italy restaurant chains. It operates over 1,600 restaurants, located in 29 countries.
In Q3 FY21, Brinker International, Inc. (NYSE: EAT) reported a net income of $36.4 million and an EPS of $0.78. The company generated $828.4 million in revenue, with company-operated restaurants accounting for $813 million. The operating margin in the third quarter also grew by 13.9%, compared with 12.8% during the same period last year. Chili’s company sales also increased to $749 million from $748.7 million in the prior-year quarter.
In Q4, Brinker International, Inc. (NYSE: EAT) expects revenue to be in the range of $950 million to $1.0 billion. The EAT stock has hit an all-time low in March 2020 but has recovered now and gained 181% in the past year. Recently, Wedbush Securities initiated its coverage on the stock with an ‘Outperform’ rating and an $81 price target. The stock has also been called a near-term winner by JP Morgan.
As of Q1 2021, 31 hedge funds tracked by Insider Monkey have positions in Brinker International, Inc. (NYSE: EAT), up from 28 in the previous quarter. Tremblant Capital is the leading shareholder of the company, with 2.3 million shares, worth $164.8 million.