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Jim Cramer Suggests Buying Brinker in Tranches

Brinker International, Inc. (NYSE:EAT) is one of the stocks Jim Cramer offered insights on. When a caller expressed that they have been contemplating investing in the stock, Cramer remarked:

“I think it’s the right level to buy Brinker, but you have to understand, 10 times earnings does matter. But the restaurant group is radically out of fashion. So if you’re going to buy some, let’s say, you want to buy 100 shares? You buy 25 here, and then you have to wait. I will not sanction buying more at this level.”

Photo by Joshua Mayo on Unsplash

Brinker International, Inc. (NYSE:EAT) owns, operates, and franchises casual dining restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brands. Cramer discussed the market reaction toward the company’s recent earnings during the episode aired on October 29, as he commented:

“Coming in today, Brinker’s stock was down 30% from its highs, and that was after it reported this morning, and the stock got hit again, only finishing off 7.5%. Even though the company delivered a top and bottom line beat, Wall Street maybe didn’t love that management had some kind of difficult things to say about tariffs, margin pressure, how they’re getting hit hard by import duties on beef and shrimp. At the same time, the bulls didn’t have too much to hang their hats on because Brinker merely, well, they didn’t merely reiterate their full year forecast, I mean, I wanted something more than that. And now, well, let me just say, this stock was up huge coming in from last year.”

While we acknowledge the risk and potential of EAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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