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Why Brinker International, Inc. (EAT) Went Down On Tuesday

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We recently published a list of Why These 10 Companies Were Heavily Sold Down. In this article, we are going to take a look at where Brinker International, Inc. (NYSE:EAT) stands against other companies that were heavily sold down.

Wall Street’s main indices finished stronger on Tuesday, buoyed by the influx of more corporate earnings results.

The Dow Jones grew by 0.75 percent, the S&P 500 rose by 0.58 percent, and the Nasdaq was up by 0.55 percent.

Despite the wider market optimism, 10 companies managed to register declines, predominantly due to investors exercising caution coupled with companies’ dismal earnings performance during the past quarter.

In this article, we have identified Tuesday’s 10 worst-performing stocks and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

Why Brinker International, Inc. (EAT) Went Down On Tuesday
Why Brinker International, Inc. (EAT) Went Down On Tuesday

A Chili's Grill & Bar restaurant filled with happy customers enjoying a meal.

Brinker International, Inc. (NYSE:EAT)

Brinker International, owner of the Chili’s brand and Maggiano’s Little Italy, saw its share prices drop by 14.80 percent on Tuesday to close at $136.89 apiece as investors, still reeling from the uncertainties globally, appeared to have shunned the company’s strong performance in the third quarter of the fiscal year.

In its latest earnings release, Brinker International, Inc. (NYSE:EAT) said net income expanded by 144 percent in the third quarter of fiscal year 2025 to end at $119.1 million versus the $48.7 million registered in the same period a year earlier.

Total revenues increased by 27 percent to $1.4 billion from $1.1 billion year-on-year.

Looking ahead, the company expects total revenues for the full fiscal year to settle between $5.33 billion and $5.35 billion, while earnings per share are pegged at a range of $8.5 to $8.75.

“Chili’s delivered another positive quarter in our turnaround with +31% same-store sales driven by +21% traffic,” said Brinker International, Inc. (NYSE:EAT) President and CEO Kevin Hochman. ”Our continued progress on the fundamentals of great food, great service in a fun, friendly atmosphere is clearly winning with guests.”

Overall, EAT ranks 1st on our list of companies that were heavily sold down. While we acknowledge the potential of EAT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EAT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.