Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Brinker International (NYSE:EAT) and the best and worst performers in the sit-down dining industry.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.

Best Q3: Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.14 billion, up 12.5% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.

"Great food, with great service at industry leading value is driving strong Chili's sales and traffic," said President and CEO, Kevin Hochman, "Our continued success proves the importance of listening to our guests & team members and delivering on the critical things important to them."

Brinker International scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 34% since reporting and currently trades at $130.26.

Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.

Kura Sushi (NASDAQ:KRUS)

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Kura Sushi reported revenues of $66.01 million, up 20.2% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 5.7% since reporting. It currently trades at $108.99.

Is now the time to buy Kura Sushi? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Denny's (NASDAQ:DENN)

Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $111.8 million, down 2.1% year on year, falling short of analysts’ expectations by 3.2%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 1.7% since the results and currently trades at $6.52.

Read our full analysis of Denny’s results here.

Red Robin (NASDAQ:RRGB)

Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.

Red Robin reported revenues of $274.6 million, down 1.1% year on year. This number beat analysts’ expectations by 1.4%. However, it was a softer quarter as it produced full-year EBITDA guidance missing analysts’ expectations.

The stock is down 14.4% since reporting and currently trades at $5.25.

Read our full, actionable report on Red Robin here, it’s free.

BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $325.7 million, up 2.2% year on year. This number was in line with analysts’ expectations. Zooming out, it was a softer quarter as it produced a significant miss of analysts’ EBITDA and EPS estimates.

The stock is flat since reporting and currently trades at $37.33.

Read our full, actionable report on BJ's here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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