Brinker International is our Growth Stock of the Week By StockNews

© Reuters. Brinker International is our Growth Stock of the Week

Brinker International (NYSE:) is poised to benefit from improving coronavirus trends. Additionally, the stock is quite cheap and has found some new growth drivers during the pandemic. Read on to find out why it’s the growth stock of the week.Though technology stocks receive outsized attention, there are a number of companies in a variety of other sectors with significant earnings growth. One of the most notable examples is restaurant stocks, like Brinker International (EAT).

The pandemic led to a drop in revenues for EAT, which means the company faces easy comps this year. The economy returning to normal also implies increased volume at restaurants. Further, the pandemic led to tougher conditions with rising costs and a shortage of workers, resulting in many restaurant closures.

However, these headwinds are more than offset by the tailwind from the economy reopening as the company delivered 79% revenue growth and 230% earnings growth in its last quarter. While the pandemic has been a net-negative for the restaurant industry, one silver lining for the ones that made it through the pandemic is that they will face less competition. Further, public companies with more resources will be able to withstand cost pressure and invest in technology that could replace some labor.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source Link