14 Worst 52-Week High Stocks to Buy According to Short Sellers

5. Brinker International, Inc. (NYSE:EAT)

52 Week Range: $28.23 – $76.90

Current Share Price: $74.08

Short % of Shares Outstanding: 16.21%

Number of Hedge Funds holding stakes as of Q2 2024: 33

Brinker International, Inc. (NYSE:EAT) is a consumer cyclical company that owns, develops, operates, and franchises casual dining restaurants. The company’s core business depends on consumer purchasing power and the economy’s health.

With interest rates remaining high for a long time, the economy has started cooling off, and consumer purchasing power has taken a significant hit. Nevertheless, the parent of Chili’s and Maggiano’s Little Italy has been shrugging off fetch concerns owing to its solid fiscal fourth-quarter results. Brinker International, Inc. (NYSE:EAT)’s final three months concluded in June, and the number of visitors to its dining locations during this time was unexpectedly robust. A close to 6% increase compared to the previous year and higher prices resulted in a 13.5% rise in sales at its stores during the fourth quarter. This contributed to an increase in total annual earnings to $4.4 billion, marking a nearly 7% rise from fiscal year 2023.

The company’s profit margin continues to raise concerns. The company’s full-year diluted earnings per share of $4.10 came below analysts’ estimates. Management projecting earnings of $4.75 a share for fiscal 2025 was also below expectations.

After digging through 912 hedge fund portfolios for this year’s June quarter, Insider Monkey discovered that 33 had bought stakes in the firm. Brinker International, Inc. (NYSE:EAT)’s biggest shareholder out of these is D. E. Shaw’s D E Shaw through a stake worth $131 million.