Recent News
On January 28, 2026 the company reported second-quarter fiscal 2026 results and updated full-year guidance, noting stronger sales and earnings performance; the company also hosted an earnings call that day. Analyst activity followed the results with several firms raising targets and ratings in January. On March 2, 2026 the company announced promotion of George Felix to EVP and Chief Marketing Officer for Chili’s and Maggiano’s.
Technical Analysis
ADX at 19.41 indicates no dominant trend; this lack of trend strength suggests price action may remain range-bound even as short-term momentum signals favor one side.
DI+ registers 18.38 and shows an increasing trend while DI- sits at 23.63 and is decreasing; those directional moves together indicate bullish directional pressure, implying near-term upward bias despite the ADX reading.
MACD sits negative at -2.86 but is increasing and has crossed above its signal line (-3.41); that crossover signals a shift toward bullish momentum that could support rallies within a broader trading range.
MRO reads -28.22 with a dip-and-reversal pattern, which indicates the price sits below the model target and carries potential for upside as mean-reversion forces act back toward fair value.
RSI at 48.39 with a peak-and-reversal pattern signals recent lost upside momentum and introduces short-term downward pressure; this divergence moderates the bullish signals from MACD and DI indicators, pointing toward choppy action near resistance levels.
Price sits above the 20-day average ($140.97) and 12-day EMA ($142.85) but below the 50-day ($153.65) and 200-day ($149.22) averages, placing the stock in a short-term constructive position inside a longer-term neutral-to-slightly-bearish band; the upper 1x Bollinger band around $144.38 presents immediate resistance, while the lower 1x band near $137.56 offers nearby support.
Short-term volume outpaced the 10-day average (1.92M vs. 1.22M), suggesting conviction behind recent moves; combine that with a 42-day beta of 1.15 and the expected six-week price behavior becomes range-bound with episodic volatility rather than a sustained trending breakout.
Fundamental Analysis
Revenue totaled $1,452,200,000 with revenue growth of 7.63%; however, reported year-over-year revenue change shows -60.33%, and quarter-over-quarter revenue change shows -199.03% (presented as provided), indicating notable period-to-period variability in top-line comparatives. Operating income reached $168,900,000 and EBIT equals $168,800,000, producing an operating/EBIT margin of 11.63% and a QoQ margin expansion of 32.80% with a YoY margin change of 0.95%.
EBIT margin at 11.62% sits below the industry peer mean of 13.49% yet aligns closely with the industry peer median of 11.405%, placing margin performance inside the industry peer range while showing clear QoQ improvement that supports the view of reacceleration.
EPS arrived at $2.87 versus an estimate of $2.63, a beat of $0.24 equal to a 9.13% surprise; forward EPS stands near $3.08 with a forward P/E about 45.02 compared with a trailing P/E of 51.43, indicating the market pricing already reflects elevated multiple expectations for future earnings growth.
Free cash flow reached $155,200,000 with a free cash flow yield of 2.42% and free cash growth shown at 149.52% (as provided), while operating cash flow measured $218,900,000 and cash conversion metrics show a cash conversion ratio of -3.39 and a cash conversion cycle near -0.54 days; the company generates substantial operating cash but converts it into a relatively modest cash buffer on the balance sheet (cash $15,000,000) against sizable current liabilities.
Leverage metrics show total debt of $1,763,300,000, net debt of $351,400,000 and debt-to-assets of 64.14%; debt-to-EBITDA near 7.89 and debt-to-equity of 464.88% reflect material leverage on a relatively low equity base. Interest coverage of 15.78 provides meaningful coverage for current interest obligations and reduces immediate solvency pressure, but leverage remains a structural consideration for valuation and risk.
Return metrics remain strong: return on equity stands at 33.88% and return on invested capital at 18.40%, both reflecting efficient capital returns; earnings growth registers 48.71% while earnings growth QoQ and YoY values indicate greater volatility across periods. WMDST values the stock as fair-valued, with valuation multiples reflecting the market’s premium for expected earnings improvements tempered by elevated leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-01-28 |
| NEXT REPORT DATE: | 2026-04-29 |
| CASH FLOW | Begin Period Cash Flow | $ 33.6 M |
| Operating Cash Flow | $ 218.9 M | |
| Capital Expenditures | $ -63.70 M | |
| Change In Working Capital | $ 14.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -18.60 M | |
| End Period Cash Flow | $ 15.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.5 B | |
| Forward Revenue | $ 378.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.2 B | |
| Depreciation | $ 54.6 M | |
| Depreciation and Amortization | $ 54.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 283.2 M | |
| EBITDA | $ 223.4 M | |
| EBIT | $ 168.8 M | |
| Operating Income | $ 168.9 M | |
| Interest Income | — | |
| Interest Expense | $ 10.7 M | |
| Net Interest Income | $ -10.70 M | |
| Income Before Tax | $ 158.1 M | |
| Tax Provision | $ 29.6 M | |
| Tax Rate | 18.7 % | |
| Net Income | $ 128.5 M | |
| Net Income From Continuing Operations | $ 128.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.63 | |
| EPS Actual | $ 2.87 | |
| EPS Difference | $ 0.24 | |
| EPS Surprise | 9.125 % | |
| Forward EPS | $ 3.08 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.7 B | |
| Intangible Assets | $ 211.1 M | |
| Net Tangible Assets | $ 168.2 M | |
| Total Current Assets | $ 240.9 M | |
| Cash and Short-Term Investments | $ 15.0 M | |
| Cash | $ 15.0 M | |
| Net Receivables | $ 105.8 M | |
| Inventory | $ 92.9 M | |
| Long-Term Investments | $ 53.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 163.9 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 669.7 M | |
| Net Debt | $ 351.4 M | |
| Total Debt | $ 1.8 B | |
| Total Liabilities | $ 2.4 B | |
| EQUITY | ||
| Total Equity | $ 379.3 M | |
| Retained Earnings | $ 414.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.72 | |
| Shares Outstanding | 43.500 M | |
| Revenue Per-Share | $ 33.38 | |
| VALUATION | Market Capitalization | $ 6.4 B |
| Enterprise Value | $ 8.2 B | |
| Enterprise Multiple | 36.566 | |
| Enterprise Multiple QoQ | -21.803 % | |
| Enterprise Multiple YoY | -0.801 % | |
| Enterprise Multiple IPRWA | high: 130.17 median: 91.512 mean: 88.733 EAT: 36.566 low: 5.064 |
|
| EV/R | 5.625 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 7.248 | |
| Asset To Liability | 1.16 | |
| Debt To Capital | 0.823 | |
| Debt To Assets | 0.641 | |
| Debt To Assets QoQ | -4.457 % | |
| Debt To Assets YoY | -11.488 % | |
| Debt To Assets IPRWA | high: 1.609 mean: 0.65 EAT: 0.641 median: 0.62 low: 0.019 |
|
| Debt To Equity | 4.649 | |
| Debt To Equity QoQ | -12.186 % | |
| Debt To Equity YoY | -67.05 % | |
| Debt To Equity IPRWA | high: 12.912 EAT: 4.649 mean: -0.831 median: -1.801 low: -7.692 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 16.927 | |
| Price To Book QoQ | -6.738 % | |
| Price To Book YoY | -60.831 % | |
| Price To Book IPRWA | high: 26.123 EAT: 16.927 mean: -3.061 median: -5.751 low: -26.316 |
|
| Price To Earnings (P/E) | 51.428 | |
| Price To Earnings QoQ | -29.4 % | |
| Price To Earnings YoY | 12.576 % | |
| Price To Earnings IPRWA | high: 247.068 mean: 140.412 median: 119.266 EAT: 51.428 low: -244.749 |
|
| PE/G Ratio | 1.056 | |
| Price To Sales (P/S) | 4.421 | |
| Price To Sales QoQ | -4.434 % | |
| Price To Sales YoY | 5.667 % | |
| Price To Sales IPRWA | high: 27.836 mean: 14.667 median: 12.243 EAT: 4.421 low: 0.273 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 45.024 | |
| Forward PE/G | 0.924 | |
| Forward P/S | 16.986 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.623 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.532 | |
| Asset Turnover Ratio QoQ | 6.241 % | |
| Asset Turnover Ratio YoY | -0.281 % | |
| Asset Turnover Ratio IPRWA | high: 0.603 EAT: 0.532 median: 0.242 mean: 0.23 low: 0.078 |
|
| Receivables Turnover | 17.35 | |
| Receivables Turnover Ratio QoQ | -13.198 % | |
| Receivables Turnover Ratio YoY | -12.624 % | |
| Receivables Turnover Ratio IPRWA | high: 47.268 EAT: 17.35 mean: 9.56 median: 7.943 low: 0.996 |
|
| Inventory Turnover | 12.86 | |
| Inventory Turnover Ratio QoQ | 2.804 % | |
| Inventory Turnover Ratio YoY | 3.657 % | |
| Inventory Turnover Ratio IPRWA | high: 56.869 mean: 16.085 EAT: 12.86 median: 7.445 low: 0.892 |
|
| Days Sales Outstanding (DSO) | 5.259 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -0.544 | |
| Cash Conversion Cycle Days QoQ | -53.726 % | |
| Cash Conversion Cycle Days YoY | -72.148 % | |
| Cash Conversion Cycle Days IPRWA | high: 84.283 median: 16.201 mean: 9.891 EAT: -0.544 low: -80.186 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -3.387 | |
| CapEx To Revenue | -0.044 | |
| CapEx To Depreciation | -1.167 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 745.7 M | |
| Net Invested Capital | $ 745.7 M | |
| Invested Capital | $ 745.7 M | |
| Net Tangible Assets | $ 168.2 M | |
| Net Working Capital | $ -428.80 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.022 | |
| Current Ratio | 0.36 | |
| Current Ratio QoQ | 3.303 % | |
| Current Ratio YoY | 9.996 % | |
| Current Ratio IPRWA | high: 2.73 median: 1.047 mean: 0.971 low: 0.382 EAT: 0.36 |
|
| Quick Ratio | 0.221 | |
| Quick Ratio QoQ | 8.382 % | |
| Quick Ratio YoY | 18.164 % | |
| Quick Ratio IPRWA | high: 2.688 mean: 0.927 median: 0.863 EAT: 0.221 low: 0.162 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.893 | |
| Cost Of Debt | 0.485 % | |
| Interest Coverage Ratio | 15.776 | |
| Interest Coverage Ratio QoQ | 40.258 % | |
| Interest Coverage Ratio YoY | 48.275 % | |
| Interest Coverage Ratio IPRWA | high: 16.489 EAT: 15.776 mean: 4.795 median: 3.798 low: -8.807 |
|
| Operating Cash Flow Ratio | 0.207 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 13.212 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.372 % | |
| Revenue Growth | 7.634 % | |
| Revenue Growth QoQ | -199.027 % | |
| Revenue Growth YoY | -60.333 % | |
| Revenue Growth IPRWA | high: 27.02 % EAT: 7.634 % median: 1.758 % mean: -0.961 % low: -32.161 % |
|
| Earnings Growth | 48.705 % | |
| Earnings Growth QoQ | -316.563 % | |
| Earnings Growth YoY | -74.989 % | |
| Earnings Growth IPRWA | high: 100.0 % EAT: 48.705 % median: -3.106 % mean: -19.159 % low: -219.355 % |
|
| MARGINS | ||
| Gross Margin | 19.501 % | |
| Gross Margin QoQ | 14.597 % | |
| Gross Margin YoY | -1.5 % | |
| Gross Margin IPRWA | high: 82.469 % mean: 33.25 % median: 23.421 % EAT: 19.501 % low: -4.539 % |
|
| EBIT Margin | 11.624 % | |
| EBIT Margin QoQ | 32.8 % | |
| EBIT Margin YoY | 0.947 % | |
| EBIT Margin IPRWA | high: 34.806 % mean: 13.49 % EAT: 11.624 % median: 11.405 % low: -8.383 % |
|
| Return On Sales (ROS) | 11.631 % | |
| Return On Sales QoQ | 32.095 % | |
| Return On Sales YoY | 1.007 % | |
| Return On Sales IPRWA | high: 40.032 % mean: 14.068 % EAT: 11.631 % median: 11.623 % low: -7.947 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 155.2 M | |
| Free Cash Flow Yield | 2.417 % | |
| Free Cash Flow Yield QoQ | 142.671 % | |
| Free Cash Flow Yield YoY | -18.674 % | |
| Free Cash Flow Yield IPRWA | high: 4.629 % EAT: 2.417 % mean: 0.924 % median: 0.802 % low: -1.958 % |
|
| Free Cash Growth | 149.518 % | |
| Free Cash Growth QoQ | -461.364 % | |
| Free Cash Growth YoY | -94.207 % | |
| Free Cash Growth IPRWA | EAT: 149.518 % high: 134.926 % median: -31.246 % mean: -34.923 % low: -365.169 % |
|
| Free Cash To Net Income | 1.208 | |
| Cash Flow Margin | 9.537 % | |
| Cash Flow To Earnings | 1.078 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 4.706 % | |
| Return On Assets QoQ | 27.465 % | |
| Return On Assets YoY | 1.139 % | |
| Return On Assets IPRWA | high: 6.953 % EAT: 4.706 % mean: 1.893 % median: 1.607 % low: -1.777 % |
|
| Return On Capital Employed (ROCE) | 8.117 % | |
| Return On Equity (ROE) | 0.339 | |
| Return On Equity QoQ | 17.091 % | |
| Return On Equity YoY | -62.405 % | |
| Return On Equity IPRWA | high: 0.351 EAT: 0.339 mean: -0.008 median: -0.035 low: -0.202 |
|
| DuPont ROE | 35.538 % | |
| Return On Invested Capital (ROIC) | 18.398 % | |
| Return On Invested Capital QoQ | 31.377 % | |
| Return On Invested Capital YoY | 158.981 % | |
| Return On Invested Capital IPRWA | EAT: 18.398 % high: 14.7 % mean: 6.313 % median: 5.444 % low: -5.359 % |
|