Brinker International (NYSE:EAT) is breaking out higher as its turnaround effort is gaining traction. After declining the last few years, its share price has formed a bottoming pattern, and is currently breaking out higher. The price action is being driven by strong operational results put in motion by management's turnaround effort. As the company innovates its brand, looking to drive more traffic, investor optimism is growing.
Price Action
EAT is seeing a reversal higher in its share price as it turns around its operations. A slowdown in both earnings and revenue the last few years weighed on the company's share price. But management's new focus on turning around its brand is gaining traction. Stronger operational momentum seen in the last quarter is driving investor optimism, which is leading to share price gains.
Following volatility in the broader equity market earlier this year, EAT reversed higher, forming a bottoming pattern. Its recent price breakout above $40 was significant as this level had acted as strong resistance in recent months. EAT is reversing higher amid fundamental momentum.
