BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
159.73 USD
+2.05 (+1.3%)
159.73 USD
0 (0%)
EAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of EAT get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on EAT. With these ratings, EAT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- EAT had positive earnings in the past year.
- EAT had a positive operating cash flow in the past year.
- Of the past 5 years EAT 4 years were profitable.
- Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.97%, EAT belongs to the top of the industry, outperforming 87.97% of the companies in the same industry.
- The Return On Equity of EAT (94.42%) is better than 93.98% of its industry peers.
- EAT has a better Return On Invested Capital (16.64%) than 84.96% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EAT is significantly below the industry average of 10.34%.
- The last Return On Invested Capital (16.64%) for EAT is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROIC | 16.64% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
1.3 Margins
- EAT's Profit Margin of 7.77% is fine compared to the rest of the industry. EAT outperforms 67.67% of its industry peers.
- In the last couple of years the Profit Margin of EAT has declined.
- EAT has a Operating Margin (10.56%) which is comparable to the rest of the industry.
- EAT's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 18.50%, EAT is doing worse than 87.22% of the companies in the same industry.
- In the last couple of years the Gross Margin of EAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% |
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
2. Health
2.1 Basic Checks
- EAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, EAT has more shares outstanding
- EAT has less shares outstanding than it did 5 years ago.
- EAT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.82 indicates that EAT is not in any danger for bankruptcy at the moment.
- EAT's Altman-Z score of 3.82 is amongst the best of the industry. EAT outperforms 83.46% of its industry peers.
- EAT has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.16, EAT belongs to the best of the industry, outperforming 90.23% of the companies in the same industry.
- EAT has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
- EAT has a Debt to Equity ratio (1.53) which is comparable to the rest of the industry.
- Even though the debt/equity ratio score it not favorable for EAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.87
WACC8.88%
2.3 Liquidity
- EAT has a Current Ratio of 0.35. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- EAT has a worse Current ratio (0.35) than 85.71% of its industry peers.
- A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.29, EAT is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 106.26% over the past year.
- The Earnings Per Share has been growing by 37.36% on average over the past years. This is a very strong growth
- Looking at the last year, EAT shows a very strong growth in Revenue. The Revenue has grown by 81.56%.
- The Revenue for EAT have been decreasing by -63.21% on average. This is quite bad
EPS 1Y (TTM)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
Revenue 1Y (TTM)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
3.2 Future
- Based on estimates for the next years, EAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.99% on average per year.
- The Revenue is expected to decrease by -3.49% on average over the next years.
EPS Next Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year7.38%
Revenue Next 2Y6.36%
Revenue Next 3Y5.46%
Revenue Next 5Y-3.49%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.17, which indicates a correct valuation of EAT.
- EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 79.70% of the companies in the same industry.
- EAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.94.
- The Price/Forward Earnings ratio is 13.22, which indicates a correct valuation of EAT.
- Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 81.20% of the companies in the same industry.
- EAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than 60.15% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EAT is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of EAT may justify a higher PE ratio.
- EAT's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)0.43
EPS Next 2Y16.53%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
- EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
159.73
+2.05 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)01-28 2026-01-28/bmo
Inst Owners112.29%
Inst Owner Change1.23%
Ins Owners1.33%
Ins Owner Change2.13%
Market Cap7.10B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target174.27 (9.1%)
Short Float %10.33%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.22%
Min EPS beat(2)0.67%
Max EPS beat(2)7.76%
EPS beat(4)4
Avg EPS beat(4)15.83%
Min EPS beat(4)0.67%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)13%
EPS beat(12)11
Avg EPS beat(12)44.85%
EPS beat(16)13
Avg EPS beat(16)35.58%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.31%
Max Revenue beat(2)0.68%
Revenue beat(4)4
Avg Revenue beat(4)2.76%
Min Revenue beat(4)0.31%
Max Revenue beat(4)8.48%
Revenue beat(8)6
Avg Revenue beat(8)1.74%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)8
Avg Revenue beat(16)0.76%
PT rev (1m)6.74%
PT rev (3m)-4.29%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 13.22 | ||
| P/S | 1.7 | ||
| P/FCF | 14.99 | ||
| P/OCF | 8.9 | ||
| P/B | 20.64 | ||
| P/tB | 53.6 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)9.88
EY6.19%
EPS(NY)12.09
Fwd EY7.57%
FCF(TTM)10.66
FCFY6.67%
OCF(TTM)17.94
OCFY11.23%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.9
PEG (5Y)0.43
Graham Number41.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROCE | 21.06% | ||
| ROIC | 16.64% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 18.84% | ||
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% | ||
| FCFM | 11.32% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.21%
ROCE(5y)6.47%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
F-Score5
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.18% | ||
| Cap/Sales | 7.74% | ||
| Interest Coverage | 6.14 | ||
| Cash Conversion | 113.87% | ||
| Profit Quality | 145.82% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.82 |
F-Score5
WACC8.88%
ROIC/WACC1.87
Cap/Depr(3y)14.03%
Cap/Depr(5y)39.22%
Cap/Sales(3y)1.14%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
EPS Next Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue 1Y (TTM)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
Revenue Next Year7.38%
Revenue Next 2Y6.36%
Revenue Next 3Y5.46%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year53.72%
EBIT Next 3Y20.04%
EBIT Next 5YN/A
FCF growth 1Y347.99%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y174.08%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 5 / 10 to EAT.
Can you provide the valuation status for BRINKER INTERNATIONAL INC?
ChartMill assigns a valuation rating of 7 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
Can you provide the profitability details for BRINKER INTERNATIONAL INC?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BRINKER INTERNATIONAL INC (EAT) stock?
The Price/Earnings (PE) ratio for BRINKER INTERNATIONAL INC (EAT) is 16.17 and the Price/Book (PB) ratio is 20.64.
How sustainable is the dividend of BRINKER INTERNATIONAL INC (EAT) stock?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.