BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock

159.64 USD

-2.8 (-1.72%)

Last: 1/23/2026, 2:25:02 PM

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to EAT. EAT was compared to 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. EAT has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

EAT had positive earnings in the past year.
In the past year EAT had a positive cash flow from operations.
Of the past 5 years EAT 4 years were profitable.
In the past 5 years EAT always reported a positive cash flow from operatings.

1.2 Ratios

EAT has a Return On Assets of 11.97%. This is amongst the best in the industry. EAT outperforms 87.97% of its industry peers.
EAT has a Return On Equity of 94.42%. This is amongst the best in the industry. EAT outperforms 93.98% of its industry peers.
With an excellent Return On Invested Capital value of 16.64%, EAT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
EAT had an Average Return On Invested Capital over the past 3 years of 2.53%. This 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 has a better Profit Margin (7.77%) than 67.67% of its industry peers.
EAT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.56%, EAT perfoms like the industry average, outperforming 59.40% of the companies in the same industry.
In the last couple of years the Operating Margin of EAT has declined.
EAT has a worse Gross Margin (18.50%) than 87.22% of its industry peers.
EAT's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
EAT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EAT has been reduced compared to 5 years ago.
The debt/assets ratio for EAT is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.88 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT has a Altman-Z score of 3.88. This is amongst the best in the industry. EAT outperforms 84.96% 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.
EAT's Debt to FCF ratio of 1.16 is amongst the best of the industry. EAT outperforms 90.23% of its industry peers.
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.
Although EAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	1.53
Debt/FCF	1.16
Altman-Z	3.88

ROIC/WACC1.87

WACC8.9%

2.3 Liquidity

A Current Ratio of 0.35 indicates that EAT may have some problems paying its short term obligations.
With a Current ratio value of 0.35, EAT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
EAT has a worse Quick ratio (0.29) than 84.21% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.35
Quick Ratio	0.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.26%, which is quite impressive.
The Earnings Per Share has been growing by 37.36% on average over the past years. This is a very strong growth
EAT shows a strong growth in Revenue. In the last year, 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.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.16, which indicates a correct valuation of EAT.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 77.44% of the companies listed in the same industry.
EAT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
EAT is valuated correctly with a Price/Forward Earnings ratio of 13.21.
Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 80.45% of the companies in the same industry.
EAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	16.16
Fwd PE	13.21

4.2 Price Multiples

EAT's Enterprise Value to EBITDA ratio is in line with the industry average.
83.46% of the companies in the same industry are more expensive than EAT, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	14.98
EV/EBITDA	11.05

4.3 Compensation for Growth

EAT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EAT has a very decent profitability rating, which 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.