BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
154.165 USD
+2.39 (+1.58%)
Taking everything into account, EAT scores 5 out of 10 in our fundamental rating. EAT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. EAT has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on EAT. These ratings would make EAT suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EAT was profitable.
In the past year EAT had a positive cash flow from operations.
Of the past 5 years EAT 4 years were profitable.
EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EAT has a better Return On Assets (11.97%) than 87.12% of its industry peers.
Looking at the Return On Equity, with a value of 94.42%, EAT belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
EAT's Return On Invested Capital of 16.64% is amongst the best of the industry. EAT outperforms 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EAT is significantly below the industry average of 10.41%.
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
With a decent Profit Margin value of 7.77%, EAT is doing good in the industry, outperforming 65.91% of the companies in the same industry.
EAT's Profit Margin has declined in the last couple of years.
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.
EAT's Gross Margin of 18.50% is on the low side compared to the rest of the industry. EAT is outperformed by 87.88% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
The number of shares outstanding for EAT has been increased compared to 1 year ago.
EAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EAT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.76 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT has a Altman-Z score of 3.76. This is amongst the best in the industry. EAT outperforms 83.33% of its industry peers.
The Debt to FCF ratio of EAT is 1.16, which is an excellent value as it means it would take EAT, only 1.16 years of fcf income to pay off all of its debts.
EAT's Debt to FCF ratio of 1.16 is amongst the best of the industry. EAT outperforms 90.15% 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's Debt to Equity ratio of 1.53 is in line compared to the rest of the industry. EAT outperforms 56.82% of its industry peers.
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 | 3.76 |
ROIC/WACC1.93
WACC8.64%
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 Current ratio of 0.35. This is amonst the worse of the industry: EAT underperforms 87.12% of its industry peers.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
The Quick ratio of EAT (0.29) is worse than 86.36% of its industry peers.
| 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.
EAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.36% yearly.
Looking at the last year, EAT shows a very strong growth in Revenue. The Revenue has grown by 81.56%.
EAT shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -63.21% yearly.
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 13.52% on average per year.
Based on estimates for the next years, EAT will show a decrease in Revenue. The Revenue will decrease by -3.49% on average per year.
EPS Next Y16.65%
EPS Next 2Y15.96%
EPS Next 3Y13.52%
EPS Next 5YN/A
Revenue Next Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
Revenue Next 5Y-3.49%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.60, EAT is valued correctly.
Based on the Price/Earnings ratio, EAT is valued a bit cheaper than 78.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. EAT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.88 indicates a correct valuation of EAT.
79.55% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
EAT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than 62.12% of the companies in the same industry.
EAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EAT is cheaper than 85.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 10.37 |
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.
A more expensive valuation may be justified as EAT's earnings are expected to grow with 13.52% in the coming years.
PEG (NY)0.94
PEG (5Y)0.42
EPS Next 2Y15.96%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:EAT (11/28/2025, 10:45:01 AM)
154.165
+2.39 (+1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change2.47%
Ins Owners1.46%
Ins Owner Change0.53%
Market Cap6.85B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts76
Price Target161.55 (4.79%)
Short Float %12.01%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-11.28%
PT rev (3m)-10.33%
EPS NQ rev (1m)-6.68%
EPS NQ rev (3m)-6.2%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.88 | ||
| P/S | 1.64 | ||
| P/FCF | 14.47 | ||
| P/OCF | 8.59 | ||
| P/B | 19.92 | ||
| P/tB | 51.73 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)9.88
EY6.41%
EPS(NY)11.97
Fwd EY7.76%
FCF(TTM)10.66
FCFY6.91%
OCF(TTM)17.94
OCFY11.64%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.94
PEG (5Y)0.42
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 | 3.76 |
F-Score5
WACC8.64%
ROIC/WACC1.93
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 Y16.65%
EPS Next 2Y15.96%
EPS Next 3Y13.52%
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 Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year54.62%
EBIT Next 3Y19.33%
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.
What is the valuation status for EAT stock?
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.
How financially healthy is BRINKER INTERNATIONAL INC?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 10.
Can you provide the dividend sustainability for EAT stock?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.