BRINKER INTERNATIONAL INC (EAT) Fundamental Analysis & Valuation
NYSE:EAT • US1096411004
Current stock price
153.65 USD
+5.24 (+3.53%)
At close:
153.65 USD
0 (0%)
After Hours:
This EAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EAT Profitability Analysis
1.1 Basic Checks
- In the past year EAT was profitable.
- EAT had a positive operating cash flow in the past year.
- EAT had positive earnings in 4 of the past 5 years.
- In the past 5 years EAT always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.18%, EAT belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- The Return On Equity of EAT (88.25%) is better than 95.24% of its industry peers.
- The Return On Invested Capital of EAT (16.80%) is better than 85.71% 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 10.56%.
- The 3 year average ROIC (2.53%) for EAT is below the current ROIC(16.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROIC | 16.8% |
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
- Looking at the Profit Margin, with a value of 7.83%, EAT is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
- EAT's Profit Margin has declined in the last couple of years.
- EAT has a Operating Margin (10.35%) which is comparable to the rest of the industry.
- EAT's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 18.43%, EAT is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of EAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% |
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. EAT Health Analysis
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.
- Compared to 5 years ago, EAT has less shares outstanding
- Compared to 1 year ago, EAT has a worse debt to assets ratio.
2.2 Solvency
- EAT has an Altman-Z score of 3.80. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
- EAT's Altman-Z score of 3.80 is amongst the best of the industry. EAT outperforms 84.13% of its industry peers.
- The Debt to FCF ratio of EAT is 1.05, which is an excellent value as it means it would take EAT, only 1.05 years of fcf income to pay off all of its debts.
- EAT has a Debt to FCF ratio of 1.05. This is amongst the best in the industry. EAT outperforms 89.68% of its industry peers.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that EAT has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.19, EAT is in line with its industry, outperforming 54.76% of the companies in the same industry.
- Although EAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.87
WACC8.97%
2.3 Liquidity
- A Current Ratio of 0.36 indicates that EAT may have some problems paying its short term obligations.
- EAT has a Current ratio of 0.36. This is amonst the worse of the industry: EAT underperforms 88.10% of its industry peers.
- A Quick Ratio of 0.31 indicates that EAT may have some problems paying its short term obligations.
- EAT has a Quick ratio of 0.31. This is amonst the worse of the industry: EAT underperforms 86.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 |
3. EAT Growth Analysis
3.1 Past
- EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.76%, which is quite impressive.
- Measured over the past years, EAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.36% on average per year.
- The Revenue has grown by 65.25% in the past year. This is a very strong growth!
- 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)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
3.2 Future
- The Earnings Per Share is expected to grow by 14.71% on average over the next years. This is quite good.
- Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
EPS Next Y21.41%
EPS Next 2Y18.22%
EPS Next 3Y15.07%
EPS Next 5Y14.71%
Revenue Next Year8.36%
Revenue Next 2Y6.91%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
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. EAT Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.44, which indicates a correct valuation of EAT.
- Based on the Price/Earnings ratio, EAT is valued a bit cheaper than the industry average as 76.98% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, EAT is valued a bit cheaper.
- EAT is valuated correctly with a Price/Forward Earnings ratio of 12.35.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 79.37% of the companies listed in the same industry.
- EAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EAT is on the same level as its industry peers.
- EAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EAT is cheaper than 84.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.68 | ||
| EV/EBITDA | 10.79 |
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.
- EAT has a very decent profitability rating, which may justify a higher PE ratio.
- EAT's earnings are expected to grow with 15.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)0.41
EPS Next 2Y18.22%
EPS Next 3Y15.07%
5. EAT Dividend Analysis
5.1 Amount
- EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EAT Fundamentals: All Metrics, Ratios and Statistics
153.65
+5.24 (+3.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners114.61%
Inst Owner Change0%
Ins Owners1.14%
Ins Owner Change-5.9%
Market Cap6.69B
Revenue(TTM)4.28B
Net Income(TTM)334.72M
Analysts80.71
Price Target189.22 (23.15%)
Short Float %10.05%
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)7.97%
Min EPS beat(2)7.76%
Max EPS beat(2)8.18%
EPS beat(4)4
Avg EPS beat(4)4.87%
Min EPS beat(4)0.67%
Max EPS beat(4)8.18%
EPS beat(8)7
Avg EPS beat(8)13.58%
EPS beat(12)11
Avg EPS beat(12)41.88%
EPS beat(16)13
Avg EPS beat(16)33.8%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.31%
Max Revenue beat(2)1.41%
Revenue beat(4)4
Avg Revenue beat(4)0.99%
Min Revenue beat(4)0.31%
Max Revenue beat(4)1.58%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)-0.86%
PT rev (3m)13.84%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)0%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.35 | ||
| P/S | 1.57 | ||
| P/FCF | 14.68 | ||
| P/OCF | 9.07 | ||
| P/B | 17.64 | ||
| P/tB | 39.78 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)9.95
EY6.48%
EPS(NY)12.44
Fwd EY8.1%
FCF(TTM)10.47
FCFY6.81%
OCF(TTM)16.94
OCFY11.02%
SpS98.17
BVpS8.71
TBVpS3.86
PEG (NY)0.72
PEG (5Y)0.41
Graham Number44.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROCE | 21.27% | ||
| ROIC | 16.8% | ||
| ROICexc | 16.93% | ||
| ROICexgc | 18.85% | ||
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% | ||
| FCFM | 10.66% |
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-Score9
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 127.63% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 10.38 | ||
| Cash Conversion | 111.25% | ||
| Profit Quality | 136.2% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 3.8 |
F-Score9
WACC8.97%
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)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
EPS Next Y21.41%
EPS Next 2Y18.22%
EPS Next 3Y15.07%
EPS Next 5Y14.71%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
Revenue Next Year8.36%
Revenue Next 2Y6.91%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
EBIT growth 1Y66.51%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year55.95%
EBIT Next 3Y20.76%
EBIT Next 5Y16.3%
FCF growth 1Y185.83%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y117.87%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT Fundamental Analysis FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 5 / 10 to EAT.
What is the valuation status of BRINKER INTERNATIONAL INC (EAT) stock?
ChartMill assigns a valuation rating of 6 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Fairly Valued.
What is the profitability of EAT stock?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
Can you provide the financial health for EAT stock?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 10.
Is the dividend of BRINKER INTERNATIONAL INC sustainable?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.