BRINKER INTERNATIONAL INC (EAT) Fundamental Analysis & Valuation
NYSE:EAT • US1096411004
Current stock price
144.69 USD
+1.34 (+0.93%)
At close:
144.69 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
- EAT had positive earnings in the past year.
- EAT had a positive operating cash flow in the past year.
- EAT had positive earnings in 4 of the past 5 years.
- EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EAT has a Return On Assets of 12.18%. This is amongst the best in the industry. EAT outperforms 87.30% of its industry peers.
- With an excellent Return On Equity value of 88.25%, EAT belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
- EAT has a Return On Invested Capital of 16.80%. This is amongst the best in the industry. EAT outperforms 84.92% 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 10.66%.
- 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
- EAT has a Profit Margin of 7.83%. This is in the better half of the industry: EAT outperforms 69.05% of its industry peers.
- EAT's Profit Margin has declined in the last couple of years.
- EAT's Operating Margin of 10.35% is in line compared to the rest of the industry. EAT outperforms 55.56% of its industry peers.
- In the last couple of years the Operating Margin of EAT has declined.
- 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.
- Compared to 1 year ago, EAT has more shares outstanding
- 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
- EAT has an Altman-Z score of 3.71. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.71, EAT belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of EAT (1.05) is better than 88.89% of its industry peers.
- EAT has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
- EAT has a Debt to Equity ratio (1.19) 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 | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.87
WACC8.99%
2.3 Liquidity
- EAT has a Current Ratio of 0.36. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.36, EAT is doing worse than 88.10% of the companies in the same industry.
- EAT has a Quick Ratio of 0.36. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of EAT (0.31) is worse than 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.
- 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 65.25%.
- 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
- Based on estimates for the next years, EAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.71% on average per year.
- 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 14.54, which indicates a correct valuation of EAT.
- Based on the Price/Earnings ratio, EAT is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of EAT to the average of the S&P500 Index (26.17), we can say EAT is valued slightly cheaper.
- EAT is valuated reasonably with a Price/Forward Earnings ratio of 11.63.
- Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 82.54% 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 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 60.32% of the companies listed in the same industry.
- 83.33% 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 | 13.82 | ||
| EV/EBITDA | 10.2 |
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.
- The decent profitability rating of EAT may justify a higher PE ratio.
- A more expensive valuation may be justified as EAT's earnings are expected to grow with 15.07% in the coming years.
PEG (NY)0.68
PEG (5Y)0.39
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
144.69
+1.34 (+0.93%)
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 Cap6.30B
Revenue(TTM)4.28B
Net Income(TTM)334.72M
Analysts80.71
Price Target189.22 (30.78%)
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 | 14.54 | ||
| Fwd PE | 11.63 | ||
| P/S | 1.47 | ||
| P/FCF | 13.82 | ||
| P/OCF | 8.54 | ||
| P/B | 16.61 | ||
| P/tB | 37.46 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)9.95
EY6.88%
EPS(NY)12.44
Fwd EY8.6%
FCF(TTM)10.47
FCFY7.24%
OCF(TTM)16.94
OCFY11.71%
SpS98.17
BVpS8.71
TBVpS3.86
PEG (NY)0.68
PEG (5Y)0.39
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 | 3.71 |
F-Score9
WACC8.99%
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 7 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
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%.