BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
162.44 USD
+1.54 (+0.96%)
162.44 USD
0 (0%)
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. EAT has an average financial health and profitability rating. EAT may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- In the past year EAT had a positive cash flow from operations.
- EAT had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
- EAT's Return On Assets of 11.97% is amongst the best of the industry. EAT outperforms 87.97% of its industry peers.
- EAT's Return On Equity of 94.42% is amongst the best of the industry. EAT outperforms 93.98% of its industry peers.
- EAT's Return On Invested Capital of 16.64% is amongst the best of the industry. EAT outperforms 84.96% of its industry peers.
- 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 3 year average ROIC (2.53%) for EAT is below the current ROIC(16.64%), indicating increased profibility in the last year.
| 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.
- In the last couple of years the Profit Margin of EAT has declined.
- Looking at the Operating Margin, with a value of 10.56%, EAT is in line with its industry, outperforming 59.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of EAT has declined.
- The Gross Margin of EAT (18.50%) is worse 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%
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
- Compared to 5 years ago, EAT has less shares outstanding
- The debt/assets ratio for EAT is higher compared to a year ago.
2.2 Solvency
- EAT has an Altman-Z score of 3.86. 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 3.86, EAT belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of EAT (1.16) is better than 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 of 1.53. This is comparable to the rest of the industry: EAT outperforms 54.89% 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 | 3.86 |
ROIC/WACC1.86
WACC8.94%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that EAT may have some problems paying its short term obligations.
- EAT's Current ratio of 0.35 is on the low side compared to the rest of the industry. EAT is outperformed by 85.71% of its industry peers.
- A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
- EAT has a Quick ratio of 0.29. This is amonst the worse of the industry: EAT underperforms 84.21% 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%.
- 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
- The Earnings Per Share is expected to grow by 13.99% on average over the next years. This is quite good.
- 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
- Based on the Price/Earnings ratio of 16.44, the valuation of EAT can be described as correct.
- Based on the Price/Earnings ratio, EAT is valued a bit cheaper than 78.20% 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 27.32.
- A Price/Forward Earnings ratio of 13.44 indicates a correct valuation of EAT.
- 80.45% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, EAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than the industry average as 60.15% of the companies are valued more expensively.
- 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 | 15.24 | ||
| EV/EBITDA | 10.95 |
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 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.44
EPS Next 2Y16.53%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
- No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
162.44
+1.54 (+0.96%)
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 Cap7.22B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target174.27 (7.28%)
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 | 16.44 | ||
| Fwd PE | 13.44 | ||
| P/S | 1.73 | ||
| P/FCF | 15.24 | ||
| P/OCF | 9.06 | ||
| P/B | 20.99 | ||
| P/tB | 54.51 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)9.88
EY6.08%
EPS(NY)12.09
Fwd EY7.44%
FCF(TTM)10.66
FCFY6.56%
OCF(TTM)17.94
OCFY11.04%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.92
PEG (5Y)0.44
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 | 3.86 |
F-Score5
WACC8.94%
ROIC/WACC1.86
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 6 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Fairly Valued.
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 16.44 and the Price/Book (PB) ratio is 20.99.
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%.