BRINKER INTERNATIONAL INC (EAT) Fundamental Analysis & Valuation
NYSE:EAT • US1096411004
Current stock price
154.87 USD
+1.22 (+0.79%)
At close:
154.87 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.
- In the past year EAT had a positive cash flow from operations.
- Of the past 5 years EAT 4 years were profitable.
- Each year in the past 5 years EAT had a positive operating cash flow.
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.
- EAT's Return On Equity of 88.25% is amongst the best of the industry. EAT outperforms 95.24% of its industry peers.
- EAT's Return On Invested Capital of 16.80% is amongst the best of the industry. EAT outperforms 85.71% 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 10.56%.
- 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
- The Profit Margin of EAT (7.83%) is better than 69.05% of its industry peers.
- In the last couple of years the Profit Margin of EAT has declined.
- EAT has a Operating Margin of 10.35%. This is comparable 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.
- EAT has a Gross Margin of 18.43%. This is amonst the worse of the industry: EAT underperforms 88.89% of its industry peers.
- EAT's Gross Margin has improved in the last couple of years.
| 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
- 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.
- 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
- An Altman-Z score of 3.82 indicates that EAT is not in any danger for bankruptcy at the moment.
- EAT's Altman-Z score of 3.82 is amongst the best of the industry. EAT outperforms 84.13% of its industry peers.
- EAT has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
- The Debt to FCF ratio of EAT (1.05) is better than 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.
- The Debt to Equity ratio of EAT (1.19) 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 | 3.82 |
ROIC/WACC1.88
WACC8.93%
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.
- EAT has a Current ratio of 0.36. This is amonst the worse of the industry: EAT underperforms 88.10% of its industry peers.
- 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.
- EAT's Quick ratio of 0.31 is on the low side compared to the rest of the industry. EAT is outperformed by 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.
- EAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.36% yearly.
- 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
- 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.
4. EAT Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.56, the valuation of EAT can be described as correct.
- Based on the Price/Earnings ratio, EAT is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.91. EAT is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 12.45, the valuation of EAT can be described as correct.
- Based on the Price/Forward Earnings ratio, EAT is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.68. EAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EAT.
- Based on the Price/Free Cash Flow ratio, EAT is valued cheaper than 84.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 10.87 |
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.
- A more expensive valuation may be justified as EAT's earnings are expected to grow with 15.07% in the coming years.
PEG (NY)0.73
PEG (5Y)0.42
EPS Next 2Y18.22%
EPS Next 3Y15.07%
5. EAT Dividend Analysis
5.1 Amount
- No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EAT Fundamentals: All Metrics, Ratios and Statistics
154.87
+1.22 (+0.79%)
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 Cap6.74B
Revenue(TTM)4.28B
Net Income(TTM)334.72M
Analysts80.71
Price Target189.22 (22.18%)
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 | 15.56 | ||
| Fwd PE | 12.45 | ||
| P/S | 1.58 | ||
| P/FCF | 14.79 | ||
| P/OCF | 9.14 | ||
| P/B | 17.78 | ||
| P/tB | 40.1 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)9.95
EY6.42%
EPS(NY)12.44
Fwd EY8.03%
FCF(TTM)10.47
FCFY6.76%
OCF(TTM)16.94
OCFY10.94%
SpS98.17
BVpS8.71
TBVpS3.86
PEG (NY)0.73
PEG (5Y)0.42
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 | 3.82 |
F-Score9
WACC8.93%
ROIC/WACC1.88
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%.