Brinker International, Inc.

NYSE:EAT Stock Report

Market Cap: US$3.4b

Brinker International Valuation

Is EAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EAT ($76.65) is trading below our estimate of fair value ($116.97)

Significantly Below Fair Value: EAT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EAT?

Other financial metrics that can be useful for relative valuation.

EAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA12.2x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does EAT's PE Ratio compare to its peers?

The above table shows the PE ratio for EAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.8x
WEN Wendy's
17.6x7.1%US$3.5b
SHAK Shake Shack
161x28.5%US$4.5b
CAKE Cheesecake Factory
16.9x18.3%US$2.0b
BLMN Bloomin' Brands
43.9x138.4%US$1.4b
EAT Brinker International
22.2x17.4%US$3.4b

Price-To-Earnings vs Peers: EAT is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (59.8x).

Price to Earnings Ratio vs Industry

How does EAT's PE Ratio compare vs other companies in the US Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: EAT is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the US Hospitality industry average (20.9x).

Price to Earnings Ratio vs Fair Ratio

What is EAT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: EAT is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$76.65
US$67.75
-11.6%
13.7%US$90.00US$50.00n/a16
Sep ’25US$71.52
US$67.75
-5.3%
13.7%US$90.00US$50.00n/a16
Aug ’25US$63.69
US$65.09
+2.2%
19.9%US$90.00US$45.00n/a16
Jul ’25US$72.55
US$61.07
-15.8%
22.5%US$90.00US$42.00n/a15
Jun ’25US$70.63
US$56.13
-20.5%
12.2%US$65.00US$42.00n/a15
May ’25US$54.95
US$54.20
-1.4%
12.6%US$65.00US$39.00n/a15
Apr ’25US$50.96
US$46.40
-8.9%
9.4%US$55.00US$36.00n/a15
Mar ’25US$46.24
US$46.13
-0.2%
9.2%US$55.00US$36.00n/a16
Feb ’25US$46.03
US$46.13
+0.2%
9.2%US$55.00US$36.00n/a16
Jan ’25US$43.18
US$40.25
-6.8%
12.3%US$52.00US$31.00n/a16
Dec ’24US$37.56
US$38.69
+3.0%
10.3%US$48.00US$31.00n/a16
Nov ’24US$34.48
US$37.44
+8.6%
10.3%US$45.00US$31.00n/a16
Oct ’24US$31.59
US$38.44
+21.7%
10.4%US$45.00US$31.00n/a16
Sep ’24US$32.67
US$38.63
+18.2%
8.2%US$45.00US$31.00US$71.5216
Aug ’24US$38.87
US$38.88
+0.01%
9.3%US$45.00US$31.00US$63.6916
Jul ’24US$36.60
US$38.57
+5.4%
9.0%US$45.00US$31.00US$72.5515
Jun ’24US$38.12
US$40.36
+5.9%
9.1%US$48.00US$35.00US$70.6314
May ’24US$40.28
US$39.14
-2.8%
10.3%US$46.00US$33.00US$54.9514
Apr ’24US$38.00
US$38.36
+0.9%
11.9%US$46.00US$29.00US$50.9614
Mar ’24US$39.06
US$38.33
-1.9%
11.5%US$46.00US$29.00US$46.2415
Feb ’24US$39.28
US$37.27
-5.1%
12.8%US$46.00US$28.00US$46.0315
Jan ’24US$31.91
US$32.63
+2.2%
12.2%US$43.00US$28.00US$43.1816
Dec ’23US$33.15
US$33.59
+1.3%
13.3%US$43.00US$28.00US$37.5617
Nov ’23US$32.47
US$32.94
+1.5%
14.8%US$43.00US$27.00US$34.4817
Oct ’23US$24.98
US$32.76
+31.2%
14.8%US$43.00US$27.00US$31.5917
Sep ’23US$25.49
US$33.06
+29.7%
14.2%US$43.00US$27.00US$32.6717

Analyst Forecast: Target price is lower than the current share price.

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