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EAT

Brinker International NYSE:EAT Stock Report

Last Price

US$32.85

Market Cap

US$1.4b

7D

11.2%

1Y

-38.4%

Updated

15 Aug, 2022

Data

Company Financials +
EAT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends0/6

EAT Stock Overview

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally.

Brinker International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brinker International
Historical stock prices
Current Share PriceUS$32.85
52 Week HighUS$55.53
52 Week LowUS$21.47
Beta2.44
1 Month Change42.95%
3 Month Change1.55%
1 Year Change-38.41%
3 Year Change-17.23%
5 Year Change-1.20%
Change since IPO1,029.61%

Recent News & Updates

Aug 15
Brinker International, Inc.'s (NYSE:EAT) Intrinsic Value Is Potentially 66% Above Its Share Price

Brinker International, Inc.'s (NYSE:EAT) Intrinsic Value Is Potentially 66% Above Its Share Price

How far off is Brinker International, Inc. ( NYSE:EAT ) from its intrinsic value? Using the most recent financial data...

Jun 17

Brinker International: Good Long-Term Prospects And A Great Price

The company’s long-term growth strategy to invest in technology and grow the virtual brands in order to improve efficiency and generate incremental sales looks promising. Thanks to the macro concerns, the stock is available at an attractive valuation. I believe long-term investors can consider taking a position in this long-term growth stock at an attractive valuation.

Shareholder Returns

EATUS HospitalityUS Market
7D11.2%5.4%3.6%
1Y-38.4%-13.4%-9.6%

Return vs Industry: EAT underperformed the US Hospitality industry which returned -15.1% over the past year.

Return vs Market: EAT underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is EAT's price volatile compared to industry and market?
EAT volatility
EAT Average Weekly Movement9.1%
Hospitality Industry Average Movement8.6%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: EAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: EAT's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197559,491Kevin Hochmanhttps://brinker.com

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. The company operates in two segments, Chili’s and Maggiano’s. As of June 30, 2021, it owned, operated, or franchised 1,648 restaurants comprising 1,594 restaurants under the Chili's Grill & Bar name and 54 restaurants under the Maggiano’s Little Italy brand name.

Brinker International Fundamentals Summary

How do Brinker International's earnings and revenue compare to its market cap?
EAT fundamental statistics
Market CapUS$1.44b
Earnings (TTM)US$152.40m
Revenue (TTM)US$3.79b

9.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EAT income statement (TTM)
RevenueUS$3.79b
Cost of RevenueUS$3.24b
Gross ProfitUS$548.60m
Other ExpensesUS$396.20m
EarningsUS$152.40m

Last Reported Earnings

Mar 30, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)3.48
Gross Margin14.47%
Net Profit Margin4.02%
Debt/Equity Ratio-293.0%

How did EAT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1x
Enterprise Value/EBITDA9.4x
PEG Ratio1x

Price to Earnings Ratio vs Peers

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

EAT PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.5x
ARCO Arcos Dorados Holdings
14.4x16.5%US$1.6b
DIN Dine Brands Global
13.2x6.1%US$1.2b
CAKE Cheesecake Factory
21.1x28.5%US$1.8b
JACK Jack in the Box
17.2x14.0%US$1.8b
EAT Brinker International
9.5x9.6%US$1.4b

Price-To-Earnings vs Peers: EAT is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (16.5x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: EAT is good value based on its Price-To-Earnings Ratio (9.5x) compared to the US Hospitality industry average (18.4x)


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 Ratio9.5x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: EAT is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).


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 ($32.85) is trading below our estimate of fair value ($54.5)

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


Analyst Price Targets

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

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Brinker International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAT's forecast earnings growth (9.6% per year) is above the savings rate (1.9%).

Earnings vs Market: EAT's earnings (9.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: EAT's earnings are forecast to grow, but not significantly.

Revenue vs Market: EAT's revenue (2.8% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: EAT's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EAT's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Brinker International performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EAT has high quality earnings.

Growing Profit Margin: EAT's current net profit margins (4%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: EAT's earnings have declined by 10.6% per year over the past 5 years.

Accelerating Growth: EAT's earnings growth over the past year (915.7%) exceeds its 5-year average (-10.6% per year).

Earnings vs Industry: EAT earnings growth over the past year (915.7%) exceeded the Hospitality industry 51%.


Return on Equity

High ROE: EAT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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Financial Health

How is Brinker International's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EAT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: EAT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: EAT has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: EAT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: EAT's debt is well covered by operating cash flow (34.3%).

Interest Coverage: EAT's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


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Dividend

What is Brinker International current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.67%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate EAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EAT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EAT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EAT's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: EAT is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EAT has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Kevin Hochman

0.17yr

Tenure

Mr. Kevin Hochman serves as President, Chief Executive Officer & Director at Brinker International, Inc. since June 06, 2022. He serves as President of Chili's since June 06, 2022. He serves as President o...


Leadership Team

Experienced Management: EAT's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: EAT's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EAT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brinker International, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Brinker International, Inc.
  • Ticker: EAT
  • Exchange: NYSE
  • Founded: 1975
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$1.441b
  • Shares outstanding: 43.84m
  • Website: https://brinker.com

Number of Employees


Location

  • Brinker International, Inc.
  • 3000 Olympus Boulevard
  • Dallas
  • Texas
  • 75019
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/03/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.