NYSE:EAT

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Executive Summary

Brinker International, Inc., together with its subsidiaries, owns, develops, operates, and franchises casual dining restaurants in the United States and internationally. More Details


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

How has Brinker International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EAT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

EAT

-2.1%

US Hospitality

-1.2%

US Market


1 Year Return

14.5%

EAT

-15.7%

US Hospitality

19.5%

US Market

Return vs Industry: EAT exceeded the US Hospitality industry which returned -15.5% over the past year.

Return vs Market: EAT underperformed the US Market which returned 19.9% over the past year.


Shareholder returns

EATIndustryMarket
7 Day3.2%-2.1%-1.2%
30 Day2.2%-0.7%5.8%
90 Day93.6%12.6%8.1%
1 Year16.8%14.5%-14.3%-15.7%22.3%19.5%
3 Year65.3%50.6%-10.9%-16.5%43.6%34.0%
5 Year16.8%0.02%15.9%3.7%87.3%66.1%

Price Volatility Vs. Market

How volatile is Brinker International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brinker International undervalued compared to its fair value and its price relative to the market?

10.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EAT ($47.13) is trading below our estimate of fair value ($52.44)

Significantly Below Fair Value: EAT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EAT is poor value based on its PE Ratio (73.8x) compared to the US Hospitality industry average (27.9x).

PE vs Market: EAT is poor value based on its PE Ratio (73.8x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EAT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: EAT has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Brinker International forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

51.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAT's forecast earnings growth (51.8% per year) is above the savings rate (2.2%).

Earnings vs Market: EAT's earnings (51.8% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EAT's revenue (6.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EAT's revenue (6.1% 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


Next Steps

Past Performance

How has Brinker International performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAT has a large one-off loss of $47.4M impacting its June 24 2020 financial results.

Growing Profit Margin: EAT's current net profit margins (0.8%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: EAT's earnings have declined by 13.4% per year over the past 5 years.

Accelerating Growth: EAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EAT had negative earnings growth (-84.2%) over the past year, making it difficult to compare to the Hospitality industry average (-49.7%).


Return on Equity

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


Next Steps

Financial Health

How is Brinker International's financial position?


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 (21.9%).

Interest Coverage: EAT's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.40%

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EAT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Wyman Roberts (61 yo)

7.75yrs

Tenure

US$5,883,950

Compensation

Mr. Wyman T. Roberts has been the Chief Executive Officer and President of Brinker International, Inc. since January 1, 2013. He is President of Grill & Bar at Brinker International, Inc. and was its Inter ...


CEO Compensation Analysis

Compensation vs Market: Wyman's total compensation ($USD5.88M) is above average for companies of similar size in the US market ($USD4.44M).

Compensation vs Earnings: Wyman's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wyman Roberts
CEO, President & Non-Independent Director7.75yrsUS$5.88m0.60%
$ 12.8m
Joseph Taylor
Executive VP & CFO3.17yrsUS$1.38m0.079%
$ 1.7m
Richard Badgley
Executive VP & Chief People and Administrative Officer1.08yrsUS$1.01m0.069%
$ 1.5m
Charles Lousignont
Senior VP & Chief Supply Chain Officer5.92yrsUS$785.70k0.041%
$ 879.5k
Steve Provost
Executive VP & President of Maggiano's Little Italy0.33yrUS$1.39m0.13%
$ 2.7m
Pankaj Patra
Senior VP & Chief Information Officer0.33yrno data0.037%
$ 789.6k
Mika Ware
VP of Finance & Investor Relationsno datano datano data
Daniel Fuller
Senior VP6.25yrsno data0.041%
$ 870.1k
Douglas Comings
Senior VP & Co-COO of Chili’s Grill & Bar4.33yrsno data0.058%
$ 1.2m
Larry Konecny
Chief Concept Officer of Maggiano's Brand3.58yrsno datano data
Wade Allen
Senior Vice President of Innovation2.75yrsno data0.033%
$ 712.8k
Eleanor Doty
Senior VP & Chief Marketing Officer of Chili's® Grill & Bar1.08yrsno data0.026%
$ 555.7k

3.2yrs

Average Tenure

49.5yo

Average Age

Experienced Management: EAT's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wyman Roberts
CEO, President & Non-Independent Director7.75yrsUS$5.88m0.60%
$ 12.8m
George Mrkonic
Independent Vice Chairmanno dataUS$116.68k0.095%
$ 2.0m
William Giles
Independent Director7.58yrsUS$126.56k0.075%
$ 1.6m
Harriet Edelman
Independent Director12.58yrsUS$122.49k0.066%
$ 1.4m
Joseph DePinto
Independent Chairman of the Board6.92yrsUS$187.50k0.19%
$ 4.0m
Prashant Ranade
Independent Director1.5yrsUS$204.65k0.014%
$ 304.5k
Frances Allen
Independent Director0.25yrno data0.0024%
$ 51.0k
Cynthia Davis
Independent Director1.75yrsUS$106.56k0.011%
$ 245.2k
Alexandre Macedo
Independent Director0.25yrno data0.0015%
$ 32.2k
James Katzman
Independent Director2.75yrsUS$118.74k0.025%
$ 534.4k

2.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: EAT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 21.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Brinker International, Inc.
  • Ticker: EAT
  • Exchange: NYSE
  • Founded: 1975
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$2.134b
  • Shares outstanding: 45.28m
  • Website: https://www.brinker.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EATNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1984
BKJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1984

Biography

Brinker International, Inc., together with its subsidiaries, owns, develops, operates, and franchises casual dining restaurants in the United States and internationally. As of June 24, 2020, it owned, oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 06:06
End of Day Share Price2020/10/16 00:00
Earnings2020/06/24
Annual Earnings2020/06/24


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.