Brinker International (NYSE:EAT) - Share price, News & Analysis

EAT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	2/6
Dividends	0/6

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.

Rewards

Trading at 55.6% below our estimate of its fair value

Earnings are forecast to grow 19.46% per year

Earnings grew by 915.7% over the past year

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Negative shareholders equity

Brinker International Competitors

McDonald's

NYSE:MCD

US$180.8b

Starbucks

NasdaqGS:SBUX

US$83.4b

Chipotle Mexican Grill

NYSE:CMG

US$35.4b

Yum! Brands

NYSE:YUM

US$32.5b

Price History & Performance

Summary of all time highs, changes and price drops for Brinker International
Historical stock prices
Current Share Price	US$25.46
52 Week High	US$65.21
52 Week Low	US$25.14
Beta	2.35
1 Month Change	-34.06%
3 Month Change	-37.28%
1 Year Change	-57.46%
3 Year Change	-33.80%
5 Year Change	-35.93%
Change since IPO	775.49%

Recent News & Updates

May 08

The Returns On Capital At Brinker International (NYSE:EAT) Don't Inspire Confidence

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	EAT	US Hospitality	US Market
7D	-21.3%	-8.0%	-4.0%
1Y	-57.5%	-29.1%	-13.2%

Return vs Industry: EAT underperformed the US Hospitality industry which returned -25.7% over the past year.

Return vs Market: EAT underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is EAT's price volatile compared to industry and market?
EAT volatility
EAT Average Weekly Movement	10.6%
Hospitality Industry Average Movement	9.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: EAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: EAT's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1975	59,491	Wyman Roberts	https://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 Cap	US$1.12b
Earnings (TTM)	US$152.40m
Revenue (TTM)	US$3.79b

7.3x

P/E Ratio

0.3x

P/S Ratio

Is EAT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EAT income statement (TTM)
Revenue	US$3.79b
Cost of Revenue	US$3.24b
Gross Profit	US$548.60m
Other Expenses	US$396.20m
Earnings	US$152.40m

Last Reported Earnings

Mar 30, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	3.48
Gross Margin	14.47%
Net Profit Margin	4.02%
Debt/Equity Ratio	-293.0%

How did EAT perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EAT ($25.46) is trading below our estimate of fair value ($57.3)

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

Price To Earnings Ratio

PE vs Industry: EAT is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US Hospitality industry average (17.4x).

PE vs Market: EAT is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: EAT is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

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

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

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAT's forecast earnings growth (19.5% per year) is above the savings rate (1.9%).

Earnings vs Market: EAT's earnings (19.5% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: EAT's revenue (4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: EAT's revenue (4% 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

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 157.9%.

Return on Equity

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

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

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
Future Dividend Coverage

3.60%

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.

Discover strong dividend paying companies

Management

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

5.2yrs

Average management tenure

CEO

Wyman Roberts (62 yo)

9.33yrs

Tenure

US$6,958,837

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 ($USD6.96M) is above average for companies of similar size in the US market ($USD3.85M).

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

Leadership Team

Experienced Management: EAT's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: EAT's board of directors are considered experienced (4.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EAT insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/30
Annual Earnings	2021/06/30