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Market Cap

US$3.0b

Last Updated

2021/05/10 00:15 UTC

Data Sources

Company Financials +

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 slightly 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EAT's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.5%

EAT

-4.7%

US Hospitality

0.2%

US Market


1 Year Return

189.2%

EAT

77.4%

US Hospitality

49.9%

US Market

Return vs Industry: EAT exceeded the US Hospitality industry which returned 77.4% over the past year.

Return vs Market: EAT exceeded the US Market which returned 49.9% over the past year.


Shareholder returns

EATIndustryMarket
7 Day-3.5%-4.7%0.2%
30 Day-5.2%-5.7%1.5%
90 Day-2.0%1.3%3.3%
1 Year189.2%189.2%78.2%77.4%52.4%49.9%
3 Year53.8%43.0%10.9%5.9%63.7%53.4%
5 Year66.1%44.2%71.0%58.1%130.6%104.9%

Long-Term 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?

24.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EAT ($64.8) is trading below our estimate of fair value ($85.47)

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


Price To Earnings Ratio

PE vs Industry: EAT is poor value based on its PE Ratio (387.1x) compared to the US Hospitality industry average (39.3x).

PE vs Market: EAT is poor value based on its PE Ratio (387.1x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: EAT is poor value based on its PEG Ratio (10.7x)


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.


Future Growth

How is Brinker International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAT's forecast earnings growth (36.1% per year) is above the savings rate (2%).

Earnings vs Market: EAT's earnings (36.1% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: EAT's revenue (7.1% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: EAT's revenue (7.1% 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


Past Performance

How has Brinker International performed over the past 5 years?

-25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAT has a large one-off loss of $33.4M impacting its March 24 2021 financial results.

Growing Profit Margin: EAT's current net profit margins (0.3%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: EAT's earnings have declined by 25.6% 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 (-93.9%) over the past year, making it difficult to compare to the Hospitality industry average (-31.7%).


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 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 (30%).

Interest Coverage: EAT's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

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

1.11%

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?

3.8yrs

Average management tenure


CEO

Wyman Roberts (61 yo)

8.33yrs

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 ($USD5.88M) is about average for companies of similar size in the US market ($USD5.37M).

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 considered experienced (3.8 years average tenure).


Board Members

Experienced Board: EAT's board of directors are considered experienced (3.3 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 been diluted in the past year, with total shares outstanding growing by 4.2%.


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$2.965b
  • Shares outstanding: 45.75m
  • Website: https://www.brinker.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/10 00:15
End of Day Share Price2021/05/07 00:00
Earnings2021/03/24
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.