NYSE:EAT

Stock Analysis Report

Executive Summary

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

Snowflake

Established dividend payer and fair value.


Similar Companies

McDonald's

NYSE:MCD

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

EAT

0.3%

US Hospitality

0.3%

US Market


1 Year Return

-9.4%

EAT

11.3%

US Hospitality

12.5%

US Market

Return vs Industry: EAT underperformed the US Hospitality industry which returned 11.3% over the past year.

Return vs Market: EAT underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

EATIndustryMarket
7 Day-1.1%0.3%0.3%
30 Day12.6%3.6%4.1%
90 Day18.0%4.6%5.6%
1 Year-6.1%-9.4%14.2%11.3%15.0%12.5%
3 Year-7.4%-17.0%37.4%27.8%49.1%39.4%
5 Year-1.2%-15.5%36.4%21.7%62.8%44.7%

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?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EAT ($45.58) is trading below our estimate of fair value ($74.58)

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 good value based on its PE Ratio (11.9x) compared to the Hospitality industry average (22.6x).

PE vs Market: EAT is good value based on its PE Ratio (11.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: EAT is poor value based on its PEG Ratio (2.1x)


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 20 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAT's forecast earnings growth (5.8% per year) is above the savings rate (2.7%).

Earnings vs Market: EAT's earnings (5.8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: EAT's revenue (3.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: EAT's revenue (3.7% 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?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAT has high quality earnings.

Growing Profit Margin: EAT's current net profit margins (4.4%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: EAT's earnings have declined by -6.2% per year over the past 5 years.

Accelerating Growth: EAT's earnings growth over the past year (0.8%) exceeds its 5-year average (-6.2% per year).

Earnings vs Industry: EAT earnings growth over the past year (0.8%) exceeded the Hospitality industry -15%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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 (20.1%).

Interest Coverage: EAT's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: EAT has a high level of physical assets or inventory.

Debt Coverage by Assets: EAT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

3.33%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Brinker International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: EAT's dividend (3.33%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: EAT's dividend (3.33%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: EAT's dividends per share have been stable in the past 10 years.

Growing Dividend: EAT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.8%), EAT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EAT's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

What is the CEO of Brinker International's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Wyman Roberts (60yo)

6.8yrs

Tenure

US$9,953,912

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Wyman's total compensation ($USD9.95M) is above average for companies of similar size in the US market ($USD4.02M).

Compensation vs Earnings: Wyman's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

56yo

Average Age

Experienced Management: EAT's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

59yo

Average Age

Experienced Board: EAT's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$38,14405 Sep 19
Michaela Ware
EntityIndividual
Shares968
Max PriceUS$39.41
BuyUS$58,90023 Aug 19
Kelly Baltes
EntityIndividual
Role
Unit President
Executive VP & President of Maggiano’s Little Italy
Shares1,550
Max PriceUS$38.00
BuyUS$32,30020 Aug 19
Kelly Baltes
EntityIndividual
Role
Unit President
Executive VP & President of Maggiano’s Little Italy
Shares850
Max PriceUS$38.00
SellUS$28,81220 Aug 19
Wade Allen
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Digital Officer
Shares725
Max PriceUS$39.74
BuyUS$33,64009 May 19
Kelly Baltes
EntityIndividual
Role
Unit President
Executive VP & President of Maggiano’s Little Italy
Shares800
Max PriceUS$42.05
BuyUS$111,37007 Feb 19
Charles Lousignont
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Supply Chain Officer
Shares2,590
Max PriceUS$43.00
BuyUS$33,39601 Feb 19
Kelly Baltes
EntityIndividual
Role
Unit President
Executive VP & President of Maggiano’s Little Italy
Shares800
Max PriceUS$41.75
SellUS$611,23529 Nov 18
Steve Provost
EntityIndividual
Role
Senior Key Executive
Executive Vice President & Chief Concept Officer for Chili’s® Grill & Bar
Shares11,985
Max PriceUS$51.00

Ownership Breakdown

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


Management Team

  • Kelly Baltes (53yo)

    Executive VP & President of Maggiano’s Little Italy

    • Tenure: 1.3yrs
    • Compensation: US$1.35m
  • Wyman Roberts (60yo)

    CEO, President & Non-Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$9.95m
  • Steve Provost (59yo)

    Executive Vice President & Chief Concept Officer for Chili’s® Grill & Bar

    • Tenure: 10.6yrs
    • Compensation: US$1.62m
  • Larry Konecny

    Chief Concept Officer of Maggiano's Brand

    • Tenure: 2.7yrs
  • Charlie Lousignont (60yo)

    Senior VP & Chief Supply Chain Officer

    • Tenure: 5yrs
  • Joe Taylor (60yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$1.33m
  • Doug Comings (46yo)

    Senior VP & COO for Chili's Grill & Bar

    • Tenure: 3.4yrs
  • Rick Badgley (51yo)

    Executive VP & Chief People and Administrative Officer

    • Tenure: 0.2yrs
    • Compensation: US$978.35k
  • Wade Allen (42yo)

    Senior VP & Chief Digital Officer

    • Tenure: 1.8yrs
  • Mika Ware

    VP of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • John Chidsey (57yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$138.73k
  • George Mrkonic (67yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$219.46k
  • Bill Giles (60yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$232.46k
  • Harriet Edelman (63yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$224.96k
  • Joe DePinto (56yo)

    Chairman of the Board

    • Tenure: 6yrs
    • Compensation: US$374.96k
  • Mike George (58yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$217.46k
  • Wyman Roberts (60yo)

    CEO, President & Non-Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$9.95m
  • Prashant Ranade (66yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$46.25k
  • Cindy Davis (57yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$184.97k
  • Jim Katzman (52yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$207.46k

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$1.703b
  • Shares outstanding: 37.37m
  • 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 September 25, 2019, it owned, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:34
End of Day Share Price2019/11/11 00:00
Earnings2019/09/25
Annual Earnings2019/06/26


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.