BRINKER INTERNATIONAL INC (EAT) Fundamental Analysis & Valuation
NYSE:EAT • US1096411004
Current stock price
133.575 USD
-5.09 (-3.67%)
Last:
This EAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EAT Profitability Analysis
1.1 Basic Checks
- In the past year EAT was profitable.
- EAT had a positive operating cash flow in the past year.
- EAT had positive earnings in 4 of the past 5 years.
- EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EAT's Return On Assets of 12.18% is amongst the best of the industry. EAT outperforms 88.10% of its industry peers.
- Looking at the Return On Equity, with a value of 88.25%, EAT belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- EAT has a better Return On Invested Capital (16.80%) than 85.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EAT is significantly below the industry average of 10.55%.
- The 3 year average ROIC (2.53%) for EAT is below the current ROIC(16.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROIC | 16.8% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.83%, EAT is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
- EAT's Profit Margin has declined in the last couple of years.
- The Operating Margin of EAT (10.35%) is comparable to the rest of the industry.
- EAT's Operating Margin has declined in the last couple of years.
- EAT's Gross Margin of 18.43% is on the low side compared to the rest of the industry. EAT is outperformed by 88.89% of its industry peers.
- EAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% |
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
2. EAT Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
- Compared to 1 year ago, EAT has more shares outstanding
- Compared to 5 years ago, EAT has less shares outstanding
- EAT has a worse debt/assets ratio than last year.
2.2 Solvency
- EAT has an Altman-Z score of 3.64. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
- EAT has a better Altman-Z score (3.64) than 80.95% of its industry peers.
- EAT has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
- EAT has a better Debt to FCF ratio (1.05) than 88.10% of its industry peers.
- EAT has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
- EAT has a Debt to Equity ratio (1.19) which is in line with its industry peers.
- Although EAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.88
WACC8.95%
2.3 Liquidity
- EAT has a Current Ratio of 0.36. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.36, EAT is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
- EAT has a Quick Ratio of 0.36. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.31, EAT is not doing good in the industry: 87.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 |
3. EAT Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 50.76% over the past year.
- EAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.36% yearly.
- EAT shows a strong growth in Revenue. In the last year, the Revenue has grown by 65.25%.
- The Revenue for EAT have been decreasing by -63.21% on average. This is quite bad
EPS 1Y (TTM)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
3.2 Future
- Based on estimates for the next years, EAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.66% on average per year.
- Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y21.53%
EPS Next 2Y18.25%
EPS Next 3Y15.13%
EPS Next 5Y14.66%
Revenue Next Year8.34%
Revenue Next 2Y6.91%
Revenue Next 3Y5.64%
Revenue Next 5Y6.1%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. EAT Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.42, which indicates a correct valuation of EAT.
- Based on the Price/Earnings ratio, EAT is valued cheaper than 82.54% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.42, EAT is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.73, the valuation of EAT can be described as reasonable.
- 87.30% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (22.29), we can say EAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than EAT, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, EAT is valued cheaper than 86.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of EAT may justify a higher PE ratio.
- A more expensive valuation may be justified as EAT's earnings are expected to grow with 15.13% in the coming years.
PEG (NY)0.62
PEG (5Y)0.36
EPS Next 2Y18.25%
EPS Next 3Y15.13%
5. EAT Dividend Analysis
5.1 Amount
- No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EAT Fundamentals: All Metrics, Ratios and Statistics
NYSE:EAT (4/27/2026, 3:11:08 PM)
133.575
-5.09 (-3.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners114.9%
Inst Owner Change0.77%
Ins Owners1.14%
Ins Owner Change-6.06%
Market Cap5.82B
Revenue(TTM)4.28B
Net Income(TTM)334.72M
Analysts80.71
Price Target190.47 (42.59%)
Short Float %10.71%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.97%
Min EPS beat(2)7.76%
Max EPS beat(2)8.18%
EPS beat(4)4
Avg EPS beat(4)4.87%
Min EPS beat(4)0.67%
Max EPS beat(4)8.18%
EPS beat(8)7
Avg EPS beat(8)13.58%
EPS beat(12)11
Avg EPS beat(12)41.88%
EPS beat(16)13
Avg EPS beat(16)33.8%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.31%
Max Revenue beat(2)1.41%
Revenue beat(4)4
Avg Revenue beat(4)0.99%
Min Revenue beat(4)0.31%
Max Revenue beat(4)1.58%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)-0.2%
PT rev (3m)9.3%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0.1%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 10.73 | ||
| P/S | 1.36 | ||
| P/FCF | 12.76 | ||
| P/OCF | 7.89 | ||
| P/B | 15.34 | ||
| P/tB | 34.58 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)9.95
EY7.45%
EPS(NY)12.44
Fwd EY9.32%
FCF(TTM)10.47
FCFY7.84%
OCF(TTM)16.94
OCFY12.68%
SpS98.17
BVpS8.71
TBVpS3.86
PEG (NY)0.62
PEG (5Y)0.36
Graham Number44.1571 (-66.94%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROCE | 21.27% | ||
| ROIC | 16.8% | ||
| ROICexc | 16.93% | ||
| ROICexgc | 18.85% | ||
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% | ||
| FCFM | 10.66% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.21%
ROCE(5y)6.47%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
F-Score9
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 127.63% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 10.38 | ||
| Cash Conversion | 111.25% | ||
| Profit Quality | 136.2% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 3.64 |
F-Score9
WACC8.95%
ROIC/WACC1.88
Cap/Depr(3y)14.03%
Cap/Depr(5y)39.22%
Cap/Sales(3y)1.14%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
EPS Next Y21.53%
EPS Next 2Y18.25%
EPS Next 3Y15.13%
EPS Next 5Y14.66%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
Revenue Next Year8.34%
Revenue Next 2Y6.91%
Revenue Next 3Y5.64%
Revenue Next 5Y6.1%
EBIT growth 1Y66.51%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year55.98%
EBIT Next 3Y20.93%
EBIT Next 5Y16.3%
FCF growth 1Y185.83%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y117.87%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT Fundamental Analysis FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 6 / 10 to EAT.
What is the valuation status of BRINKER INTERNATIONAL INC (EAT) stock?
ChartMill assigns a valuation rating of 8 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
What is the profitability of EAT stock?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
Can you provide the financial health for EAT stock?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 10.
Is the dividend of BRINKER INTERNATIONAL INC sustainable?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.