Brinker International, Inc (EAT) stock analysis
Close on Nov 12, 2026Market cap $8.21BP/E 17.4Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed14 of 30 checks passed
Brinker International passes 14 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 3/6
- Past performance
- 5/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $200.73 is below our fair value estimate of $208.03.
Return on capital over 10%
Return on invested capital was 60.2%, above the 10% that usually covers the cost of capital.
Earnings grew over 5 years
Net income grew 29.9% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 12.0% a year over the last three fiscal years.
What to watch
Margin of safety under 20%
The price is 3.5% below fair value, less than the 20% cushion we look for.
High debt
Debt is 121% of shareholders' equity, above the 40% we consider low.
Earnings growth not accelerating
Net income grew 12.8% over the last twelve months, against a 5-year average of 29.9% a year.
P/E above its 5-year median
Brinker International's P/E of 17.7 is above its own 5-year median of 16.8.
Valuation3/6
P/E above its 5-year median
Brinker International's P/E of 17.7 is above its own 5-year median of 16.8.
P/E below the industry
Brinker International's P/E of 17.7 is below the Eating and Drinking Places median of 28.5.
EV/EBITDA below its 5-year median
Brinker International's EV/EBITDA of 13.5 is below its 5-year median of 15.0.
P/B above the industry
Brinker International's price-to-book of 20.85 is above the Eating and Drinking Places median of 3.13.
Trading below fair value
The share price of $200.73 is below our fair value estimate of $208.03.
Margin of safety under 20%
The price is 3.5% below fair value, less than the 20% cushion we look for.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 12.0% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 68.3% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 12.8% over the last twelve months, against a 5-year average of 29.9% a year.
Growing faster than the industry
Revenue grew 6.1% over the last twelve months; the Eating and Drinking Places median is 5.9%.
Guidance lowered
Brinker International lowered its fiscal 2026 Diluted weighted average shares outlook on Apr 29, 2026.
Gross margin slipping
Gross margin was 74.4% over the last twelve months, against 74.8% a year earlier.
Past performance5/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 60.2%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Brinker International's return on equity of 135% is above the Eating and Drinking Places median of 7.9%.
Earnings grew over 5 years
Net income grew 29.9% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 8.4% over the last twelve months, against a 5-year average of 4.9%.
Net margin above the industry
Brinker International's net margin of 8.4% is above the Eating and Drinking Places median of 1.9%.
Financial health3/6
High debt
Debt is 121% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 173% of total debt.
Interest well covered
Operating income covers interest expense 12.0 times.
Short-term assets don't cover short-term debts
Current assets are 0.34 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 5.23; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Brinker International has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$208.03
The share price is 4% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 22.6× | 16.8× | 28.5× | $256.60 | 44% |
| EV/EBITDA | 13.6× | 15.0× | 12.3× | $203.55 | 39% |
| Earnings power | 10.8% cost of equity | – | – | $89.00 | 17% |
| Fair value | $208.03 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 16.8
- Eating and Drinking Places median 28.5
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $274.40M
- Value traded per 1% price move
- $102.41M
Downside
Medium risk
- Typical loss in a bad month
- 17.4%
- Volatility (annualized)
- 51%
- Sharpe ratio, 1 year
- 1.64
- Beta to the S&P 500 (5Y)
- 1.18
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +7.9% | +12.0% | +11.7% | +6.0% | |
| Gross profit | +7.1% | +13.1% | +11.8% | +6.0% | |
| Operating income | +21.1% | +62.5% | +25.5% | +6.9% | |
| Net income | +27.1% | +68.1% | +29.9% | +9.3% | |
| EPS, diluted | +30.6% | +68.3% | +30.9% | +12.3% | |
| Free cash flow | +34.8% | +98.4% | +15.1% | +6.9% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -41.9% | -33.6% | 119.6% | |
| Return on assets | 10.5% | 5.7% | 17.7% | |
| Current ratio | 0.33 | 0.36 | 0.45 | |
| Debt to equity | -2.69 | -3.10 | 1.00 | |
| Net debt to EBITDA | 3.20× | 2.62× | – | |
| Interest coverage | 5.2× | 3.5× | 15.3× | |
| Inventory turnover | 31.6× | 30.9× | 42.7× | |
| Capex to revenue | 3.3% | 2.8% | 4.0% | |
| Diluted shares | 51M | 47M | 45M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Brinker International generated $2.40B from operations and spent $1.70B on capital expenditure, dividends and share buybacks. 61% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 8.4% | 2.11× | 6.74× | 119.6% |
| FY2025 | 7.1% | 2.04× | 12.85× | 186.7% |
| FY2024 | 3.5% | 1.74× | -48.43× | -296.1% |
| FY2023 | 2.5% | 1.66× | -12.05× | -49.8% |
| FY2022 | 3.1% | 1.60× | -8.33× | -41.2% |
| FY2021 | 3.9% | 1.44× | -5.92× | -33.6% |
| FY2020 | 0.8% | 1.70× | -2.87× | -3.9% |
| FY2019 | 4.8% | 2.47× | -1.74× | -20.7% |
| FY2018 | 4.0% | 2.28× | -2.27× | -20.8% |
| FY2017 | 4.8% | 2.20× | -3.98× | -41.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$487.00M
- Cash generatingOperating cash flow above zero$789.40M
- Return on assets improvedROA up on the prior year14.8% → 18.2%
- Earnings backed by cashOperating cash flow above net income$789.40M vs $487.00M
- Less leverageLong-term debt to assets fell15.9% → 14.9%
- Better liquidityCurrent ratio rose0.31 → 0.45
- No dilutionShare count did not rise46M → 45M
- Gross margin improvedGross margin up on the prior year74.92% → 74.38%
- More efficientAsset turnover rose2.08 → 2.17
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