Brinker International (EAT) AI Stock Analysis

• Market Cap: $7.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.65
• Revenue Growth: 21.95%
• EPS Growth: 146.44%
• Country: US
• Employees: 68,852
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Restaurants
• EPS (TTM): 2.49
• Shares Outstanding: 44,498,110
• 10 Day Avg. Volume: 1,615,791
• 30 Day Avg. Volume: 1,372,543
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 12.75
• Enterprise Value/Ebitda: 13.74
• 1Y Price Target: $179.45
• Price Target Upside: 14.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $175.00 ▲(12.08% Upside)

Brinker International's overall stock score is driven by strong earnings call sentiment and solid financial performance, despite high leverage concerns. Technical indicators suggest a neutral to slightly bearish trend, and valuation metrics indicate moderate pricing. The company's strategic initiatives and share repurchase program further support a positive outlook.

Positive Factors

Revenue Expectations

EAT anticipates higher revenues compared to consensus, maintaining strong SSSG driven by Chili’s.

Sales Performance

Chili's +23.7% comp sales continue to far exceed industry, with strong momentum continuing, driven by significant marketing efforts and operational improvements.

Negative Factors

Investor Sentiment

Magnitude of 'beat' and guidance revision likely fell below investor expectations, and outlook implies slowdown in Chili's comp to low-20%.

Market Expectations

The case for investing in EAT is becoming less persuasive as share prices now better reflect the strength of the turnaround, with comps potentially beginning to normalize.

Brinker International Business Overview & Revenue Model

Company Description

Brinker International, Inc. (EAT) is a leading casual dining restaurant company based in the United States. It primarily operates in the restaurant sector through its well-known brands, Chili's Grill & Bar and Maggiano's Little Italy. Chili's offers a variety of American cuisine with a Tex-Mex twist, while Maggiano's provides an authentic Italian dining experience. Brinker International focuses on delivering high-quality food and a welcoming atmosphere to its customers.

How the Company Makes Money

Brinker International generates revenue primarily through the sales of food and beverages at its company-operated restaurants, which form the largest portion of its income. Additionally, the company earns money through franchise agreements, receiving royalties and fees from franchisees who operate under the Chili's and Maggiano's brands. Catering services and gift card sales also contribute to its revenue streams. Strategic partnerships with food and beverage suppliers help Brinker manage costs and maintain quality, while marketing initiatives and promotions drive customer traffic and sales growth.

Brinker International Financial Statement Overview

Summary

Brinker International shows strong revenue growth and improving profitability with a net profit margin of 7.12%. However, the high debt-to-equity ratio of 4.21 indicates significant leverage, posing a risk if market conditions change. The company demonstrates good cash flow management, providing a buffer against potential financial challenges.

Income Statement

Brinker International shows a strong revenue growth rate of 4.95% in the TTM, with improving profit margins. The gross profit margin increased slightly to 14.41%, and the net profit margin improved to 7.12%, indicating enhanced profitability. EBIT and EBITDA margins also show positive trends, reflecting operational efficiency. However, the restaurant industry remains competitive, and maintaining these growth rates could be challenging.

Balance Sheet

The company has a high debt-to-equity ratio of 4.21, indicating significant leverage, which poses a risk. However, the return on equity is positive at 1.98%, showing that the company is generating returns for shareholders. The equity ratio is low, suggesting a reliance on debt financing, which could be a concern if interest rates rise or if the company faces cash flow issues.

Cash Flow

Brinker International's cash flow statement reflects a healthy free cash flow growth rate of 5.78% in the TTM. The operating cash flow to net income ratio is slightly above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.61 suggests that a significant portion of net income is being converted into free cash flow, which is positive for financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.38B	5.38B	4.42B	4.13B	3.80B	3.34B
Gross Profit	775.80M	775.80M	627.30M	500.10M	499.20M	503.30M
EBITDA	719.70M	716.00M	400.70M	314.20M	325.70M	351.60M
Net Income	383.10M	383.10M	155.30M	102.60M	117.60M	131.60M
Balance Sheet
Total Assets	2.68B	2.68B	2.59B	2.49B	2.48B	2.27B
Cash, Cash Equivalents and Short-Term Investments	18.90M	18.90M	64.60M	15.10M	13.50M	23.90M
Total Debt	1.69B	1.69B	2.00B	2.16B	2.27B	2.04B
Total Liabilities	2.31B	2.31B	2.55B	2.63B	2.75B	2.58B
Stockholders Equity	370.90M	370.90M	39.40M	-144.30M	-268.10M	-303.30M
Cash Flow
Free Cash Flow	413.70M	413.70M	223.00M	71.40M	101.90M	275.70M
Operating Cash Flow	679.00M	679.00M	421.90M	256.30M	252.20M	369.70M
Investing Cash Flow	-263.40M	-263.40M	-192.20M	-174.20M	-234.20M	-90.90M
Financing Cash Flow	-461.30M	-461.30M	-180.20M	-80.50M	-28.40M	-298.80M

Brinker International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 156.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EAT, the sentiment is Positive. The current price of 156.14 is above the 20-day moving average (MA) of 155.93, below the 50-day MA of 164.44, and above the 200-day MA of 151.36, indicating a neutral trend. The MACD of -2.01 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 55.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EAT.

Brinker International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	74 Outperform	$11.75B	27.05	32.28%	1.48%	14.59%	18.98%
ARCO	67 Neutral	$1.46B	11.24	24.80%	3.45%	0.09%	-23.74%
EAT	66 Neutral	$7.20B	19.47	186.74%	―	21.95%	146.44%
SHAK	66 Neutral	$4.51B	227.48	4.16%	―	13.13%	-25.05%
CAKE	65 Neutral	$3.09B	19.06	41.01%	1.74%	4.77%	38.24%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
PZZA	60 Neutral	$1.59B	21.25	-20.16%	3.79%	-1.46%	8.10%

Brinker International Corporate Events

Brinker International Expands Share Repurchase Program

On August 11, 2025, Brinker International‘s Board of Directors authorized an additional $400 million for its share repurchase program, increasing the total available authority to $507 million. The company reported strong financial results for the fourth quarter of fiscal 2025, with a significant increase in sales and traffic at Chili’s, leading to improved margins and a reduction in debt. The company also provided optimistic guidance for fiscal 2026, expecting continued revenue growth and increased net income per share.