Brinker International (EAT) AI Stock Analysis

• Market Cap: $6.24B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.60
• Revenue Growth: 23.18%
• EPS Growth: 138.17%
• Country: US
• Employees: 68,852
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.93
• Shares Outstanding: 44,431,213
• 10 Day Avg. Volume: 1,483,880
• 30 Day Avg. Volume: 1,926,594
• PEG Ratio: 0.14
• Price to Book (P/B): 21.24
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 19.05
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 10.22
• 1Y Price Target: $163.07
• Price Target Upside: 16.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 10.29
• Revenue Forecast (FY): $5.73B

• Rating: 70 Neutral
• Price Target: $164.00 ▲(16.77% Upside)

Brinker International's strong financial performance and positive earnings call sentiment are key strengths, driven by Chili's robust growth and operational efficiency. However, high leverage and overbought technical indicators pose risks. The valuation is reasonable, but the lack of a dividend yield may limit appeal to some investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and market demand, supporting long-term financial health and expansion potential.

Operational Efficiency

Improved operational efficiency through better margins enhances profitability, providing a competitive edge and financial resilience.

Consumer Engagement

Strong consumer engagement across demographics indicates successful value positioning, fostering brand loyalty and sustained revenue streams.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile market conditions, potentially impacting long-term stability.

Commodity Costs

Rising commodity costs can pressure margins, requiring strategic pricing and cost management to maintain profitability over time.

Maggiano's Performance

Declining sales at Maggiano's highlight brand-specific challenges, necessitating strategic adjustments to stabilize and improve performance.

Brinker International Business Overview & Revenue Model

Company Description

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. The company operates in two segments, Chili's and Maggiano's. As of June 30, 2021, it owned, operated, or franchised 1,648 restaurants comprising 1,594 restaurants under the Chili's Grill & Bar name and 54 restaurants under the Maggiano's Little Italy brand name. The company was founded in 1975 and is headquartered in Dallas, Texas.

How the Company Makes Money

Brinker International generates revenue primarily through the operation of its restaurant chains. The company's revenue model is based on the sale of food and beverages, with additional income coming from catering services, delivery, and takeout options. Key revenue streams include dine-in sales at its chain restaurants, which are complemented by a growing emphasis on off-premise dining options. Brinker has also engaged in strategic partnerships and promotions to enhance customer engagement and increase sales. Additionally, the company benefits from brand loyalty programs and marketing initiatives designed to attract repeat customers and drive new business. Economic factors such as consumer spending trends and competition in the casual dining sector also significantly influence Brinker’s earnings.

Brinker International Financial Statement Overview

Summary

Brinker International demonstrates strong revenue growth and profitability, with efficient cash flow management. However, the high leverage poses a risk, requiring careful monitoring. The company is well-positioned in terms of operational efficiency and cash generation, but should focus on improving its balance sheet stability.

Income Statement

Brinker International shows a strong revenue growth rate of 3.9% TTM, indicating positive momentum in sales. The gross profit margin of 28.9% and net profit margin of 7.9% TTM reflect solid profitability, supported by an EBIT margin of 10.3% and an EBITDA margin of 14.1%. These metrics suggest efficient cost management and operational effectiveness, although there is room for improvement in net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 4.88 TTM, indicating significant leverage, which could pose financial risks. However, the return on equity of 160.7% TTM is exceptionally high, driven by strong net income relative to equity. The equity ratio of 12.7% TTM suggests a relatively low proportion of equity financing, highlighting potential vulnerability to financial fluctuations.

Cash Flow

Brinker International demonstrates robust cash flow performance with a free cash flow growth rate of 27.7% TTM. The operating cash flow to net income ratio of 1.20 TTM and free cash flow to net income ratio of 0.72 TTM indicate strong cash generation relative to earnings, supporting liquidity and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.59B	5.38B	4.42B	4.13B	3.80B	3.34B
Gross Profit	1.82B	982.40M	627.30M	500.10M	499.20M	503.30M
EBITDA	788.50M	719.70M	400.70M	314.20M	325.70M	351.60M
Net Income	444.10M	383.10M	155.30M	102.60M	117.60M	131.60M
Balance Sheet
Total Assets	2.71B	2.68B	2.59B	2.49B	2.48B	2.27B
Cash, Cash Equivalents and Short-Term Investments	33.60M	18.90M	64.60M	15.10M	13.50M	23.90M
Total Debt	1.82B	1.69B	2.00B	2.16B	2.27B	2.04B
Total Liabilities	2.37B	2.31B	2.55B	2.63B	2.75B	2.58B
Stockholders Equity	343.90M	370.90M	39.40M	-144.30M	-268.10M	-303.30M
Cash Flow
Free Cash Flow	469.60M	413.70M	223.00M	71.40M	101.90M	275.70M
Operating Cash Flow	737.00M	679.00M	421.90M	256.30M	252.20M	369.70M
Investing Cash Flow	-264.80M	-263.40M	-192.20M	-174.20M	-234.20M	-90.90M
Financing Cash Flow	-454.80M	-461.30M	-180.20M	-80.50M	-28.40M	-298.80M

Brinker International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 140.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 140.45 is above the 20-day moving average (MA) of 130.66, above the 50-day MA of 126.06, and below the 200-day MA of 148.16, indicating a neutral trend. The MACD of 6.84 indicates Negative momentum. The RSI at 58.37 is Neutral, neither overbought nor oversold. The STOCH value of 42.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EAT.

Brinker International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	72 Outperform	$11.00B	25.40	31.55%	1.64%	14.40%	12.45%
WING	70 Outperform	$7.16B	42.05	―	0.44%	15.56%	79.02%
EAT	70 Neutral	$6.24B	14.56	249.07%	―	23.18%	138.17%
BROS	68 Neutral	$9.61B	117.40	10.53%	―	28.93%	69.59%
CAKE	67 Neutral	$2.34B	14.27	39.14%	2.30%	4.90%	27.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	59 Neutral	$3.33B	76.65	8.83%	―	13.49%	402.23%

Brinker International Corporate Events

Brinker International Elects Directors at Annual Meeting

On November 20, 2025, Brinker International held its Annual Meeting of Shareholders where all management’s nominees were elected as directors to serve until the next annual meeting. Additionally, shareholders approved the appointment of KPMG LLP as independent auditors for Fiscal 2026 and ratified the executive compensation proposal.