Brinker International (EAT) AI Stock Analysis

• Market Cap: $5.66B
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.65
• Revenue Growth: 21.95%
• EPS Growth: 146.44%
• Country: US
• Employees: 68,852
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 2.49
• Shares Outstanding: 44,431,213
• 10 Day Avg. Volume: 1,157,808
• 30 Day Avg. Volume: 1,356,941
• 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: 1.75
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 12.75
• Enterprise Value/Ebitda: 13.74
• 1Y Price Target: $168.93
• Price Target Upside: 32.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 70 Outperform
• Price Target: $147.00 ▲(15.47% Upside)

Brinker International's overall stock score of 70 is driven by strong financial performance and positive earnings call sentiment, particularly due to Chili's robust growth and strategic initiatives. However, technical indicators suggest a bearish trend, and high leverage poses a risk to financial stability. The reasonable valuation supports the stock's attractiveness, but the lack of a dividend yield is a minor drawback.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and successful execution of strategic initiatives, positioning the company for sustained market expansion.

Debt Reduction

Significant debt reduction enhances financial stability and flexibility, allowing for strategic investments and reducing interest burden.

Operational Efficiency

Improved margins reflect effective cost management and operational improvements, contributing to long-term profitability and competitiveness.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to weather economic downturns or invest in growth opportunities.

Maggiano's Performance

Ongoing challenges in Maggiano's performance indicate potential difficulties in brand positioning and market competitiveness, impacting overall growth.

Rising Costs

Increased food and beverage costs due to inflation and menu mix can pressure margins, challenging profitability and necessitating pricing adjustments.

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 solid financial performance with strong revenue growth and improving profitability. However, the high leverage remains a concern, which could impact financial stability if market conditions change. The company shows 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: Negative
• Last Price: 127.31
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 127.31 is below the 20-day moving average (MA) of 127.68, below the 50-day MA of 140.83, and below the 200-day MA of 153.39, indicating a bearish trend. The MACD of -3.23 indicates Negative momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 29.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EAT.

Brinker International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	―	$11.66B	26.77	32.28%	1.51%	14.59%	18.98%
ARCO	―	$1.52B	11.66	24.80%	3.15%	0.09%	-23.74%
EAT	―	$5.66B	15.18	186.74%	―	21.95%	146.44%
CAKE	―	$2.80B	17.28	41.01%	1.92%	4.77%	38.24%
PZZA	―	$1.81B	24.38	―	3.33%	-1.46%	8.10%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	―	$3.92B	201.06	4.16%	―	13.13%	-25.05%

Brinker International Corporate Events

Brinker International’s Earnings Call Highlights Growth and Strategy

Brinker International’s latest earnings call exuded a strong positive sentiment, driven by Chili’s impressive same-store sales growth, margin expansion, successful product launches, and significant debt reduction. Despite Maggiano’s slightly lagging performance, the overall financial health and strategic investments position the company well for continued growth.

Brinker International Reports Strong Q4 2025 Results

Brinker International, Inc. is a leading casual dining restaurant company, known for its brands Chili’s Grill & Bar and Maggiano’s Little Italy, operating over 1,600 restaurants worldwide. The company reported strong financial results for the fourth quarter of fiscal 2025, with significant sales growth driven by increased traffic and menu innovation at Chili’s. Key financial highlights include a 21.3% increase in company comparable restaurant sales and a 24% rise in Chili’s sales, contributing to a total revenue of $1,461.9 million for the quarter. The company also improved its operating income margin to 9.8% and reduced its funded debt by $90 million. Looking ahead, Brinker International is optimistic about fiscal 2026, projecting total revenues between $5.60 billion and $5.70 billion, with continued focus on sales growth and strategic investments.

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.

The most recent analyst rating on (EAT) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on Brinker International stock, see the EAT Stock Forecast page.