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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on EAT

Brinker International faces short-term headwinds, including margin pressures and tough comparisons, but maintains its FY2026 EPS guidance, indicating expected revenue and earnings growth. The company's valuation is deeply discounted versus historical averages and sector peers, reflecting macro pressures rather than structural issues. Institutional investors, such as American Century Companies Inc. and Aviva PLC, have recently acquired stakes in the company. Brinker International's turnaround efforts, driven by operational efficiency, menu simplification, and technology upgrades, have been impressive, positioning Chili's as a top competitor in casual dining.

1.c. Company Highlights

2. Brinker International's Q1 FY2026 Earnings: A Strong Performance

Brinker International reported a robust financial performance in Q1 FY2026, with total revenues reaching $1.35 billion, an 18.5% increase over the prior year. The company's consolidated same-store sales growth was 18.8%, driven by Chili's exceptional performance. Adjusted diluted EPS for the quarter was $1.93, surpassing estimates of $1.76. The adjusted EBITDA was approximately $172.4 million, a 54.4% increase from the prior year.

Publication Date: Nov -03

📋 Highlights
  • Chili's Same-Store Sales Surge:: 21.4% growth (vs. 1.4% industry), driven by 13% traffic increase and 8 consecutive quarters of outperforming casual dining benchmarks.
  • Ribs Upgrade Success:: 35% sales uplift, significantly boosting profitability and contributing to Chili's value-driven menu momentum.
  • Brinker Revenue Growth:: Total revenue reached $1.35 billion (+18.5 YoY), with consolidated comp sales at +18.8%.
  • Adjusted EBITDA Expansion:: Hit $172.4 million (+54.4% YoY), reflecting strong operational leverage from Chili's performance.
  • Share Repurchase Activity:: $92 million spent under the program in Q1, underscoring disciplined capital allocation and confidence in future cash flows.

Segment Performance

Chili's same-store sales were up 21.4%, outperforming the casual dining industry. The strong result was driven by traffic increases of 13% versus a year ago. In contrast, Maggiano's reported comp sales for the quarter of negative 6.4%. The brand is focused on stabilizing and improving the business utilizing its new "Back to Maggiano's" strategy.

Operational Highlights

The company's strong free cash flow provides sufficient liquidity to maintain its disciplined capital allocation strategy. Brinker repurchased $92 million of common stock under its share repurchase program. The company remains confident in its ability to lap its high sales comparisons this fiscal and continue to outperform the industry on sales and traffic at Chili's.

Guidance and Outlook

The company's guidance for fiscal 2026 remains unchanged, with expectations for higher tariffs on commodities, along with higher inflation in workers' comp and health insurance claims. Brinker expects same-store sales to normalize in the mid-single-digit range for the balance of the fiscal year. Restaurant level margin expansion is expected to be flat to slightly positive.

Valuation

With a P/E Ratio of 10.94 and an EV/EBITDA of 8.21, Brinker's valuation appears reasonable. The company's ROE is 160.72%, indicating strong profitability. Analysts estimate next year's revenue growth at 6.8%, which is slightly higher than the current P/S Ratio of 0.86. The Free Cash Flow Yield is 10.94%, suggesting a decent return for investors.

3. NewsRoom

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Fisher Asset Management LLC Lowers Position in Brinker International, Inc. $EAT

Dec -03

Source: defenseworld.net

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Brinker International, Inc. $EAT Shares Bought by Arrowstreet Capital Limited Partnership

Dec -03

Source: defenseworld.net

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Brinker International's Impressive Turnaround Gives Confidence In An Uncertain Future

Nov -28

Source: seekingalpha.com

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Brinker International: Durable Traffic Gains, Margin Leverage, And A Reasonable Valuation

Nov -28

Source: seekingalpha.com

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American Century Companies Inc. Acquires 206,764 Shares of Brinker International, Inc. $EAT

Nov -26

Source: defenseworld.net

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Cramer's Stop Trading: Brinker International

Nov -25

Source: youtube.com

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Alberta Investment Management Corp Takes Position in Brinker International, Inc. $EAT

Nov -17

Source: defenseworld.net

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3,000 Shares in Brinker International, Inc. $EAT Purchased by Aviva PLC

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.85%)

6. Segments

Chili's

Expected Growth: 2.8%

Chili's 2.8% growth driven by effective menu engineering, successful marketing campaigns, and strategic pricing. Additionally, investments in digital transformation, including online ordering and mobile payments, have enhanced the customer experience. Furthermore, the brand's focus on off-premise sales and third-party delivery partnerships has expanded its reach and convenience.

Maggiano's

Expected Growth: 3.2%

Maggiano's 3.2% growth driven by increased off-premise sales, menu innovation, and effective marketing strategies. Additionally, focus on digital transformation, including online ordering and delivery, has contributed to the growth. Furthermore, the brand's upscale casual dining experience and loyalty program have helped to attract and retain customers, resulting in increased sales and revenue.

7. Detailed Products

Chili's

Casual dining restaurant chain serving American-style Tex-Mex cuisine

Maggiano's Little Italy

Upscale casual dining restaurant chain serving Italian-American cuisine

On The Border Mexican Grill & Cantina

Casual dining restaurant chain serving Mexican-inspired cuisine

It's Just Wings

Virtual wing brand offering a variety of wing flavors and sauces

8. Brinker International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Brinker International, Inc. faces moderate threat from substitutes as consumers have various options for dining out, including fast-food chains, casual dining, and fine dining restaurants.

Bargaining Power Of Customers

Brinker International, Inc. has a high bargaining power of customers due to the presence of many alternatives, making it easy for customers to switch to competitors.

Bargaining Power Of Suppliers

Brinker International, Inc. has a low bargaining power of suppliers due to its large scale of operations, which gives it negotiating power over suppliers.

Threat Of New Entrants

Brinker International, Inc. faces a low threat of new entrants due to the high barriers to entry, including high startup costs and regulatory hurdles.

Intensity Of Rivalry

Brinker International, Inc. operates in a highly competitive industry, with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 104.94%
Debt Cost 3.95%
Equity Weight -4.94%
Equity Cost 16.11%
WACC 3.34%
Leverage -2122.38%

11. Quality Control: Brinker International, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Darden

A-Score: 6.3/10

Value: 3.9

Growth: 6.0

Quality: 5.2

Yield: 6.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Wendy's

A-Score: 5.6/10

Value: 6.3

Growth: 5.9

Quality: 4.8

Yield: 9.0

Momentum: 0.0

Volatility: 7.3

1-Year Total Return ->

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Domino's Pizza

A-Score: 5.5/10

Value: 4.4

Growth: 6.3

Quality: 6.0

Yield: 3.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Texas Roadhouse

A-Score: 5.5/10

Value: 2.6

Growth: 8.2

Quality: 5.7

Yield: 4.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Brinker

A-Score: 5.3/10

Value: 5.8

Growth: 8.0

Quality: 5.4

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Wingstop

A-Score: 4.2/10

Value: 2.5

Growth: 9.4

Quality: 6.3

Yield: 2.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

140.45$

Current Price

140.45$

Potential

-0.00%

Expected Cash-Flows