Fact based stock research
Brinker (NYSE:EAT)

US1096411004

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Brinker stock research in summary

brinker.com

ANALYSIS: With an Obermatt Combined Rank of 54 (better than 54% compared with investment alternatives), Brinker (Restaurants, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Brinker are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives), show above-average growth (Growth Rank of 65) but are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 54, is a buy recommendation based on Brinker's financial characteristics. As the company Brinker's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 85) and above-average growth (Obermatt Growth Rank of 65), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 12) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	USA
Industry	Restaurants
Index	Dividends USA
Size class	X-Large

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Brinker

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	99	86	n/a
GROWTH
GROWTH	72	5	61	n/a
SAFETY
SAFETY	7	12	16	n/a
SENTIMENT
SENTIMENT	n/a	56	58	^new
360° VIEW
360° VIEW	n/a	27	59	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Brinker is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	99	86	n/a
GROWTH
GROWTH	72	5	61	n/a
SAFETY
SAFETY	7	12	16	n/a
COMBINED
COMBINED	33	24	59	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Brinker the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 85 (better than 85% compared with alternatives) for 2025, Brinker shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Brinker. Price-to-Sales (P/S) is 88, which means that the stock price compared with what market professionals expect for future sales is lower than for 88% of comparable companies, indicating a good value regarding Brinker's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 84% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 95. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Brinker (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 85, is a buy recommendation based on Brinker's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	80	93	85	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	93	97	90	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	81	97	n/a
DIVIDEND YIELD
DIVIDEND YIELD	1	72	1	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	99	86	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Brinker; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Brinker shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Brinker. Profit Growth has a rank of 62 which means that currently professionals expect the company to grow its profits more than 62% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 55, and Stock Returns has a rank of 69 which means that the stock returns have recently been above 69% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 39 (61% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	78	17	39	n/a
PROFIT GROWTH
PROFIT GROWTH	27	22	60	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	15	49	n/a
STOCK RETURNS
STOCK RETURNS	28	5	67	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	72	5	61	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Brinker.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 12 (better than 12% compared with alternatives), the company Brinker has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Brinker is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Brinker. Liquidity is at 44, meaning that the company generates less profit to service its debt than 56% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 18, meaning the company has an above-average debt-to-equity ratio. It has more debt than 82% of its competitors. Finally, Refinancing is at a rank of 18 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 12 (worse than 88% compared with alternatives), Brinker has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Brinker because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	12	20	n/a
REFINANCING
REFINANCING	6	10	16	n/a
LIQUIDITY
LIQUIDITY	33	78	50	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	7	12	16	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Brinker and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	35	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	54	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	72	78	^new
MARKET PULSE
MARKET PULSE	n/a	42	71	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	56	58	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Brinker.
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