Company Overview
Brinker International, Inc. owns, develops, operates, and franchises casual dining restaurants across the United States and internationally, with its portfolio centered on Chili's Grill & Bar and Maggiano's Little Italy brands. The company operates within the Consumer Cyclical sector and the Restaurants industry, positioning it as a beneficiary of discretionary consumer spending patterns that fluctuate with economic conditions. With a market capitalization of $6.43B and annual revenue of $5.69B, Brinker International manages a substantial enterprise supported by a workforce of 83,840 employees. These valuation and revenue figures indicate that the company maintains a significant footprint in the casual dining landscape, reflecting its ability to generate substantial top-line revenue and sustain a large-scale operational structure.
Financial Health
The company reported revenue of $5.69B and net income of $454.10M for the trailing twelve months, while EBITDA reached $809.90M, highlighting a significant gap between total revenue and net profit that reveals a substantial cost structure comprising operating expenses, taxes, and interest. Free cash flow stood at $303.48M, which indicates the company generates sufficient internal cash to cover capital expenditures and potentially fund operations or strategic initiatives without relying solely on external financing. The gross margin is 18.7%, reflecting the cost of goods sold relative to sales, while the operating margin of 11.6% demonstrates efficiency in managing overhead and administrative costs, and the profit margin of 8.0% shows the final profitability after all expenses are deducted. The balance sheet shows $15.00M in cash against $1.76B in debt, resulting in a debt-to-equity ratio of 464.88, which characterizes a highly leveraged financial position where debt obligations significantly outweigh liquid assets. The current ratio of 0.36 indicates that current assets are less than current liabilities, suggesting potential constraints in meeting short-term obligations with liquid resources. Return on Equity is 177.8% and Return on Assets is 13.9%, metrics that reveal high management effectiveness in generating returns on shareholder capital and utilizing the asset base to produce earnings despite the leveraged structure.
Valuation Assessment
The trailing twelve-month P/E ratio is 14.59, while the forward P/E is 11.75, implying that the market expects earnings growth to be higher than historical performance or that current earnings are elevated relative to future expectations. The price-to-book ratio stands at 16.60, indicating a significant market premium over the company's book value, which suggests investors are pricing in growth potential or brand intangibles beyond the tangible asset base. The price-to-sales ratio is 1.13 and the EV/EBITDA is 9.94, providing alternative valuation perspectives that suggest the company is trading at a moderate multiple relative to its sales and earnings power. The 52-week high is $187.12 and the 52-week low is $100.30, placing the current trading range within a broad spectrum where the stock has demonstrated significant volatility over the past year. The beta value is 1.36, which indicates that the stock price is more volatile than the broader market, moving 36% more than the market index on average during periods of fluctuation.
Growth & Income
Revenue growth year-over-year is 6.9% and earnings growth year-over-year is 9.6%, indicating that earnings are expanding at a faster pace than revenue, which implies improved operational leverage or margin expansion rather than pure volume growth. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company reinvests its earnings into business operations, debt reduction, or share repurchases rather than distributing cash to shareholders. This non-dividend strategy aligns with the company's high debt load and leveraged balance sheet, prioritizing capital preservation and growth initiatives over income distribution. Overall, the growth and income profile is characterized by moderate top-line expansion and accelerating earnings growth without the support of a current dividend yield.