📊 EAT Key Takeaways
Is Brinker International, Inc. (EAT) a Good Investment?
Brinker International demonstrates strong operational momentum with 21.9% revenue growth and exceptional 146.7% net income growth, indicating significant operational leverage and margin expansion. The company generates robust free cash flow of $217.4M (7.8% FCF margin) with healthy interest coverage of 13.5x, providing financial flexibility despite elevated leverage.
Brinker International shows strong fundamental momentum, with revenue up 21.9%, net income up 146.7%, and diluted EPS up 144.7%, indicating that growth is translating into materially higher profitability. Operating margin of 10.2%, free cash flow of $217.4M, and interest coverage of 13.5x support good earnings quality, but the very low cash balance and weak current ratio keep the balance sheet from looking fully robust.
Why Buy Brinker International, Inc. Stock? EAT Key Strengths
- Exceptional net income growth of 146.7% YoY with operating leverage demonstrated by 10.2% operating margin
- Strong free cash flow generation of $217.4M covering capital expenditures 1.8x over, enabling debt reduction and shareholder returns
- Healthy interest coverage ratio of 13.5x demonstrates ability to service debt obligations despite elevated leverage
- Double-digit revenue growth (21.9% YoY) indicates successful same-store sales growth and/or expansion strategy
- Strong top-line and bottom-line growth, with revenue, net income, and EPS all rising sharply year over year
- Solid profitability profile, including 10.2% operating margin and 8.1% net margin
- Healthy cash generation, with $339.7M in operating cash flow and $217.4M in free cash flow
EAT Stock Risks: Brinker International, Inc. Investment Risks
- Critically weak liquidity position with current ratio of 0.36x and quick ratio of 0.31x indicating potential short-term operational strain
- Elevated leverage with debt-to-equity ratio of 1.19x and long-term debt of $451.3M against equity base of $379.3M creates refinancing risk
- Heavily asset-light balance sheet with low cash position ($15M) relative to debt obligations limits financial flexibility and cushion for downturns
- High insider trading activity (20 Form 4 filings in 90 days) warrants monitoring for potential insider confidence signals or compensation-related dilution
- Very weak liquidity, with a 0.36x current ratio, 0.31x quick ratio, and only $15.0M in cash
- High ROE of 60.1% is partly driven by a relatively small equity base, which can overstate underlying financial strength
- Restaurant demand and margins can be vulnerable to consumer spending pressure, labor inflation, and food cost volatility
Key Metrics to Watch
- Operating cash flow trend relative to revenue growth - ensure OCF expansion sustains above $300M
- Current and quick ratios - monitor for improvement toward 1.0x+ levels through debt reduction or working capital management
- Debt-to-equity ratio progression - track whether strong FCF is being deployed to deleverage toward 0.8x or lower
- Same-store sales growth - validate whether 21.9% revenue growth is sustainable or benefiting from temporarily favorable comparisons
- Free cash flow conversion and operating cash flow consistency
- Liquidity improvement, especially cash balance and current ratio
Brinker International, Inc. (EAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EAT Profit Margin, ROE & Profitability Analysis
EAT vs Consumer Sector: How Brinker International, Inc. Compares
How Brinker International, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Brinker International, Inc. Stock Overvalued? EAT Valuation Analysis 2026
Based on fundamental analysis, Brinker International, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Brinker International, Inc. Balance Sheet: EAT Debt, Cash & Liquidity
EAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Brinker International, Inc.'s revenue has grown significantly by 61% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.28 reflects profitable operations.
EAT Revenue Growth, EPS Growth & YoY Performance
EAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.4B | $38.5M | $2.61 |
| Q1 2026 | $1.1B | $38.5M | $0.84 |
| Q3 2025 | $1.1B | $7.2M | $1.08 |
| Q2 2025 | $1.1B | $7.2M | $0.94 |
| Q1 2025 | $1.0B | $7.2M | $0.16 |
| Q3 2024 | $1.1B | $7.2M | $1.08 |
| Q2 2024 | $1.0B | -$2.3M | $-0.05 |
| Q1 2024 | $955.5M | $7.2M | $0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Brinker International, Inc. Dividends, Buybacks & Capital Allocation
EAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Brinker International, Inc. (CIK: 0000703351)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EAT
What is the AI rating for EAT?
Brinker International, Inc. (EAT) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EAT's key strengths?
Claude: Exceptional net income growth of 146.7% YoY with operating leverage demonstrated by 10.2% operating margin. Strong free cash flow generation of $217.4M covering capital expenditures 1.8x over, enabling debt reduction and shareholder returns. ChatGPT: Strong top-line and bottom-line growth, with revenue, net income, and EPS all rising sharply year over year. Solid profitability profile, including 10.2% operating margin and 8.1% net margin.
What are the risks of investing in EAT?
Claude: Critically weak liquidity position with current ratio of 0.36x and quick ratio of 0.31x indicating potential short-term operational strain. Elevated leverage with debt-to-equity ratio of 1.19x and long-term debt of $451.3M against equity base of $379.3M creates refinancing risk. ChatGPT: Very weak liquidity, with a 0.36x current ratio, 0.31x quick ratio, and only $15.0M in cash. High ROE of 60.1% is partly driven by a relatively small equity base, which can overstate underlying financial strength.
What is EAT's revenue and growth?
Brinker International, Inc. reported revenue of $2.8B.
Does EAT pay dividends?
Brinker International, Inc. does not currently pay dividends.
Where can I find EAT SEC filings?
Official SEC filings for Brinker International, Inc. (CIK: 0000703351) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EAT's EPS?
Brinker International, Inc. has a diluted EPS of $5.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EAT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Brinker International, Inc. has a BUY rating with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EAT stock overvalued or undervalued?
Valuation metrics for EAT: ROE of 60.1% (sector avg: 18%), net margin of 8.1% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy EAT stock in 2026?
Our dual AI analysis gives Brinker International, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is EAT's free cash flow?
Brinker International, Inc.'s operating cash flow is $339.7M, with capital expenditures of $122.3M. FCF margin is 7.8%.
How does EAT compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 8.1% (avg: 8%), ROE 60.1% (avg: 18%), current ratio 0.36 (avg: 1.5).
Why is EAT's return on equity (ROE) so high?
Brinker International, Inc. has a return on equity of 60.1%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 8.1% net margin.