Brinker International owns, develops, operates, and franchises casual dining restaurants worldwide under the Chili's Grill & Bar brand and Maggiano's Little Italy name. The company was founded in 1975 and is based in Dallas, Texas.
EAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EAT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Brinker International Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Brinker International Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.74 years, is -0.06% -- higher than only 17.51% of stocks in our DCF forecasting set.
49% of the company's capital comes from equity, which is greater than merely 23.05% of stocks in our cash flow based forecasting set.
As a business, Brinker International Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BBW, CARS, GPK, GT, and NWSA can be thought of as valuation peers to EAT, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Brinker International (EAT) is on watch after attracting a pair of Wall Street upgrades. Bank of America moves to a Neutral rating from Underperform on its view the company will outperform in the post-COVID world. "Same store sales have outperformed peers in part due to regional exposure but Chili’s also...
Restaurants are struggling to stay afloat during the coronavirus pandemic. S&P Global Market Intelligence released a report analyzing which restaurant companies are most likely to default on their debt within the next year. Dave & Buster's has the highest odds of default, followed by Outback Steakhouse's parent company Bloomin' Brands and Denny's. Visit Business Insider's homepage for more stories . Restaurants are struggling to stay afloat amid the coronavirus pandemic. Parent companies of Souplantation, Chuck E. Cheese, and California Pizza Kitchen have been forced to file for bankruptcy in recent months. Franchisees for major chains including Subway, IHOP, and Pizza Hut have also filed for bankruptcy, including NPC International — which operates more restaurant locations than any oth...
Brinker International (NYSE: EAT ) shares are trading higher on Wednesday after the company reported better-than-expected fourth-quarter EPS results. The company also issued first-quarter EPS guidance above analyst estimates. Brinker International operates casual dining restaurants under the brands Chili Grill and Bar and Maggiano's Little Italy. Chili's … Full story available on Benzinga.com