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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Brinker International Inc. To summarize, we found that Brinker International Inc ranked in the 22th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 67.5%. In terms of the factors that were most noteworthy in this DCF analysis for EAT, they are:
The compound growth rate in the free cash flow of Brinker International Inc over the past 5.56 years is -0.07%; that's better than only 20.82% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
42% of the company's capital comes from equity, which is greater than just 21.46% of stocks in our cash flow based forecasting set.
Brinker International Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Brinker International Inc? See JW.A, RICK, ROL, YUM, and DNKN.
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