EAT

Brinker International, Inc.

Consumer


Presented:07/30/2024
Price:$67.74
Cap:$3.01B
Current Price:$89.53
Cap:$4.01B

Presented

Date07/30/2024
Price$67.74
Market Cap$3.01B
Ent Value$4.23B
P/E Ratio20.1x
Book ValueN/A
Div Yield0%
Shares O/S44.49M
Ave Daily Vol1,543,657
Short Int34.12%

Current

Price$89.53
Market Cap$4.01B
Brinker International, Inc. engages in owning, developing, and franchising Chili's Grill and Bar and Maggiano's Little Italy restaurant brands. It operates through the Chili's and Maggiano's segments. The Chili's segment includes the results of company-owned Chili's restaurants in the U.S. and Canada as well as the results from its domestic and international franchise business. The Maggiano's segment refers to the results of company owned Maggiano's restaurants. The company was founded by Larry Lavine on March 13, 1975 and is headquartered in Dallas, TX.

Publicly traded companies mentioned herein: Brinker International Inc (EAT), Chipotle Mexican Grill Inc (CMG), McDonald’s Corp (MCD), Starbucks Corp (SBUX)

Highlights

The presenter is generally cautious on restaurants but is long shares of Brinker International Inc (EAT), which operates >1,600 restaurants across its Chili’s (1,566 locations) and Maggiano’s (52 locations) concepts, as well as its online brand It’s Just Wings. EAT is largely driven by the Chili’s brand, which has revamped its menu this year and accelerated its comp growth trend. The Street expects comp growth to decelerate to the LSD% range in the short term, whereas the presenter expects the improved trend to last longer and models 5% – 7% comp growth for at least the next year. His base case implies EPS growth from $4.15 in FY2024 (ended June 2024) to $5.20 next year (vs. consensus $4.61). The stock currently trades at $67 per share (8x consensus forward EBITDA, 15x consensus forward EPS), and he expects 20% – 25% upside from the earnings growth with incremental upside based on multiple expansion.

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Idea Discussion

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