Brinker Story

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EAT -- USA Stock  

USD 68.58  0.14  0.20%

While some of us are excited about consumer cyclical space, we will evaluate how stable are Brinker International and Darden Restaurants fundamentals. We are going to break down some of the competitive aspects of both Brinker and Darden.
Published over a month ago
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Will Darden Restaurants and Brinker (NYSE:EAT) make up?
By analyzing existing forward-looking signals between Brinker International and Darden, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Darden with a short position in Brinker International. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Brinker International has an asset utilization ratio of 207.74 percent. This implies that the company is making $2.08 for each dollar of assets. An increasing asset utilization means that Brinker International is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Brinker or Chipotle is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Brinker International dividends

A dividend is the distribution of a portion of Brinker International earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Brinker International dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Brinker one year expected dividend income is about $0.63 per share.
Brinker International Dividend Yield is comparatively stable at the moment as compared to the past year. Brinker International reported Dividend Yield of 0.033 in 2020. Dividends per Basic Common Share is likely to gain to 0.48 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (37.2 M) in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-34.4 M-37.2 M
Dividend Yield 0.033  0.0342 
Dividends per Basic Common Share 0.47  0.48 
Investing in stocks that pay dividends, such as stock of Brinker International, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Brinker International must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Brinker International. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Brinker International's Liquidity

Brinker International financial leverage refers to using borrowed capital as a funding source to finance Brinker International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Brinker International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Brinker International's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Brinker International, but it might be worth checking our own buy vs. sell analysis

Correlation Between Brinker and Chipotle Mexican Grill

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Brinker International together with similar or unrelated positions with a negative correlation. For example, you can also add Chipotle Mexican to your portfolio. If Chipotle Mexican is not perfectly correlated to Brinker International it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Brinker International for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between EAT and CMG for more information.

Note

Are you currently holding both Brinker International and Chipotle Mexican in your portfolio?
Please note if you are using this as a pair-trade strategy between Brinker International and Chipotle Mexican, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective On Brinker International

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Brinker International revenue. Based on the latest financial disclosure, Brinker International reported 3.03 B of revenue. This is 57.5% lower than that of the Consumer Cyclical sector and 17.36% higher than that of the Restaurants industry. The revenue for all United States stocks is 67.89% higher than that of Brinker International. As for Darden Restaurants we see revenue of 6.8 B, which is 163.37% higher than that of the Restaurants

Brinker3.03 Billion
Sector2.58 Billion
Darden6.8 Billion
B
Brinker
2.6 B
Sector
6.8 B
Darden

Brinker technical analysis implies possible reversion

Newest kurtosis is at 0.27. Brinker International currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.55. However, we do advice investors to further question Brinker International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on Brinker International

Whereas some other firms under the restaurants industry are still a bit expensive, Brinker International may offer a potential longer-term growth to private investors. To conclude, as of the 26th of January 2021, we believe that at this point, Brinker International is very steady with low chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our primary 30 days buy vs. sell advice on the firm is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Brinker International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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