Brinker Story

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EAT -- USA Stock  

USD 70.80  1.61  2.22%

Brinker International is scheduled to announce its earnings today. The next fiscal quarter end is expected on the 31st of March 2021. As many millenniums are trying to avoid consumer cyclical space, it makes sense to review Brinker International a little further and try to understand its current market patterns. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over three weeks ago
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Will Brinker (NYSE:EAT) institutional investors stop to exit in March?
The company has 2.17 B in debt. Brinker International has a current ratio of 0.5, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. On a scale of 0 to 100, Brinker International holds a performance score of 8. The firm shows a Beta (market volatility) of -0.1159, which signifies not very significant fluctuations relative to the market. Let's try to break down what Brinker's beta means in this case. As returns on the market increase, returns on owning Brinker International are expected to decrease at a much lower rate. During the bear market, Brinker International is likely to outperform the market. Although it is vital to follow Brinker International historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Brinker International technical indicators, you can presently evaluate if the expected return of 0.45% will be sustainable into the future. Please makes use of Brinker International information ratio, as well as the relationship between the potential upside and kurtosis to make a quick decision on whether Brinker International price patterns will revert.
Brinker International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Brinker International, including all of Brinker International's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Brinker International assets, the company is considered highly leveraged. Understanding the composition and structure of overall Brinker International debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Brinker Total Liabilities

Brinker International liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Brinker International has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Brinker International balance sheet include debt obligations and money owed to different Brinker International vendors, workers, and loan providers. Below is the chart of Brinker short long-term liabilities accounts currently reported on its balance sheet.
You can use Brinker International financial leverage analysis tool to get a better grip on understanding its financial position

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

A Deeper Perspective On Brinker International

The entity reported the last year's revenue of 2.92 B. Total Income to common stockholders was 4.3 M with profit before taxes, overhead, and interest of 408.6 M.

Liabilities Breakdown

487.2 M
Current Liabilities
1.1 B
Long-Term Liabilities
Total Liabilities1.54 Billion
Current Liabilities487.24 Million
Long-Term Liabilities1.05 Billion
Tax Liabilities19.08 Million

Analysis of Brinker International

Newest expected short fall is at -2.79. As of the 1st of February, Brinker International shows the Downside Deviation of 3.54, risk adjusted performance of 0.1371, and Mean Deviation of 2.69. Brinker International technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect data for nineteen technical drivers for Brinker International, which can be compared to its rivals. Please confirm Brinker International information ratio, as well as the relationship between the potential upside and kurtosis to decide if Brinker International is priced correctly, providing market reflects its regular price of 58.88 per share. Given that Brinker International has jensen alpha of 0.5182, we suggest you to validate Brinker International's prevailing market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Brinker International Investment

Whereas some firms under the restaurants industry are still a bit expensive, Brinker International may offer a potential longer-term growth to private investors. While some private investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Brinker International.

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 Vlad Skutelnik 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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