Must-know: Brinker International’s year-to-date performance



Brinker International’s year-to-date return

As of October 28, 2014, Brinker International’s (or EAT) year-to-date (or YTD) return was 12.8%—compared to returns of 8.3% on the S&P 500 Index and -2.9% on the casual restaurant segment below.

EAT Comp Analysis 2014-10-28

Brinker International’s comps

Brinker International operates casual dining restaurants. You can learn more about restaurant concepts here. In the above chart, casual restaurants are struggling with YTD returns of -2.9%. The best YTD returns came from Brinker International, followed by DineEquity (DIN) at 4.7%, and Texas Roadhouse (TXRH) at 1.4%. Bloomin’ Brands (BLMN) had the worst YTD returns at -22.6%.

In contrast, if you invested in a broader portfolio—like the Vanguard Total Stock Market (VTI)—you would get a YTD return on investment of 6%. VTI includes the above listed casual dining restaurants.

Price-to-earnings ratio

For Bloomin’ Brands, the next 12 month (or NTM) price-to-earnings (or P/E) is higher. This means that analysts are expecting a decline in earnings per share (or EPS) for the restaurant chain.

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In the above chart, we compare Brinker International with six of its competitors in the casual dining concept. The average P/E for the last twelve months (or LTM)—calculated as the price per share over the LTM EPS—was 21.8x. The NTM P/E was 18.8x. It’s calculated using Wall Street analysts’ NTM EPS estimates in the denominator. This indicates expected EPS growth in the above group of stocks.

At Market Realist, we understand how companies performed compared to their previous results and their peers. We publish earnings overviews every quarter.

You can click the following links to learn more about the restaurant industry. Read more about key indicators for a restaurant industry. You can also read overviews of Chipotle Mexican Grill (CMG), Domino’s Pizza (or DPZ), and Yum! Brands (or YUM).


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