Brinker International’s Stock Performance Triples over Five Years

Stock performance

Brinker International’s (EAT) stock performance has grown almost three times to $60 levels from $19 levels five years ago, returning ~200% on investment in the stock. This is a 25% compounded annual growth rate. Over the five-year period, the earnings per share (or EPS) have grown 126%, from $1.21 to $2.73 in 2014.

 Brinker International’s Stock Performance Triples over Five Years

Darden Restaurants (DRI) has a profile of restaurants that’s very similar to Brinker International’s. Darden’s brands include Olive Garden and LongHorn Steakhouse. Over the same five-year period, Darden returned 80%. Texas Roadhouse (TXRH) returned 185%, and Bloomin’ Brands (BLMN), which was listed in 2012, returned 126%.

Overview of Brinker International’s second quarter earnings

The following is a summary of Brinker International’s second quarter earnings:

  • Brinker International reported an adjusted EPS of $0.64, which increased 10% year-over-year from $0.58.
  • Revenue grew 5% to $743 million from $705 million year-over-year.
  • Gross margin increased to 19.2% from 18.3% of sales, but net margins remained unchanged at 5.6% year-over-year.

The Consumer Discretionary Select Sector SPDR (XLY) holds about 10% of restaurant stocks. It holds 0.3% of Darden Restaurants and 4% of McDonald’s (MCD).

To find out more about the restaurant industry, you can read Market Realist’s An in-depth overview of the restaurant industry.