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Brinker’s Performance in the Competitive Market

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Brinker International and its peers

An analysis of Brinker International (EAT) and its peers is as follows:

  • The PE (price-to-earnings) ratios of Brinker, Darden Restaurants (DRI), Buffalo Wild Wings (BWLD), Bloomin’ Brands (BLMN), and DineEquity (DIN) are 15.53x, 27.47x, 38.41x, 23.68x, and 32.65x, respectively.

  • The PS (price-to-sales) ratios of Brinker, Darden, Buffalo Wild Wings, Bloomin’ Brands, and DineEquity are 0.95x, 1.19x, 2.15x, 0.53x, and 2.47x, respectively.

Thus, Brinker’s competitors have outperformed it based on PE and PS.

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ETFs that invest in Brinker

The PowerShares DWA Consumer Cyclicals Momentum ETF (PEZ) invests 2.7% of its holdings in Brinker. The ETF tracks an index of US consumer cyclical companies selected and weighted by price momentum.

The Arrow QVM Equity Factor ETF (QVM) invests 1.8% of its holdings in Brinker. The ETF tracks an index of US-listed stocks selected by quality, value, and momentum screens. About 50 stocks make the cut and receive equal weight in the portfolio.

The iShares Morningstar Small Core ETF (JKJ) invests 0.65% of its holdings in Brinker. The ETF tracks a market-cap–weighted index of US small-cap core stocks. The index selects stocks from 90–97% of market capitalization that fall into Morningstar’s core style categorization.

Compared Brinker and its ETFs

An analysis of Brinker and its ETFs is as follows:

  • The year-to-date price movements of Brinker, PEZ, and JKJ are -17.5%, 6.3%, and -3.2%, respectively.
  • The PE (price-to-earnings) ratios of Brinker, PEZ, QVM, and JKJ are 15.53x, 22.52x, 12.80x, and 29.14x, respectively.

Thus, Brinker’s ETFs have outperformed it based on price movement and PE.

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