Brinker International, Inc. (EAT) vs Texas Roadhouse, Inc. (TXRH)

Brinker International, Inc. and Texas Roadhouse, Inc. are both Restaurants companies. Texas Roadhouse, Inc. is the larger, with a market value of $10.6B against $8.6B — 1.2× the size. Brinker International, Inc. trades at the lower P/E: 18.5× against 25.5×. Texas Roadhouse, Inc. grew revenue faster over the last twelve months: 9.89% against 7.86%. Brinker International, Inc. has the higher net margin (8.39% vs 6.63%) and the higher return on invested capital (51.4% vs 21.1%). Across the 22 metrics below, Brinker International, Inc. leads on 15 and Texas Roadhouse, Inc. on 7.

Valuation

Metric EAT TXRH Restaurants median
P/E 18.48 25.50 22.14
P/S 1.55 1.68 0.91
P/B 20.32 6.64 2.01
Price to free cash flow 16.16 23.96 19.41
EV/EBITDA 11.27 14.70 11.48
EV/Sales 1.63 1.66 1.20
Earnings yield 5.41% 3.92% 2.30%
Free cash flow yield 6.19% 4.17% 3.92%

Profitability

Metric EAT TXRH Restaurants median
Gross margin 18.65% 15.69% 38.77%
Operating margin 10.67% 7.75% 4.30%
Net margin 8.39% 6.63% 1.85%
Free cash flow margin 9.61% 7.02% 3.12%
Return on equity 119.57% 27.13% 3.07%
Return on assets 17.73% 11.93% 1.50%
Return on invested capital 51.43% 21.14% 3.14%

Growth

Metric EAT TXRH Restaurants median
Revenue growth (TTM) 7.86% 9.89% 5.16%
EPS growth (last fiscal year) 30.65% (5.72%) —
Revenue growth, 5-year CAGR 11.71% 19.64% 10.57%
Net income growth, 5-year CAGR 29.91% 66.97% 0.00%

Health

Metric EAT TXRH Restaurants median
Debt to equity 0.95 0.03 0.10
Current ratio 0.45 0.46 0.81
Net debt to EBITDA 0.37 (0.20) 0.43

Dividend

Metric EAT TXRH Restaurants median
Dividend yield — 1.62% 2.32%
Payout ratio 0.00 0.47 0.00

Size

Metric EAT TXRH Restaurants median
Market cap 8.63b 10.60b 482.66m

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