Brinker International, Inc. (EAT) vs Wingstop Inc. (WING)

Brinker International, Inc. and Wingstop Inc. are both Restaurants companies. Brinker International, Inc. is the larger, with a market value of $8.0B against $3.2B — 2.5× the size. Brinker International, Inc. trades at the lower P/E: 17.3× against 28.7×. Brinker International, Inc. grew revenue faster over the last twelve months: 7.86% against 7.61%. Wingstop Inc. has the higher net margin (16.2% vs 8.39%) and the lower return on invested capital (44.2% vs 51.4%). Across the 21 metrics below, Brinker International, Inc. leads on 12 and Wingstop Inc. on 9.

Valuation

Metric EAT WING Restaurants median
P/E 17.33 28.68 22.77
P/S 1.46 4.58 0.97
P/B 19.05 n/m 2.05
Price to free cash flow 15.15 25.71 20.13
EV/EBITDA 10.46 18.92 10.83
EV/Sales 1.51 6.06 1.41
Earnings yield 5.77% 3.49% 2.33%
Free cash flow yield 6.60% 3.89% 3.89%

Profitability

Metric EAT WING Restaurants median
Gross margin 18.65% 86.32% 38.77%
Operating margin 10.67% 27.87% 4.30%
Net margin 8.39% 16.15% 1.85%
Free cash flow margin 9.61% 17.83% 3.12%
Return on equity 119.57% (15.96%) 3.72%
Return on assets 17.73% 17.04% 1.50%
Return on invested capital 51.43% 44.17% 3.14%

Growth

Metric EAT WING Restaurants median
Revenue growth (TTM) 7.86% 7.61% 5.66%
EPS growth (last fiscal year) 30.65% 67.84% (7.75%)
Revenue growth, 5-year CAGR 11.71% 22.87% 10.57%
Net income growth, 5-year CAGR 29.91% 49.54% 0.00%

Health

Metric EAT WING Restaurants median
Debt to equity 0.95 (1.57) 0.10
Current ratio 0.45 2.97 0.81
Net debt to EBITDA 0.37 4.75 0.43

Dividend

Metric EAT WING Restaurants median
Dividend yield — 1.01% 2.18%
Payout ratio — 0.29 0.44

Size

Metric EAT WING Restaurants median
Market cap 7.97b 3.23b 488.15m

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