Brinker International, Inc. (EAT) vs Yum China (YUMC)

Brinker International, Inc. and Yum China are both Restaurants companies. Yum China is the larger, with a market value of $13.8B against $8.6B — 1.6× the size. Yum China trades at the lower P/E: 14.8× against 18.5×. Yum China grew revenue faster over the last twelve months: 8.78% against 7.86%. Brinker International, Inc. has the higher net margin (8.39% vs 7.84%) and the higher return on invested capital (51.4% vs 18.0%). Across the 22 metrics below, Yum China leads on 14 and Brinker International, Inc. on 8.

Valuation

Metric EAT YUMC Restaurants median
P/E 18.48 14.77 22.14
P/S 1.55 1.13 0.91
P/B 20.32 2.32 2.01
Price to free cash flow 16.16 14.98 19.41
EV/EBITDA 11.27 6.93 11.48
EV/Sales 1.63 1.03 1.20
Earnings yield 5.41% 6.77% 2.30%
Free cash flow yield 6.19% 6.67% 3.92%

Profitability

Metric EAT YUMC Restaurants median
Gross margin 18.65% 22.02% 38.77%
Operating margin 10.67% 11.11% 4.30%
Net margin 8.39% 7.84% 1.85%
Free cash flow margin 9.61% 7.56% 3.12%
Return on equity 119.57% 15.58% 3.07%
Return on assets 17.73% 8.92% 1.50%
Return on invested capital 51.43% 18.03% 3.14%

Growth

Metric EAT YUMC Restaurants median
Revenue growth (TTM) 7.86% 8.78% 5.16%
EPS growth (last fiscal year) 30.65% 7.73% —
Revenue growth, 5-year CAGR 11.71% 7.38% 10.57%
Net income growth, 5-year CAGR 29.91% 3.45% 0.00%

Health

Metric EAT YUMC Restaurants median
Debt to equity 0.95 0.02 0.10
Current ratio 0.45 0.96 0.81
Net debt to EBITDA 0.37 (0.75) 0.43

Dividend

Metric EAT YUMC Restaurants median
Dividend yield — 1.57% 2.32%
Payout ratio 0.00 0.28 0.00

Size

Metric EAT YUMC Restaurants median
Market cap 8.63b 13.80b 482.66m

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