Owns and operates casual dining restaurants. Franchises Chili's Grill & Bar restaurants. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 11% a year over the last 4 years. Every year shown ended in profit.
The gap is $1.6B. In times of high interest rates, a gap like that can squeeze a company.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
Clearly below the class average.
Sales are growing strongly for its sector.
The stock has been running stronger than the market lately.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 16% below its peak. The market has trimmed its expectations for the company.
Over the last 4 years, sales grew about 11% a year on average.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 40/100.
As the slice kept from each sale thins out, so does the profit.
On our five-subject report card, EAT sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: EAT is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (40/100) says the stock isn’t cheap.