SVP & COO Of Brinker International Makes $1.41M Sale

Making a noteworthy insider sell on February 10, Douglas Comings, SVP & COO at Brinker International EAT, is reported in the latest SEC filing.

What Happened: Comings's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 7,500 shares of Brinker International. The total transaction value is $1,409,250.

Monitoring the market, Brinker International's shares down by 0.58% at $166.89 during Tuesday's morning.

Get to Know Brinker International Better

Brinker International Inc operates casual dining restaurants under the brand's Chili Grill and Bar (Chili's) and Maggiano's Little Italy (Maggiano's). Chili's falls in the Bar and Grill category of casual dining. Its menu features Fresh Mex and Fresh Tex favorites including signature items such as slow-smoked baby back ribs, craft burgers, fajitas, and bottomless chips and salsa paired with tableside guacamole. Maggiano's is an Italian restaurant brand with a full lunch and dinner menu offering chef-prepared, such as appetizers, chicken, seafood, veal and prime steaks, and desserts. The company generates maximum revenue from Chili's segment.

Key Indicators: Brinker International's Financial Health

Positive Revenue Trend: Examining Brinker International's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.45% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.8%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Brinker International's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.67.

Debt Management: Brinker International's debt-to-equity ratio surpasses industry norms, standing at 14.11. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 29.19 is lower than the industry average, implying a discounted valuation for Brinker International's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.6, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 17.28 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Closer Look at Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Brinker International's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.