Brinker International

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Brinker International

• Diane Danon
• Crystal Dunn
• Teodora Farciert
• Priya Patil
• Joseph Rico
• Nadia Yousuf

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Background

• First restaurant was opened in 1975 which was
  renamed to Chilis the following year
  
• In 1983, Norman Brinker, a leader in the
  restaurant industry, bought and took the company
  public in the same year
  
• Brinker is publicly traded on the NYSE under the
  symbol EAT
  
• Currently, Brinker consists of over 1400
  restaurants located in 49 states and 22
  countries
  

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• Aquired by Brinker in September 1983
• Casual full service restaurant offering a variety
  of menu selections
  
• Menu price ranges from 5.79 to 13.99

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• Acquired in November 1989
• Casual Italian restaurant with a wide range of
  Italian dishes prepared in an open kitchen
  
• Menu price ranges from 5.99 to 16.99

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• Acquired by Brinker in August 1995
• 1940s dinner house in New Yorks Little Italy
  theme
  
• Traditional Italian dishes
• Menu price ranges from 6.95 to 32.95

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• Acquired by Brinker in May 1994
• Full service casual restaurant, offers mesquite
  grilled and traditional Tex-Mexican foods
  
• Menu price ranges from 5.49 to 13.99

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• Acquired by Brinker in July 1995
• Casual Mexican restaurant
• Tropical atmosphere
• Menu price ranges from 6.49 to 15.99
• Brinker sold Cozymels in August 2003

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• Acquired by Brinker in August 1995
• Casual bakery café serving breakfast, lunch and
  dinner
  
• Relaxed atmosphere
• Menu prices range from 1.00 to 6.99

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• Acquired by Brinker in February 2001
• Contemporary Asian cuisine
• Menu price ranges from 6.95 to 12.95

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• As of October 2002, Brinker owns 43 ownership
• Serve a variety of seafood
• Menu price ranges from 5.63 to 15.35

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Brinker Restaurant Distribution
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Board of Directors

• Not family owned
• Most of Brinker stock is held by banks and large
  companies, above 95
  
• Board is composed mostly of males, only 3 females

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Market Capitalization

• Brinkers position is 2

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Price Ratios
Overall very WEAK
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Investment Ratios
Overall very STRONG
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HPR Ending price Beginning price
Beginning price
No Dividends
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Free Cash Flow
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Company News
Brinker announced earnings per share of .45 for
the 2nd quarter which ended 12/24/03
WEAK FORM
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Non-Company News
March 4, 2004 - Nations first and only known
case of mad cow disease
CANNOT DECIDE
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Risk Analysis

• Beta COV(REAT, RSP500)
• VAR(RSP500)
• Betaunlevered Equity
  X Beta equity
  Equity (1-Tc) Debt
  

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Capital Asset Pricing Model
DCF CAPM underpriced
.072924 .013767 underpriced

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Cost of Debt
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Cost of Capital
With only 3 years of data, the optimal capital
structure cannot be determined with certainty.
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Capital Structure
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5 Year Price Index
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Analyst Ratings
From the above analyst ratings, it is highly
recommended to hold Brinker stock.
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Conclusion

• Brinker Internationals security is a defensive
  stock, beta 2004 equals .3584
  
• Net income as well as gross profit has risen over
  the past 5 years
  
• Debt to equity is lower than industry
• Suggestion to hold