Is Brinker International, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Brinker International, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued given its strong financial metrics, including a P/E ratio of 31, a PEG ratio of 0.29, and an impressive ROE of 147.98%. In comparison to peers, Brinker has a lower P/E ratio than Texas Roadhouse, Inc. at 24.79 and Aramark at 31.90, suggesting it may be undervalued relative to its competitors.
Despite a recent decline in stock performance over the past month, where Brinker returned -11.44% compared to the S&P 500's 0.96%, the longer-term outlook is more positive, with a 1-year return of 43.17% versus the S&P 500's 14.08%. This indicates that while there may be short-term volatility, the company's strong fundamentals suggest a promising future.