Is Brinker International, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Brinker International, Inc. has moved from very attractive to attractive, indicating a shift in perception of its value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 31, a Price to Book Value of 45.96, and an EV to EBITDA of 18.07. In comparison, Texas Roadhouse, Inc. has a P/E of 24.79 and an EV to EBITDA of 14.80, while the Wendy's Co. shows a more attractive P/E of 21.98, suggesting that Brinker may not be the best value in its peer group.
Despite a strong three-year return of 256.59%, which significantly outperformed the S&P 500's 76.66%, recent performance has been lackluster, with a year-to-date return of -20.59% compared to the S&P 500's 16.30%. This divergence in performance further reinforces the notion that Brinker International, Inc. is currently overvalued.