Brinker International vs Texas Roadhouse
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KIRA’s take AI analyst
I put Brinker International and Texas Roadhouse side by side, using each one’s latest annual report. Here is what stands out:
- Texas Roadhouse is the larger business, with $5.9B of revenue in fiscal 2025 against $5.8B for Brinker International.
- Texas Roadhouse grew revenue faster (9.4%, against 7.9%).
- Brinker International kept more of each dollar of sales as operating profit (10.7% operating margin, against 8.1%).
- Brinker International turned more of its sales into free cash flow (9.6% FCF margin, against 5.8%).
- Brinker International earned a higher return on the capital invested in it (66.0%, against 33.0%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Brinker International
EAT
7/10
Operating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Texas Roadhouse
TXRH
3/10
Revenue growth5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | EAT FY26 | TXRH FY25 |
|---|---|---|
| Size | ||
| Market cap | $8.4B | $10.9B |
| Revenue | $5.8B | $5.9B |
| Free cash flow | $558M | $342M |
| Net income | $487M | $414M |
| Growth | ||
| Revenue growth | 7.9% | 9.4% |
| 5-year growth | 11.7% | 19.6% |
| Share count change | −2.8% | −0.8% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 10.7% | 8.1% |
| Net margin | 8.4% | 7.1% |
| FCF margin | 9.6% | 5.8% |
| Return on capital | 66.0% | 33.0% |
| Return on equity | 119.6% | 29.4% |
| Balance sheet | ||
| Net debt | $335M | −$132M |
| Net debt / EBITDA | 0.4x | −0.2x |
| Dividends and buybacks | $444M | $331M |
| Valuation & quality | ||
| P/E | — | 26.5x |
| Piotroski F-score | 8 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.