Insider Selling: George Felix Unloads $1.87M Of Brinker International Stock

Revealing a significant insider sell on August 27, George Felix, SVP at Brinker International (NYSE:EAT), as per the latest SEC filing.

What Happened: Felix opted to sell 11,769 shares of Brinker International, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $1,873,507.

As of Thursday morning, Brinker International shares are down by 0.0%, currently priced at $156.14.

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.

Understanding the Numbers: Brinker International's Finances

Revenue Growth: Brinker International's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 21.0%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 18.55%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Brinker International's EPS reflects a decline, falling below the industry average with a current EPS of 2.41.

Debt Management: Brinker International's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.57, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 18.77, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.34, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Brinker International's EV/EBITDA ratio at 11.98 suggests potential undervaluation, falling below industry averages.

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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Uncovering the Importance of Insider Activity

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Cracking Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.