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Brinker International Inc  (NYSE:EAT) Gross Profit: $562 Mil (TTM As of Sep. 2017)

Brinker International Inc's gross profit for the three months ended in Sep. 2017 was $113 Mil. Brinker International Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2017 was $562 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Brinker International Inc's gross profit for the three months ended in Sep. 2017 was $113 Mil. Brinker International Inc's Revenue for the three months ended in Sep. 2017 was $739 Mil. Therefore, Brinker International Inc's Gross Margin % for the quarter that ended in Sep. 2017 was 15.23%.

Brinker International Inc had a gross margin of 15.23% for the quarter that ended in Sep. 2017 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin % of Brinker International Inc was 71.65%. The lowest was 15.69%. And the median was 18.50%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Brinker International Inc Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 540.09 559.56 594.68 618.62 568.06

Brinker International Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 118.98 135.68 154.73 158.67 112.59

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Brinker International Inc's Gross Profit for the fiscal year that ended in Jun. 2017 is calculated as

Gross Profit (A: Jun. 2017 )=Revenue - Cost of Goods Sold
=3150.837 - 2582.776
=568

Brinker International Inc's Gross Profit for the quarter that ended in Sep. 2017 is calculated as

Gross Profit (Q: Sep. 2017 )=Revenue - Cost of Goods Sold
=739.39 - 626.801
=113

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2017 was 135.683 (Dec. 2016 ) + 154.734 (Mar. 2017 ) + 158.667 (Jun. 2017 ) + 112.589 (Sep. 2017 ) = $562 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Brinker International Inc's Gross Margin % for the quarter that ended in Sep. 2017 is calculated as

Gross Margin % (Q: Sep. 2017 )=Gross Profit (Q: Sep. 2017 ) / Revenue (Q: Sep. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=113 / 739.39
=15.23 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Brinker International Inc had a gross margin of 15.23% for the quarter that ended in Sep. 2017 => No sustainable competitive advantage


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