Brinker InternationalFRA:BKJ -0.47%78 Gross Margin % is 19.19% as of Mar. 2026, which is 22% above its 10-year median of 15.67. GuruFocus rates FRA:BKJ with a GF Score™ of 78/100 and a GF Value™ of €106.42 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 355 Restaurants companies, Brinker International ranks worse than 86.48% on this metric.
FRA:BKJ's Gross Margin % is ranked worse than 86.48% of 355
companies
in the Restaurants industry
Industry Median: 45.66
vs FRA:BKJ: 18.59
Brinker International had a gross margin of 19.19% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Brinker International was -3.10% per year.
Brinker International (FRA:BKJ) Gross Margin % 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 had a gross margin of 19.19% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Brinker International Gross Margin % Related Terms
Brinker International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Brinker International's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:BKJ vs LKNCY, CAVA, BROS: Gross Margin % Comparison
For the Restaurants subindustry, Brinker International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Brinker International Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Brinker International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Brinker International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
Brinker International (FRA:BKJ) has a Gross Margin % of 19.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Brinker International and its competitors. This is 22% above median its historical median of 15.67. Over the past decade, Brinker International's Gross Margin % has ranged from 12.10 to 19.81. According to the industry distribution chart, Brinker International ranks #307 out of 355 companies in the Restaurants industry, placing it in the top 86.5%.
Is Brinker International's Gross Margin % too high?
Brinker International's current Gross Margin % of 19.19% is 22% above median its 10-year median of 15.67. Over the past 10 years, this metric has ranged from a low of 12.10 to a high of 19.81. The Restaurants industry median Gross Margin % is 45.66. Brinker International's value of 19.19% is 58% below this industry median. Based on the distribution chart, Brinker International ranks #307 out of 355 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Brinker International has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brinker International's Gross Margin % compare to LKNCY and CAVA?
According to the Restaurants industry distribution chart, Brinker International ranks #307 out of 355 companies for Gross Margin %. This places Brinker International in the lower half of its industry. The industry median Gross Margin % is 45.66. Brinker International's value of 19.19% is 58% below this benchmark. Historically, Brinker International's own Gross Margin % has ranged from 12.10 to 19.81 over the past decade. While the company's 10-year median is 15.67 vs. the industry median of 45.66, Brinker International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.66, based on 355 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Brinker International's current Gross Margin % of 19.19% is 58% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Brinker International and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brinker International's current Gross Margin % is 19.19%, which is 22% above median its own 10-year median of 15.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brinker International stock overvalued right now?
Based on GuruFocus' analysis, Brinker International (FRA:BKJ) is currently considered Significantly Overvalued. The stock's GF Value™ is €106.42, compared to a current price of €149.30 — trading 40.3% above its estimated fair value. The current Gross Margin % is 19.19%, which is 22% above median its 10-year median of 15.67 and 58% below the Restaurants industry median of 45.66. Brinker International's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Brinker International (FRA:BKJ), the current Gross Margin % is 19.19% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Brinker International (FRA:BKJ) Overvalued in 2026?
Based on GuruFocus' analysis, Brinker International stock appears to be overvalued.
The current stock price of €149.30 is trading 40.3% above its estimated GF Value™ of €106.42.
GuruFocus considers Brinker International to be Significantly Overvalued.
Key valuation signals for FRA:BKJ:
Gross Margin %: 19.19% (22% above median its 10-year median of 15.67)
GF Value™: €106.42 vs. price of €149.30 (40.3% above fair value)
Industry Position: 58% below the Restaurants median (#307 of 355)
No single metric tells the full story. See the FRA:BKJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
78GF Score
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