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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Brinker International's Sloan Ratio for the quarter that ended in Jun. 2026 was -2.54%.
As of Jun. 2026, Brinker International has a Sloan Ratio of -2.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Brinker International (NYSE:EAT) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Brinker International has a Sloan Ratio of -2.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Brinker International Sloan Ratio % Related Terms
Brinker International Sloan Ratio % Historical Data
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The historical data trend for Brinker International's Sloan Ratio % 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.
EAT vs BROS, CAVA, LKNCY: Sloan Ratio % Comparison
For the Restaurants subindustry, Brinker International's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Brinker International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Brinker International's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Brinker International's Sloan Ratio for the fiscal year that ended in Jun. 2026 is calculated as
Brinker International's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 99.5 (Sep. 2025 ) + 128.5 (Dec. 2025 ) + 127.9 (Mar. 2026 ) + 131.1 (Jun. 2026 ) = $487 Mil.
Brinker International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 120.8 (Sep. 2025 ) + 218.9 (Dec. 2025 ) + 232.1 (Mar. 2026 ) + 217.6 (Jun. 2026 ) = $789 Mil.
Brinker International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -57.9 (Sep. 2025 ) + -63.7 (Dec. 2025 ) + -51.1 (Mar. 2026 ) + -58.3 (Jun. 2026 ) = $-231 Mil.
* 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.
Brinker International (EAT) has a Sloan Ratio % of -2.54% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Brinker International and its competitors.
Is Brinker International's Sloan Ratio % too high?
Brinker International's current Sloan Ratio % is -2.54%. 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 Sloan Ratio % compare to BROS and CAVA?
Brinker International's Sloan Ratio % of -2.54% can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Restaurants company?
A good Sloan Ratio % depends on the Restaurants industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Brinker International and its competitors. Brinker International's current Sloan Ratio % is -2.54%. 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 (EAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $129.03, compared to a current price of $238.10 — trading 84.5% above its estimated fair value. The current Sloan Ratio % is -2.54%. Brinker International's overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Brinker International (EAT), the current Sloan Ratio % is -2.54% as of Jun. 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 (EAT) Overvalued in 2026?
Based on GuruFocus' analysis, Brinker International stock appears to be overvalued.
The current stock price of $238.10 is trading 84.5% above its estimated GF Value™ of $129.03.
GuruFocus considers Brinker International to be Significantly Overvalued.
Key valuation signals for EAT:
Sloan Ratio %: -2.54%
GF Value™: $129.03 vs. price of $238.10 (84.5% above fair value)
No single metric tells the full story. See the EAT 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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