Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, restaurant operator Brinker International (NYSE:EAT) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Brinker's business, and see what CAPS investors are saying about the stock right now.

Brinker facts

Headquarters (founded)

Dallas, Texas (1977)

Market Cap

$1.12 billion



TTM Revenue

$4.08 billion


CEO Douglas Brooks (since 2004)
CFO Charles Sonsteby (since 2001)

Restaurant Brands

Chili's Bar & Grill, Romano's Macaroni Grill, On The Border Mexican Grill & Cantina, Maggiano's Little Italy

Return on Equity (average, last five years and TTM)

14.2% and (6.3%)


Darden Restaurants (NYSE:DRI),

CAPS members bearish on EAT also bearish on

Citigroup (NYSE:C),
General Motors (NYSE:GM)

CAPS members bullish on EAT also bullish on

Starbucks (NASDAQ:SBUX),
Bank of America (NYSE:BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 47 of the 86 All-Star members who have rated Brinker -- or 61% -- believe the stock will underperform the S&P 500 going forward. These bears include tenmiles and TheHuney, both of whom are ranked in the top 1% of our community.

Late last month, tenmiles cited Brinker's sliding sales, coupled with its surging stock price, as reasons to stay away: "Casual dining approaching upscale price; SSS off across the board 5%-doubt recent move is sustainable."

In a pitch from the same day, TheHuney also decided to pounce on the abovementioned bounce:

This might be foolish since Brinker appears to be slightly undervalued to me based on a DCF analysis, but after the 23% bounce this morning, I'm going to get a little aggressive and call "underperform" on [Brinker]. Dine-in restaurants will continue to suffer throughout '09 and maybe through '10 or longer. This will probably be one of the last industries to recover from a recession since consumers won't start spending more until they feel safe again. Plus, I'm not too hot on Brinker's restaurants --- there are a lot better places to eat out there than Chili's. So even if this thing is probably slightly undervalued, the rest of the market is more undervalued.

What do you think about Brinker, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Bank of America is a former Motley Fool Income Investor recommendation. Starbucks is a Motley Fool Inside Value and Stock Advisor selection, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.