New Morningstar Analyst Report for Brinker International, Inc.

After shedding its On the Border concept in 2010, Brinker International, a casual dining restaurant operator, has since focused on growing its Chili's and Maggiano's Little Italy businesses. The firm, which operates nearly 1,600 restaurants and holds a minor stake in Romano's Macaroni Grill, has been keen on growing its franchise business in the past few years, particularly abroad, as it aims to keep operating costs low in a challenging environment for casual diners. While the Chili's brand remains relevant and innovative, we believe low switching costs and minimal barriers to entry in the industry hamper the firm's ability to gain a competitive advantage.