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Brinker International Inc (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Brinker International Inc

Brinker International (Brinker) owns, operates and franchises various restaurant brands. Brinker operates in about 24 countries in the world. The company is headquartered in Dallas, Texas and employs about 100,400 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strongly leveraged restaurant brands
  • Expanding international operations

Weaknesses

  • Labor lawsuit
  • Increasing long term debt
  • Weak profitability

External

Opportunities

  • Sale of Macaroni Grill in 2009
  • Growing number of franchised restaurants to fuel domestic expansion

Threats

  • Economic slowdown in the US
  • Increased minimum wages in the US
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