Brinker International (EAT)

Shares surged today by 14% after reporting Q3. Investors were bracing for a disaster, but instead got a good number. January saw bad weather, but February and March were much better. Management raised the low end of their forecast. Shares sold off going into the quarter over cost worries. 

It reported a top and bottom line beat a few days ago, beating same-store sales, and raised its full-year forecast. Is a buying opportunity now.

Trades at only 10x PE, but restaurant stocks are very out of fashion now. You can buy some shares now and wait.

Gas and other commodities had a good run, but the prices are now coming down. If you own, take profits.

They just reported a beat top and bottom line, with a 23.7% same-store sales growth in and a strong forecast. Shares are up 124% the past year.

A long-term turnaround story under a new CEO (three years ago). Same-store sales are rising rapidly with new menu options, and a digital marketing campaign. They own several restaurant brands including Chili's. Not cheap nor expensive, but trades at a market multiple at 19x PE.

They just delivered great numbers: a monster top and bottom line beat, fueled by 31% same-store sales growth, surpassing all expectations. Shares leapt 16% today.

Shares have fallen from its peak in late June by 14%. Now is a good entry point even as peers step up their value offerings in the fast food space.

Have reported several beats, including an earnings beat in late January and raised full-year sales and earnings forecasts. Trades at only 13x PE. Lots of room to run.

Reported Q1: revenues were inline but delivered a monster EPS beat of $0.28 vs. $0.06. Also, they raised their full-year forecast. Caused by adding more menu items and returning to national advertising after a hiatus.

Today, they reported a huge earnings beat as well as revenues and 9.1% same-store sales increase. Shares jumped 4%, but then during the conference call management mentioned higher costs and shares retreated a bit.

(Market Call Minute.)

(Top Pick Jun 25/15, Down 18.16%) It was off in the last 6 months. Oil exposure hurt them because 17% of their restaurants (e.g. Chilli’s) are in Texas. They made a significant change to their loyalty program that hurt foot traffic. They are addressing it. 10% free cash flow yield, 8% share buyback and 2% dividends. He still likes it.

1500 restaurants, Chili’s for example. There is pent up demand because good traffic has not caught up to 2007. You get a 2% dividend and 5-7% of stock bought back each year.

(A Top Pick March 26/13. Up 38.5%.) They own 2 restaurant brands along with a whole bunch of restaurants, 1500 restaurants in total. All but 44 are under the Chillies’ brand.