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NYSE:EAT
This summary was created by AI, based on 5 opinions in the last 12 months.
Brinker International (symbol: EAT) has experienced a significant surge in its stock price following a surprising earnings report for Q3. Investors had anticipated disappointing results due to prior concerns over costs and adverse weather conditions, particularly in January. However, the company reported strong top and bottom line growth, exceeding expectations in same-store sales. Management responded positively by raising their low-end forecast, signaling confidence in future performance. Although the stock trades at a relatively low price-to-earnings ratio of 10x, the current sentiment reflects a cautious outlook on the broader restaurant industry, suggesting that while there may be buying opportunities, it's essential to recognize market trends carefully as commodity prices begin to stabilize and even decline.
US restaurant company with over 1500 stores with the vast majority being Chili’s. Balance sheet problems in 2008 have been fixed and they are now investment grade. Same-store sales was very weak coming out of the financial crisis but have turned positive in the last 6 quarters. A $2.5 billion company and they just gave guidance that they are going to buy back $1 billion of stock and going to pay $300 million in dividends. You’ll get half your money back between now and 2017 and you’ll own more of the business than you do today. Dividend yield of 2.19%.
Main restaurant is Chili's in the US. Have done some good things in turning things around and getting margins up. In the restaurant business you are better to find newer concepts with potential future store growth. Restaurants are going to be pressured over the next few years by rising food and commodity costs. Trades at a steep multiple of 15-16 times earnings.
(A Top Pick March 26/13. Up 12.49%.) Have roughly 1500 restaurants and all but 44 are under the Chili’s brand. This is primarily a capital return to shareholders story. Management intends to buy back $1 billion worth of stock between now and the end of 2017. 2.3% dividend yield.