From Cabot Wealth Advisory 2/29/16 Sign up for Cabot Wealth Advisory—it’s free!
Down 18% over the past year but up 9% in the past quarter, Brinker owns the Chili’s and Maggiano’s restaurant chains. Brinker reported earnings per share of $0.78 in the latest quarter, up 9.9% year over year, but comp sales were down 2.6% for the quarter. However, investors have latched onto management’s announcement that sales improved over the course of the quarter, suggesting a better quarter ahead. Sales are still struggling in Texas and Louisiana, two of the company’s major markets, due to low oil prices (an important economic driver in the region).
In the face of these revenue challenges, the company is focusing on maintaining financial performance through cost cutting, and also benefiting from low commodity prices. Longer-term, the company is pursing a turnaround that emphasizes innovations to its menu and a greater emphasis on the bar experience at its restaurants. The company is targeting EPS growth of 10% to 15% going forward; analysts expect EPS growth to average 13.5% over the next five years.
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|Brinker International (EAT)
6820 LBJ Freeway
Dallas, Texas 75240
|Index Membership: N/A
Full Time Employees: 53,000