Brinker International (EAT) reported second quarter 2011 earnings above the Zacks Consensus Estimate. The upside in earnings was driven by continued margin expansion at Chili’s and top-line growth at Maggiano’s.
The company is repositioning its Chili’s brand and is undertaking several initiatives to offset its declining sales momentum and record more sustainable and stable growth. Brinker also reiterated its goal to achieve 400 bps of net operating margin growth at Chili’s and double its EPS by the next five years.
The cash flow position at Brinker is strong. Hence, we are upgrading the stock from Neutral to Outperform.
BRINKER INTL (EAT): Free Stock Analysis Report
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