RBC Capital Remains Sidelined on Brinker International (EAT) as Sales Slow

RBC Capital maintained a Sector Perform rating and $52.00 price target on Brinker International (NYSE: EAT) to reflect slow sales. RBC cut 3Q EPS estimates from $0.99 to $0.95 (vs. cons’ $1.00) as Chili’s SSS growth estimates have been cut from -0.25% to -1.5% (vs. cons’ -0.8%). Though it seems that Fresh Mex and Loyalty have been below plan as sales drivers, it is believed that an increased commitment to core menu items and the 2 for $20 menu may help stabilize trends.

Analyst David Palmer commented, "This morning we are lowering our EPS estimates to reflect slower sales. However, we believe that trends through the quarter improved after the addition of steak to the 2 for $20 menu, and we believe a recommitment to core menu and value could help bolster trends."

For an analyst ratings summary and ratings history on Brinker Int'l click here. For more ratings news on Brinker Int'l click here.

Shares of Brinker Int'l closed at $47.68 yesterday.

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