Brinker International (EAT) - Bull of the Day

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Brinker International, Inc.'s ( EAT ) fourth quarter 2012 earnings surpassed the Zacks Consensus Estimate based on strong top-line as well as unit growth. Besides repositioning its Chili's brand, the company is undertaking several initiatives to continue its positive sales momentum as well as record more sustainable and stable growth.

The company's strategy to focus on international expansion, in order to move away from the over-supplied domestic market and undertake cost-control measures, looks promising for its business. Brinker's financial position remains stable and management remains committed on enhancing shareholders value by both dividend and share repurchase.

The company remains on track to double its EPS and achieve margin expansion of 400 bps by 2015. Hence, we maintain an Outperform rating on the stock. Our six-month target price of $41.00 equates to about 17.5x our estimate for 2013. The target price implies an expected total return of 19.9% over that period.
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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