Sector Snap: Brinker, Red Robin And Ruth's

BETSY VERECKEY

NEW YORK (AP) — Brinker International Inc. got a ratings downgrade Friday from an analyst who says its stock price has finally risen high enough to meet his price target.

The analyst, Bryan C. Elliott of Raymond James, raised his price targets for two other restaurant operators, Red Robin Gourmet Burgers Inc. and Ruth's Hospitality Group Inc.

Elliott downgraded Brinker International to "Market Perform" from "Outperform" and said the stock price has hit his price target of $16.50. So far this year, the stock has risen 57 percent.

Elliott said the company, which operates Chili's Grill & Bar and Maggiano's Little Italy, had soft sales in its June quarter and in July. He said he doesn't think the stock price will fall much further.

Last month, the company said it swung to a fiscal fourth-quarter profit, helped by the sale of its Romano's Macaroni Grill business, but Brinker also offered a lower-than-expected outlook.

In afternoon trading Friday, its shares declined 9 cents to $16.46.