Brinker International (EAT) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Brinker International ( EAT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Brinker International as such a stock due to the following factors:

  • EAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.8 million.
  • EAT has traded 1.5 million shares today.
  • EAT is trading at a new lifetime high.

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More details on EAT:

Brinker International, Inc. owns, develops, operates, and franchises full-service casual dining restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands primarily in the United States. As of September 25, 2013, it owned, operated, or franchised 1,596 restaurants. The stock currently has a dividend yield of 2.2%. EAT has a PE ratio of 19.7. Currently there are 6 analysts that rate Brinker International a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Brinker International has been 1.1 million shares per day over the past 30 days. Brinker International has a market cap of $3.0 billion and is part of the services sector and leisure industry. The stock has a beta of 0.62 and a short float of 10.8% with 3.83 days to cover. Shares are up 43.9% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Brinker International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • EAT's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.22% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EAT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BRINKER INTL INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BRINKER INTL INC increased its bottom line by earning $2.21 versus $1.89 in the prior year. This year, the market expects an improvement in earnings ($2.70 versus $2.21).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, BRINKER INTL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 68.23% to $55.42 million when compared to the same quarter last year. In addition, BRINKER INTL INC has also vastly surpassed the industry average cash flow growth rate of -17.42%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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