RESTAURANT INSIGHTS | Knapp Track Slows (DEC), & EAT EVENT

Knapp December 

Casual Dining sales continue to slow in December 

"The run rate for comparable sales for the first four weeks of DECEMBER 2022 is 2.9%. At a USA level, the comparable sales for the last week of December 2022 is 16.3% (due to New Year’s Eve being included in the 5^th week). At a USA level, the run rate for comparable guest counts for the first four weeks of December 2022 is -6.7%. The USA level's comparable guest counts for the last week of DECEMBER 2022 is 5.9%."

                     COMPARABLE SALES            COMPARABLE GUEST COUNTS

USA                         5.7%                                        -4.0%

CALIFORNIA           8.8%                                        -1.1%

TEXAS                     6.6%                                        -4.0%

FLORIDA                 6.2%                                        -3.1%

Brinker EVENT

Last week Hedgeye Restaurants moved Brinker (EAT) from the Best Idea Short to a Long Bias. 

We are moving Brinker International (EAT) as a Hedgeye Restaurants Best Idea SHORT to a LONG Bias. We are hosting a Black Book Review of Brinker on Thursday, January 19th, at 12:30 PM. We have been bearish on Casual Dining and EAT for the better part of the past two years.  While we remain bearish on Casual Dining, EAT has been a company that has struggled for the better part of the last five years, and under new management, there is an opportunity to right-size the ship and improve the four-wall margin and the Chili's brand.  The MACRO setup for restaurants remains tenuous for the next six months, but we will be looking to get more aggressive as the year unfolds, and we have a line of sight into better trends in 2H23. 

CALL DETAILS:

• Date & Time: Thursday, January 19 at 12:30 PM ET.
• Webcast & Slides: CLICK HERE (Refresh Shortly Before The Call).
• Add To Your Calendar: CLICK HERE