Hedgeye Restaurants is moving Brinker (EAT) from a Best Idea Short to a Long Bias.
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We moved Brinker International (EAT) as a Hedgeye Restaurants Best Idea SHORT to a LONG Bias. 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.
The following are the three key points we explored:
