EAT was bought this afternoon in the Hedgeye Virtual Portfolio.
Keith bought Brinker in the Hedgeye Virtual Portfolio. Hedgeye’s Macro Team has been ahead of the strengthening dollar and the “deflating of the inflation”. This has been bullish for American consumers as gasoline prices have come down, thereby taking up a smaller share of their expenditures and allowing for more discretionary spending.
This morning, we posted a note on the Knapp Track casual dining trends for September improving sequentially from August and expressed our view that this was bullish for EAT. We believe that the quarter finished strongly for Brinker and that the benefits of the remodeling program are continuing to help drive profitability.
As the chart below shows, by Keith’s quantitative model the TRADE and TREND lines are at 20.61 and 22.61, respectively.
Howard Penney
Managing Director
Rory Green
Analyst
