Brinker was sold in the Hedgeye Virtual Portfolio this afternoon.
Keith just sold Brinker in the Hedgeye Virtual Portfolio as the quantitative setup, per his model, indicates that the stock is immediate-term overbought today. The chart below illustrates our TRADE and TREND levels for the stock. From a fundamental perspective, we like the name on the intermediate-term TREND. Today on Hedgeye’s Best Ideas call, we ran through our top ideas and Brinker was one of our longs alongside MCD and DNKN on the long and short side, respectively.
From a fundamental perspective, as we wrote in our note titled “EAT – CAN THEY EXECUTE?” on 10/27, we believe that the company is operating well and will continue to improve going forward. At Chili’s, the remodeling program, kitchen retrofits and other initiatives are going to boost sales and customer satisfaction. As our note following earnings (10/27) highlighted, we believe that the skepticism among the sell-side community is misguided and would not interpret this negative sentiment as being anything other than a positive for a buyer of the stock. Please refer to our note, referenced above, for further details or reply to this email for a copy.
This stock has been one of our favorite names for some time and is one of our top three long picks in the space over the intermediate term despite it being overbought on the TRADE duration.