I wanted to contrast the direction Brinker is headed with the comments we made about CKR, JBX and SONC.
Brinker's management team has placed a big focus on what's happening within the four walls of each restaurant. In support of that effort, EAT has significantly reduced the number of domestic company-owned restaurant openings. In fiscal 2008, EAT is expected to open around 70 company-owned restaurants and only 15 or less in 2009 and 2010. The slowing of pace of development is driven by the need to improve returns from new units. In FY09 total capital spending will be approximately 185 million, or approximately 5% of sales.
It should be noted that capital spending as a % of sales for CKE, JBX and SONC is approximately 10%.
How much do you want to bet that EAT outperforms those names over the next two years?
Brinker's management team has placed a big focus on what's happening within the four walls of each restaurant. In support of that effort, EAT has significantly reduced the number of domestic company-owned restaurant openings. In fiscal 2008, EAT is expected to open around 70 company-owned restaurants and only 15 or less in 2009 and 2010. The slowing of pace of development is driven by the need to improve returns from new units. In FY09 total capital spending will be approximately 185 million, or approximately 5% of sales.
It should be noted that capital spending as a % of sales for CKE, JBX and SONC is approximately 10%.
How much do you want to bet that EAT outperforms those names over the next two years?
