EAT – REAL TIME NOTES

It is now clear that EPS will be up more than 10%-12% in FY11-FY12.

As part of the EAT Black Book we introduced yesterday, our EPS estimate for FY11 was well above consensus estimates.   After listening to management’s opening remarks on today’s earnings call, it seems that they agree with our conclusion.  EAT management just stated that it will not issue FY11 EPS guidance until its fourth quarter call, but that in order to meet its stated target to double EPS by FY15 that EPS is expected to grow 10%-12% in FY13-FY15 and more than that in FY11-FY12 (skewing more to FY12).

Howard Penney

Managing Director