• Wall Street consensus : 0.48
• StockScouter rating : 5 / 10
• Whisper Number for this stock : N/A
• Schaeffer rating for this stock : 5 / 10
• Power Rating : 6 / 10
• Insider Trading (last 52 weeks) : ($12.16 B)
• Zacks Analysts Rating: Hold
• Option Trading: July 2007 30 Call
• Implied Volatility (IV) for July 2007 $30.0 Strike : 26.41%

Sales, Income & Growth – For the past 12-months, Brinker registered $4.28 Billion in sales versus the industry’s $12.09 Billion. Income amounted to $227.97 Million against the industry’s $1.53 Billion. While Brinker’s 12-months sales growth is at 6.3%, the income growth is in the region of 18.00% (the same industry sector sales growth is at 7.80% and income growth of 6.70%).

Profitability & Financial Health – For the past 12-months, net profit margin is in the region of 5.3%. Brinker has a debt/equity ratio of 0.45 compare to industry’s ratio of 0.51.

Stock Resistance & Support Level – The resistance is at 33.29 (50-day moving average) while the first level support is at 29.11 (200-day moving average).

Risks – The ratio of EAT’s price-to-earnings multiple (18.7) to its five-year growth rate is above the average of all stocks. Shares are being heavily sold by financial institutions

Earlier in mid-Apr, competitor restaurant chain Ruby Tuesday Inc. reported on Wednesday a 5 percent drop in third-quarter net profit and lowered its profit and sales outlook for the year in part because sales this quarter have lagged expectations. The company, which operates a chain of bar-and-grill restaurants, said aggressive discounting by rivals (including Brinker) and frigid temperatures have kept customers away in recent weeks.

Just like Waters Corporation, Brinker has been consistently beat earning estimate from analysts since 2005. I believe this stock will beat earning again – simply because its’ competitors are losing out. My reason for trading option for Brinker is the same as YAHOO’s Loss is GOOGLE’s Gain -Time to Make Money plus for the simple reason people just can’t stop eating.

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April 23rd, 2007 by financetwitter

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