Brinker International Inc

EAT: XNYS (USA)
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EAT Posts Decent 4Q, Guides for Higher 2011

Brinker International's EAT fourth-quarter results reflected a continually challenging environment in the casual dining space but showed sequential improvement from the previous quarter. Additionally, management provided a fiscal 2011 full-year outlook that was above our expectations, driven by higher operating margin assumptions, as the firm expects to benefit from efficiency gains from technology updates and the transformation of kitchen processes. As a result, we plan to increase our near term projections, but our fair value estimate remains unchanged.

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