Brinker's Second Quarter Supported by Moderating Food Costs.

Brinker EAT reported modest second-quarter earnings, though its stock is trading lower despite meeting Street expectations on the bottom line. A slight miss on top-line projections may be the culprit, but we do not view the results unfavorably. The miss may be the result of more aggressive promotional activity within the industry, particularly from Darden DRI, but we have captured this in our own projections. All told, we will be maintaining our fair value estimate of $33 per share.