Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Although Brinker International, Inc. (NYSE:EAT) achieved five straight quarters of traffic growth at Chili's, the company faces increasingly difficult comps in 2020 and its same-store sales growth “remains a show-me story,” according to KeyBanc Capital Markets.
The Analyst
KeyBanc’s Eric Gonzalez initiated coverage of Brinker with a Sector Weight rating.
The Thesis
Traffic growth at Chili's is particularly admirable, given that this segment had underperformed for years, Gonzalez said in the note. He added that Brinker had delivered on its 2019 same-store sales, margin and EPS targets despite some obstacles.
Although Brinker could generate margin expansion in 2020, same-store sales growth is “a show-me story," pointing out that the company had rolled out its 3 for $10 initiative in the fourth quarter.
Chili's same-store sales growth could clock at 1.5% in 2020, with the casual dining industry likely to moderate as the year progresses. Chili’s takeout sales grew 15% to 20% in each of the last four fiscal quarters. The analyst believes the recent partnership with DoorDash could help the company sustain that momentum going forward.
However, he wrote that “profit flow-through from third-party platforms, including DoorDash, are generally less profitable by virtue of their take-rates, which we estimate to be in the mid-teens range for Chili’s.”
Price Action
Shares of Brinker traded down 0.9% to $40.19 at time of publishing on Tuesday.
Related Links:
Benzinga's Top Upgrades, Downgrades For July 15, 2019
A Peek Into The Markets: US Stock Futures Up Ahead Of Empire State Index
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!