Analyst Says Eat Investors Focused On Chili Same-Store Sales Gain

Despite posting a second-quarter earnings miss, Brinker International Inc.

shares rallied Thursday on a 2.5 percent same-store sales growth at its Chili's restaurant unit, an analyst said. http://www.benzinga.com/news/earnings/14/08/4764196/update-brinker-posts-lower-q4-profit-revenue-beats-estimates Nomura's Stephen Anderson said the same-store showing was Chili's best in seven quarters. Besides Chili's Grill & Bar, the company operates Maggiano's Little Italy restaurant brands, where same-store sales grew 0.9 percent. Anderson said near-term technology upgrades and higher executive pay will cut 2015 earnings by $0.05 cents a share and slow future earnings growth at Brinker to below the 15 to 20 percent pace of recent years. But Anderson continues to expect the company will hit earnings of $4 a share by 2016, a year ahead of the company's prediction. Lower capital spending on revamping Chili's restaurants in the second half of 2015 could lead to "a more aggressive dividend" said Anderson, who maintains a Buy rating and $58 target. Brinker traded recently at $46.35, up 4.3 percent.