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February 27, 2013
13:06 EDTEATBrinker provides FY13 outlook, long term vision
Leaders from Brinker International provided an update on the company's fiscal 2013 outlook and shared long-term goals being discussed in today's investor conference. "Brinker expects to deliver on our promise of doubling earnings per share. This could happen by fiscal 2014, a full year earlier than initially projected," said Wyman Roberts, CEO and President of Brinker International. "We're now looking to the next milestone by setting another long-term goal: to double our fiscal 2012 earnings per share by fiscal 2017. This is yet another aggressive goal, but we are committed to attaining it by driving 10 to 15 percent annual EPS growth during this period." The business strategies for the next five years build upon the foundation of Brinker's current successes. The company has evolved to operate in a mature space by reducing costs in the middle of the P&L while reinvesting back into the business with initiatives that enhance the guest experience. Moving forward, the company will continue to have a balanced approach to doubling EPS, with topline initiatives playing a greater role in overall growth. Chili's Grill & Bar will focus on food innovation, improved operational consistency and moderate unit growth. Maggiano's Little Italy will leverage a new restaurant prototype to grow their brand. The global side of the business will step up unit development to become the guests' top choice for casual dining internationally. Brinker projects 3%-5% revenue growth, driven by 2%-3% domestic comp sales growth, and approximately 3% international comp sales growth. Starting in fiscal 2014, the company projects unit growth of 1%-2% for Chili's in the U.S., 5%-10% for Maggiano's, and ongoing 10%-15% global growth. Brinker will generate up to 1% annual margin improvement, driven by sales leverage on restaurant labor and restaurant expenses, continued emphasis on labor productivity improvements and flat cost of sales. The company expects to continue to generate strong cash flow and maintain a consistent strategy regarding the prudent allocation of capital. This will add to Brinker's commitment to return cash to shareholders through a competitively favorable dividend, and at least $1B of share repurchase over the next five years. The combination of focusing on these outlined strategies will result in Brinker delivering annual EPS growth of 10%-15% and doubling EPS to at least $4.00 per share by fiscal 2017.
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February 4, 2016
12:06 EDTEATBattleground: Buffalo Wild Wings gets upgraded and downgraded after earnings
Shares of Buffalo Wild Wings (BWLD) have rallied today following the company's fourth quarter earnings report. An analyst from Raymond James upgraded the stock following the report, saying that the sports-focused restaurant chain's sales visibility should improve in 2016. An analyst from Longbow, on the other hand, downgraded Buffalo Wild Wings due to concerns over the deceleration of its same-store sales growth. WHAT'S NEW: After the market close yesterday, Buffalo Wild Wings reported fourth quarter earnings per share of $1.32 on revenue of $490.2M, lower than consensus estimates of $1.48 and $507.23, respectively. Same-store sales grew 1.9% at company-owned restaurants and 0.1% at franchised restaurants, the company said. Buffalo Wild Wings also provided an outlook for fiscal 2016, saying it expects FY16 EPS of $5.95-$6.20, compared to the consensus forecast of $6.48. For 2016, the company expects single-digit same-store sales growth, including modestly positive traffic. BULLISH TAKE: Raymond James analyst Brian Vaccaro upgraded Buffalo Wild Wings to Outperform from Market Perform and established a $165 price target on shares. The analyst said that even though the company's Q4 earnings fell below expectations, he was encouraged by its better than expected first quarter comps and sees comparable store sales visibility improving through 2016. Vaccaro said that management's guidance appears to be conservative with respect to margins and reflects a strong 2016 earnings growth acceleration. The analyst added that the risk/reward factor for the stock is "favorable." In addition, UBS analyst Keith Siegner reiterated a Buy rating on Buffalo Wild Wings with a $200 price target on shares, saying that weakness in the stock following its lower than expected Q4 results presents a buying opportunity. The analyst said that 2016 "looks favorable" for the company and that various company initiatives should lead to solid top-line results. BEARISH TAKE: Longbow analyst Alton Stump downgraded Buffalo Wild Wings to Neutral from Buy, citing concerns over the deceleration of the company's same-store sales growth. Stump said that the stalling in positive sales growth is likely due at least in part to a more competitive market within the domestic bar and grill category. The analyst also said that traditional wing costs have failed to moderate meaningfully over the last 9-12 months and that management now anticipates "flattish" year over year bone-in wing costs in 2016. Stump said that disappointing SSS growth may bode negatively for other bar and grill restaurants including Applebee's, owned by DineEquity (DIN), BJ's Restaurants (BJRI), and Chili's, owned by Brinker (EAT). The analyst added that his firm reduced its Q1 EPS forecast for Buffalo Wild Wings to $1.77 from $1.81 and FY16 EPS to $5.72 from $6.59. For company-owned SSS, the firm now sees a flat performance for the company in Q1, modest 0.8% growth in 2016 instead of the previous forecast of 2.2%, and 2% growth in 2017. PRICE ACTION: At midday, Buffalo Wild Wings gained 6.7% to $153.24.
February 3, 2016
11:26 EDTEATOptions with increasing call volume; LOW LNC DG EW SNOW KLIC CIT AN EAT SYT
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