(EAT) - Profit forecasts for next year have risen by 11.9%

Brinker International, Inc. (EAT) beat analysts' earnings expectations in seven out of the past eight quarters. Earnings per share are forecasted to grow 15% over the next 3-5 years. Analysts have been upping their profit forecasts for both this year and next. EAT opened 43 new system restaurants during the fourth quarter and 159 for the entire year. This Zacks #1 Rank stock has a current dividend yield of 1.0%. Full Analysis Brinker International, Inc. is engaged in the ownership, operation, development and franchising of restaurant concepts. The company has over 1,500 restaurants which include Chili's Grill & Bar, Chili's Too, Romano's Macaroni Grill, On the Border Mexican Grill & Cantina and Maggiano's Little Italy. EAT has a solid history of exceeding analysts' earnings expectations. Over the past eight quarters, the company beat the Street's estimate on seven occasions, while meeting once. Earnings per share grew 10% over the past five years and are expected to grow by a larger margin going forward—15% over the next 3-5 years. EAT's projected growth rate is in line with that of the industry. On Aug 10, EAT's fiscal 2006 fourth-quarter earnings per share came in at 70 cents. With analysts expecting 65 cents, the company surprised to the upside by 7.7%. However, compared to the prior-year period, earnings were down by a penny. Revenues climbed 7.2% to $1.07 billion from $998.4 million in the fourth quarter of fiscal 2005. For the entire year, profits experienced a 32.6% increase and revenues advanced 10.7%. EAT increased revenues and expanded gross margins for the past nine years. The company grew profits for two years running. EAT successfully opened 43 new system restaurants during the fourth quarter which led to a record 159 new system restaurants during the entire fiscal year. Furthermore, EAT signed 20 new international development agreements for 105 new restaurants over the next several years. Through its share repurchase program, the company bought back 1.4 million shares during the fourth quarter and 7.8 million shares during fiscal 2006. Moreover, on Aug 28, the Board of Directors authorized the repurchase of up to 11.7 million shares of its common stock, for a maximum aggregate purchase price of $450 million. The amount was reduced to 11.3 million on Sep 26, however, the timeframe was extended and the share price range was increased. The consensus earnings estimate for this year currently sits at $2.57. This represents a 4.9% increase over the past 60 days. Profit forecasts for next year have risen by a larger margin—11.9% to $2.92 over the same period of time. Seven analysts upped their estimates for this year, while four did so for next year. The Board declared a quarterly dividend of 10 cents per common share of stock on Aug 16. EAT is currently yielding 1.0%. The company's return on equity of 19% tops the industry average of 13%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home