Brinker (NYSE:EAT) Needs Sales Momentum to Kick in

Brinker International (NYSE:EAT) will be challenged in the first half of 2011 in regard to sales, as a number of things would have to fall into place for them to garner some momentum, which appears unlikely at this time.

UBS says, "We're raising our FY11 EPS estimate to $1.51 (guidance $1.30-$1.42), which reflects the F2Q earnings beat and subsequent lower share counts. Our FY11 blended same store sales (SSS) estimate is -2%—at the low-end of Brinker’s flat to down 2% guidance range. While we expect calendar shifts should provide a net 50bp sales lift to F2H11, we believe that Brinker will require the success of several of its sales levers (e.g. comparisons, lunch, happy hour) to deliver a 4pp sequential improvement from F1H11."

UBS maintains a "Neutral" rating on Brinker (EAT), which closed Wednesday at $22.96, down $0.29, or 1.25 percent. UBS increased their price target on Brinker from $20 to $23.