Cramer Likes Brinker (EAT)
Cramer discussed Brikner (EAT).
It owns Maggiano's Chili's, On the Border, and macaroni Grill. Cramer said that EAT jumped $7 on declining same-store-sales yesterday. He said it looked nutty on the surface, but the estimates were much lower. Cramer doesn't think that this was short covering. He thinks it was a conversion story and you should buy the stock. Betting against casual dining in this environment is just wrong. He thinks most casual dining stocks are going to beat numbers in this environment. Cramer said this was just a "hold you hand quarter" and that is ok. He said EAT is NOT a growth story like an AMZN. He said it has accelerating growth for 2007 of 14%, butit trades at only 17-times earnings. He said it is cheap on a growth basis, but he said it is a cost-cutting play as well.
EAT closed down 1.2% at $45.93 in regulartrading, but they were up 1.3% at $46.54 in after-hours after Cramer touted the stock.
Jon C. Ogg
It owns Maggiano's Chili's, On the Border, and macaroni Grill. Cramer said that EAT jumped $7 on declining same-store-sales yesterday. He said it looked nutty on the surface, but the estimates were much lower. Cramer doesn't think that this was short covering. He thinks it was a conversion story and you should buy the stock. Betting against casual dining in this environment is just wrong. He thinks most casual dining stocks are going to beat numbers in this environment. Cramer said this was just a "hold you hand quarter" and that is ok. He said EAT is NOT a growth story like an AMZN. He said it has accelerating growth for 2007 of 14%, butit trades at only 17-times earnings. He said it is cheap on a growth basis, but he said it is a cost-cutting play as well.
EAT closed down 1.2% at $45.93 in regulartrading, but they were up 1.3% at $46.54 in after-hours after Cramer touted the stock.
Jon C. Ogg
posted by douglas mcintyre at 4:28 AM
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