Nomura: Brinker Investors Focused On Chili Same-Store Sales Gain

Despite posting a second-quarter earnings miss, Brinker International (NYSE: EAT) shares rallied Thursday on a 2.5 percent same-store sales growth at its Chili's restaurant unit, one analyst said.

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 per 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 per 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 maintained a Buy rating and $58 target.

Brinker traded recently at $45.76, up 2.99 percent.