Buy at EAT at $43 for short-term bounce.
If EAT breaks this support zone we could see the next real xone at 35,80
Can their 6.5% profit margin and $1.2 billion debt withstand a consumer downturn?
$EAT just below the 10 MDA & holding on for dear life @ the 30, just below the middle bollinger band.
Interestingly - I did this chart around Oct 15 saying it looked like a good short were it not for earnings. I lost track of it and the AB=CD 1.618 ext is ideal and into support. There's no trigger long, though and loss of this area could be choppy as there is a price cluster. 39-38 could provide the next support area.
Short the broken H&S topping pattern on EAT
$EAT Brinker Intl... relative to the casual dining segment is a leader in p/e, roe operating margins and sports a 1.89% div yield funded by massive debt. Debt/Equity = 189% vs BWLD 0.07. Operation margins are excellent vs the group but gross margins lag considerably. EAT currently trades at an astronomical 739.50 times book value vs BWLD 6.18 times. A little...