Jon Najarian on LinkedIn: #itsnotanoption (2024)

Transcript

Let's take a look at Brinker International people. We had unusual activity in it not too long ago. The stock popped. We said, hey, you know, if you're somebody who's lucky enough to be in a stock when it makes that significant pop, you got to take half the money off the table. If you did and held on to the other half, yeah, you wish you took the whole thing off. Why? Because they missed on top line and bottom line here, Pete, costs have gone up. We've talked about it for fast food. We've talked about it for fast casual. We've talked about it for restaurants, you know, from employees to the inputs that go into what they put on your plate, the costs have gone up. That makes it a lot tougher on all these companies to report spectacular earnings in this sector. And these guys missed pretty badly the stock trading down. And if you had options instead of stock, well, you took enough off the table hopefully on that pop that you didn't get hurt. I got to tell you, John, I look at these earnings from Brinker and yes, they they missed. They missed. And, but I think the interesting thing for me always is to look back and say, OK, but what did they look like year over year? That number is actually pretty impressive. Year over year, $1.61 versus $1.39. That's a pretty nice move. I, I like what they did. Their PE is trading at an 18. This is a stock that had been up 62% year to date. They've done a really spectacular job. By the way, the SNP's up what, 14 percent or something? So this is on a big run now. It's up about 43%. It did hit 58. Right out of the gate, it never looked at it again, started moving back to the upside. Last I looked, it was trading somewhere closer, maybe to 62 or somewhere in that range. John, this is one I'd keep a close eye on because they've got some shorts. I'm not saying the earnings were great because they missed what everybody expected. But nonetheless, I think when you look at that year over year, that's important too. And that shows me that they continue to kick. But they basically have beat three out of every four quarters on the earnings. So this is a company that they just seem to keep rolling. This quarter, that number did miss the anticipated numbers, but nonetheless, they're still doing very, very well. Yeah. And Chili's and Maggiano's, those are a couple of their big brands, folks. They run a tight ship. So this is not like, oh, they, you know, missed by 30 or $0.40 or anything like that. Missed by, I think, four cents. And like I say, this is tough slogging here for the restaurants. Doesn't matter if you're fast or fast casual or. You know, a fancy sit down place, which neither of those really are. Maggiano's is great and the food is great. Same thing with chilies, but they're more or less in that fast casual kind of idea.