Consumer Discretionary

Report by Gordon Haskett Research Advisors

Jeff Farmer sees additional beat and raise quarters coming with Chili's SSS and EPS momentum showing little if any signs of slowing. Q2 EPS of $2.80, materially outpaced the $1.80 Street estimate driven by stronger-than-expected Chili's SSS (+31.4%) and a better-than-expected RL margin (19.1%). Menu innovation & value in concert with highly effective traditional and social media messaging have combined to bring customers into Chili's, while investments in food quality, facility improvements and staffing, have kept customers coming back. Jeff’s FY25E EPS increases to $8.43, with EBITDA increasing to $710m and company SSS increasing to +20.1%.

Report by 280First

HII: Takeover interest? The following wording has been removed from its 2022 10K vs. last year, "These provisions may discourage acquisition proposals or delay or prevent a change in control, which could reduce our stock price". General Motors: China rethink? “Pursuing opportunities in the Chinese market is an important component of our global growth strategy”, has now been removed from its 10K. ServiceNow: Brighter growth rate outlook; dividends set to resume; strategic transactions? US Steel: Covenant concerns; customer payment delays? Brinker International: Missing performance targets.