The ratings on Dallas-based Brinker International Inc. reflect our expectation that operations will continue to stabilize and credit metrics will improve on better operating performance and continued expense controls. Brinker's satisfactory business profile reflects its participation in the competitive restaurant industry, its solid position in the casual dining industry, and its good track record as a restaurant operator. These strengths are offset by weak sales resulting from difficult economic conditions that continue to hurt the casual dining sector. Brinker's intermediate financial profile reflects slightly weakened credit measures following the sale of On The Border (OTB). Like other casual dining operators, Brinker's sales trends have been weak across its concepts for the past several quarters, including consolidated same-store sales of negative
