The consumer cannot stand $3 gasoline, as the whole rally in the Darden (DRI)/Brinker (EAT) cohort was on the backs of the lower price of gasoline.

Strong manufacturer with good financials

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First, the retail sales numbers was better than expected as reflected in the results from Wal-Mart (WMT) and at casual dining establishments like Brinker (EAT) and Darden (DRI). He said the consumer has risen from the dead.

Fitzpatrick sees Brinker as a company with big downside potential. “You’ve got to pass on here just as a matter of discipline,” he said, “You can watch this one – that’s fine – but I’d only be willing to ‘eat’ at Brinker’s, so to speak, at around $8.”

Goldman said it is upgrading Brinker (EAT) to neutral from sell based on balanced risk reward following recent selloff. Believe management has capitulated on company's earnings outlook over the next year. Price target at $13.

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I believe the best restaurant chains that are not fast food, notably Darden (DRI) and Panera (PNRA), can be bought, but you are going to have a lag between the pump's decline and now, and that will make these much more dicey. Brinker (EAT) just reported a decent number, add that to the list. I would love to buy Yum! Brands (YUM), but the commodity lag won't let them have a good quarter, although they have already tempered expectations.

Brinker International (EAT) downgraded at UBS. Rating lowered to Neutral from Buy. Price target lowered to $21 from $23. Fiscal 2009 EPS estimates lowered to $1.52 from $1.61.

Goldman said it is upgrading Brinker (EAT) to Neutral from Sell, based on expected free cash flow improvements. Note ongoing weakness in bar and grill restaurants, and believe cash flow will become an increasingly important metric for the sector. Price target raised to $22 from $19.