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Bloomin' Brands (BLMN)
NASDAQ:BLMN
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Bloomin' Brands
(NASDAQ:BLMN)
Rating:53Neutral
Price Target:
$8.50
▲(3.03%Upside)
Positive Factors
Revenue Performance
Bloomin' Brands' revenue, including discontinued international operations, exceeded expectations due to stronger domestic and international revenues.
Negative Factors
Earnings Outlook
The adjusted EPS outlook for Bloomin' Brands was significantly below consensus, indicating potential challenges in earnings performance.
Turnaround Strategy
There is a lack of confidence in the Outback turnaround strategy, which may require more meaningful margin investment.
Bloomin' Brands (BLMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$701.76M
Dividend Yield9.36%
Average Volume (3M)2.69M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-9.58%
EPS Growth-103.87%
CountryUS
Employees81,000
SectorConsumer Cyclical
Sector Strength66
IndustryRestaurants
Share Statistics
EPS (TTM)0.58
Shares Outstanding85,061,350
10 Day Avg. Volume2,353,788
30 Day Avg. Volume2,685,804
Financial Highlights & Ratios
PEG Ratio-3.62
Price to Book (P/B)1.86
Price to Sales (P/S)0.00
P/FCF Ratio27.07
Enterprise Value/Market Cap2.72
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit3.66
Enterprise Value/Ebitda1.75
Forecast
1Y Price Target
$8.75Price Target Upside6.06% Upside
Rating ConsensusHold
Number of Analyst Covering10
Bloomin' Brands Business Overview & Revenue Model
Company DescriptionBloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. The company operates through two segments, U.S. and International. Its restaurant portfolio has four concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba's Italian Grill, a casual Italian restaurant; Bonefish Grill; and Fleming's Prime Steakhouse & Wine Bar, a contemporary steakhouse. As of December 26, 2021, the company owned and operated 1,013 full-service restaurants and franchised 157 restaurants across 47 states; and 156 full-service restaurants and franchised 172 restaurants across 17 countries and Guam. The company was founded in 1988 and is based in Tampa, Florida.
How the Company Makes MoneyBloomin' Brands generates revenue primarily through the operation of its restaurant brands, offering a wide variety of menu items from steaks and seafood to Italian cuisine. The company's revenue model is based on dining sales, which include food and beverage purchases made by customers at their numerous restaurant locations. Additionally, Bloomin' Brands earns income through franchising, allowing third-party operators to run their branded restaurants under licensing agreements. Key revenue streams include direct restaurant sales, franchise fees, and royalty payments from franchisees. The company also benefits from strategic partnerships with suppliers and marketing initiatives that enhance brand visibility and drive customer traffic to its restaurants.
Bloomin' Brands Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.91%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging quarter for Bloomin' Brands, with notable achievements in cost savings and technology implementation but significant struggles with revenue decline, market share loss, and macroeconomic pressures. The company's strategic focus on menu simplification and operational efficiency is positive, yet the ongoing challenges, particularly with the Outback Steakhouse turnaround, weigh heavily on overall performance.Q1-2025 Updates
Positive Updates
Positive Comp Sales at Carrabba's and Fleming's
Carrabba's and Fleming's restaurants experienced positive comparable sales in Q1, indicating some resilience in parts of the portfolio.
Menu Simplification and Cost Savings
Bloomin' Brands made notable progress in reducing menu items across its restaurants, aiming for a 10-20% reduction by the end of 2025. This is part of a broader cost-saving initiative that achieved more savings in Q1 than originally forecasted.
Ziosk Technology Implementation
The rollout of Ziosk tablets across Outback restaurants led to increased table turns by about five minutes and positive guest feedback, enhancing operational efficiency.
Ample Liquidity and Cash Flow
The company reported ample liquidity and healthy cash flow, with strategic use of proceeds from the Brazil transaction to reduce debt.
Negative Updates
Overall Revenue and Market Share Decline
Total revenues for Q1 were $1.05 billion, down 1.8% from the previous year, with U.S. comparable restaurant sales decreasing by 50 basis points and traffic down by 390 basis points.
Underperformance Relative to Industry
Bloomin' Brands underperformed the casual dining industry and lost market share, as defined by Black Box, indicating challenges in maintaining competitive positioning.
Choppy Macro Environment and Consumer Pullback
The company experienced a disappointing February, softer Easter holiday, and ongoing cautious consumer behavior, which pressured short-term margins and is expected to continue throughout the year.
Challenges with Outback Steakhouse
Outback Steakhouse is in the early stages of a multiyear turnaround, facing issues with its value proposition and what guests perceive as value for money, contributing to negative traffic trends.
Negative Impact from Brazil Ownership
The 33% ownership in Brazil had a negative $1.3 million impact in Q1, driven by depreciation, amortization, and acquisition debt interest expenses.
Company Guidance
During Bloomin' Brands' Fiscal First Quarter 2025 earnings call, the company provided guidance reflecting ongoing challenges and strategic plans. The company expects full-year adjusted diluted earnings per share to be at the low end of the $1.20 to $1.40 range. Key factors influencing this guidance include the elimination of a Brazil tax benefit, anticipated to negatively impact earnings by $5 million to $7 million, and a cautious consumer environment affecting sales. Bloomin' Brands plans to reduce G&A expenses by $10 million for the year, targeting a total of approximately $215 million, and aims for adjusted restaurant-level margin improvements despite anticipated headwinds. The company is also working on menu simplification across its brands, with Outback reducing menu items by 10% in April and aiming for a 15% reduction by the end of 2025. These efforts are part of a broader strategy to enhance operational efficiency, improve guest experience, and drive sustainable traffic growth in a challenging macroeconomic landscape.Bloomin' Brands Financial Statement Overview
Summary
Bloomin' Brands faces challenges with profitability and leverage. While operational cash flow is strong, profitability issues and high debt levels pose risks. The company needs to improve profit margins and manage debt to enhance financial stability.Income Statement
The income statement reveals a mixed performance. Gross profit margins have been stable, but net profit margins are negative in recent periods, indicating challenges in turning revenues into profits. Revenue growth has been inconsistent, with a notable decline recently. EBIT and EBITDA margins are moderate, reflecting operational efficiency issues.55
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential risk. Return on equity is negative, driven by net losses, which is concerning for shareholders. The equity ratio is relatively low, suggesting limited financial flexibility.45
Neutral
Cash Flow
Cash flow analysis indicates positive operating cash flow, but free cash flow growth has been inconsistent. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income, but free cash flow remains low compared to net income.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.80B | 3.95B | 4.67B | 4.42B | 4.12B | 3.17B | Gross Profit |
| 521.01M | 2.80B | 810.36M | 740.75M | 731.70M | 336.00M | EBIT |
| 119.95M | 139.81M | 325.14M | 330.42M | 308.96M | -98.49M | EBITDA |
| 289.97M | 179.37M | 516.32M | 515.40M | 491.49M | 81.77M | Net Income Common Stockholders |
| -1.99M | -128.02M | 247.39M | 101.91M | 215.56M | -158.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 403.39M | 70.06M | 111.52M | 84.73M | 87.58M | 109.98M | Total Assets |
| 3.77B | 3.38B | 3.42B | 3.32B | 3.29B | 3.36B | Total Debt |
| 2.70B | 2.27B | 2.09B | 1.98B | 1.97B | 2.25B | Net Debt |
| 2.30B | 2.20B | 1.98B | 1.90B | 1.88B | 2.14B | Total Liabilities |
| 3.67B | 3.25B | 3.01B | 3.05B | 3.07B | 3.35B | Stockholders Equity |
| 100.14M | 135.51M | 409.12M | 273.91M | 222.85M | 10.96M |
| Cash Flow | Free Cash Flow | ||||
| 26.18M | 7.39M | 208.17M | 171.23M | 279.63M | 51.01M | Operating Cash Flow |
| 227.81M | 228.13M | 532.42M | 390.92M | 402.45M | 138.85M | Investing Cash Flow |
| -134.37M | -239.03M | -317.11M | -201.14M | -104.75M | -76.64M | Financing Cash Flow |
| -157.84M | -23.51M | -187.13M | -195.50M | -317.42M | -16.77M |
Bloomin' Brands Technical Analysis
Positive
8.25
Price Trends
7.70
Positive
8.92
Negative
11.53
Negative
Market Momentum
<0.01
Negative
55.52
Neutral
64.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLMN, the sentiment is Positive. The current price of 8.25 is above the 20-day moving average (MA) of 7.95, above the 50-day MA of 7.70, and below the 200-day MA of 11.53, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLMN.
Bloomin' Brands Risk Analysis
Bloomin' Brands disclosed 31 risk factors in its most recent earnings report. Bloomin' Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bloomin' Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.86B | 18.15 | 46.60% | 1.83% | 4.42% | 48.23% | |
73 Outperform | $7.63B | 23.93 | 314.08% | ― | 19.80% | 117.96% | |
70 Neutral | $956.07M | 46.04 | 6.01% | ― | 2.91% | -4.86% | |
66 Neutral | $15.60B | 26.11 | -14.74% | 1.34% | 4.28% | 13.76% | |
65 Neutral | $1.23B | 21.49 | 12.90% | 1.65% | 2.84% | -4.44% | |
63 Neutral | $6.96B | 11.51 | 2.80% | 3.85% | 2.70% | -24.43% | |
53 Neutral | $701.76M | ― | 25.87% | 9.36% | -9.58% | -103.87% |
* Consumer Cyclical Sector Average
Performance Comparison
BLMN
Bloomin' Brands
8.25
-9.91
-54.57%
BJRI
BJ's Restaurants
43.23
8.40
24.12%
EAT
Brinker International
168.39
101.53
151.85%
CBRL
Cracker Barrel
54.51
9.13
20.12%
DPZ
Domino's Pizza
455.49
-65.17
-12.52%
CAKE
Cheesecake Factory
57.33
19.11
50.00%
Bloomin' Brands Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Bloomin’ Brands Announces Workforce Reduction in Tampa
Negative
Feb 20, 2025
On February 20, 2025, Bloomin’ Brands announced a workforce reduction at its Tampa, Florida Restaurant Support Center, affecting approximately 100 employees or 17% of the team. This restructuring follows strategic changes, including the re-franchising of its Brazil operations in December 2024, and aims to align costs with business size and focus on growth. The company anticipates incurring $7.5 million in pre-tax costs due to severance but expects annual savings of $22 million. Executive leadership changes were also announced to support the new operational model.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.