Bloomin’ Brands (NASDAQ:BLMN) stock spiked over 5% in Tuesday’s after-hours of trading following its cooperation agreement with activist investor Starboard Value. As part of the agreement, Bloomin’ Brands, a leading casual dining restaurant company, announced the appointment of Dave George, former COO of Darden Restaurants (NYSE:DRI), and Jon Sagal, Partner at Starboard Value, to its Board of Directors.
It’s worth highlighting that Starboard owns approximately 9.7% stake in the company. Further, ever since it revealed that it holds a significant stake in the company, speculation was rife that Starboard could attempt to make changes within Bloomin’ Brands to drive improvements.
With this backdrop, let’s dig deeper into BLMN stock’s performance.
BLMN Stock’s Performance
BLMN stock has gained over 43% in one year. However, the stock’s performance disappoints on the longer-term horizon. For instance, Bloomin’ Brands stock has gained about 49% in five years. At the same time, DRI stock and SPDR S&P 500 ETF Trust (SPY), a proxy for the S&P 500 Index (SPX), have gained about 62% and 88%, respectively.
Further, BLMN stock’s performance is even worse in a 10-year time frame. The stock is up about 41% over the past decade. In comparison, the DRI stock has gained nearly 377%. Further, the SPY ETF has delivered a return of 212.3% during the same period.
What Is the BLMN Stock Price Forecast?
BLMN stock has underperformed in the longer term horizon but has recovered in the recent past. However, softness across the casual dining industry could restrict the upside potential in BLM stock.
Bloomin’ Brands stock has four Buy and seven Hold recommendations for a Moderate Buy consensus rating. Further, analysts’ BLMN stock price forecast of $26.45 implies 3.2% downside potential from current levels.
