Citi lowered the firm’s price target on Bloomin’ Brands to $25 from $26 and keeps a Neutral rating on the shares. Bloomin Brands’ margin expansion in the absence of traffic/sales growth is not quite resonating with investors as it had in the past, the firm said in a research note on Friday. The company has plans to ramp price-pointed media during Q4 to reverse traffic woes, but Citi is uncertain how this will sustainably drive sales beyond the marketing windows, particularly given the company’s core brand still suffers from a disadvantaged asset base.
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