William Blair analyst Sharon Zackfia downgraded Bloomin’ Brands to Market Perform from Outperform without a price target following the Q2 report. The analyst cites the new Brazilian tax legislation and tougher year-over-year comparisons for the downgrade. The firm expects Bloomin’s 2024 revenue growth to be flat when including a $30M headwind from Brazilian tax legislation. Although the stock’s valuation is attractive on a longer-term view, investors may look for more meaningful growth elsewhere, the analyst tells investors in a research note. In addition, beef costs could be a headwind in 2024, further muting the company’s earnings growth, claims the firm.
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