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Bloomin' Brands (BLMN)
NASDAQ:BLMN
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Bloomin' Brands
(NASDAQ:BLMN)
54Neutral
Positive Factors
Investment Strategy
CEO Mike Spanos is identifying significant pricing, quality, and service level investments necessary for the longer-term vitality of the businesses.
Revenue Performance
Bloomin' Brands' revenue, including discontinued international operations, exceeded expectations due to stronger domestic and international revenues.
Negative Factors
Cost Management
Bloomin' Brands' restaurant-level margins missed expectations, reflecting challenges in managing costs.
Earnings Visibility
Sticking to fiscal year guidance creates a tough setup with low earnings visibility for the company.
Financial Strain
The decision to suspend the dividend and use all available cash to pay off debt indicates financial strain.
Bloomin' Brands (BLMN) vs. S&P 500 (SPY)
Market Cap
$749.39M
Dividend Yield9.61%
Average Volume (3M)3.12M
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-9.58%
EPS Growth-103.87%
CountryUS
Employees81,000
SectorConsumer Cyclical
Sector Strength73
IndustryRestaurants
Share Statistics
EPS (TTM)0.58
Shares Outstanding85,061,350
10 Day Avg. Volume3,521,346
30 Day Avg. Volume3,118,599
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)4.57
Price to Sales (P/S)0.00
P/FCF Ratio83.84
Enterprise Value/Market Cap3.77
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit2.53
Enterprise Value/Ebitda2.41
Forecast
1Y Price Target
$9.34Price Target Upside6.02% Upside
Rating ConsensusHold
Number of Analyst Covering9
Bloomin' Brands Business Overview & Revenue Model
Company DescriptionBloomin' Brands, Inc. (BLMN) is a leading casual dining restaurant company based in the United States. It operates a portfolio of well-known restaurant brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. The company focuses on providing a variety of high-quality food and beverage offerings in a welcoming and comfortable atmosphere. Bloomin' Brands is committed to delivering exceptional dining experiences through its diverse range of restaurants catering to different tastes and preferences.
How the Company Makes MoneyBloomin' Brands makes money primarily through the operation of its chain of casual dining restaurants. Revenue is generated from the sale of food and beverages to customers. The company's key revenue streams include dine-in services, takeout, and delivery options, which have become increasingly important. Additionally, Bloomin' Brands derives income from franchise operations, which contribute franchise fees and royalties. The company also benefits from strategic partnerships and marketing collaborations that enhance brand visibility and attract more customers. Factors such as menu innovation, loyalty programs, and digital ordering platforms also play a significant role in driving sales and revenue growth for Bloomin' Brands.
Bloomin' Brands Financial Statement Overview
Summary
Bloomin' Brands is experiencing financial challenges with declining revenues and profitability, high leverage, and weak cash flow metrics. The income statement reflects declining revenue and a negative net profit margin, while the balance sheet shows high leverage and financial instability. Cash flow analysis indicates potential liquidity issues.Income Statement
The income statement shows declining revenue and net income over the recent period. The gross profit margin is 70.94%, which is strong, but net income turned negative, resulting in a net profit margin of -3.24%. Revenue declined from the previous year, indicating a negative growth trajectory. EBIT margin is 3.54%, and EBITDA margin is -0.69%, suggesting profitability challenges.40
Negative
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 9.20, indicating substantial reliance on debt. Stockholders' equity has decreased significantly, reflecting financial instability. The equity ratio is only 4.00%, suggesting a low proportion of assets financed by equity. ROE is negative, reflecting profitability issues.35
Negative
Cash Flow
Cash flow analysis shows negative free cash flow growth, indicating potential liquidity issues. The operating cash flow to net income ratio is negative due to the net loss. The free cash flow to net income ratio is also negative, pointing to challenges in converting income into cash.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.95B | 4.67B | 4.42B | 4.12B | 3.17B | Gross Profit |
| 2.80B | 810.36M | 740.75M | 731.70M | 336.00M | EBIT |
| 139.81M | 325.14M | 330.42M | 308.96M | -98.49M | EBITDA |
| 179.37M | 516.32M | 515.40M | 491.49M | 81.77M | Net Income Common Stockholders |
| -128.02M | 247.39M | 101.91M | 215.56M | -158.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 70.06M | 111.52M | 84.73M | 87.58M | 109.98M | Total Assets |
| 3.38B | 3.42B | 3.32B | 3.29B | 3.36B | Total Debt |
| 2.27B | 2.09B | 1.98B | 1.97B | 2.25B | Net Debt |
| 2.20B | 1.98B | 1.90B | 1.88B | 2.14B | Total Liabilities |
| 3.25B | 3.01B | 3.05B | 3.07B | 3.35B | Stockholders Equity |
| 135.51M | 409.12M | 273.91M | 222.85M | 10.96M |
| Cash Flow | Free Cash Flow | |||
| 7.39M | 208.17M | 171.23M | 279.63M | 51.01M | Operating Cash Flow |
| 228.13M | 532.42M | 390.92M | 402.45M | 138.85M | Investing Cash Flow |
| -239.03M | -317.11M | -201.14M | -104.75M | -76.64M | Financing Cash Flow |
| -23.51M | -187.13M | -195.50M | -317.42M | -16.77M |
Bloomin' Brands Technical Analysis
Neutral
8.81
Price Trends
7.95
Positive
9.68
Negative
12.45
Negative
Market Momentum
0.17
Negative
57.93
Neutral
89.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLMN, the sentiment is Neutral. The current price of 8.81 is above the 20-day moving average (MA) of 8.18, above the 50-day MA of 7.95, and below the 200-day MA of 12.45, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 89.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.55B | 27.70 | -14.74% | 1.29% | 4.28% | 13.76% | |
73 Outperform | $2.78B | 17.28 | 46.60% | 1.96% | 4.42% | 48.23% | |
70 Neutral | $991.45M | 47.74 | 6.01% | ― | 2.91% | -4.86% | |
66 Neutral | $1.27B | 35.73 | 7.80% | 1.75% | 2.26% | -56.99% | |
63 Neutral | $6.74B | 20.92 | 314.08% | ― | 19.80% | 117.96% | |
61 Neutral | $6.99B | 11.27 | 2.81% | 3.90% | 2.61% | -21.77% | |
54 Neutral | $749.39M | ― | 25.87% | 9.61% | -9.58% | -103.87% |
* Consumer Cyclical Sector Average
Performance Comparison
BLMN
Bloomin' Brands
8.81
-13.40
-60.33%
BJRI
BJ's Restaurants
44.83
8.83
24.53%
EAT
Brinker International
151.61
87.10
135.02%
CBRL
Cracker Barrel
57.18
9.90
20.94%
DPZ
Domino's Pizza
495.05
-13.90
-2.73%
CAKE
Cheesecake Factory
56.06
18.65
49.85%
Bloomin' Brands Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 11.10%|
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 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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.