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Bloomin' Brands (BLMN)
NASDAQ:BLMN
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Bloomin' Brands
(NASDAQ:BLMN)
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Rating:47Neutral
Price Target:
$7.00
▼(-3.58% Downside)
Bloomin' Brands' overall stock score is primarily impacted by its financial performance challenges, including declining revenue and high leverage. The technical analysis indicates a bearish trend, and the valuation reflects profitability issues despite a high dividend yield. The earnings call provides some optimism with strategic initiatives, but the lowered guidance and ongoing challenges suggest a cautious outlook.
Positive Factors
Cash Flow Improvement
The significant improvement in free cash flow indicates better cash generation efficiency, providing more resources for strategic investments and debt reduction.
Leadership Team Expansion
The expansion of the leadership team suggests a focus on strategic growth and transformation, potentially enhancing operational effectiveness and long-term planning.
Stable Off-Premises Sales
Stable off-premises sales indicate a resilient revenue stream, crucial for maintaining sales levels amidst fluctuating in-restaurant traffic.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth initiatives.
Declining Operating Margins
The decline in operating margins highlights cost pressures and operational inefficiencies, which could hinder profitability if not addressed.
Lowered EPS Guidance
Lowered EPS guidance reflects anticipated challenges in maintaining profitability, signaling potential headwinds in achieving financial targets.
Bloomin' Brands (BLMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$586.12M
Dividend Yield9.5%
Average Volume (3M)2.09M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-11.45%
EPS Growth-121.89%
CountryUS
Employees81,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.33
Shares Outstanding85,068,420
10 Day Avg. Volume2,083,597
30 Day Avg. Volume2,091,755
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)7.68
Price to Sales (P/S)0.26
P/FCF Ratio140.68
Enterprise Value/Market Cap4.89
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit0.84
Enterprise Value/Ebitda10.66
Forecast
1Y Price Target
$8.21Price Target Upside13.09% Upside
Rating ConsensusHold
Number of Analyst Covering7
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, which include company-owned locations and franchised establishments. The majority of its income comes from food and beverage sales within its restaurants. Additionally, the company benefits from franchise royalties and fees paid by franchisees, contributing to its overall revenue stream. Seasonal promotions, special menu items, and partnerships with delivery services also enhance sales. The company's strong brand recognition and focus on customer experience help drive repeat business and attract new customers, further bolstering its earnings.
Bloomin' Brands Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative elements. While there were notable improvements in traffic and operational efficiencies, significant challenges remain, including market share loss and increased costs. The company's proactive steps in leadership restructuring and strategic initiatives indicate a focus on long-term growth. However, lowered guidance and continued challenges at certain brands suggest a cautious outlook.Q2-2025 Updates
Positive Updates
Improvement in U.S. Traffic and Sales Comp
U.S. traffic saw a sequential improvement with a decline of only 2% in Q2, which is 190 basis points better than Q1. The Q2 sales comp was negative 10 basis points, showing an improvement from Q1's negative 50 basis points.
Operational Improvements
The introduction of the Aussie 3-course offering contributed significantly to traffic improvement at Outback. Menu reductions across brands have been fully implemented, leading to streamlined operations.
Carrabba's and Fleming's Sales Growth
Carrabba's achieved positive comp sales growth driven by strong off-premises sales, including catering and wine dinners. Fleming's maintained momentum with strong holiday and in-restaurant traffic.
Leadership Team Expansion
Significant leadership changes were announced, including a new Executive Vice President of Strategy and Transformation, a CFO-elect, and a new Chief Human Resources Officer to drive the company's strategic initiatives.
Stable Off-Premises Sales
Off-premises sales remained stable at 24% of total U.S. sales, consistent with last year, with Outback at 26% and Carrabba's at 35%.
Negative Updates
Outback Market Share Loss
Despite improvements, Outback is still losing market share in the industry, as defined by Black Box.
Decline in Adjusted Operating Margins
Q2 adjusted operating margins declined to 3.5% from 6.0% last year, attributed to a 200 basis points decline in adjusted restaurant level margin and cost inflation.
Increased Costs and Expenses
COGS inflation was 3.3% and labor inflation was 3.4%. Additionally, there were 50 basis points from increased health insurance costs and higher restaurant operating expenses.
Challenges at Bonefish Grill
Traffic trends at Bonefish Grill have been challenging, with risks incorporated into the guidance.
Lower Guidance for EPS
Adjusted diluted earnings per share guidance was lowered to a range of $1 to $1.10, due to various factors including tariff impacts, increased insurance costs, and investments in quality, service, and value.
Company Guidance
During the Bloomin' Brands, Inc. second quarter 2025 earnings call, the company provided fiscal guidance indicating their adjusted diluted earnings per share for the year is expected to be between $1.00 and $1.10. The guidance reflects key factors including a tariff impact anticipated to affect restaurant level margins by approximately 20 basis points, a $6 million to $8 million expense due to increased general liability insurance costs, and an investment of around $3 million in the Outback Steakhouse turnaround efforts. The company aims to enhance steak quality, service, and value as part of the turnaround, with 42 restaurants undergoing testing to improve guest experience. Additionally, the company has committed to maintaining a lease-adjusted net leverage ratio below 3.0x following the anticipated receipt of further proceeds from the Brazil refranchising transaction. Bloomin' Brands also plans to reallocate capital from new restaurant openings to remodels, expecting to complete approximately 10 remodels this year.Bloomin' Brands Financial Statement Overview
Summary
Bloomin' Brands faces challenges with declining revenue and profitability, as evidenced by negative net profit margins and high leverage. While cash flow shows some improvement, the overall financial health is constrained by high debt levels and operational inefficiencies.Income Statement
Bloomin' Brands shows a declining revenue trend with a negative revenue growth rate in the TTM period. The gross profit margin is strong at 83.47%, but the net profit margin is negative, indicating profitability issues. EBIT and EBITDA margins are low, suggesting operational challenges.45
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 5.43 in the TTM period, indicating significant leverage. Return on equity is negative, reflecting poor profitability relative to shareholder equity. The equity ratio is low, suggesting a reliance on debt financing.30
Negative
Cash Flow
Free cash flow growth is positive at 135.10% in the TTM period, showing improvement. However, the operating cash flow to net income ratio is low, indicating potential cash flow challenges. The free cash flow to net income ratio is moderate, suggesting some efficiency in cash generation.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2019 | Dec 2018 | Dec 2017 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.06B | 3.95B | 4.67B | 4.14B | 4.13B | 4.21B |
| Gross Profit | 3.39B | 2.80B | 810.36M | 672.23M | 666.43M | 697.66M |
| EBITDA | 268.56M | 179.37M | 516.32M | 398.29M | 385.31M | 383.11M |
| Net Income | -4.98M | -128.02M | 247.39M | 130.57M | 107.10M | 100.24M |
Balance Sheet | ||||||
| Total Assets | 3.31B | 3.38B | 3.42B | 3.59B | 2.46B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 50.31M | 70.06M | 111.52M | 67.14M | 71.82M | 128.26M |
| Total Debt | 2.16B | 2.27B | 2.09B | 2.33B | 1.09B | 1.12B |
| Total Liabilities | 2.91B | 3.25B | 3.01B | 3.42B | 2.41B | 2.52B |
| Stockholders Equity | 397.24M | 135.51M | 409.12M | 177.48M | 54.82M | 49.47M |
Cash Flow | ||||||
| Free Cash Flow | 61.54M | 7.39M | 208.17M | 155.68M | 79.85M | 148.41M |
| Operating Cash Flow | 235.07M | 228.13M | 532.42M | 317.60M | 288.07M | 409.00M |
| Investing Cash Flow | -109.01M | -239.03M | -317.11M | -131.29M | -177.30M | -123.11M |
| Financing Cash Flow | -187.12M | -23.51M | -187.13M | -189.36M | -164.35M | -293.50M |
Bloomin' Brands Technical Analysis
Negative
7.26
Price Trends
7.12
Positive
7.93
Negative
8.59
Negative
Market Momentum
0.03
Negative
50.41
Neutral
36.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLMN, the sentiment is Negative. The current price of 7.26 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.12, and below the 200-day MA of 8.59, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 36.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.59B | 16.03 | 41.01% | 2.01% | 4.77% | 38.24% | |
68 Neutral | $516.55M | 47.95 | 19.65% | ― | -1.72% | -70.31% | |
67 Neutral | $653.55M | 24.85 | 7.12% | ― | 4.07% | -1.24% | |
67 Neutral | $452.09M | 13.14 | 7.36% | ― | 3.62% | 17.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $537.17M | ― | -48.66% | ― | ― | ― | |
47 Neutral | $586.12M | ― | 24.74% | 9.50% | -11.45% | -121.89% |
* Consumer Cyclical Sector Average
BLMN
Bloomin' Brands
7.26
-7.09
-49.41%
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31.19
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PBPB
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17.10
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108.79%
PTLO
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6.02
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VENU
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12.63
1.83
16.94%
Bloomin' Brands Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Bloomin’ Brands Announces Major Leadership Changes
Positive
Aug 4, 2025
On August 4, 2025, Bloomin’ Brands announced significant leadership changes to support its business turnaround, particularly focusing on the Outback Steakhouse brand. Eric Christel was appointed as Executive Vice President and CFO-Elect, bringing nearly two decades of financial leadership experience from companies like Campbell’s and PepsiCo. Michael Healy will transition to Executive Vice President, Strategy & Transformation, leading strategic initiatives for the company’s turnaround. Other key appointments include Jessica Mitory as Chief Human Resources Officer and Ali Charri as Senior Vice President, Guest Insights and Analytics. The company aims to enhance operational focus and drive sustainable growth through these leadership realignments.
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.