Bloomin’ Brands, Inc. is the company behind Outback Steakhouse, Carrabba’s Italian Grill, and other restaurant chains.
BLMN’s earnings outlook has tanked since the start of 2023 as consumers pull back on spending. Bloomin’ Brands posted another disappointing quarter in early August.
Bloomin’ Brands Stock 101
Bloomin’ Brands, Inc. BLMN is a casual dining restaurant giant, most famous for its Outback Steakhouse chain. The company also owns Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. Bloomin’ Brands boasts that it owns and operates more than 1,450 restaurants across 46 states and 13 countries.
Bloomin’ Brands is coming off a strong three-year stretch following its Covid tumble. Unfortunately, its sales have slowed since it posted 30% top-line expansion in 2021. The company grew its sales by 7% in 2022 and 6% last year. The company is projected to see its revenue slide 4% in 2024.
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Bloomin’ Brands missed our Q2 earnings per share estimate by 11% and provided downbeat guidance once again, with the casual dining industry “softer than anticipated.” The causal dining space is suffering as consumer spending slows across the board as they start to wave the white flag amid lingering inflation.
Bloomin’ Brands’ third quarter EPS estimate has tumbled 49% in the last few months, with its FY24 and FY25 estimates roughly 15% lower, helping BLMN earn a Zacks Rank #5 (Strong Sell). The recent downward EPS revisions are part of a negative trend that began in early 2023.
Bloomin’ Brands stock is down 3% in the past five years vs. its industry’s 15% climb and the S&P 500’s 95% surge. BLMN shares have tumbled 38% YTD.
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Why Investors Might Want to Stay Away from Bloomin’ Brands
Bloomin’ Brands announced on Aug. 26 that Mike Spanos will take over as chief executive officer on September 3. Former CEO David Deno announced in early May his planned retirement.
It might be best to stay away from Bloomin’ Brands until the company shows that a near-term bottom is in for this rough business cycle. Plus, its Retail – Restaurants industry is in the bottom 33% of over 250 Zacks industries.
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