The shares of this restaurant company were recently upgraded by Deutsche Bank to ‘Buy’.
Bloomin’ Brands Inc. (BLMN)
From The Buyback Letter
Tampa, Fla.-based Bloomin’ Brands Inc. (BLMN) is the parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar. It is one of the world’s largest casual dining companies, with about 1,500 restaurants across 48 states, Puerto Rico, Guam and 19 countries, with more than 94,000 employees worldwide. It had more than $4 billion in revenue last year.
Changes in consumer dining trends are putting pressure on Outback and other casual dining chains these days. BLMN responded to an oversaturated restaurant market that saw casual dining chains losing market share by experimenting with delivery and takeout, offering loyalty cards and enhancing customer experience. The chain opened three smaller Express locations in Florida that combine elements of both the Outback and Carrabba’s menus for delivery and takeout. There are five additional planned this year, although locations have not been announced. Ultimately, said CEO Liz Smith, off-premise dining could account for a quarter of total restaurant sales. Right now, 240 restaurants offer delivery.
Bloomin’ Brands reported fourth-quarter net income of $16.4 million, after reporting a loss in the same period a year earlier. On a per-share basis, the company said it had profit of 17 cents. Adjusted earnings per share were 41 cents and revenue was $1.09 billion. The consensus was for EPS of 39 cents and sales of $1.05 billion. U.S. same-restaurant sales grew 3.3% and traffic was up 1.8%, the company said. Outback Steakhouse U.S. had 4.7% same-restaurant sales growth and a traffic increase of 4.3%. For 2018, the company expects EPS of $1.28-$1.35 and adjusted EPS of $1.38-$1.45.
Bloomin’ Brands is a 2018 Fortune World’s Most Admired Company. Shares outstanding have been reduced by 12.78% in the last 12 months.
David R. Fried, The Buyback Letter, www.buybackletter.com, 888-289-2225, March 16, 2018