S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
Ruptured oil pipeline off California approved for repairs
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Italy's Meloni vows to put national energy interests first
Danes: Nord Stream 2 pipeline seems to have stopped leaking
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
Ruptured oil pipeline off California approved for repairs
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Italy's Meloni vows to put national energy interests first
Danes: Nord Stream 2 pipeline seems to have stopped leaking
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
Ruptured oil pipeline off California approved for repairs
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Italy's Meloni vows to put national energy interests first
Danes: Nord Stream 2 pipeline seems to have stopped leaking
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
Ruptured oil pipeline off California approved for repairs
New Battery Tech to “Eat Lithium’s Lunch”? (Ad)
Italy's Meloni vows to put national energy interests first
Danes: Nord Stream 2 pipeline seems to have stopped leaking

Bloomin’ Brands Is Blossoming 

Bloomin’ Brands Is Blossoming 

Blooming Brands' (NASDAQ: BLMN) value is slipping away, but not for any bad reasons. The company’s results prove that the rebound in restaurants is still strong and that pricing power is driving cash flow and that shares are moving higher. With the stock trading at only 8.4X, its earnings compared to 22X for Texas Roadhouse (NASDAQ: TXRH) and 13X for Ruth’s Hospitality Group (NASDAQ: RUTH) this diversified restaurant stock is in the midst of a price-multiple expansion and one that is aided by high short interest. The short interest was sitting at over 12% going into the report, and that is ample fuel to aid a rally, especially if the shorts decide to reposition at higher prices. 

Bloomin’ Brands Is Growing, Growing 

Bloomin’ Brands had a decent quarter supported by the addition of Outback Brazil, new restaurants, and a positive FX tailwind coming out of Brazil. The company reported $1.13 billion in net revenue for a gain of 4.6% over last year. The revenue also beat the consensus estimate by 180 basis points, as well, with same-store comps coming in at -0.4%. On a segment basis, all segments but one posted YOY gains, and all segments are up versus 2019. The core Outback Steakhouse segment is up 10%, while Carraba’s is up a stronger 15%. 


Moving down the report, the news is mixed but ultimately supportive of share prices. The company reports a 480 basis point contraction in restaurant margin, and a 320 basis point contraction in the adjusted operating margin, but both are better than expected. The GAAP earnings of -$0.72 were a surprise but offset by the early extinguishment of debt and costs related to that. 

Adjusted for those charges, the company reported $0.68 in EPS to beat the consensus by $0.06 while also increasing cash on a YOY basis and repurchasing shares. The company repurchased $62 million worth during the quarter and still has $63 million left under the current authorization. As for the balance sheet, the company is net debt, and debt is up slightly from last year, but leverage remains manageable and in line with the long-term outlook. 

The dividend isn’t all that large at only 1.37%, but it is consistent with the broad market S&P 500 index and its peers. The payout is sustainable at only 25% of the earnings outlook, even after the big cut. The company raised its outlook for revenue due to expected pricing increases but also slashed its EPS outlook to half of the consensus estimate. The takeaway here is the cut to earnings was expected and the market is taking it in stride. 

The Analysts Like The Cut Of Bloomin’ Brands Results 

The analysts rate Bloomin’ Brands a Moderate Buy and have been narrowing their price targets in the wake of the report. There’re been at least three major reports put out, with one raising the price target and two lowerings. The takeaway is the one raising the target is below the consensus, and the two lowerings are above, so the net result is an uptick in the consensus, and the consensus implies about 33% of upside for the stock. 

The Technical Outlook: Bloomin’ Brands Melts Up 

The price action in Bloomin’ Brands hit a bottom a few weeks before the earnings release and it appears to be gaining momentum now. The price action is up about 2.0% to start the week and setting a new two-month high while moving above the 150-day moving average. Assuming the market follows through with this move, the stock could rise to the $24 level before hitting major resistance. 

Bloomin’ Brands Is Blossoming 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Bloomin' Brands (BLMN)
2.6075 of 5 stars
$18.33-1.6%3.06%29.10Moderate Buy$27.80
Texas Roadhouse (TXRH)
2.866 of 5 stars
$87.26-2.0%2.11%23.84Moderate Buy$101.95
Ruth's Hospitality Group (RUTH)
2.8131 of 5 stars
$16.86-1.7%3.32%13.82Buy$24.50
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Bloomin' Brands right now?

Before you consider Bloomin' Brands, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bloomin' Brands wasn't on the list.

While Bloomin' Brands currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.