Latest news with #BloominBrands
Yahoo
17 hours ago
- Business
- Yahoo
5 Must-Read Analyst Questions From Bloomin' Brands's Q1 Earnings Call
Bloomin' Brands' first quarter results were met with a negative market reaction, as management acknowledged losing share to industry peers despite revenue slightly exceeding Wall Street expectations. CEO Mike Spanos attributed the underperformance to ongoing challenges at Outback Steakhouse, including a value proposition that has not resonated with price-sensitive consumers and operational inconsistencies. Spanos was candid, stating, 'We are dissatisfied with our financial and market share results and know we need to do better,' while detailing the company's early progress on menu simplification and operational redesign. Is now the time to buy BLMN? Find out in our full research report (it's free). Revenue: $1.05 billion vs analyst estimates of $1.04 billion (12.2% year-on-year decline, 1.2% beat) Adjusted EPS: $0.58 vs analyst estimates of $0.57 (in line) Adjusted EBITDA: $107.6 million vs analyst estimates of $111 million (10.3% margin, 3% miss) Adjusted EPS guidance for Q2 CY2025 is $0.25 at the midpoint, below analyst estimates of $0.37 Operating Margin: 5.5%, in line with the same quarter last year Locations: 1,466 at quarter end, up from 1,451 in the same quarter last year Same-Store Sales were flat year on year (-1.6% in the same quarter last year) Market Capitalization: $864.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Pratik Patel (Barclays) asked about progress on menu and operational simplification. CEO Mike Spanos explained improvements are underway but said, 'We are not happy with our performance…we are losing share,' noting the turnaround will take time. Alex Slagle (Jefferies) inquired about weaker holiday traffic. Spanos said, 'Households under $100,000 seem to be the most pressured,' and noted a decline in alcohol sales while desserts and appetizers held up. Brian Harbour (Morgan Stanley) questioned expectations for mix and margin impact from value offers. Spanos replied that mix will likely decline in Q2 due to value promotions, with management monitoring check averages and traffic closely. Brian Mullan (Piper Sandler) asked about guest and employee response to menu reductions. Spanos said feedback from both groups has been positive, with Ziosk providing actionable data for further refinements. Sara Senatore (BofA Securities) queried potential for margin recovery and cost offsets. CFO Healy stated that margin pressure is expected in the near term, but ongoing G&A savings and operational efficiencies are being pursued. Looking ahead, the StockStory team will monitor (1) the effectiveness and guest response to Outback's core value platforms as they become more entrenched, (2) progress on menu simplification and its impact on operational consistency and customer satisfaction, and (3) management's ability to offset margin pressures amid commodity and labor headwinds. The success of technology-driven service improvements will also be a key indicator of turnaround progress. Bloomin' Brands currently trades at $10.01, up from $7.93 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
15-04-2025
- Business
- Yahoo
Is Bloomin Brands, Inc. (BLMN) the Top Restaurant Stock to Buy Under $20?
We recently published a list of . In this article, we are going to take a look at where Bloomin Brands, Inc. (NASDAQ:BLMN) stands against other top restaurant stocks to buy under $20. Restaurant stocks are showing volatility amid Trump's tariff impositions across various sectors. On April 7, CNBC reported that while US stocks are tumbling due to the effects of high tariffs on the import of goods from key trading partners, analysts do not anticipate the tariffs to hit most restaurant stocks directly. However, inflation is expected to follow behind, fueled by expert and investor fear of an impending recession. This may put pressure on the spending capacity of consumers, resulting in an economic downturn. CNBC reported that UBS analyst Dennis Geiger said the following in a note to clients: 'We view the direct cost impact of tariffs on restaurants as manageable, with a focus on select commodity costs, but see the bigger risk as incremental pressure on consumer spending and industry demand.' CNBC also reported that investor concerns affected restaurant stocks across all sectors. Fast food restaurant chains have historically shown the most resilience during recessions, as consumers looking for cheap dining options typically level down from fast-casual or full-service diners and eateries to fast food options. However, the drop in consumer spending witnessed last year saw fast food restaurants hit hard, as low-income consumers cut their spending to this sector, visiting them less frequently. High-income consumers, on the other hand, continued with their usual dining habits, creating a gap that negatively affected fast food companies. Quick-service restaurants thus underwent same-store sales declines. On March 8, Mario Carbone, Major Food Group chef and co-founder, appeared on CNBC's 'Power Lunch' to discuss the effects of Trump's tariffs on the food industry and how high-end consumers are behaving in the sector. Talking about New York, he said that the numbers are booming, going above their pre-Covid benchmarks. New York is thus telling us that everything is good, and there is no fear right now in dining in the luxury sector. Stats are up, and restaurants are packed, with consumer energy through the roof. As of right now, there are no signs of slowing at all if one evaluates the spending and trends in restaurant reports. However, Carbone said that inflation hits the food and restaurant industry just like everyone else. The luxury food sector is responsible to the customer for bringing in the best ingredients for every meal, which is why it has no choice but to pass the effects on to the consumer in case such trends materialize. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 restaurant stocks under $20 as of April 13, 2025, and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). The golden glow of the exterior of a modern Upscale Casual Dining restaurant reflecting on a busy street. Share Price: $7.05 Number of Hedge Fund Holders: 26 Bloomin' Brands, Inc. (NASDAQ:BLMN) is a Florida-based restaurant holding company with four brands: Outback Steakhouse, Fleming's Prime Steakhouse & Wine Bar, Carrabba's Italian Grill, and Bonefish Grill. The company owns and operates more than 1,450 restaurants in 45 US states, Guam, and 13 countries, some of which are franchises. Its operations are divided into two segments: International and US. On December 30, 2024, the company completed the sale of 67% of its Brazil operations to a fund managed by an affiliate of Vinci Partners, retaining a 33% interest. Analysts believe this move will streamline Bloomin' Brands, Inc.'s (NASDAQ:BLMN) business and boost operational efficiency by allowing it to concentrate on its domestic market. The company is also taking several actions to address its near-term business results, such as focusing on building sustainable traffic and profitable comparable restaurant sales growth by improving quality, value, and guest experience. Analysts are bullish on Bloomin' Brands, Inc.'s (NASDAQ:BLMN) potential, and its median price target of $7.05 implies an upside of 63.12% from current levels. Overall, BLMN ranks 4th on our list of the top restaurant stocks to buy under $20. While we acknowledge the potential for BLMN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BLMN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
