Analysts Predict Earnings Decline for Bloomin’ Brands in Q3: What Investors Should Watch for

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Bloomin’ Brands ($NASDAQ:BLMN) is a publicly traded restaurant company that owns and operates several popular dining chains, including Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. Its stock is listed on the NASDAQ under the ticker symbol BLMN. The company had to temporarily close many of its locations and shift to a takeout and delivery model in response to lockdowns and social distancing measures. As a result, analysts are predicting that Bloomin’ Brands will report a decline in earnings for the third quarter of 2020. One of the key factors contributing to this expected earnings decline is lower revenues. With many consumers still hesitant to dine out due to safety concerns, Bloomin’ Brands may have seen a decrease in sales compared to the same period last year.

Additionally, the shift towards takeout and delivery may not be as profitable as in-person dining, further impacting the company’s revenues. Investors should also pay attention to Bloomin’ Brands’ efforts to adapt to the changing market. The company has implemented various cost-cutting measures, such as reducing menu offerings and implementing furloughs and reduced hours for employees. These strategies could potentially help mitigate the impact of lower revenues on the company’s earnings. Another important aspect to watch for is the company’s outlook for the remainder of 2020 and beyond. With uncertainties surrounding the pandemic and its effects on the restaurant industry, Bloomin’ Brands’ management team may provide insights into their plans for navigating these challenges. This could include potential expansion into new markets or further investments in takeout and delivery capabilities. In conclusion, while analysts are predicting a decline in earnings for Bloomin’ Brands in the third quarter of 2020, investors should closely monitor the company’s results and any updates on its strategies for adapting to the current market conditions. As with any stock, it is important to consider a variety of factors and conduct thorough research before making any investment decisions.

Earnings

According to analysts, Bloomin’ Brands, a leading casual dining restaurant company, is expected to report a decline in earnings for the third quarter of the fiscal year 2023. This prediction comes after the company’s latest earning report showed a decrease in total revenue and an increase in net income compared to the previous year. In the fourth quarter of fiscal year 2023, which ended on December 31, 2021, Bloomin’ Brands reported a total revenue of 1047.08M USD and a net income of 60.7M USD. While this was a significant increase in net income from the previous year, it was overshadowed by a 4.4% decrease in total revenue. This decline in revenue could be attributed to various factors such as changing consumer preferences, increased competition, and supply chain disruptions.

However, it is worth noting that over the past three years, Bloomin’ Brands has seen steady growth in total revenue, with it increasing from 1047.08M USD to 1194.2M USD. This suggests that the company has been able to overcome challenges and remain profitable despite the ever-changing market conditions. Investors should keep a close eye on certain factors when examining Bloomin’ Brands’ earnings report for the third quarter. One of the key factors to watch out for is the company’s sales performance, particularly in its flagship brands such as Outback Steakhouse and Carrabba’s Italian Grill. Another crucial element is the impact of rising food and labor costs on the company’s profitability. In conclusion, while analysts are predicting a decline in earnings for Bloomin’ Brands in the third quarter, investors should closely monitor the overall performance of the company and its ability to adapt to market conditions. With a track record of steady revenue growth and strong brand recognition, Bloomin’ Brands remains a potentially lucrative investment opportunity for those looking to invest in the casual dining industry.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Bloomin’ Brands. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Bloomin’ Brands. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Bloomin’ Brands. More…

Key Ratios Snapshot

Some of the financial key ratios for Bloomin’ Brands are shown below. More…

Market Price

The stock of Bloomin’ Brands, the parent company of popular restaurant chains such as Outback Steakhouse and Carrabba’s Italian Grill, experienced a decline in its share price on Friday. This was in response to analysts predicting a decline in earnings for the company in the third quarter of the fiscal year. The stock opened at $16.77 and closed at $16.25, a decrease of 2.05% from the previous closing price of $16.59. This decline in stock price can be attributed to the concerns raised by analysts about Bloomin’ Brands’ financial performance in the upcoming quarter. The company is expected to report a decline in earnings due to several factors, including increased labor costs and softening sales at some of its major restaurant chains. As a result, investors are being advised to closely monitor the company’s earnings report and pay attention to certain key factors. One important factor to watch for is the impact of rising labor costs on Bloomin’ Brands’ profits. With many states and cities implementing minimum wage increases, restaurants are facing higher labor costs, which can eat into their margins. Given that the majority of Bloomin’ Brands’ expenses are related to labor, any increase in labor costs can have a negative effect on their earnings. Another area of concern for investors is the performance of Bloomin’ Brands’ flagship brand, Outback Steakhouse. This chain has been struggling with declining sales in recent quarters, and analysts are predicting this trend to continue in the third quarter. Investors will be closely watching to see if the company has implemented any strategies to boost sales at Outback Steakhouse and if those efforts have yielded positive results.

In addition, investors should also pay attention to any updates on Bloomin’ Brands’ international expansion plans. The company has been focusing on growing its presence in international markets, particularly in Brazil and South Korea. Any progress or setbacks in these markets could have a significant impact on the company’s overall financial performance. Overall, while the decline in stock price may be concerning for investors, it is important to closely monitor Bloomin’ Brands’ upcoming earnings report and pay attention to these key factors. This will provide a better understanding of the company’s current performance and its outlook for the future. Live Quote…

Analysis

After examining the financials of BLOOMIN’ BRANDS, I can confidently say that this company is in a strong financial position. Its cashflows and debt levels are well-managed, leading to a high health score of 7/10 on the Star Chart. This indicates that BLOOMIN’ BRANDS is capable of safely navigating through any potential crises without the risk of bankruptcy. In terms of growth and stability, BLOOMIN’ BRANDS falls under the category of ‘gorilla’ companies. This means that it has achieved significant and consistent revenue and earning growth, which can be attributed to its strong competitive advantage in the market. This is a highly desirable trait for investors, as it shows the company’s ability to maintain a dominant position in its industry. Investors who are interested in stable and profitable companies with strong growth potential would be drawn to BLOOMIN’ BRANDS. The company’s solid financials and strong competitive advantage make it an attractive option for those seeking long-term investment opportunities. Additionally, BLOOMIN’ BRANDS has a strong dividend track record, making it appealing to income-oriented investors as well. However, it’s worth noting that BLOOMIN’ BRANDS may not be the best fit for investors seeking high asset growth. While the company excels in other areas, its asset growth may not be as impressive compared to other companies in its industry. Overall, BLOOMIN’ BRANDS presents a solid investment opportunity for those looking for a stable and profitable company with room for growth. More…

Peers

Bloomin Brands Inc. is an international restaurant company that owns and operates several casual dining restaurant chains. Its competitors include Rave Restaurant Group Inc, Alsea SAB de CV, and BJ’s Restaurants Inc.

– Rave Restaurant Group Inc ($NASDAQ:RAVE)

Rave Restaurant Group Inc is a publicly traded company that owns and operates several restaurant brands, including Pizza Inn and Pie Five Pizza Co. As of 2022, the company had a market capitalization of $31 million and a return on equity of 14.79%. The company’s restaurants are located in the United States, Canada, and Puerto Rico.

– Alsea SAB de CV ($OTCPK:ALSSF)

Alsea SAB de CV is a Mexican food and beverage company with a market cap of 1.53B as of 2022. The company has a Return on Equity of 52.23%. Alsea SAB de CV operates in Mexico, Argentina, Chile, Colombia, and Brazil. The company operates through four segments: Mexico, South America, Central America, and Direct Operations. The company offers a variety of food and beverage products under the brands of Starbucks, Domino’s Pizza, Burger King, Havanna, Pizza Hut, and others.

– BJ’s Restaurants Inc ($NASDAQ:BJRI)

BJ’s Restaurants Inc is a leading operator of casual dining restaurants in the United States. The company operates over 190 restaurants in 26 states. BJ’s Restaurants Inc offers a variety of menu items, including pizzas, burgers, sandwiches, and salads. The company also offers a variety of alcoholic beverages. BJ’s Restaurants Inc has a market cap of 764.37M as of 2022, a Return on Equity of -3.52%. The company’s focus on quality food and beverages, friendly service, and value pricing has made it a popular destination for casual dining.

Summary

Bloomin’ Brands is expected to report a decline in earnings for the third quarter of 2021 due to lower revenues. Analysts are keeping a close eye on the company’s performance, especially in light of ongoing challenges in the restaurant industry. Investors will be looking for signs of growth and potential areas of improvement in the company’s upcoming earnings report.

With the current economic climate, it will be important to see how Bloomin’ Brands has adapted and navigated through these challenges. This earnings report will provide valuable insights for investors and analysts to make informed decisions about the company’s future prospects.