Bloomin' Brands Q3 revenue tops estimates on new restaurant openings

Overview

• Bloomin' Brands Q3 revenue rises 2.1%, beating analyst expectations

• Adjusted EPS for Q3 beats consensus despite reported loss

• Company suspends dividend to support turnaround strategy, focusing on Outback Steakhouse

Outlook

• Company reaffirms full-year adjusted EPS guidance of $1.10 to $1.15

• Bloomin' Brands expects Q4 U.S. comparable sales growth of 0.5% to 1.5%

• Company anticipates labor inflation of approximately 3.5% for 2025

Result Drivers

• REVENUE GROWTH - Driven by new restaurant openings and higher U.S. comparable restaurant sales, despite lower franchise revenues

• MARGIN PRESSURE - Higher commodity, labor, and insurance costs due to inflation impacted restaurant-level operating margins

• TURNAROUND STRATEGY - Focus on Outback Steakhouse with strategic investments and debt reduction, dividend suspended

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for Bloomin' Brands Inc is $7.63, about 5.2% above its November 5 closing price of $7.23

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw644Pb1a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)