What's Going On With Bloomin' Brands Stock Today?

Bloomin' Brands Inc BLMN shares are trading higher after an activist investor disclosed its interest in the restaurant company. According to a regulatory filing, Starboard Value owns 9.9% of Bloomin's shares.

Wall Street Journal was the first to report that Starboard has built a stake of more than 5% in Bloomin' Brands, making it one of the company's top-five shareholders.

Starboard's intentions for Bloomin' Brands remain uncertain. In the past, activist investors like Jana Partners and Barington Capital Group have urged Bloomin' to reduce expenses and separate some of its brands.

In its most recent quarter, Bloomin' Brands reported second-quarter FY23 sales growth of 2.4% year-on-year to $1.153 billion, broadly in line with the consensus of $1.150 billion.

Analysts have recently noted that the company trades at a discount relative to peers, including Darden Restaurants Inc DRI and Burger King owner Restaurant Brands International QSR. 

Bloomin' Brands has faced activist shareholders before. Both Jana Partners and Barington Capital Group have previously approached the company, advocating for cost reductions and potential divestment of some brands.

Year-to-date, Bloomin' Brands' stock has surged almost 30% as the company rebounds from pandemic setbacks, elevating its market valuation to around $2.2 billion. However, the shares have remained relatively stagnant over the last ten years due to lagging sales growth.

Price Action: BLMN shares are up 7.34% at $27.50 on the last check Friday.