Bloomin' Brands Reports Q4 Sales Decline: 'Not Representative Of Our Potential,' Says CEO

Bloomin’ Brands Inc BLMN shares are trading lower in premarket on Wednesday.

The company reported a fourth-quarter FY24 sales decline of 9.3% year-on-year to $972 million, missing the analyst consensus estimate of $1.08 billion.

Combined U.S. comparable restaurant sales fell 1.1% during the quarter, with a 1.8% decline in Outback Steakhouse and a 3% climb in Fleming's Prime Steakhouse & Wine Bar.

Restaurant sales decreased 9.2% Y/Y to $952 million, while Franchise and other revenues declined 13.8% to $19.9 million.

U.S. segment revenue slipped 8.6% Y/Y to $952.5 million, and the International segment decreased 5.4% Y/Y to $9.9 million.

Total cost and expenses for the quarter dropped 6.5% Y/Y to $955.8 million.

Restaurant-level operating margin contracted by 350 basis points to 12.4%. The operating margin was 1.7%, and the operating income was $16.2 million.

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The company held $70.1 million in cash and equivalents as of Dec. 29, 2024. The company had a total debt of $1.03 million.

Adjusted EPS of $0.38 beat the consensus estimate of $0.36.

On Feb. 12, 2025, the Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on March 26, to stockholders of record at the close of business on March 11.

“I am also aware that our current results are not what we expect and are not representative of our potential. We are making changes to address our near-term execution as well as drive sustainable sales and profit growth. Our guidance for the first quarter and full year is reflective of where we are and our go-forward short term performance,” said CEO Mike Spanos.

Outlook: Bloomin’ Brands sees FY25 U.S. comparable restaurant sales of (2%) – Flat. The company sees FY25 adjusted EPS of $1.20 to $1.40 versus the estimate of $1.77.

Bloomin’ sees first-quarter U.S. comparable restaurant sales of (1.5%) – (0.5%). It expects first-quarter adjusted EPS of $0.55 – $0.60, against the consensus of $0.68.

Price Action: BLMN shares are trading lower by 5% at $11.30 in premarket at last check Wednesday.

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Image created using artificial intelligence via Midjourney.