Bloomin' Brands Q2 Bottomline Exceeds Expectations; Reaffirms FY23 Guidance

Bloomin' Brands, Inc. BLMN 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.

Adjusted EPS of $0.74 beats the analyst consensus of $0.63.

"Our results reflect the investments we are making to elevate the customer experience as well as the ongoing execution of our growth strategy," said David Deno, CEO.  

The increase in total revenues was primarily due to higher comparable restaurant sales and the benefit of the Brazil value-added tax exemptions.

Operating income margin was flat Y/Y, owing to increased restaurant-level operating margin.

The company exited the quarter with cash and equivalents worth $88.79 million. Total debt at the end of the quarter was nearly $764 million.

"We remain well positioned to deliver on our long-term goals of growing sustainable sales and profits while maximizing total shareholder return," Deno added. 

Dividend

On July 18, 2023, the Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on August 25, 2023, to stockholders of record at the close of business on August 14, 2023.

Outlook: Bloomin' Brands reiterated its FY23 guidance (communicated in February 16, 2023 earnings release). The company sees adjusted EPS of $2.91-$3.00 against the Street view of $2.92.

For Q3, the company expects adjusted EPS of $0.41-$0.46 against the Street view of $0.43.

Price Action: BLMN shares are trading lower by 5.4% at $25.42 on the last check Tuesday.