Restaurant Company Bloomin' Brands Cuts Annual Outlook After Mixed Q3 Performance

Bloomin' Brands Inc BLMN reported third-quarter FY23 sales growth of 2.3% year-on-year to $1.079 billion, missing the analyst consensus estimate of $1.085 billion.

Combined U.S. comparable restaurant sales fell 0.5% during the quarter, with a 1.1% decline in Outback Steakhouse and a 3% climb in Carrabba's Italian Grill.

Restaurant sales grew 2.3% Y/Y to $1.1 billion, while Franchise and other revenues rose 0.2% to $15.4 million.

U.S. segment revenue slipped 1% Y/Y to $912.9 million, and the International segment increased 25.2% Y/Y to $166.8 million.

Total cost and expenses for the quarter increased 1.7% Y/Y to $1.02 billion.

Restaurant-level operating margin expanded by 70 basis points to 13.8%.

The operating margin was 5.4%, and the operating income was $58.2 million.

The company held $86.6 million in cash and equivalents as of September 24, 2023. The company had a net debt of $789.4 million.

Adjusted EPS of $0.44 beat the analyst consensus of $0.41.

On October 17, 2023, the company's Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on November 29, 2023, to stockholders of record at the close of business on November 14, 2023.

Outlook: Bloomin' Brands cut FY23 U.S. comparable restaurant sales from 2% - 4% to 1.5% - 2%. It cut FY23 adjusted EPS guidance from $2.91 - $3.00 to $2.80 - $2.90 versus the estimate of $2.93.

Bloomin' sees Q4 U.S. comparable restaurant sales to be flat to 1%. It expects Q4 adjusted EPS of $0.64 - $0.74, against the consensus of $0.78.

Price Action: BLMN shares are trading lower by 2.08% at $23.08 on the last check Friday.