Bloomin' Brands Shares Plunge On Q3 Revenue Miss, Grim Outlook

Bloomin' Brands Inc BLMN reported third-quarter FY21 sales growth of 31% year-on-year, to $1.01 billion, missing the analyst consensus of $1.04 billion.
Comparable Restaurant Sales in the U.S. grew 18.3% at Outback Steakhouse and 25.5% at Combined U.S.
Restaurant sales grew 30% Y/Y to $996.7 million, while Franchise and other revenues shot up 187.9% to $13.7 million.
U.S. segment revenue rose 26.4% Y/Y to $912.7 million, and the international segment increased 108% Y/Y to $97.7 million.
Adjusted EPS of $0.57 beat the analyst consensus of $0.56.
Total cost and expenses for the quarter increased 26.7% Y/Y to $995.6 million.
Restaurant-level operating margin contracted by 40 basis points to 10.3%. The operating margin was 1.5%, with operating income at $14.8 million.
The company held $76.3 million in cash and equivalents as of September 26, 2021. The company had a net debt of $839.2 million.
"Recently, we have seen inflationary pressures in our business and have levers available to combat these headwinds and achieve our margin targets," said CEO David Deno.
Outlook: Bloomin' Brands sees Q4 revenue of at least $1.02 billion, below the consensus of $1.11 billion.
It expects Q3 adjusted EPS of at least $0.50, compared to the consensus of $0.70.
Price Action: BLMN shares are trading lower by 10.7% at $20.16 on the last check Tuesday.

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