Bloomin' Brands Misses Q2 Earnings Estimates On Weak Comps, Cuts Outlook

Bloomin' Brands, Inc. BLMN shares are trading lower after the company reported second-quarter adjusted EPS of $0.51, missing the analyst consensus of $0.58.

Quarterly sales of $1.12 billion marginally missed the street view of $1.13 billion, decreasing 2.9% Y/Y.

Quarterly results were affected by lower comparable restaurant sales, the net impact of restaurant closures and openings, and the benefit from the Brazil value added tax exemptions during 2023.

Adjusted operating margin contracted to 5.7% from 7.8%, and restaurant-level operating margin decreased to 14.3% from 16.4%.

Dividend: On July 23, 2024, the Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on Sept. 4, 2024, to stockholders of record as of Aug. 20, 2024.

Buyback: Year-to-date through Aug. 2, 2024, the company repurchased 9.9 million shares for $263.1 million and has $99.4 million remaining under the 2024 Share Repurchase Program.

Outlook: Bloomin' Brands lowered the FY24 adjusted EPS outlook to $2.10-$2.30 (from $2.51-$2.66) vs. the estimate of $2.41 and projects U.S. Comparable Restaurant sales declining 1% to flat (prior view: flat to +2%).

The company expects third-quarter U.S. comparable restaurant sales to be down 2% to flat, with adjusted EPS of $0.17-$0.25 (from $0.55-$0.60 prior) versus the estimate of $0.39.

David Deno, CEO said, “While our comparable sales growth outpaced the industry in Q2, we did not meet our expectations. We are very focused on developing a path to sustainable growth at Outback and are making progress in improving the guest experience, providing meaningful value, and enhancing customer and digital capabilities.”

“Our full year guidance has been updated to reflect current industry trends and our teams remain focused on delivering long-term sustainable growth.”

Investors can gain exposure to the stock via LeaderShares Activist Leaders ETF ACTV and Series Portfolios Trust InfraCap Small Cap Income ETF SCAP.

Price Action: BLMN stock is down 2.68% at $17.80 premarket at the last check Tuesday.

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