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Based in Tampa, Fla., Bloomin Brands (NASDAQ:BLMN) scheduled a $300 million IPO with a market capitalization of $1.65 billion at a price range mid-point of $14, for Wednesday, August 8, 2012.

Five other IPOs are scheduled for the week of July 30. Full IPO calendar available here.

BLMN filed an updated S-1 July 25, 2012

UNDERWRITERS
Manager, Joint Managers: BofA Merrill Lynch; Morgan Stanley; J.P. Morgan; Deutsche Bank Securities; Goldman, Sachs.
Co Managers: Jefferies; William Blair; Raymond James; Wells Fargo Securities; The Williams Capital Group.

SUMMARY
BLMN is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. BLMN owns and operates 1,247 restaurants and have 195 restaurants operating under a franchise or joint venture arrangement across 49 states and 21 countries and territories internationally.

For the March 2012 quarter BLMN sales increased 5% to $1,056 million from $1,002 million. Net income declined 10% to $50 million from $55 million.

41% Dining Out Less Often Than They Were Six Months Ago, August 1, 2012

Valuation Ratios

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

trailing 12 mos thru March '12

Cap (NYSE:MM)

Sales

Earnings

BookValue

TangibleBV

in IPO

Bloomin Brands (BLMN)

$1,652

0.42

17

7.3

-3.3

18%

P/E adj for debt repayment from IPO proceeds

14

COMPARE

Mrkt

Price /

Price /

Price /

Price /

Using 2011 sales & profits

Cap

Sales

Earnings

BookValue

TangibleBV

Net Profit %

because the March qtr appears high for '11 & '12
Bloomin Brands (BLMN)

$1,652

0.42

17

7.3

-3.3

2.6%

P/E adj for debt repayment from IPO proceeds

14

Darden Restaurants (NYSE:DRI)

$6,620

0.83

14

3.6

8.1

6.0%

Cheesecake Factory (NASDAQ:CAKE)

$1,810

1.03

19

3.3

3.4

5.5%

Brava Brio (NASDAQ:BBRG)*

$360

0.98

26

4.2

4.3

3.8%

*for P/E: eliminated 2011 tax refund, applying March '12 qtr tax rate
Del Friscos Restaurant Group (NASDAQ:DFRG)**

$290

1.44

32

2.1

7.7

4.5%

**DFRG had a strong March '12 qtr

OBSERVATIONS
BLMN is the lowest in terms of price-to-sales, and also tied for the lowest P/E multiple adjusting for interest reduction through debt repayment.

In terms of market cap per restaurant, BLMN is also the lowest, see below.

Market cap

per restaurant

Stock price
# of restaurants

($mm)

change YTD
Bloomin Brands (BLMN)

1442

$1.1

Darden Restaurants

1894

$3.5

1.2%

Brava Brio

83

$4.3

2.8%

Del Friscos Restaurant Group *

31

$9.4

(*)

Cheesecake Factory

170

$10.6

4.6%

*IPO'd July 26 at $13 & is relatively unchanged

CONCLUSION
Based on the above comparisons, looks like BLMN is priced at the low end of the group. IPOdesktop believes the BLMN will happen but is not especially interesting. It's difficult to show top line revenue growth from such a large base, especially when consumers are eating out less.

BUSINESS
BLMN is one of the largest casual dining restaurant companies in the world, with a portfolio of leading, differentiated restaurant concepts. BLMN owns and operates 1,247 restaurants and have 195 restaurants operating under a franchise or joint venture arrangement across 49 states and 21 countries and territories internationally.

BLMN's core concepts target three separate, large and highly fragmented menu categories of the full-service restaurant sector: steak, Italian and seafood.

Outback Steakhouse, Carrabba's and Bonefish Grill target the casual dining price category, and Fleming's targets the fine dining category.

15% of BLMN's consolidated restaurant sales are attributable to the sale of alcoholic beverages.

COMPARABLE SALES INCREASES
Comparing March 2012 quarter with March 2011 quarter
46% of the sales increase for the March 2012 quarter (vs the March 2011 qtr) came from price increases, so the net increase in comparable store sales exclusive of price increases was 2.8%

Menu price increases: up 2.4% for the March 2012 quarter;
Comparable store sales increases: up 5.2% for the March 2012 quarter.

BRAND INVESTMENTS
Brand investments have focused on accelerating the multi-year Outback Steakhouse renovation plan and increasing unit development in higher return, high growth concepts with a focus on Bonefish Grill.

BLMN renovated 194 Outback Steakhouse locations and opened six Bonefish Grill restaurants in 2011. BLMN expects to open 30 or more restaurants in 2012 and increase the pace thereafter.

RESTAURANT BRANDS
Outback
Outback is a casual dining steakhouse featuring high quality, freshly prepared food, attentive service and Australian décor. As of March 31, 2012, BLMN owned and operated 669 restaurants and franchised 106 restaurants across 49 states, and owned and operated 111 restaurants, franchised 47 restaurants and operated 34 restaurants through a joint venture across 21 countries and territories internationally. The average check per person at domestic Outback Steakhouse restaurants was $20 in 2011.

Carrabba's
Carrabba's is an authentic Italian casual dining restaurant featuring high quality handcrafted dishes, an exhibition kitchen and a welcoming atmosphere. As of March 31, 2012, BLMN owned and operated 230 restaurants and had one franchised restaurant across 32 states. The average check per person at Carrabba's was $21 in 2011.

Bonefish Grill
Bonefish Grill is an upscale casual seafood restaurant featuring market fresh grilled fish, high-end yet approachable service and a lively bar. Bonefish Grill's bar provides an energetic setting for drinks, dining and socializing with a bar menu featuring a large selection of specialty cocktails, wine and beer. As of March 31, 2012, BLMN owned and operated 151 restaurants and franchised seven restaurants across 28 states. The average check per person at Bonefish Grill was $23 in 2011.

Fleming's
Fleming's is a contemporary prime steakhouse for food and wine lovers seeking a stylish fine dining experience. Fleming's features a large selection of wines, including 100 quality wines available by the glass. As of March 31, 2012, BLMN owned and operated 64 restaurants across 28 states. The average check per person at Fleming's was $68 in 2011.

RISK
In 2011, commodity costs increased by 5% and, as a result, BLMN increased prices at each of its concepts in the range of 1.5% to 3.0%. These events, combined with other more general economic and demographic conditions, could impact BLMN's pricing and negatively affect sales and profit margins.

POST IPO OWNERSHIP
Investment funds advised by Bain Capital will own 54% of BLMN post-IPO.
Catterton will own 11% of BLMN post-IPO.

EMPLOYEES
As of March 31, 2012, BLMN employed 86,000 persons, of which 800 are corporate personnel, 5,100 are restaurant management personnel and the remainder are hourly restaurant personnel.

USE OF PROCEEDS
BLMN expects to net $136 million from its IPO. Shareholders intend to sell 50% of the IPO shares.

Proceeds along with cash on hand are allocated to repay all of BLMN's senior notes.

The Senior Notes bear interest at 10% per annum and mature on June 15, 2015. There was $248.1 million in aggregate principal amount of Senior Notes outstanding as of March 31, 2012.

BLMN will still be left with $1.5 billion in debt.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: This BLMN IPO report is based on a reading and analysis of BLMN's S-1 filing which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Source: IPO Preview: Bloomin' Brands