Bloomin' Brands: Now Is Still Not The Right Time To Invest

(9min)

Summary

  • My hold rating on Bloomin’ Brands stock remains as 4Q24 results showed no meaningful progress, with revenue and traffic declining, and margins contracting.
  • New management is implementing positive changes like menu optimization and consistent value-driven promotions, but more evidence of traffic recovery and margin stabilization is needed.
  • Rising labor and input costs add uncertainty, and competitor TXRH is growing traffic, indicating BLMN is losing relative market share.

People dining outside street cafes and restaurants at night in Venice

Gary Yeowell/DigitalVision via Getty Images

Investment summary

My previous investment thought on Bloomin’ Brands (NASDAQ:BLMN) was a hold rating because the business was undergoing a turnaround phase, which I believed the market would not react positively until there

This article was written by

I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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