Shares of restaurant operator Bloomin’ Brands (NASDAQ:BLMN) are trending lower today after the company announced its third-quarter results. Revenue inched up by 1.9% year-over-year to $1.08 billion. EPS of $0.44 rose by 32% year-over-year, exceeding expectations by $0.03. However, the company’s combined comparable restaurant sales in the U.S. declined by 0.5% owing to a decline of 1.1% in Outback Steakhouse’s comparable restaurant sales and a 0.5% decrease in the comparable restaurant sales at Bonefish Grill. Additionally, comparable restaurant sales at Fleming’s Prime Steakhouse & Wine Bar tanked by 4.1%.
Adding to the pain, the company has lowered its financial outlook due to an expected decline in traffic amid a softer casual dining environment. For Fiscal year 2023, U.S. comparable restaurant sales are now anticipated to be between 1.5% and 2%, compared to the previous outlook of between 2% and 4%. Similarly, EPS for the year is anticipated between $2.80 and $2.90 versus the prior expected range between $2.91 and $3.
For the upcoming quarter, BLMN expects U.S. comparable restaurant sales to be flat to 1%, with EPS anticipated to hover between $0.64 and $0.74. Recently, the company also declared a quarterly dividend of $0.24 per share. The BLMN dividend is payable on November 29 to investors of record on November 14.
What Is BLMN Stock Price Forecast?
Overall, the Street has a Moderate Buy consensus rating on Bloomin’ Brands. The average BLMN price target of $26.38 implies a 14.2% potential upside in the stock.
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