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%.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
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.
Read full Disclosure
