Summary
- Bloomin’ Brands remains an underperformer, with ongoing margin pressure, weak traffic, and a recent dividend suspension highlighting operational challenges.
- BLMN’s turnaround plan includes operational improvements, significant capex, and potential asset sales, but meaningful margin recovery is at least a year or two away.
- Despite positive same-store sales, gains are driven by price increases, not traffic, and the balance sheet remains burdened by high debt and weak cash flow.
- Maintain a Hold rating with a $7–$7.50 target; upside is limited unless traffic rebounds or strategic actions unlock value, but downside appears mostly priced in.
jetcityimage/iStock Editorial via Getty Images …
Summary
- Bloomin’ Brands remains an underperformer, with ongoing margin pressure, weak traffic, and a recent dividend suspension highlighting operational challenges.
- BLMN’s turnaround plan includes operational improvements, significant capex, and potential asset sales, but meaningful margin recovery is at least a year or two away.
- Despite positive same-store sales, gains are driven by price increases, not traffic, and the balance sheet remains burdened by high debt and weak cash flow.
- Maintain a Hold rating with a $7–$7.50 target; upside is limited unless traffic rebounds or strategic actions unlock value, but downside appears mostly priced in.
jetcityimage/iStock Editorial via Getty Images
Here we are. Six months after my last article on Bloomin’ Brands, Inc. (BLMN), plenty has happened—bad things and good things, but definitely the dark side continues to outweigh the positive.
And yes, before you
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