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News Breaks
August 5, 2014
11:49 EDTDRI, CAKE, EAT, BJRI, BLMNBloomin' Brands plunges to 52-week low after cutting full year profit outlook
Shares of casual restaurant operator Bloomin' Brands (BLMN) are sinking after the company reported mixed second quarter results and lowered its outlook for fiscal 2014 profit and same store sales. WHAT'S NEW: Bloomin' Brands this morning reported Q2 adjusted earnings per share of 27c and revenue of $1.1B, compared to analysts' consensus estimates of 29c and $1.09B, respectively. Same store sales for company-owned core domestic concepts increased 0.6% during the quarter, while traffic was flat, as increases from lunch expansion were offset by traffic declines in the dinner business. Elizabeth Smith, the company's Chief Executive Officer, commented that dinner traffic did not recover as the company had expected following the first quarter's winter weather events, adding that the company has responded by using marketing focused on dinner for the second half of the year. In addition, Smith said the company continues to face an increasingly competitive environment and "significant" macro issues in Korea. WHAT'S NOTABLE: Looking ahead, Bloomin' Brands lowered its FY14 adjusted EPS view to $1.05-$1.10 from its prior view of "at least" $1.21, well below consensus estimates for $1.22. The company also revised its FY14 revenue outlook to $4.4B-$4.45B from its previous view of "at least" $4.4B, compared to consensus $4.42B. It also lowered its FY14 SSS view to growth of 0%-1% from its prior view of 1%-2% growth. In addition, Bloomin' Brands now sees FY14 commodity inflation of 2.5%-3.5%, up from 2%-4% previously expected, and adjusted earnings before interest, taxes, depreciation and amortization of $459M-$470M, a decrease from prior guidance of $493M. The company still sees 55-60 new system-wide restaurants for the year. Bloomin' also said it plans to expand its Carrabba's brand to Brazil, with the first opening expected in the first half of 2015. Looking to the third quarter, the company noted that it expects certain restaurant operating expenses to be higher year over year due to the timing of marketing expenditures and costs associated with the Bonefish Grill menu rollout in early July. In addition, the company will incur additional general and administrative expenses related to its development of Carrabba's in Brazil in Q3. PRICE ACTION: In late morning trading, Bloomin' Brands plunged $4.30, or nearly 22%, to $15.50 on nearly five times its average daily trading volume. The stock continues to make fresh 52-week lows as the session unfolds. Including today's decline, the stock is down approximately 37% over the past 12 months. OTHERS TO WATCH: Other companies in the casual restaurant space include Brinker International (EAT), down 0.7%, Darden (DRI), up 0.5%, BJ's Restaurants (BJRI), up 0.7%, and The Cheesecake Factory (CAKE), down 0.1%.
News For BLMN;EAT;DRI;BJRI;CAKE From The Last 14 Days
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May 26, 2015
07:20 EDTBJRIBJ's Restaurants upgraded to Overweight from Equal Weight at Stephens
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May 21, 2015
07:14 EDTBLMNBMO Capital to hold a conference
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May 18, 2015
16:11 EDTBLMNPoint72 Asset reports 5.1% passive stake in Bloomin' Brands
09:51 EDTBJRIBJ's Restaurants management to meet with Stephens
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May 14, 2015
10:00 EDTEATOn The Fly: Analyst Upgrade Summary
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06:45 EDTEATBrinker upgraded to Buy from Hold at Miller Tabak
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