Why Bloomin' Brands Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
Bloomin' Brands, Inc. (NASDAQ:BLMN) shares rose after reporting Q4 adjusted earnings per share of 75 cents, surpassing the expected 69 cents, despite slightly missing revenue forecasts with $1.194 billion against $1.198 billion expected. The company announced the closure of 36 underperforming restaurants, a quarterly dividend of $0.24 per share, and a new $350 million share repurchase program. FY24 adjusted EPS is projected to be $2.51-$2.66, with 40 to 45 new restaurants expected. The first quarter's adjusted EPS forecast is $0.70-$0.75, impacted by weather affecting U.S. sales and earnings.
February 23, 2024 | 5:20 pm
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Bloomin' Brands reported higher than expected Q4 earnings, announced significant operational changes including restaurant closures, a new share repurchase program, and a quarterly dividend. The company provided a mixed financial outlook for FY24.
The positive reaction in Bloomin' Brands' stock price can be attributed to the earnings beat and the announcement of shareholder-friendly actions such as the dividend and share repurchase program. However, the mixed financial outlook for FY24 and the impact of weather on Q1 earnings could introduce some volatility. The closure of underperforming restaurants may be viewed positively as a move to improve operational efficiency.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100