What's Going On With Bloomin' Brands After Announcing Strategic Alternatives For Brazil Ops?
Portfolio Pulse from Nabaparna Bhattacharya
Bloomin' Brands, Inc. (NASDAQ:BLMN) reported Q1 adjusted EPS of 70 cents, missing estimates by 4 cents, and sales of $1.195 billion, slightly below expectations. The company cited decreased restaurant-level operating margins, the 2023 Closure Initiative, and higher expenses as reasons for the shortfall. Additionally, it announced the exploration of strategic alternatives for its Brazil operations, including a potential sale, with BofA Securities as its financial advisor. Despite the miss, Bloomin' Brands reaffirmed its FY24 adjusted EPS outlook and expects flat to 1.5% US comparable restaurant sales growth in Q2. Shares fell 2.72% to $24.28.
May 07, 2024 | 3:41 pm
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Bloomin' Brands reported lower-than-expected Q1 earnings and sales, is exploring strategic alternatives for its Brazil operations, and reaffirmed its FY24 EPS outlook.
The earnings miss and sales shortfall, combined with the announcement of exploring strategic alternatives for its Brazil operations, likely contributed to the negative stock price movement. However, the reaffirmation of the FY24 EPS outlook might mitigate some concerns.
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