Bloomin' Brands' stock slides 4.9% after earnings miss and lowered guidance

By Ciara Linnane

Casual dining industry was softer than expected in the quarter, says CEO

Bloomin' Brands Inc.'s stock fell 4.9% early Tuesday, after the operator of Outhouse Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar posted weaker-than-expected second-quarter earnings and lowered its full-year guidance.

The casual dining industry was softer than expected in the quarter, said Chief Executive David Deno.

"While our comparable sales growth outpaced the industry in Q2, we did not meet our expectations. We are very focused on developing a path to sustainable growth at Outback and are making progress in improving the guest experience, providing meaningful value, and enhancing customer and digital capabilities," he said in prepared remarks.

The Tampa, Fla.-based company (BLMN) had net income of $28.4 million, or 42 cents a share, for the quarter, down from $68.3 million, or 70 cents a share, in the year-earlier period.

Adjusted for one-time items, the company had EPs of 51 cents, below the 58-cent FactSet consensus.

Revenue fell to $1.119 billion from $1.153 billion, just below the $1.126 billion FactSet consensus. Combined U.S. same-restaurant sales fell 0.1%, matching the FactSet consensus.

The company lowered its full-year guidance to reflect the pressures on the industry. It now expects U.S. same-restaurant sales to be down 1% to flat, vs. prior guidance of flat to up 2%. The FactSet consensus is for a 0.3% rise.

It expects EPS to range from 25 cents to 45 cents, compared with prior guidance of 79 cents to 94 cents. It expects adjusted EPS to range from $2.10 to $2.30, vs. prior guidance of $2.51 to 2.66. The FactSet consensus is for EPS of $2.42.

For the third quarter, the company is expecting same-restaurant sales to be down 2% to flat and for adjusted EPS to range from 17 cents to 25 cents. The FactSet consensus is for same-restaurant sales to rise 1% and for adjusted EPS of 39 cents.

The stock has fallen 35% in the year to date, while the S&P 500 has gained 8.7%.

-Ciara Linnane

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08-06-24 0739ET

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