BofA downgrades Bloomin' Brands to 'underperform'

Brinker International

27/01/2025 18:24

** Brokerage BofA downgrades casual dining restaurant chain Bloomin' Brands  BLMN.O  to
"underperform" from "neutral", cuts PT to $13 from $18
    ** Notes co's steady decline in volumes and transaction counts, says while casual dining
industry is notoriously slow in growth, BLMN's struggles have allowed competitors to expand in
market share
    ** Says Chili's Grill & Bar operator Brinker International's  EAT.N  turnaround efforts act
as a roadmap, with more spending on labor to improve service and marketing to draw customers
needed
    ** Says that BLMN's in line to higher pricing vs competition and lack of scale advantages
offers no room for reinvestment without hurting margins
    ** However, sees co's ability to maintain stable margins despite steadily reduced
transactions to help with the reinvestment
    ** One out of 13 brokerages rate the stock "strong buy", 10 "hold" and two "sell", with a
median PT of $15
    ** BLMN fell ~56% in 2024

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com))