TAMPA, Fla. - Bloomin' Brands, Inc. (NASDAQ:BLMN) reported a mixed financial performance for the first quarter of 2024, with adjusted earnings per share (EPS) falling short of Wall Street expectations.
The company, known for its portfolio of restaurant brands including Outback Steakhouse and Carrabba's Italian Grill, posted an adjusted EPS of $0.70, which was $0.04 below the analyst estimate of $0.74. Revenue for the quarter was $1.19 billion, also slightly missing the consensus estimate of $1.2 billion.
The company's stock responded to the news with a modest decline, down 1.6%, indicating investor concern over the earnings miss and the company's future outlook.
The downward trend was primarily driven by the company's weaker-than-expected guidance for the second quarter of 2024. Bloomin' Brands anticipates an adjusted EPS of $0.55 to $0.60 for Q2, which falls below the analyst consensus of $0.69.
CEO David Deno remarked on the quarter's performance, stating,
"The first quarter was a solid start to the year, as sales and profit met our expectations."
He noted that after a slower start, sales trends strengthened throughout the quarter, with performance especially strong at Outback Steakhouse, outpacing the casual dining industry.
Despite the positive start to the year, the company's total revenues saw a decrease of 4% compared to the first quarter of the previous year. This decline was attributed to lower comparable restaurant sales, the impact of a one-week shift in the fiscal calendar, and the net effect of restaurant closures and openings.
The company also faced challenges from higher labor, operating expenses, and commodity costs driven by inflation, which were partially offset by an increase in average check per person and cost-saving initiatives.
Looking ahead, Bloomin' Brands reaffirmed its full-year financial guidance for 2024, with an expected adjusted EPS range of $2.51 to $2.66, aligning with the midpoint of the analyst consensus of $2.55. The company's expectations for commodity inflation were revised downward from 3-4% to 2-3%.
The company also announced its strategic review of its Brazil operations, exploring options that could maximize shareholder value, including a potential sale. BofA Securities, Inc. has been retained as the financial advisor for this process.
Bloomin' Brands operates more than 1,450 restaurants across various countries and states, with a mix of company-owned and franchised locations. The company remains focused on driving operational efficiency and performance, as evidenced by its ongoing initiatives and strategic reviews.
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