Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Group 1: Stock Ratings and Analyst Insights - Guess?, Inc. (GES) has a dividend yield of 8.63%. Analyst Eric Beder maintains a Buy rating with a price target of $23, while Dana Telsey has a Market Perform rating and reduced the price target from $21 to $18 [3] - Kohl's Corporation (KSS) has a dividend yield of 13.47%. Analyst Robert Drbul downgraded the stock from Buy to Neutral, and Paul Lejuez maintained a Neutral rating while cutting the price target from $18 to $14 [4] - Bloomin' Brands, Inc. (BLMN) has a dividend yield of 7.73%. Analyst John Ivankoe kept a Neutral rating and lowered the price target from $19 to $14, while Brian Vaccaro downgraded the stock from Outperform to Market Perform [5] Group 2: Recent Company Performance - Guess? reported a year-over-year decrease in third-quarter adjusted EPS results as of Nov. 26 [3] - Kohl's reported worse-than-expected third-quarter EPS and sales, cut its FY24 EPS guidance, and projected a net sales decrease of 7%-8% as of Nov. 27 [4] - Bloomin' Brands reported third-quarter adjusted earnings per share of 21 cents, beating the street view of 20 cents, but quarterly revenues of $1.038 billion were down 3.8% and missed the analyst consensus of $1.042 billion [5]

Financial Data and Key Metrics Changes - Total revenues in Q3 2024 were $1 billion, down 4% from 2023, primarily due to a decline in comparable restaurant sales and FX translation impacts [25][32] - Q3 GAAP diluted earnings per share were $0.08 compared to $0.45 in 2023, while adjusted diluted earnings per share were $0.21 versus $0.41 in 2023 [27] - Adjusted operating margins were 3% in Q3 2024, down from 5.3% in the previous year, with restaurant-level margins declining by 150 basis points [28] Business Line Data and Key Metrics Changes - U.S. comparable restaurant sales were negative 150 basis points, with traffic down 440 basis points, consistent with casual dining industry trends [25] - At Outback, average check increased by 2.9% in Q3 2024, while off-premises sales accounted for approximately 23% of total U.S. sales [26] - The third-party delivery business grew to 13% of total U.S. sales, up from 12% in Q3 2023, driven by catering growth [26] Market Data and Key Metrics Changes - The company is experiencing a challenging market environment, with industry softness impacting performance and traffic trends [21][32] - The hurricanes negatively affected U.S. domestic comparable sales by approximately 30 basis points in Q4, impacting profitability by about $0.03 per share [33] Company Strategy and Development Direction - The company aims to focus on improving the guest experience and operational excellence, particularly at Outback Steakhouse and Carrabba's [19][20] - A strategic partnership with Vinci Partners for Brazil operations was announced, retaining 33% ownership to simplify and focus on domestic operations [22][23] - The company plans to share a meaningful update on the Outback and Bloomin' Brands strategy in the next earnings call [20] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with current performance and acknowledged the need for improvement, particularly in guest experience and traffic growth [21][39] - The updated full-year guidance reflects continued industry softness, with adjusted diluted earnings per share expected to be between $1.72 and $1.82 [32] - Management emphasized the importance of operational excellence and a strong team member experience to drive guest loyalty and repeat visits [41][85] Other Important Information - The company has repurchased 10.1 million shares for approximately $266 million year-to-date, with a remaining authorization of $97 million [31] - A quarterly dividend of $0.24 per share was declared, payable on December 11 [31] Q&A Session Summary Question: Concerns about Outback's guest experience and traffic - Management acknowledged declining same-store sales and traffic at Outback, emphasizing the need to enhance the guest experience and operational excellence [41][43] Question: Thoughts on the portfolio and activist investor relations - Management described a collaborative relationship with the activist investor Starboard, focusing on sustainability and guest experience [46] Question: Insights from operators on brand positioning - Operators expressed a desire for simplification and a focus on core offerings to enhance guest experience and frequency of visits [51][52] Question: Reinvestment in the brand and asset base - Management confirmed the importance of reinvesting in the base business for sustainable growth, including repairs and remodels [59][60] Question: Changes to the menu at Outback - Management indicated a focus on simplification and returning to core offerings to improve guest experience [68] Question: Current value positioning of Outback - Management highlighted the importance of balancing price and benefits to enhance perceived value, with a focus on affordability [70][72] Question: Marketing strategy and brand positioning - Management emphasized the need for a strong guest experience as the foundation for brand loyalty and trust, while maintaining flat marketing spends year-over-year [86]

Financial Performance - Total revenues decreased by 3.8% compared to Q3 2023[117] - Operating income was $17.2 million, down from $58.2 million in Q3 2023, with restaurant-level operating margins at 12.5% compared to 13.8% in the prior year[117] - Diluted earnings per share decreased to $0.08 from $0.45 in Q3 2023[117] - For the thirteen weeks ended September 29, 2024, Bloomin' Brands reported a net income of $6.9 million, compared to $44.5 million for the same period in 2023, reflecting a significant decrease[174] - Adjusted net income for the thirty-nine weeks ended September 29, 2024, was $126.7 million, down from $200.2 million in the prior year, indicating a decline of approximately 36.6%[174] Restaurant Operations - U.S. combined and Outback Steakhouse comparable restaurant sales decreased by 1.5% and 1.3%, respectively[117] - Comparable restaurant sales in the U.S. for the thirteen weeks ended September 29, 2024, decreased by 1.5% compared to a decrease of 0.5% in the same period of 2023[133] - Restaurant sales for the thirteen weeks ended September 29, 2024, were $1,025.1 million, a decrease from $1,064.4 million for the same period in 2023, reflecting a decline of 3.7%[131] - The company closed 58 restaurants since June 25, 2023, impacting restaurant sales negatively by $31.6 million for the thirteen weeks ended September 29, 2024[131] - The company opened 56 new restaurants in the thirteen weeks ended September 29, 2024, contributing $26.5 million to restaurant sales[131] Cost and Expenses - Food and beverage costs as a percentage of restaurant sales decreased to 29.7% for the thirteen weeks ended September 29, 2024, from 30.2% in the same period of 2023[135] - Labor and other related expenses increased to 30.5% of restaurant sales for the thirteen weeks ended September 29, 2024, compared to 29.5% in the same period of 2023, primarily due to wage rate inflation[137] - Other restaurant operating expenses increased to 27.3% of restaurant sales for the thirteen weeks ended September 29, 2024, from 26.4% in the same period of 2023, driven by inflation[138] - Labor and related expenses increased by 1.8% as a percentage of restaurant sales due to higher hourly and field management labor costs, primarily from wage rate inflation[144] - Other restaurant operating expenses rose by 1.0% due to higher operating and supply expenses, 0.4% from increased advertising expenses, and 0.2% from higher pre-opening expenses[145] International Operations - An agreement was announced to sell 67% of Brazil operations for an enterprise valuation of R$2.06 billion, approximately $243 million[118] - The total number of international restaurants increased from 329 to 345 year-over-year[129] - International restaurant sales decreased to $148.0 million for the thirteen weeks ended September 29, 2024, compared to $163.3 million for the same period in 2023[157] - International income from operations for the thirteen weeks ended September 29, 2024, was $15,608,000, a decrease of 29.5% from $22,034,000 in the same period last year[167] Cash and Capital Management - As of September 29, 2024, Bloomin' Brands had $83.6 million in cash and cash equivalents, with $18.9 million held by foreign affiliates[178] - The company had aggregate undistributed foreign earnings of approximately $35.7 million that may be repatriated to the U.S. without additional material federal income tax[179] - Total credit facilities as of September 29, 2024, amounted to $1.1 billion, with an available unused borrowing capacity of $407.2 million[181] - Bloomin' Brands estimates capital expenditures for 2024 to be between $260 million and $270 million, subject to various economic factors[188] - A judicial deposit of $42.9 million was made in July 2024 related to a tax exemption appeal in Brazil, which is expected to yield interest income until resolution[190] Shareholder Returns - The Board declared a quarterly cash dividend of $0.24 per share, payable on December 11, 2024, contingent on the company's financial condition and compliance with debt covenants[191] - A new share repurchase authorization of $350 million was approved in February 2024, aimed at providing flexibility for retiring 2025 Notes[192] - The company entered into an ASR Agreement to repurchase $220.0 million of common stock, acquiring 7.9 million shares during the thirty-nine weeks ended September 29, 2024[193] - As of September 29, 2024, $96.8 million remained available for repurchase under the 2024 Share Repurchase Program[194] - Total dividends paid and share repurchases from fiscal year 2023 through September 29, 2024 amounted to $481.649 million, with $145.954 million in dividends and $335.695 million in share repurchases[195] Working Capital and Financial Position - Current assets as of September 29, 2024, were $261.058 million, down from $343.314 million as of December 31, 2023[200] - Current liabilities decreased to $848.970 million from $1,002.335 million, resulting in a working capital deficit of $587.912 million[200] - The company operates successfully with negative working capital, as cash from restaurant sales is typically received before liabilities are due[201] - There have been no material changes in market risk related to commodity prices, labor inflation, foreign currency exchange rates, and interest rates since December 31, 2023[204]

Core Insights - Bloomin' Brands reported a revenue of $1.04 billion for Q3 2024, reflecting a year-over-year decline of 3.8% and an EPS of $0.21, down from $0.44 a year ago, with a revenue surprise of -0.75% against the Zacks Consensus Estimate of $1.05 billion and an EPS surprise of +10.53% over the consensus estimate of $0.19 [1] Financial Performance - Comparable restaurant sales for Carrabba's Italian Grill decreased by 1.5%, while Outback Steakhouse saw a decline of 1.3%, both underperforming against analyst estimates of 0.6% and -1.1% respectively [3] - Combined U.S. comparable restaurant sales fell by 1.5%, compared to an average estimate of -0.9% [3] - Bonefish Grill's comparable restaurant sales dropped by 4.1%, against an estimated decline of 2.7% [3] - Fleming's Prime Steakhouse and Wine Bar reported a growth of 1.2%, exceeding the average estimate of -0.7% [3] Restaurant Metrics - The total number of system-wide restaurants was 1,463, slightly below the average estimate of 1,474 [3] - The number of Bonefish Grill locations in the U.S. remained at 166, matching the average estimate [3] - Outback Steakhouse had 673 locations, slightly below the estimated 675 [3] - Carrabba's Italian Grill maintained 210 locations, in line with estimates [3] - Fleming's Prime Steakhouse and Wine Bar had 63 company-owned locations, just below the estimated 64 [3] Revenue Breakdown - Franchise and other revenues were reported at $13.68 million, below the average estimate of $14.20 million, marking a year-over-year decline of 11.3% [3] - Restaurant sales totaled $1.03 billion, matching the average estimate but reflecting a year-over-year decrease of 3.7% [3] Stock Performance - Bloomin' Brands shares have returned +8.2% over the past month, outperforming the Zacks S&P 500 composite's +4.9% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Core Viewpoint - Bloomin' Brands reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.44 per share a year ago [1][2] Financial Performance - The company posted revenues of $1.04 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.75% and down from $1.08 billion year-over-year [3] - The earnings surprise for the quarter was 10.53%, while the previous quarter saw a negative surprise of -10.53% [2] Stock Performance - Bloomin' Brands shares have declined approximately 40.4% since the beginning of the year, contrasting with the S&P 500's gain of 25.2% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $1.12 billion, and for the current fiscal year, it is $2.07 on revenues of $4.48 billion [8] - The outlook for the industry, specifically the Retail - Restaurants sector, is currently in the top 30% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [9]

Financial Performance - Q3 2024 diluted EPS was $0.08, down from $0.45 in Q3 2023, while adjusted diluted EPS was $0.21 compared to $0.41 in the prior year, reflecting a decrease of 0.20[3]. - Total revenues for Q3 2024 were $1,038.8 million, a decline of 3.8% from $1,079.8 million in Q3 2023[4]. - GAAP operating income margin decreased to 5.4% in Q3 2024 from 9.1% in Q3 2023, while adjusted operating income margin fell to 5.3% from 7.6%[4][6]. - Net income attributable to Bloomin' Brands for the thirteen weeks ended September 29, 2024, was $6,912, a significant decrease from $44,528 in the same period last year, reflecting a decline of 84.5%[26]. - The company reported a total debt of $1,092,189 as of September 29, 2024, an increase from $780,719 at the end of December 31, 2023[29]. - The operating income margin for the U.S. segment was 4.4% for the thirteen weeks ended September 29, 2024, compared to 7.4% in the prior year[32]. - Income from operations for the thirteen weeks ended September 29, 2024, was $15,608,000, a decrease from $22,034,000 for the same period in 2023[33]. - The adjusted income from operations for the thirteen weeks ended September 29, 2024, was $30,948,000, compared to $56,960,000 in the prior year[36]. - The total income from operations adjustments for the thirty-nine weeks ended September 29, 2024, amounted to $43,918,000[36]. - The loss on extinguishment of debt for the thirty-nine weeks ended September 29, 2024, was $135,797,000[41]. Restaurant Operations - Comparable restaurant sales in the U.S. decreased by 1.5% in Q3 2024, with Outback Steakhouse down 1.3% and Carrabba's Italian Grill down 1.5%[9]. - Restaurant sales for the U.S. segment decreased to $877,052 for the thirteen weeks ended September 29, 2024, down from $901,138 in the prior year, representing a decline of 2.7%[28]. - Restaurant-level operating income for the thirteen weeks ended September 29, 2024, was $100,315, down from $114,869 in the same period last year, indicating a decrease of 12.7%[32]. - The restaurant-level operating margin for the thirteen weeks ended September 29, 2024, was 12.5%, down from 13.8% in the previous year[34]. - The total number of restaurants as of September 29, 2024, was 1,463, a net decrease of 11 locations from the previous quarter[42]. - The company-owned restaurant count in the U.S. was 1,173, with 10 closures during the quarter[42]. - Internationally, the company had a total of 345 restaurants, with a net decrease of 10 locations[42]. Strategic Initiatives - The company announced a strategic re-franchise of its Brazil operations, selling 67% for R$1.4 billion (approximately $243 million), reflecting a total enterprise value of R$2.06 billion[14]. - The company plans to continue expanding its restaurant footprint while managing operational costs effectively[39]. - The company is committed to improving performance through a consistent guest experience, particularly focusing on Outback Steakhouse[2]. Guidance and Projections - The updated fiscal 2024 guidance includes U.S. comparable restaurant sales expected to decline between 1.0% to 0.5% and adjusted diluted EPS projected between $1.72 to $1.82[12]. - The effective tax rate guidance for fiscal 2024 has been updated to approximately 6% to 7% for adjusted effective tax rate[12]. Shareholder Returns - Year-to-date, the company repurchased 10.1 million shares for a total of $265.7 million, with $96.8 million remaining under the share repurchase authorization[10]. - Cash and cash equivalents decreased to $83,632 as of September 29, 2024, from $111,519 at the end of December 31, 2023[29]. - The company experienced a net working capital deficit of $587,912 as of September 29, 2024, an improvement from a deficit of $659,021 at the end of December 31, 2023[29]. Sales Performance by Segment - Comparable restaurant sales for Outback Steakhouse in the U.S. decreased by 1.3% for the 13 weeks ended September 29, 2024, compared to a decrease of 1.1% for the same period last year[43]. - The average check per person for Outback Steakhouse in the U.S. increased by 2.6% for the 13 weeks ended September 29, 2024, compared to an increase of 5.0% for the same period last year[43]. - Traffic for Outback Steakhouse in the U.S. decreased by 3.9% for the 13 weeks ended September 29, 2024, compared to a decrease of 6.1% for the same period last year[43]. - Comparable restaurant sales for Carrabba's Italian Grill in the U.S. decreased by 1.5% for the 13 weeks ended September 29, 2024, compared to an increase of 3.0% for the same period last year[43]. - The average check per person for Bonefish Grill in the U.S. increased by 4.4% for the 13 weeks ended September 29, 2024, compared to an increase of 5.2% for the same period last year[43]. - Traffic for Bonefish Grill in the U.S. decreased by 8.5% for the 13 weeks ended September 29, 2024, compared to a decrease of 5.7% for the same period last year[43]. - Comparable restaurant sales for Outback Steakhouse in Brazil decreased by 3.6% for the 13 weeks ended September 29, 2024, compared to an increase of 4.1% for the same period last year[43]. - The combined U.S. comparable restaurant sales decreased by 1.5% for the 13 weeks ended September 29, 2024, compared to a decrease of 0.5% for the same period last year[43]. - The average check per person for Carrabba's Italian Grill in the U.S. increased by 1.9% for the 13 weeks ended September 29, 2024, compared to an increase of 3.1% for the same period last year[43]. - Traffic for the combined U.S. restaurants decreased by 4.4% for the 13 weeks ended September 29, 2024, compared to a decrease of 4.7% for the same period last year[43].

Core Insights - Bloomin' Brands, Inc. is set to release its third-quarter earnings results on November 8, with analysts expecting earnings of 20 cents per share, a decrease from 44 cents per share in the same period last year [1] - The company is projected to report revenue of $1.04 billion for the quarter, down from $1.08 billion a year earlier [1] - Michael L. Spanos was appointed as the new Chief Executive Officer on August 26 [1] Stock Performance - Bloomin' Brands shares declined by 1.2%, closing at $16.78 on Thursday [2] Analyst Ratings - B of A Securities analyst Justin Post maintained a Neutral rating and reduced the price target from $22 to $19 [3] - Barclays analyst Jeffrey Bernstein kept an Overweight rating but cut the price target from $22 to $20 [3] - Citigroup analyst Jon Tower maintained a Neutral rating and lowered the price target from $22 to $20 [3] - Deutsche Bank analyst Lauren Silberman held a Hold rating and decreased the price target from $26 to $19 [3] - UBS analyst Dennis Geiger maintained a Neutral rating and reduced the price target from $26 to $18 [3]

The upcoming report from Bloomin' Brands (BLMN) is expected to reveal quarterly earnings of $0.19 per share, indicating a decline of 56.8% compared to the year-ago period. Analysts forecast revenues of $1.05 billion, representing a decrease of 3.1% year over year.The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Bloomin' Brands, Inc. (BLMN) This is a restaurant holding company. The Zacks Consensus Estimate for its current year earnings has been revised 12.2% downward over the last 60 days. Chow Tai Fook Jewellery Group Limited (CJEWY) is an investment holding company. The Zacks Consensus Estimate for its current year earnings has been revised 8.6% downward over the last 60 days. Carter Bankshares, Inc. (CARE) is a bank holding company.The Za ...

Key Takeaways Bloomin' Brands named former Delta Air Lines COOMichael Spanos to its CEO position. Spanos left Delta after a year, leaving in the wake of the massive CrowdStrike outage. Spanos replaces David Deno, who announced his retirement from the Outback Steakhouse parent in May. Outback Steakhouse parent Bloomin' Brands (BLMN) named ex-Delta Air Lines (DAL) Chief Operating Officer Michael Spanos its new chief executive officer (CEO). Delta last week said that Spanos would be leaving the airline after a ...