Breaking Down Bloomin' Brands, Inc. (BLMN) Financial Health: Key Insights for Investors

Are you keeping a close eye on your investments and considering the restaurant industry? Bloomin' Brands, Inc. (BLMN), a major player in casual dining, recently announced its 2024 financial results, revealing a mix of challenges and strategic shifts. With a reported total revenue of $3.95 billion for the year, down from $4.17 billion in 2023, and a net income of $-128.02 million, understanding the key factors influencing its financial health is crucial. Did you know that the company repurchased 10.1 million shares for $265.7 million in 2024 and still has $96.8 million remaining in its share repurchase authorization? Keep reading to explore a detailed breakdown of Bloomin' Brands' financial performance and gain valuable insights for making informed investment decisions.

Bloomin' Brands, Inc. (BLMN) Revenue Analysis

Understanding Bloomin' Brands, Inc.'s (BLMN) revenue streams is crucial for investors seeking to assess the company's financial health and growth potential. A detailed look into the sources of revenue, growth rates, and segment contributions provides valuable insights.

Bloomin' Brands, Inc. primarily generates revenue through its restaurant sales. These sales encompass:

• Dine-in services: Revenue from customers dining at their various restaurant locations.
• Take-out and delivery: Sales derived from orders placed for off-premise consumption.
• Franchise revenues: Fees collected from franchised restaurant operators.

Analyzing the year-over-year revenue growth rate reveals the company's ability to expand its sales. According to the Bloomin' Brands, Inc. Q4 2023 Earning Release, total revenues increased to $1.16 billion in Q4 2023 compared to $1.13 billion in Q4 2022.

Here’s a summary of revenue and related data:

Breaking down the contribution of different business segments to overall revenue provides a clearer picture of where Bloomin' Brands, Inc. derives its income. The company operates through various segments, including U.S. and International operations. The U.S. segment includes brands such as Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. The International segment primarily consists of operations in Brazil and South Korea.

Significant changes in revenue streams can indicate strategic shifts or market impacts. Factors such as menu innovations, marketing campaigns, expansion into new markets, or changes in consumer preferences can influence revenue performance. Monitoring these changes is essential for understanding the dynamics of Bloomin' Brands, Inc.'s financial performance. For instance, the company's focus on improving the customer experience and expanding its digital capabilities have likely contributed to recent revenue growth. To delve deeper into the core values and strategic direction of Bloomin' Brands, Inc., explore Mission Statement, Vision, & Core Values of Bloomin' Brands, Inc. (BLMN).

Bloomin' Brands, Inc. (BLMN) Profitability Metrics

A comprehensive look at Bloomin' Brands, Inc.'s (BLMN) profitability involves analyzing several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit margin, operating profit margin, and net profit margin. Additionally, comparing these ratios with industry averages and examining trends over time can offer a deeper understanding of the company's performance.

Here’s an analysis of Bloomin' Brands, Inc.'s profitability:

• Gross Profit Margin:
• Bloomin' Brands' latest twelve months gross profit margin is 15.2%.
• The gross profit margin for fiscal years ending December 2020 to 2024 averaged 15.9%.
• The gross profit margin peaked in December 2021 at 17.9% and hit a low in December 2020 at 12.0%.
• A gross margin above 40% indicates a durable competitive advantage, while a margin below 20% suggests no sustainable competitive advantage. Bloomin' Brands had a gross margin of 13.47% for the quarter that ended in Dec. 2024, indicating no sustainable competitive advantage.

Gross profit is calculated by subtracting the cost of goods sold (COGS) from total revenue. It represents the profit a company makes after deducting the costs associated with producing and selling its goods or services. The formula is: Gross Profit = Revenue - COGS. For the most recently reported fiscal year ending 2024-12-31, Bloomin' Brands, Inc. (BLMN) had a Gross Profit of $1.60B.

• Operating Profit Margin:
• Bloomin' Brands' operating margin as of April 2025 (TTM) is 0.09%.
• At the end of 2024, the company had an operating margin of -1.49%.
• The operating margin decreased by 126.84% in 2024.
• In Q1 2024, the GAAP operating income margin was 6.4%, while the adjusted operating income margin was 7.5%.

Operating income is a profit realized from a business's operations, before taking deductions for interest and taxes. It is calculated as revenue less cost of goods sold and operating expenses (SG&A). The operating margin is calculated by dividing a company's earnings by its revenue.

• Net Profit Margin:
• Bloomin Brands's net margin excels beyond industry benchmarks, reaching -13.3%. This signifies efficient cost management and strong financial health.
• In Q4 2024, Bloomin' Brands reported a diluted EPS of $(0.93) and an adjusted diluted EPS of $0.38.
• For the full year 2024, the company's Profit Margin was -3.24% and Net Income Avi to Common was -52.04M.

Net profit margin is calculated as net income as a portion of total sales revenue.

The following table summarizes the profitability metrics for Bloomin' Brands, Inc. from 2020 to 2024:

Bloomin' Brands' financial performance in 2024 shows a mixed picture. While the gross profit margin remains relatively stable, the operating and net profit margins have declined. The decrease in revenues was primarily attributed to the absence of the 53rd week that was included in 2023 and the net impact of restaurant closures and openings.

The restaurant-level operating margin decreased to 12.4% from 15.9% in Q4 2023, primarily due to higher labor, operating, and commodity costs driven by inflation.

For further insights, you can explore Breaking Down Bloomin' Brands, Inc. (BLMN) Financial Health: Key Insights for Investors.

Bloomin' Brands, Inc. (BLMN) Debt vs. Equity Structure

Understanding how Bloomin' Brands, Inc. (BLMN) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to maintain financial health. Here's a detailed look at Bloomin' Brands' approach to debt versus equity.

As of the fiscal year 2024, Bloomin' Brands' total debt stood at $882.9 million. This includes both short-term and long-term debt obligations. The company's long-term debt is a significant portion of this total, reflecting its strategic use of borrowing to fund long-term investments and operational activities.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. For Bloomin' Brands, the debt-to-equity ratio as of 2024 is approximately 2.36. This ratio indicates the proportion of debt and equity the company uses to finance its assets. A ratio of 2.36 suggests that Bloomin' Brands uses more debt compared to equity. When compared to the industry standards, it’s important to consider that restaurant industry can vary widely, influenced by factors like expansion strategies, franchising models, and capital expenditure requirements. While a debt-to-equity ratio of 2.36 may be higher than some conservative benchmarks, it is not uncommon for companies pursuing growth and expansion to utilize debt financing.

Recent financial activities provide insights into Bloomin' Brands' debt management strategies. These activities may include:

• Debt Issuances: Any new bonds or loans issued to raise capital.
• Credit Ratings: Assessments from agencies like Standard & Poor's or Moody's, reflecting the company's creditworthiness.
• Refinancing Activity: Actions taken to replace existing debt with new debt, potentially at more favorable terms.

These activities play a crucial role in shaping the company's financial structure and its ability to meet its obligations.

Bloomin' Brands strategically balances debt and equity to achieve its financial goals. Debt financing can provide capital for expansion and investments, while equity funding helps maintain a stable financial structure. The company's approach involves:

• Optimizing Capital Structure: Balancing debt and equity to minimize the cost of capital and maximize shareholder value.
• Maintaining Financial Flexibility: Ensuring access to both debt and equity markets to respond to changing business needs.
• Strategic Investments: Using debt to fund projects that are expected to generate significant returns, enhancing overall financial performance.

For additional insights into Bloomin' Brands' strategic vision, explore: Mission Statement, Vision, & Core Values of Bloomin' Brands, Inc. (BLMN).

A detailed look at the balance sheet provides further clarity. Here’s a snapshot of Bloomin' Brands' debt and equity composition:

Understanding these figures helps investors assess the financial risk and stability of Bloomin' Brands.

By carefully managing its debt and equity, Bloomin' Brands aims to sustain growth while maintaining a healthy financial position. This balanced approach is vital for long-term success and delivering value to its investors.

Bloomin' Brands, Inc. (BLMN) Liquidity and Solvency

Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities. For investors, understanding these metrics for Bloomin' Brands, Inc. (BLMN) can provide valuable insights into its financial stability and risk profile. You can explore more about Bloomin' Brands, Inc. (BLMN) Mission Statement, Vision, & Core Values of Bloomin' Brands, Inc. (BLMN).

Current and Quick Ratios:

These ratios assess a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity. Bloomin' Brands' liquidity ratios are:

• The current ratio for the quarter that ended in September 2024 was 0.31.
• As of February 2025 (TTM), the current ratio is 0.31, a -5.38% change compared to the average of 0.32 of the last 4 quarters.
• The quick ratio as of December 2024 is 0.26.

These figures suggest that Bloomin' Brands may have difficulty meeting its immediate obligations with its most liquid assets. A current ratio of less than 1 can indicate potential liquidity concerns, but it's also common in the restaurant industry where cash is received quickly, and inventory turnover is efficient.

Analysis of Working Capital Trends:

Working capital is the difference between a company's current assets and current liabilities. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Bloomin' Brands has been operating with a negative working capital, which is not uncommon in the restaurant industry. The company functions successfully with negative working capital because cash collected from restaurant sales is typically received before payments are due on current liabilities.

• As of September 29, 2024, Bloomin' Brands had a working capital deficit of $587,912,000.
• For the year 2024, Bloomin' Brands' Net Working Capital Change was influenced by:
• A $5.75 million increase in Inventory
• A $20.76 million increase in Receivables
• A $2.71 million decrease in Creditors
• A $0.06 million increase in Other Current Assets
• A $29.2 million decrease in Other Current Liabilities
• A $0.05 million decrease in Others

Cash Flow Statements Overview:

Cash flow statements provide a picture of a company's cash inflows and outflows from its operating, investing, and financing activities. Analyzing these trends can reveal a company's ability to generate cash and manage its financial obligations.

• For Q4 2024, Bloomin' Brands' free cash flow was $0.72.
• For the 2024 fiscal year, the operating cash flow was greater than $-0.01.

Bloomin' Brands relies on cash flows from operations and its revolving credit facility to meet obligations.

Potential Liquidity Concerns or Strengths:

Despite the negative working capital and low current ratio, Bloomin' Brands has strengths that support its liquidity:

• Efficient inventory turnover rates that require relatively low investment in inventories.
• Ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.

However, there are also potential concerns:

• A high level of debt increases risk, especially if profitability falls. As of December 2024, Bloomin' Brands had $2.29 billion in total debt.
• The company's current ratio of 0.31 indicates potential liquidity concerns, which has led to caution from financial analysts.
• Goldman Sachs noted potential liquidity concerns due to the current ratio of 0.31.

It’s important to monitor these trends and consider them in the context of the company's strategic initiatives and overall financial performance.

Bloomin' Brands, Inc. (BLMN) Valuation Analysis

Assessing whether Bloomin' Brands, Inc. (BLMN) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst ratings. These indicators, when considered together, can provide a comprehensive view of the company's current market position.

To determine if Bloomin' Brands, Inc. (BLMN) is correctly valued, examine the following:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of Bloomin' Brands, Inc. (BLMN)'s earnings. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation compared to industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio compares Bloomin' Brands, Inc. (BLMN)'s market capitalization to its book value. A lower P/B ratio can suggest that the stock is undervalued because it means you're paying less for each dollar of assets the company owns.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the total value of Bloomin' Brands, Inc. (BLMN), including debt, to its earnings before interest, taxes, depreciation, and amortization. It provides a clearer picture of valuation by accounting for debt levels.

Bloomin' Brands, Inc. (BLMN) stock price trends and investor returns:

Over the last 12 months, Bloomin' Brands, Inc. (BLMN) has shown considerable stock price fluctuation, reflecting broader market trends and company-specific developments. Recent data shows the stock trading near $31.47, with a 52-week range between $23.62 and $32.73. This volatility suggests the importance of closely monitoring market dynamics and company performance.

As of fiscal year 2024, Bloomin' Brands, Inc. (BLMN) offers a dividend yield, providing investors with a portion of the company's earnings. The dividend payout ratio is an important metric to consider, as it indicates the sustainability of dividend payments. Bloomin' Brands, Inc. (BLMN) declares a quarterly dividend of $0.24 per share, or $0.96 per share annually, which gives a dividend yield of 3.05%. The company's payout ratio is 35.5%.

Analyst consensus is a critical indicator of market sentiment toward Bloomin' Brands, Inc. (BLMN). These ratings reflect collective insights on whether to buy, hold, or sell the stock, impacting investor decisions and market dynamics. According to the latest reports, analysts have set price targets ranging from $28.00 to $38.00 for Bloomin' Brands, Inc. (BLMN), with an average target of $33.67. The consensus rating is a Hold.

Explore more about Bloomin' Brands, Inc. (BLMN) investor profile: Exploring Bloomin' Brands, Inc. (BLMN) Investor Profile: Who’s Buying and Why?

Bloomin' Brands, Inc. (BLMN) Risk Factors

Bloomin' Brands, Inc. (BLMN) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Here’s an overview of key risks:

• Industry Competition: The restaurant industry is highly competitive. Bloomin' Brands, Inc. (BLMN) competes with a wide range of dining options, from fast food chains to casual dining and fine dining establishments. Increased competition can lead to pricing pressures, reduced customer traffic, and decreased market share.
• Regulatory Changes: Changes in labor laws, health regulations, and food safety standards can increase operating costs. For example, minimum wage increases and changes in regulations regarding the sourcing and preparation of food can impact profitability.
• Market Conditions: Economic downturns, changes in consumer spending habits, and fluctuations in commodity prices can all affect Bloomin' Brands, Inc. (BLMN)'s financial performance. A decrease in disposable income among consumers can lead to reduced spending on dining out.

Recent earnings reports and filings highlight several operational, financial, and strategic risks. These include:

• Operational Risks: Supply chain disruptions can lead to increased food costs and potential shortages. Labor shortages can also impact service quality and operational efficiency.
• Financial Risks: High levels of debt can increase financial vulnerability, especially if interest rates rise. Fluctuations in foreign exchange rates can impact earnings from international operations.
• Strategic Risks: Failure to innovate and adapt to changing consumer preferences can lead to a decline in brand relevance. Over-reliance on a particular brand or concept can also increase vulnerability to market changes.

Mitigation strategies and plans to address these risks may include:

• Diversifying Supply Chains: To reduce the impact of disruptions, Bloomin' Brands, Inc. (BLMN) can diversify its supply chains and establish relationships with multiple suppliers.
• Investing in Employee Training and Retention: Offering competitive wages and benefits, as well as providing opportunities for career development, can help attract and retain talent.
• Managing Debt Levels: Reducing debt and maintaining a healthy cash flow can improve financial stability.
• Monitoring and Adapting to Consumer Preferences: Conducting market research and investing in menu innovation can help Bloomin' Brands, Inc. (BLMN) stay relevant and appeal to changing consumer tastes.

For instance, in the 2024 fiscal year, Bloomin' Brands, Inc. (BLMN) reported the following:

Understanding and addressing these risks is vital for maintaining and improving Bloomin' Brands, Inc. (BLMN)'s financial health.

Learn more about the investors: Exploring Bloomin' Brands, Inc. (BLMN) Investor Profile: Who’s Buying and Why?

Bloomin' Brands, Inc. (BLMN) Growth Opportunities

Key growth drivers for Bloomin' Brands, Inc. (BLMN) include:

• Digital Engagement: Enhancing digital ordering and delivery to meet changing consumer preferences.
• Menu Innovation: Introducing new menu items and improving existing offerings to attract and retain customers.
• Market Expansion: Selectively opening new restaurants in strategic locations.

Bloomin' Brands, Inc. (BLMN) is focusing on enhancing its digital capabilities to drive growth. For instance, in Q4 2023, digital sales contributed significantly to U.S. sales. The company is also expanding its store footprint, with plans to open new restaurants, including both company-owned and franchised locations, in 2024.

Future revenue growth projections and earnings estimates for Bloomin' Brands, Inc. (BLMN) indicate a positive trajectory. While specific long-term growth rates can vary based on market conditions and company performance, analysts' estimates provide insights into potential revenue increases. For example, the company expected to open between 40 and 45 new restaurants globally in fiscal year 2024.

Strategic initiatives that may drive future growth include:

• Technology Investments: Investing in technology to improve operational efficiency and customer experience.
• Franchise Expansion: Growing the franchise network to increase global presence.
• Brand Portfolio Management: Optimizing the brand portfolio to cater to diverse consumer segments.

Bloomin' Brands, Inc.'s (BLMN) competitive advantages include its well-established brands and differentiated dining experiences. The company's focus on quality food, service, and ambiance helps it stand out in a competitive market. Furthermore, its diverse brand portfolio allows it to cater to a wide range of consumer preferences, positioning it for sustained growth.

Based on the latest fiscal year 2024 data, Bloomin' Brands, Inc. (BLMN) is focused on several strategic priorities to drive growth. These include:

• Expanding and enhancing their restaurant portfolio.
• Improving the customer experience through digital innovations.
• Increasing operational efficiency.

These initiatives, combined with their established market presence and brand recognition, are expected to support future growth.