TAMPA, Fla. - Bloomin' Brands, Inc. (NASDAQ: NASDAQ:BLMN) has appointed Michael L. Spanos as its new Chief Executive Officer, effective September 3, 2024. Spanos, who previously held the position of Executive Vice President and Chief Operating Officer at Delta Air Lines (NYSE:DAL), will also join the company's Board of Directors.
The announcement comes following the May 7, 2024, disclosure of David Deno's retirement plans. Deno, who has led Bloomin' Brands for the past five years, will continue to serve in a transitional role until December 31, 2024, ensuring a smooth handover of responsibilities.
Spanos' career includes significant leadership roles, such as CEO and President of Six Flags (NYSE:SIX) Entertainment and over 25 years at PepsiCo (NASDAQ:PEP), where his positions ranged from President Greater China to CEO of the Asia Middle East and North Africa sector. He is also a non-executive director at Casey's General (NASDAQ:CASY) Store.
Chairman of the Board Michael Mohan praised Spanos as an ideal choice to lead Bloomin' Brands, citing his strategic, operational, and cultural leadership skills as well as his experience with complex multi-unit businesses.
Spanos expressed his enthusiasm for joining Bloomin' Brands, acknowledging the company's iconic brands and his commitment to enhancing the guest experience. He also commended Deno for his leadership and contribution to the company's financial stability and growth.
Bloomin' Brands operates more than 1,450 restaurants across 46 states, Guam, and 13 countries, including Outback Steakhouse and Carrabba's Italian Grill among its portfolio. The company's leadership transition is based on a press release statement from Bloomin' Brands, Inc.
In other recent news, Bloomin' Brands, the parent company of Outback Steakhouse, reported mixed financial results with second-quarter earnings per share (EPS) of $0.51, falling short of the consensus forecast by $0.07. This was attributed to weaker-than-expected comparable sales and restaurant margins. The company's overall revenue also declined to $1.1 billion, a 3% drop from last year, and adjusted operating margins fell to 5.7%. In response, Bloomin' Brands has revised its full-year 2024 outlook for comparable sales and EPS downwards.
On the analysts' front, both Citi and BMO Capital Markets reduced their price targets for Bloomin' Brands to $20, maintaining a neutral stance and market perform rating respectively. Citi revised its EPS estimates for 2024 and 2025 to $2.10 and $2.29, based on more conservative expectations for comparable company sales.
Despite these challenges, Bloomin' Brands is making strategic moves, including the potential refranchising of its operations in Brazil and plans to open 40-45 new restaurants and remodel 60-65 existing ones in 2024. These recent developments reflect the company's commitment to growth and customer experience amid a challenging market environment.
InvestingPro Insights
As Michael L. Spanos prepares to take the helm at Bloomin' Brands, Inc., the company's financial health and market performance are of keen interest to investors. With a market capitalization of $1.54 billion, Bloomin' Brands is navigating a challenging market environment. Notably, the company's P/E ratio stands at 48.61, which suggests that the stock is trading at a high earnings multiple. This is further emphasized by an adjusted P/E ratio for the last twelve months as of Q2 2024 of 9.27, indicating potential investor optimism about future earnings growth despite current valuations.
InvestingPro Tips reveal that management has been actively engaging in share buybacks, a sign that they believe the shares are undervalued and a potential indicator of confidence in the company's future. Furthermore, Bloomin' Brands pays a significant dividend to shareholders, with a dividend yield of 5.28% as of the latest data, which could be appealing to income-focused investors.
However, challenges are also present. Analysts have revised their earnings downwards for the upcoming period, and the company has been grappling with weak gross profit margins, which stood at 16.32% over the last twelve months as of Q2 2024. Additionally, the stock price has experienced considerable volatility, with a six-month total return of -32.65%, reflecting market uncertainties and perhaps internal transitions.
Investors interested in a deeper dive into Bloomin' Brands' financials can explore more than ten additional InvestingPro Tips by visiting https://www.investing.com/pro/BLMN, which provide valuable insights into the company's performance and prospects.
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