Bloomin' Brands Inc. (NASDAQ:BLMN), the company behind popular restaurant chains such as Outback Steakhouse and Carrabba's Italian Grill, has seen its stock price tumble to a 52-week low of $12.26 USD, a stark contrast to its 52-week high of $30.12. According to InvestingPro analysis, the company currently offers a notable dividend yield of 7.71%, despite operating with challenging gross profit margins of 16.01%. This latest price level reflects a significant downturn for the company, which has experienced a stark 1-year change with a decline of -53.28%. Investors and analysts are closely monitoring Bloomin' Brands as it navigates through a challenging period marked by this notable decrease in stock value, raising questions about the company's strategy and resilience in a competitive and ever-changing industry. InvestingPro analysis reveals the stock is currently undervalued, with analysts setting price targets ranging from $13 to $22. For deeper insights, InvestingPro subscribers can access 12 additional ProTips and a comprehensive Pro Research Report covering this volatile restaurant stock.
In other recent news, Bloomin' Brands has been facing a challenging period, as evidenced by its recent earnings reports. The company's fiscal third-quarter 2024 revenue fell by 4% year-over-year to $1 billion, and adjusted diluted EPS dropped from $0.41 in 2023 to $0.21. Goldman Sachs (NYSE:GS) has initiated coverage on Bloomin' Brands with a Sell rating due to growth concerns, while BMO Capital and Piper Sandler have maintained their neutral ratings but reduced their price targets from $20.00 to $16.00.
The company is at an early stage of implementing improvement strategies under the leadership of new CEO Michael Spanos. Bloomin' Brands is also planning a significant sale of its Brazil operations, which could result in a downside to net income projections for fiscal year 2025 by 3% to 9%. However, the company's current ratio of 0.31 indicates potential liquidity concerns.
These recent developments follow the company's strategic changes such as the appointment of Mike Spanos as the new CEO and a re-franchising transaction in Brazil. Investors are now awaiting details on the Outback U.S. brand and potential changes in capital allocation, expected to be revealed in the fourth-quarter 2024 earnings call.
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