Jefferies has reiterated its Buy rating on Bloomin' Brands (NASDAQ: NASDAQ:BLMN) shares, maintaining a $28.00 price target. The firm commented positively on the recent executive appointment at the restaurant company.
Mike Spanos will take over as CEO effective September 3, succeeding Dave Deno, who announced his retirement in May. Spanos brings a wealth of experience to the role, having served as Executive Vice President and Chief Operating Officer of Delta, CEO of Six Flags (NYSE:SIX), and a 25-year tenure at Pepsi.
Spanos is recognized for his guest-centric leadership and operational execution skills, which Jefferies believes are key factors in driving Bloomin' Brands forward. The analyst firm views Spanos as a strong hire who is well-equipped to build upon the solid foundation established by outgoing CEO Dave Deno. Deno has committed to stay on through December 31 to assist with the transition, ensuring a smooth handover of leadership responsibilities.
Bloomin' Brands, the parent company of various casual dining restaurant chains, is expected to benefit from Spanos's strategic vision and operational expertise. With a history of leadership roles in significant consumer-focused companies, Spanos is anticipated to contribute positively to the company's growth and customer engagement strategies.
In other recent news, Bloomin' Brands has seen a series of changes and challenges. The company announced the appointment of Michael L. Spanos as its new CEO, following the disclosure of David Deno's retirement plans.
Spanos, who previously held leadership roles at Delta Air Lines (NYSE:DAL), Six Flags Entertainment, and PepsiCo (NASDAQ:PEP), will take over effective September 3, 2024.
Bloomin' Brands reported mixed financial results with second-quarter earnings per share (EPS) of $0.51, falling short of the consensus forecast.
The company's overall revenue also declined to $1.1 billion, a 3% drop from last year, leading to a downward revision of its full-year 2024 outlook for comparable sales and EPS.
InvestingPro Insights
As Mike Spanos prepares to take the helm of Bloomin' Brands, investors are considering the company's financial health and market performance. According to real-time data from InvestingPro, Bloomin' Brands has a market capitalization of approximately $1.5 billion, reflecting its standing in the industry. The company's price-to-earnings (P/E) ratio stands at 47.04, which may suggest a higher earnings expectation from the market, especially considering its adjusted P/E ratio for the last twelve months as of Q2 2024 is significantly lower at 9.03. Additionally, Bloomin' Brands has maintained a dividend yield of 5.42%, a sign of its commitment to returning value to shareholders.
InvestingPro Tips indicate that while management has been actively buying back shares, a sign of confidence in the company's value, analysts have revised earnings expectations downwards for the upcoming period. This, coupled with the company's high earnings multiple and the fact that short-term obligations exceed liquid assets, could be areas of concern for potential investors.
For those interested in a deeper analysis, InvestingPro offers additional insights on Bloomin' Brands. Currently, there are 11 more InvestingPro Tips available, which can provide further guidance on the company's financial health and market position. To explore these valuable insights, visit https://www.investing.com/pro/BLMN.
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