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Bloomin' Brands Inc. (NASDAQ:BLMN), the company behind casual dining restaurants such as Outback Steakhouse and Carrabba's Italian Grill, has seen its stock price tumble to $6.64 USD, hovering near its 52-week low of $6.43. The company maintains an attractive 8.82% dividend yield, though InvestingPro analysis indicates weak financial health scores. This latest price level reflects a significant downturn for the company, which has experienced a staggering 1-year change with a decline of -73.22%. Investors are closely monitoring the stock as it navigates through a challenging period marked by this notable drop, raising questions about the company's strategy and resilience in a competitive and ever-changing industry landscape. While analyst targets range from $7 to $15.50, InvestingPro research suggests the stock is currently undervalued, with 14 additional key insights available to subscribers through their comprehensive Pro Research Report.
In other recent news, Bloomin' Brands reported its fourth-quarter 2024 earnings, revealing a revenue shortfall against market expectations. The company posted revenues of $972 million, missing the forecasted $1.09 billion by $118 million. Earnings per share (EPS) met expectations at $0.38. S&P Global Ratings revised its outlook on Bloomin' Brands from positive to negative due to margin contraction and share loss, while affirming the 'BB-' issuer credit rating. The company's senior secured credit facility rating was lowered to 'BB' from 'BB+', and senior unsecured notes were downgraded to 'B' from 'BB-'. Bloomin' Brands announced plans to franchise over 30% of its restaurants and completed a partial sale of its Brazil operations, using $225 million in proceeds to repay its revolver. The company is shifting its focus from new developments to remodeling existing restaurants, with plans to open 18 to 20 new restaurants in the U.S. in 2025. Analysts have noted that Bloomin' Brands faces challenges from market competition and consumer spending trends, with S&P Global Ratings expecting continued traffic declines and modest sales contraction.
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