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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 $7.71 USD, hovering near its 52-week low. According to InvestingPro data, the stock currently offers a substantial 7.45% dividend yield, though analysts maintain price targets ranging from $9 to $15.50. This latest price level reflects a significant downturn for the company, with a decline of over 70% in the past year. Investors are closely monitoring the stock as it navigates through a challenging period marked by this notable decrease in value. While InvestingPro analysis indicates the stock is currently undervalued, the company’s overall financial health score remains weak, with a beta of 2.04 suggesting higher volatility than the broader market. For deeper insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering detailed analysis of BLMN among 1,400+ US stocks.
In other recent news, Bloomin’ Brands Inc. reported a challenging fourth quarter for 2024, with revenues falling short of expectations. The company announced revenues of $972 million, missing the forecasted $1.09 billion by $118 million. Earnings per share met expectations at $0.38, but the company experienced an 8% decline in total revenues compared to the previous year. S&P Global Ratings revised Bloomin’ Brands’ outlook from positive to negative due to shrinking margins and increased leverage, affirming a ’BB-’ issuer credit rating and lowering the rating on the company’s senior secured credit facility to ’BB’. The company plans to franchise more than 30% of its total restaurants and has recently completed a partial sale of its Brazil operation, using the $225 million proceeds to repay its revolver. Bloomin’ Brands expects adjusted diluted EPS for the upcoming year to range between $1.20 and $1.40, with plans to open 18 to 20 new restaurants in the U.S. in 2025. Analysts from firms such as Jefferies and Barclays (LON:BARC) have expressed concerns over the company’s declining sales metrics and competitive pressures.
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