Bloomin Brands reported better-than-expected third-quarter results, mainly due to strong off-site sales and improved restaurant sales trends. Despite better-than-expected quarterly results, the restaurant chain operator’s stock price fell 8.3% on Friday to $16.26. After the stock price has tripled from its mid-March low, investors appear to be making a profit.
With The Increase In Restaurant Sales, Bloomin Brands Topped The Third Quarter Performance List
Bloomin Brands (BLMN) reported revenue of $771 million in the third quarter, exceeding analyst expectations of $752 million. For the quarter, the company reported an adjusted loss per share of $0.12, which was far lower than Wall Street’s expected loss of $0.32.
Bloomin Brands pointed out: “Across the U.S. portfolio, due to adapting to this evolving environment, we saw a steady weekly sales momentum in the third quarter. Restaurant sales continued to improve, and our off-site business remained strong. Because we will be around 50% of the sales realized during the closure period”.
On October 20th, analyst GB. Morgan John Ivankoe raised its target stock price from US$16 to US$20 (with a potential rate hike of 23%) and reiterated its buy rating. In a statement to investors, Ivanco stated that in-store sales in the fast-service restaurant industry are increasing, from 3% in July to 3.7% in August and 5.8% in September.
Currently, Wall Street is cautiously bullish on stocks. The consensus of mid-buy analysts is based on 5 purchases and 2 bookings. Since the stock price has fallen by more than 26% so far this year, the median target price is $18.43. At the current level, its potential upside is about 13.4%.