Topic: How To Invest

Q: Pat: What is your recommendation for U.S. restaurant chain Bloomin’ Brands? They own Outback Steakhouse. Thank you.

Article Excerpt

A: Bloomin’ Brands Inc., $20.07, symbol BLMN on Nasdaq (Shares outstanding: 92.8 million; Market cap: $1.8 billion; www.bloominbrands.com), owns and operates 1,494 restaurants (1,200 company-owned and 294 franchised) in 48 states and 19 countries. Its restaurant brands include Outback Steakhouse, Fleming’s Prime Steakhouse, Bonefish Grill and Carrabba’s Italian Grill. Bloomin’ Brands operates in the casual dining sector of the restaurant industry. Its restaurants aim to offer quality food in a relaxed and fun atmosphere. In 2014, total revenue rose 7.5%, to $4.44 billion from $4.13 billion in 2013. However, earnings fell 1.1%, to $140.8 million ($1.11 per share) from $142.4 million ($1.11 per share) in 2013. Starting in 2015, the company focused on strengthening its core brands and closing underperforming restaurants. That year it sold off its interest in Roys for $10 million. That chain, known for its Pacific Rim cuisine, included 20 company-owned stores. As a result of the re-organization, revenue tailed off by 1.4%, to $4.38 billion in 2015; it then dropped…