Bloomin' Brands, Inc. (NASDAQ: BLMN)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0001546417
Market Cap 561.11 Mn
P/B 1.63
P/E -9.72
P/S 0.16
ROIC (Qtr) 1.86
Div Yield % 10.60
Rev 1y % (Qtr) 2.07
Total Debt (Qtr) 2.20 Bn
Debt/Equity (Qtr) 6.38

About

Bloomin' Brands, Inc., a prominent player in the casual dining industry, is known by its stock symbol BLMN on the Nasdaq stock exchange. The company operates several renowned brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. These brands have a significant presence in 47 states across the United States, Guam, and 13 countries internationally, totaling over 1,189 restaurants. The company's primary business activities revolve around operating company-owned restaurants and expanding...

Read more

Price action

Investment thesis

Bull case

  • Operating cash flow of 277.30M provides exceptional 53.29x coverage of minority interest expenses 5.20M, showing strong core operations.
  • Operating cash flow of 277.30M provides strong 33.91x coverage of stock compensation 8.18M, indicating sustainable incentive practices.
  • Tangible assets of 2.64B provide exceptional 8.94x coverage of deferred revenue 295.41M, showing strong service capability backing.
  • Cash position of 66.48M provides exceptional 12.77x coverage of minority interest expenses 5.20M, indicating strong liquidity.
  • Operating cash flow of 277.30M provides strong 4.69x coverage of inventory 59.18M, indicating efficient inventory management.

Bear case

  • Operating cash flow of 277.30M barely covers its investment activities of (92.54M), with a coverage ratio of -3, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 277.30M provides thin coverage of dividend payments of (58.63M) with a -4.73 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 66.48M provide limited coverage of acquisition spending of 95.86M, which is 0.69x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 277.30M provides insufficient coverage of deferred revenue obligations of 295.41M, which is 0.94x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 277.30M provides minimal -10.07x coverage of tax expenses of (27.54M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Restaurants
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCD Mcdonalds Corp 222.05 Bn 26.39 8.45 55.82 Bn
2 SBUX Starbucks Corp 95.51 Bn 51.45 2.57 26.61 Bn
3 CMG Chipotle Mexican Grill Inc 50.94 Bn 33.15 4.32 4.98 Bn
4 YUM Yum Brands Inc 43.17 Bn 29.83 5.36 11.55 Bn
5 QSR Restaurant Brands International Inc. 22.43 Bn 24.33 2.42 15.64 Bn
6 DRI Darden Restaurants Inc 21.91 Bn 19.91 1.77 6.16 Bn
7 YUMC Yum China Holdings, Inc. 18.12 Bn 20.05 1.57 1.84 Bn
8 DPZ Dominos Pizza Inc 14.57 Bn 24.72 3.01 5.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.81 2.05
EV to Cash from Ops. EV/CFO 9.62 16.57
EV to Debt EV to Debt 1.22 4.75
EV to EBIT EV/EBIT -78.32 3.45
EV to EBITDA EV/EBITDA 18.38 9.76
EV to Free Cash Flow [EV/FCF] EV/FCF 19.55 29.06
EV to Market Cap EV to Market Cap 4.76 6.55
EV to Revenue EV/Rev 0.75 2.40
Price to Book Value [P/B] P/B 1.63 -1.40
Price to Earnings [P/E] P/E -9.72 13.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.99 -9.56
Dividend Payout Ratio % Div Payout % (Qtr) -103.00 18.72
Dividend per Basic Share Div per Share (Qtr) 0.69 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 43.02 30.41
Interest Coverage Int. cover (Qtr) -0.67 -86.85
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.11 -24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.51 35.50
Dividend Growth (1y) % Div 1y % (Qtr) -28.12 -0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -155.93 -564.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -37.18 25.78
EBIT Growth (1y) % EBIT 1y % (Qtr) -165.38 -507.68
EBT Growth (1y) % EBT 1y % (Qtr) -1,177.00 -41.98
EPS Growth (1y) % EPS 1y % (Qtr) -6,600.00 -126.51
FCF Growth (1y) % FCF 1y % (Qtr) 191.04 5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -17.22 23.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.09 0.99
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.07
Cash Ratio Cash Ratio (Qtr) 0.09 0.78
Current Ratio Curr Ratio (Qtr) 0.45 1.47
Debt to Equity Ratio Debt/Equity (Qtr) 6.38 0.05
Interest Cover Ratio Int Coverage (Qtr) -0.67 -86.85
Times Interest Earned Times Interest Earned (Qtr) -0.67 -86.85
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.70 7.71
EBIT Margin % EBIT Margin % (Qtr) -0.95 -2.27
EBT Margin % EBT Margin % (Qtr) -2.38 -1.97
Gross Margin % Gross Margin % (Qtr) 13.40 34.04
Net Profit Margin % Net Margin % (Qtr) -1.60 -3.69