|Bid||15.79 x 3100|
|Ask||17.50 x 800|
|Day's Range||15.74 - 16.11|
|52 Week Range||15.12 - 22.22|
|Beta (3Y Monthly)||0.21|
|PE Ratio (TTM)||13.43|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||0.40 (2.50%)|
|1y Target Est||21.08|
The “market phenomenon” created a yield curve inversion — the first since June 2007, prior to the last recession.
The restaurant industry typically has razor-thin profit margins, but one analyst sees plenty of return potential in three popular chains. MKM Partners’ Brett Levy (a 3-star analyst according to Tip Ranks) initiated Buy ratings on Outback Steakhouse parent Bloomin’ Brands, McDonald’s, and Papa John’s Pizza. All have interesting stories behind them, and each presents a different case for investors. Levy lays out a clear bull case for each stock. Bloomin’ Brands, Inc. (BLMN)Best known for its chain of Outback Steakhouse restaurants (whose signature ‘Bloomin’ Onion’ dish gives the parent company its name), Bloomin’ recently beat its Q2 earnings expectations by 2.8%, reporting EPS of 75 cents. It was the fourth quarter in a row that BLMN had reported an earnings beat, although Levy notes that the company’s annual sales have been steady in the range of $3.5 to $4.5 billion for the past several years, and says, “Posting in-line results or even modest beats versus a long-term growth profile won't be enough to impress investors.”Levy sees the company making the necessary changes, however, and positioning itself to improve those annual sales numbers. He writes, “Bloomin' Brands' top strategic priorities consists of improving sales through store remodels and relocation, enhanced menu through a focus on value, enhanced promotions, and superior in-store execution… At the same time the company is focusing on growing segments of the restaurant industry, including take-out growth, delivery expansion, and a new multi-branded loyalty program.”In line with his approval of BLMN management’s forward plans, Levy started coverage on this stock with a Buy rating and a $20 price target. BLMN currently sells for $16.78 and has a 30% upside based on the $21 average price target. The stock’s Moderate Buy consensus rating is derived from 6 buys, 1 hold, and 1 sell assigned in the past three months. It is worth noting here that even Bloomin’s lowest price target, $18, implies an upside of 7%; even those analysts hedging their bets on the restaurant chain believe it has potential for growth. McDonald’s Corporation (MCD)The early innovator in the fast food industry has long been a staple of the stock market. And while founder Ray Kroc was notoriously close-fisted, the company has a history of generously rewarding investors. The stock has shown consistent gains over the last three years, is up 23% year-to-date, and the dividend, while yielding a modest 2.11%, pays out a lucrative $4.64 annually due to the high share price. It’s no wonder that Mickey Ds would draw the attention of a stock analyst opening coverage of the restaurant sector.In his note on McDonald’s, Levy writes, “McDonald’s valuations continue to test new highs, but the company has continued to produce strong and consistent results, outpacing other highly franchised global concepts. We believe the combination of strong domestic and international sales growth is sustainable and when coupled with strong cash flow generation and consistent returns to shareholders, is supportive of a premium valuation...”McDonald’s is the strongest of the stocks in this article, with a Strong Buy from the analyst consensus, based on 17 buys and 5 holds given in the last three months. MCD shares are currently trading for $219, and have a 4.5% upside based on an average price target of $229. Levy’s price target, $250, suggests room for a substantially higher 13% upside. Papa John’s International, Inc. (PZZA)It’s no secret that Papa John’s Pizza has been hurting in the past year. From founder and now-former CEO John Schnatter’s mouthing-off problems, to basic issues like menu and product quality and franchisee relations, Papa John’s has faced a series of challenges that have impacted the bottom line. To underline the trouble, starting in Q3 of last year the company reported three quarterly losses in a row.That is starting to change with Q2, as PZZA has just reported its first quarterly profit in a year. The $8.4 million in net gains for the quarter was less than Q2 2018, but still a dramatic improvement from losses, and the 28 cent adjusted EPS was a welcome boon for investors. The company’s new CEO, Steve Ritchie, described Q2 as, “our third quarter of sequential improvement…” and said of the turnaround efforts, “I’m not going to say that we are out of the woods. But the franchisees do have confidence that we have a strong brand and new leaders.”Analyst Levy, in examining PZZA, noted three key points in the company’s strategy: “Greater value focus and new marketing initiatives [they have taken on Shaquille O’Neal as brand ambassador]; Fostering a better relationship with franchisees, including financial assistance; and, Bringing new operational and strategic talent, including the recent appointment of activist investor and Starboard Value CEO Jeff Smith as chairman.”He goes on to say, “Papa John's is implementing a return to basics, back to its ‘Better Ingredients, Better Pizza (BIBP)’ motto, but a turnaround is never easy... The case for buying Papa John's isn't made solely on easy comparisons from recent operating struggles. Rather, a new collaborative approach across the entire company and a willingness to bring new products and ideas could potentially result in a fundamentally led stock performance recovery.” PZZA gets a Buy rating from Levy, who quips that, in the pizza business, “it’s better to be early than late.” His price target of $55 indicates confidence in a 21% upside.Overall, Papa John’s has a Moderate Buy rating based on an even split – 3 buys and 3 holds given in the last three months. The stock sells for $45, and the average price target matches Levy’s at $55.Visit TipRanks’ Analysts’ Top Stocks page to find out what else is trending in today’s markets.
Outback Steakhouse owner Bloomin' Brands Inc (NASDAQ: BLMN ) has multiple initiatives and investments underway which will position the restaurant company well for future growth, according to MKM Partners. ...
It looks like Bloomin' Brands, Inc. (NASDAQ:BLMN) is about to go ex-dividend in the next 4 days. You can purchase...
Bloomin Brands (NASDAQ: BLMN ) unveils its next round of earnings this Wednesday, July 31. Here is Benzinga's everything-that-matters guide for the earnings announcement. Earnings and Revenue Based on ...
Bloomin' Brands (BLMN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Bloomin' Brands (BLMN) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Over the next month or so, school starts up again across the United States. And for parents, that means a frenzied rush of back-to-school shopping.As investors, how can we cash in on the excitement?Obviously, Amazon (NASDAQ:AMZN) has done a number on many brick-and-mortar retailers. But others are figuring out ways to prosper despite the rapidly changing retail landscape.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Here are four retail stocks to buy as summer vacations wind down. Retail Stocks to Buy: Ross Stores (ROST)An overarching theme in the so-called retail apocalypse has been the collapse of department stores such as Sears and Bon-Ton. It has certainly been the end of an era for the traditional department-store led regional mall.But Amazon hasn't ended clothes shopping at brick-and-mortar locations; much of the traffic has moved to non-mall retailers.And no group of these has done better than the off-department store clothing chains. Ross Stores (NASDAQ:ROST) is a perfect example of this category. Ross is set up in (generally) cheaper shopping center locations offering great branded products in no-frill stores at rock-bottom prices.Though Ross is a well-oiled supply chain and laser-focused on keeping overhead down, it can thrive in the new retail landscape. Its prices are competitive - if not better - than what you find online. Ross may not have the best consumer experience, but for people hunting for a bargain, it's the place to be.At 21.5x earnings, ROST stock isn't cheap, but it's not too expensive for a firm that is still growing rapidly. Additionally, ROST stock is just now approaching its high from last fall. Once it tops that, shares should break out technically to new highs. Macerich (MAC)If you like shopping at the mall, it's worth considering buying a mall REIT operator. Be careful in what you buy, however. Lower-end mall stocks have gotten pummeled as e-commerce has crushed many malls' fortunes.Analysts see the field dividing, however, with the strong malls getting stronger while weak malls fade and ultimately close or get redeveloped.Enter Macerich (NYSE:MAC). It is one of the strongest mall operators in the U.S. Its malls generate more than $700 per square foot of retail sales - that's 40% above the national average. If you live in a large metro area, there's a great chance that either Macerich or Simon Property (NYSE:SPG) owns the most luxurious mall or two near you.Why buy Macerich over the larger Simon? For one thing, Macerich's malls average even more sales per square foot than Simon. And like its sales, its dividend yield is bigger too - MAC stock pays a juicy 8.9% dividend now, compared to a more modest 5% from Simon.MAC stock has gotten cheap because it is relatively highly-levered. Investors fretted about whether it could maintain its dividend if a recession hit. But with the economy picking up and the Fed set to cut rates, Macerich should be fine on that front. * 7 Dependable Dividend Stocks to Buy Meanwhile, they've got several development projects in the works which should boost their cash flow - and ensure the dividend's safety - going forward. When you go to the mall, if you own MAC stock, you are, in a small way, helping pay yourself a dividend as you shop. Bloomin' Brands (BLMN)While you're out doing your back-to-school shopping, you may work up an appetite. That will lead you to my favorite sub-sector within retail: the restaurants. And thankfully, there's a tasty bargain on offer in this sector right now. That would be Bloomin' Brands (NASDAQ:BLMN). Bloomin' owns Outback Steakhouse, Carrabba's, and Bonefish Grill among its trademarks.BLMN stock fell from $22 earlier this year to just $17 now in large part due to analyst downgrades. These downgrades were based on fears about the impact of African Swine Fever. This disease has stricken tens of millions of pigs in China and other neighboring countries, causing the price of pork to spike. In theory, Bloomin' will have to pay more for meat, and thus its profits will drop - or so say the analysts.In practice, however, beef - not pork - is the main product Bloomin' sells, aside from its chain focused on fish. Sure, rising pork prices will be a minor negative, but there's no reason for BLMN stock to be down 25% when pork likely makes up just a couple percent (if that) of Bloomin's costs.One of the analysts that downgraded Bloomin' also cut their rating on Chipotle (NYSE:CMG) due to swine flu fears. Chipotle responded by saying that although it indeed sells a large amount of carnitas pork, the swine fever would have an inconsequential impact on its results. CMG stock bounced back up. Bloomin' will follow once investors figure out that the swine scare is no big deal for the company. Who goes to Outback to order a pork chop anyway? PriceSmart (PSMT)You may have noticed that Costco (NASDAQ:COST) has quietly been one of the top-performing retail stocks of the past decade. It's up eight-fold, in fact, since the early 2000s.For investors that missed Costco, there's good news - a copycat has taken the Costco model to Central and South America. It's called PriceSmart (NASDAQ:PSMT), and it operates in Colombia, Panama, Costa Rica, and other such countries using the same membership and low-cost retail model.Until recently, investors took the "Costco of Latin America" label a little too seriously, and bid PriceSmart stock up to the stratosphere. It often traded above 30x earnings despite relatively slow earnings growth. A recent drop in emerging market sentiment, along with PriceSmart struggling to find good new store locations, has finally taken the stock back to a more reasonable valuation. Additionally, an earnings misssent PSMT stock down to near its 52-week lows.While PriceSmart is now priced attractively for being a standalone operation, it has also become an intriguing takeover target. Walmart (NYSE:WMT) - the largest retailer in Mexico and Central America - might take a look. It's a natural bolt-on given that Walmart already runs that type of store with its Sam's Club franchise. Falabella - Chile's dominant retailer - has been expanding northward and could use more presence in Colombia. And Exito, Colombia's leading grocery and hypermarket player, could be another potential PriceSmart buyer.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 4 Retail Stocks to Buy in Time for the Back-to-School Rush appeared first on InvestorPlace.
Bloomin’ Brands, Inc. will release results for the fiscal second quarter ended June 30, 2019, on Wednesday, July 31, 2019, at approximately 7:00 AM EDT, which will be followed by a conference call to review its financial results at 9:00 AM EDT the same day.
Deutsche Bank’s “buy” rating for Bloomin’ Brands (BLMN) appears to have increased investors’ confidence as Bloomin’ was trading in positive territory after the announcement.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Bloomin' Brands, Inc. New York, June 18, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bloomin' Brands, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
The goal was to address an industry-wide food waste problem — the U.S. restaurant industry creates 11.4 million tons of food waste each year, according to the nonprofit ReFED. Through the partnership, Chick-fil-A places its organic material, like food scraps, into a compost container that is collected weekly and broken down into nutrient-rich soil at a compost facility. It completes the circle.” Since 2017, Let Us Compost has collected 144,000 pounds of food waste from Todd’s Beechwood and Barnett Shoals restaurants, and will soon begin the process at his third restaurant, which recently opened in downtown Athens, Chick-fil-A said.
is the owner of five well-known restaurant brands serving middle- to high-end casual dining. The broad market sell-off of May 23 knocked almost 9% off BLMN's already reasonably priced shares. At around $18.45, the stock trades now for almost 17% less than it did exactly six years earlier, when earnings per share were almost one-third lower than expected in 2019.
Bloomin' Brands Inc NASDAQ/NGS:BLMNView full report here! Summary * Bearish sentiment is moderate and increasing * Economic output in this company's sector is contracting Bearish sentimentShort interest | NeutralShort interest is moderate for BLMN with between 5 and 10% of shares outstanding currently on loan. This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on June 4. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold BLMN had net inflows of $930 million over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Consumer Servicesis falling. The rate of decline is significant relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.