Market Overview

MKM: Bloomin' Brands Positioned For Future Growth

MKM: Bloomin' Brands Positioned For Future Growth

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.

The Analyst

MKM Partners analyst Brett Levy initiated coverage of Bloomin' Brands with a Buy rating and $20 price target.

The Thesis

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, Levy wrote in the initiation note.

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.

Management deserves credit for consistently bringing confidence, energy, and initiatives but annual sales have been stagnant between $3.5 billion to $4.5 billion range, the analyst wrote.

But the company looks to be ready to move forward with multiple initiatives to show the level of growth and consistency that investors will reward with multiple expansion. Until then, posting in-line results or even modest beats versus a long-term growth profile won't be enough to impress investors.

The research firm's $20 price target is based on a combination of a P/E multiple of 12 times on 2020 estimates and seven times EV/EBITDA.

The research firm also initiated coverage of rival restaurant portfolio company and Appelbee's parent Darden Restaurants, Inc. (NYSE: DRI) with a Neutral rating and $120 price target.

Price Action

Shares of Bloomin' Brands traded around $16.70 at time of publication.

Related Links

MKM Bullish On Papa John's: 'Return To Basics'

MKM On McDonald's: The Future Is Now

Latest Ratings for BLMN

Aug 2019Initiates Coverage OnBuy
Jul 2019Initiates Coverage OnBuy
Jun 2019MaintainsOverweight

View More Analyst Ratings for BLMN
View the Latest Analyst Ratings

Posted-In: Brett Levy MKM PartnersAnalyst Color Price Target Initiation Restaurants Analyst Ratings General


Related Articles (DRI + BLMN)

View Comments and Join the Discussion!

Latest Ratings

DSGXInitiates Coverage On43.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Report: Facebook Paid People To Transcribe User Audio

How Option Traders Are Playing Grupo Financiero Galicia Following Argentina Market Crash