Bloomin' Brands Stock Gains On Q4 Beat, Solid Outlook; Reinstates Dividend, Plans Buyback

  • Bloomin' Brands Inc BLMN reported fourth-quarter FY21 sales growth of 28.9% year-on-year, to $1.047 billion, marginally ahead of the consensus of $1.04 billion.
    • Comparable restaurant sales in the U.S. grew 20.7% at Outback Steakhouse and 27.9% at Combined U.S.
    • Restaurant sales grew 27.8% Y/Y to $1.02 billion, while Franchise and other revenues shot up 153.6% to $17.4 million.
    • U.S. segment revenue rose 28.3% Y/Y to $939.3 million, and the international segment increased 34.2% Y/Y to $107.8 million.
    • Adjusted EPS of $0.60 beat the analyst consensus of $0.52.
    • Total cost and expenses for the quarter increased 18.2% Y/Y to $968.5 million.
    • Restaurant-level operating margin expanded by 470 basis points to 16.5%. The operating margin was 7.5%, with operating income at $78.5 million.
    • The company held $87.6 million in cash and equivalents as of December 26, 2021. The company had a net debt of $793.1 million.
    • The company's board reinstated the quarterly dividend and declared a quarterly cash dividend of $0.14 per share, payable on March 16, 2022, to all stockholders of record on March 2, 2022.
    • The company's board also approved a $125 million share repurchase program that will expire on August 9, 2023.
    • Outlook: Bloomin' Brands sees Q1 sales of $1.10 billion - $1.135 billion, against the consensus of $1.12 billion. It expects Q1 adjusted EPS of $0.70 - $0.75 versus the consensus of $0.72.
    • Bloomin' Brands anticipates FY22 sales of $4.30 billion - $4.35 billion, against the consensus of $4.35 billion. It sees FY22 Adjusted EPS of $2.35 - $2.45, above the estimate of $2.32.
    • Price Action: BLMN shares are trading higher by 9.47% at $24.62 on the last check Friday.
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