Bloomin’ Brands, Inc. BLMN shares are trading higher on Friday.
The company reported fourth-quarter adjusted earnings per share of 75 cents, beating the street view of 69 cents. Quarterly revenues of $1.194 billion marginally missed the analyst consensus of $1.198 billion.
Adjusted operating margin decreased to 7.5% in the quarter under review from 8.2% in the year-ago period.
Restaurant level operating margin, however, expanded marginally to 16.4% from 16.3%. Restaurant-level operating margin improved slightly due to an increase in average check per person, the impact of certain cost saving and productivity initiatives.
Shutting Down Restaurants: In the fourth quarter, Bloomin’ Brands made the decision to close 36 predominantly older, underperforming restaurants and three U.S. and two international Aussie Grill restaurants.
In connection with these closures, the firm recognized asset impairments and net closure charges of $32.3 million during the quarter.
The company expects to complete these closures during the first quarter and incur charges between $8 million and $11 million.
Dividend: On February 13, the company declared a quarterly cash dividend of $0.24 per share, payable on March 20, 2024, to stockholders of record at the close of business on March 6, 2024.
Share Repurchase: The company approved a new $350.0 million authorization. The 2024 Share Repurchase Program will expire on August 13, 2025.
Outlook: Bloomin’ Brands expects FY24 adjusted EPS of $2.51-$2.66 versus the $2.58 estimate. The company projects number of new system-wide restaurants of 40 to 45 in FY24.
For the first quarter, the company expects adjusted EPS of $0.70-$0.75 versus the $0.93 estimate.
The first three weeks of the first quarter were negatively impacted by weather. The company estimates this impact to be approximately 1.3% of U.S. comparable sales for the quarter and $0.05 to its adjusted earnings per share.
Price Action: BLMN shares are trading higher by 4.21% to $27.72 on Friday.
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