BLMN - Bloomin' Brands falls with Brazil taxes ahead

2023-08-01 12:30:15 ET

Bloomin' Brands, Inc. ( NASDAQ: BLMN ) fell 2.7% on Tuesday after saying its Brazilian locations could be subject to new taxation.

For the second quarter, non-GAAP EPS of $0.74 beat the average analyst estimate by $0.10, while revenue of $1.15B was in-line with consensus. The restaurant chain reaffirmed full-year financial guidance of 0.5% to 1.5% in comparable sales for the third quarter and adjusted diluted EPS of $0.41 to $0.46.

During the second quarter, Brazil enacted tax legislation that “prospectively limits our ability to benefit from the 100% exemption from income tax and federal value added taxes.” As a result, the company expects to be subject to tariffs starting in the fourth quarter of 2023.

Same-store sales in Brazil rose 4.1% for the quarter, the most among BLMN’s different segments, even as traffic fell in the South American country by 4%. The average check per person in Brazil was up 8.5% from a year earlier.

Outback Steakhouse has been a favorite for Brazilians, the Washington Post reported in June, with the city of Rio de Janeiro voting it as the most popular restaurant for five years running.

Shares are up nearly 29% so far this year.

More on Bloomin’:

• Bloomin' Brands declares $0.24 dividend
• Bloomin' Brands Non-GAAP EPS of $0.74 beats by $0.10, revenue of $1.15B in-line
• Restaurant earnings are coming - watch these stocks

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