BLMN - Bloomin' Brands: Inflationary Pressures Continue To Bite Margins
Summary
- Bloomin' Brands released its Q2 results last month, reporting quarterly revenue of $1,125 million, a 4% increase from the year-ago period.
- The lower revenue growth than some peers can be attributed to Bloomin' being more conservative with pricing, though this did hurt the company's margins in the period.
- Fortunately, it's looking like inflation may have peaked in Q2, the company is looking at a leaner prototype for new Outback restaurants, and it's confident in its 8% margin goal.
- That said, while Bloomin' is becoming more reasonably valued and will now have easy year-over-year comps in H1 2023, I still don't see enough margin of safety just yet to justify starting a new position.
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Bloomin' Brands: Inflationary Pressures Continue To Bite Margins