BLMN - Bloomin' Brands: Underperformance Unveils An Upside As Recovery Continues

• Backed by innovation-led off-premise business, Bloomin' is recovering from a pandemic-driven downturn as indoor dining reopens.
• Despite a sales rebound expected next year, the value-focus strategy to sustain growth and rigorous hygiene requirements to counter the contagion could hurt margins.
• Yet, our EBITDA estimates for next year, with the historical average of trading multiple, indicate an undervalued stock.
• Despite the economic uncertainty driven by the pandemic's resurgence, Bloomin' is a 'Buy' as the stock continues to underperform the peers even after the recent rally.

For further details see: