DRI - Is Bloomin' Brands Stock a Buy?
The COVID-19 health crisis has been brutal for Bloomin' Brands (NASDAQ: BLMN). The parent company of restaurant chains Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse is trading 50% below its yearly highs. And that's after rising 170% in a soaring rebound since the middle of March.
Bloomin' Brands might be a decent long-term buy at these low prices for investors with an appetite for risky turnarounds, but I wouldn't bet the farm on the Outback operator right now. Here's why.
The company is champing at the bit to reopen its restaurants, and I mean really reopen them. Bloomin' burned roughly $7 million of cash per week when operations were strictly limited to takeout and delivery options. The gradual return to sit-down dining sales is underway, but it's a slow process, and many consumers simply aren't willing to get back into crowded restaurants quite yet.