Bloomin’ Brands Inc. on Friday reported a lower fourth-quarter profit, but its adjusted earnings for the period beat analyst estimates on a strong holiday season.
The owner of Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill also estimated an impact of 5 cents a share in the first quarter due to bad weather in the first three weeks of the year.
Bloomin’ Brands
BLMN,
said its profit for the three months ended Dec. 31 dropped to $43.27 million, or 45 cents a share, from $48.05 million, or 61 cents a share in the year-ago quarter.
Adjusted fourth-quarter profit of 75 cents as share beat the FactSet consensus estimate of 69 cents a share.
Fourth-quarter revenue rose to just under $1.2 billion from $1.1 billion in the year-ago period and matched the analyst estimate.
“The fourth quarter was a good finish to 2023, especially the holiday season,” Chief Executive David Deno said in a statement.
Bloomin’ Brands stock was down 0.4% in premarket trading.
Looking ahead, Bloomin’ Brands expects first-quarter adjusted profit of 70 to 75 cents a share, below the analyst estimate of 93 cents a share. It’s expecting comparable-store sales to fall by 0.5% to 2%.
For 2024, it’s forecasting adjusted profit of $2.51 to $2.66 a share, compared to the analyst estimate of $2.58 a share. It’s also planning to open 40 to 45 restaurants this year.
Bloomin’ Brands stock was up by 1.5% in premarket trading.
The company estimated an impact of about 1.3% to its U.S. comparable sales for the first quarter, due to winter weather that included snow and heavy rain in various parts of the U.S.
Looking back at the fourth quarter same-store sales, Bloomin’ Brands said it closed 36 restaurants and three U.S. and two international Aussie Grill restaurants. It took an asset impairment of $32.3 million during the quarter for the closures.
Combine U.S. same-store sales fell 0.2% in the quarter, including a 0.3% drop at Outback Steakhouse, a 2.5% increase at Carrabba’s Italian Grill, a 3% drop at Bonefish Grill and a 0.3% dip at Fleming’s Prime Steakhouse & Wine Bar.
Prior to Friday’s trades, Bloomin’ Brands stock was down 5.5% in 2024, compared to a 6.7% gain by the S&P 500
SPX.
