Bloomin' Brands: A Buy As I Am Positive About Outback Steakhouse Recovery
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Redfox Capital Ideas655 FollowersFollow5ShareSavePlay(10min)CommentsSummaryBloomin’ Brands upgraded to buy as Outback Steakhouse traffic stabilizes and execution improves, supporting a bullish recovery thesis.BLMN’s Aussie 3-Course menu and Ziosk rollout drive organic demand, operational efficiency, and higher guest satisfaction, enhancing margin potential.The 2028 roadmap targets $75M in service, steak quality, and digital marketing investments, aiming to boost guest experience and marketing ROI.Valuation appears attractive versus peers; if growth accelerates and margins recover, BLMN could see significant multiple expansion. LauriPatterson/E+ via Getty Images Investment summary My previous investment thought on Bloomin’ Brands (BLMN) was a hold rating because of the huge FY25 guidance revision and the elevated valuation. Now, with the latest data and developments, I am now upgradingThis article was written byRedfox Capital Ideas655 FollowersFollowI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.