Bloomin' Brands Is Now A Potential Turnaround Stock
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Eric Novinson199 FollowersFollow5ShareSavePlay(13min)CommentsSummaryBloomin' Brands is a hold, as its turnaround strategy for Outback Steakhouse shows early signs of incremental comps growth but faces margin and traffic challenges.BLMN's dividend cut enables increased digital marketing investment, aiming to differentiate Outback via its Australian steakhouse experience and targeted ad spend.I project 2026 revenue growth of 4% and EBITDA margin improvement to 7.5%, supported by higher ad spend and potential lower beef costs.With a target price of $7.18, just 1% above current levels, BLMN's discounted valuation reflects justified caution amid execution and cost risks. J. Michael Jones/iStock Editorial via Getty Images The last time I wrote about Bloomin' Brands (BLMN), I explained why it was likely to cut its dividend. It couldn't afford to pay the dividend, and it was using the cash from selling its restaurants inThis article was written byEric Novinson199 FollowersFollowI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.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.