Bloomin’ Brands company’s dividend and profit growth
2023.02.17 10:08
Bloomin’ Brands company’s dividend and profit growth
Bloomin’ Brands is flourishing in the world following the pandemic after years of rocky recovery. The company recently announced results that were significantly higher than levels prior to the pandemic and indicated that business was flourishing despite challenges. The dividend is the report’s most telling detail. To preserve capital, the company reduced the dividend when the pandemic struck; It has returned for a few quarters, but it has just grown.
The company announced a 71% increase in the dividend, which not only meets but also exceeds the payout level for 2020 and includes a new buyback allotment. In addition to the 11% increase in share prices following the buyback, the purchase is worth an additional $125 million to shareholders, or approximately 5.7% of the market.
Chris Meyer, CFO, stated, “Our confidence in the strength of our cash flows is reflected by our new $125 million share repurchase authorization and the 71% increase in our dividend.” Importantly, we continue to generate ample cash flow, which will be used to finance ongoing growth initiatives and investments in our employees.”
Bloomin’ Brands shares information from other sit-down restaurants. While there are still obstacles, momentum is growing, and it appears that 2023 could be a good year. Bloomin’ Brands reported fourth-quarter revenue of $1.1 billion, a 4.8% increase from the previous year and well above Q4 2019.
The only drawback is that revenue fell short of the Marketbeat.com consensus estimate, but the small difference was made up for by improved margins. The higher-end chains led the way in growth across all segments when compared to the previous year. Brazil’s robust recovery lends credence to the findings and suggests the possibility of a system-wide, sustained recovery.
Additionally, the company’s margin was robust. Despite ongoing cost pressure, the margin not only held steady but also increased after accounting for one-time restructuring costs. Traffic, check sizes, and productivity, according to the business, were all factors.
In terms of earnings, adjusted EPS of $0.68 is nearly double the take in 2019 and better than last year by more than 1000 basis points. As a result, the stock ought to be trading well above the levels it reached in 2019 and is currently doing so.
The price action is rising as a result of the guidance. The company anticipates Q1 results that are in line with the consensus estimate but much stronger for the entire year. This indicates that business is anticipated to improve over the course of the year from strong levels.
Marketbeats has not yet received any new commentary, but it is on its way. Since the stock is valued at a Moderate Buy by the analysts, the following ones ought to be optimistic. The market may have what it needs to reclaim its all-time highs thanks to a series of bullish comments, including price target increases and upgrades.
Given the results, outlook, and dividend, the stock is a steal at only 10X earnings.
The chart is stunning. On the monthly chart, the stock is rising strongly, indicating support at 2019 price levels. The all-time high is the next target for resistance, which may not last long. If it breaks, this stock could reach $35 and trade at a more respectable multiple than Texas Roadhouse (NASDAQ:), its rival.
