BUZZ-BofA downgrades Bloomin' Brands to 'underperform'

Brokerage BofA downgrades casual dining restaurant chain Bloomin' Brands BLMN.O to "underperform" from "neutral", cuts PT to $13 from $18

Notes co's steady decline in volumes and transaction counts, says while casual dining industry is notoriously slow in growth, BLMN's struggles have allowed competitors to expand in market share

Says Chili's Grill & Bar operator Brinker International's EAT.N turnaround efforts act as a roadmap, with more spending on labor to improve service and marketing to draw customers needed

Says that BLMN's in line to higher pricing vs competition and lack of scale advantages offers no room for reinvestment without hurting margins

However, sees co's ability to maintain stable margins despite steadily reduced transactions to help with the reinvestment

One out of 13 brokerages rate the stock "strong buy", 10 "hold" and two "sell", with a median PT of $15

BLMN fell ~56% in 2024