Transcription
Let's talk about, uh, let's see. We're going to talk about Bloomin' Brands. Have you ever eaten there?
Uh, yeah, actually I looked up because they have Fleming's. I love Fleming's. It's a great, great little steakhouse.
I thought it was Outback Steakhouse was.
It is. I mean, that's their big one. Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill. I'm not familiar with them. And then Fleming's.
Okay.
They only have, I guess, like 70 total.
70-ish total Fleming's.
Yeah. It's primarily Outback. 670 locations around there. This is as of 2024.
That's Friday. Yeah, that's good. All right. Uh, let's look at the numbers here for Bloomin' Brands. Symbol is BLMN. Uh, in the industry of restaurants, uh, wow, short float 11.7%. A lot of shorts on that company. We do see they got a PE ratio of 7.9. That's very good. The industry is at 30.8. Sales .2 versus 2.4. Price to book value 1.5 versus 17. Price to cash flow. And again, these are valuation ratios. You want them lower. 2.5 for Bloomin' Brands versus 16.9. Pay ratio 6 versus 15.5. Valuations for this company looking very good. Earnings last year up 207% versus .3 for the industry. However, sales for Bloomin' Brands are down 14% when the industry is up 4.4%. Analysts give a 5-year earnings per share growth rate of 17.8%, better than the industry at 8.2. Wow, they pay a dividend of 8.6%, but the payout ratio shows not material. So, there's something there that they're kind of missing on the on the earning side, but, uh, could see a dividend cut there at 8.6% going forward.
Uh, let's see here. Balance sheet. Current ratio. Uhoh. .04 versus 1.1. That to me says, nope, I'm not going to touch this company. They could have a liquidity problem, especially when I look at the debt to equity now. 5.4 versus one. Very heavy debt. Not a lot of liquidity. Net profit margin is minus .1%. Return to equity minus 1.2. I don't feel anything good going forward, but I just got, I was very excited about this company and now I'm not.
I mean, valuations look good. I mean, Bloomin' Brands, the current price is $7 a share. 52-week range, the low $6.9, the high $18.72. I mean, it's not been a good performer over the last several years. It, it's really seen some difficulties. But going out to December 2026, estimated earnings per share $1.10 gives a target sale of $18.26. And and one thing I was thinking about this company is obviously franchise. It is primarily company-owned restaurants though. It looks like as of last year, about 1,100 were company-owned, about 300 were franchised. But I was thinking if they don't own the real estate, the way that leases work is they still show up in debt. So if you have all these leases on the balance sheet, that is all liability. You don't have the asset for that. You're paying with the lease from cash flow. So, it could really make the debt to equity pretty nasty like it does here. And also on the current ratio, maybe if they have some leases coming due as short-term debt. So, I don't want to say yes, go ahead and buy it, but just kind of trying to reason through it. More research though.