Bloomin' Brands ($BLMN) on Friday lowered its 2024 earnings outlook as the Outback Steakhouse parent's third-quarter profit nearly halved year over year amid soft traffic trends. The casual dining company anticipates adjusted earnings to be in a range of $1.72 to $1.82 for 2024, compared with $2.10 to $2.30 previously expected.
Analysts polled by Capital IQ are forecasting normalized EPS of $2.08. US comparable restaurant sales are set to decline by 0.5% to 1%, versus prior expectations for the metric to be down 1% to remaining flat. For the ongoing quarter, Bloomin' Brands expects adjusted EPS of $0.32 to $0.42 on a comparable sales decline of 1% to 2%.
The consensus is for normalized EPS of $0.67. The stock plunged nearly 10% in Friday trading. The guidance factors in 'the broader challenging industry trends, recent impact from the hurricanes and our current execution,' Chief Executive Mike Spanos said on an earnings conference call. 'We are not pleased with our performance.' Spanos assumed the top job at the company early in September. For the quarter ended Sept.
29, Bloomin' Brands posted adjusted earnings of $0.21 a share, down from $0.41 the year before but just above the Capital IQ-polled consensus of $0.20. Revenue fell 3.8% to $1.04 billion, largely in line with analysts' view. US comparable restaurant sales edged down 1.5% year over year, driven by a 4.4% drop in traffic, Chief Financial Officer Michael Healy told analysts.
International comparable sales, which reflect Outback Steakhouse in Brazil, declined 3.6%. Bloomin' Brands said that it agreed to sell 67% of its Brazil operations for 1.4 billion Brazilian reais ($243.5 million) to Vinci Partners. The valuation reflects a total enterprise value of 2.06 billion reais, which Bloomin' Brands expects the transaction to close on or before Dec.
31. 'This strategic re-franchise includes an ongoing royalty stream,' Bloomin' Brands said. A little over half of the consideration is payable upon deal completion, with the remaining 48% to be paid on the first anniversary of the closing date. Bloomin' Brands said it has an option to divest its remaining stake in Brazil operations in 2028..