Investment Choices in Dining: Bloomin' Brands vs. Texas Roadhouse
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Financial Health Comparison: Bloomin' Brands reported nearly $4 billion in revenue for FY 2025, an 11% decline year-over-year, with a net income of approximately $96 million, indicating significant pressure in the competitive casual dining market, particularly sensitive to beef price volatility.
- Growth Potential Analysis: Texas Roadhouse generated about $5.9 billion in revenue for FY 2025, a 9.4% increase, with a net income of $405.6 million, demonstrating its efficient operational model and strong profitability, giving it a competitive edge in the industry.
- Risk Assessment: Bloomin' Brands faces intense competition from Darden Restaurants and Brinker International, with a debt-to-equity ratio of 9.2 indicating heavy reliance on debt, which may impact future financial flexibility.
- Investment Opportunity Discussion: Despite Bloomin' Brands' forward P/E of 8.6, significantly lower than the industry average of 29.5, suggesting skepticism about its future, the rising brand trust and management's debt repayment strategy may present a buy-low opportunity for investors.
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Analyst Views on BLMN
Wall Street analysts forecast BLMN stock price to fall
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 8.060
Low
6.00
Averages
8.00
High
11.00
Current: 8.060
Low
6.00
Averages
8.00
High
11.00
About BLMN
Bloomin Brands, Inc. is a casual dining restaurant company. Its restaurant portfolio includes Outback Steakhouse, Carrabbas Italian Grill, BonefishGrill, and Flemings Prime Steakhouse & Wine Bar. The Company’s segment includes U.S. and International Franchise. Outback Steakhouse is a casual steakhouse restaurant concept focused on steaks, bold flavors and Australian decor. Carrabbas Italian Grill offers authentic Italian cuisine passed down from its founder's family recipes. Bonefish Grill specializes in fish from around the world, hand-cut in-house every day, savory wood-grilled specialties, and locally created seasonal partner selection dishes. Flemings Prime Steakhouse & Wine Bar is a contemporary interpretation of the classic American steakhouse, with culinary mastery, signature style and attentive service to create dining experiences for guests. The Company owns and operates 967 restaurants and franchised 493 restaurants across 46 states, Guam and 12 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Choices in Dining: Bloomin' Brands vs. Texas Roadhouse
- Financial Health Comparison: Bloomin' Brands reported nearly $4 billion in revenue for FY 2025, an 11% decline year-over-year, with a net income of approximately $96 million, indicating significant pressure in the competitive casual dining market, particularly sensitive to beef price volatility.
- Growth Potential Analysis: Texas Roadhouse generated about $5.9 billion in revenue for FY 2025, a 9.4% increase, with a net income of $405.6 million, demonstrating its efficient operational model and strong profitability, giving it a competitive edge in the industry.
- Risk Assessment: Bloomin' Brands faces intense competition from Darden Restaurants and Brinker International, with a debt-to-equity ratio of 9.2 indicating heavy reliance on debt, which may impact future financial flexibility.
- Investment Opportunity Discussion: Despite Bloomin' Brands' forward P/E of 8.6, significantly lower than the industry average of 29.5, suggesting skepticism about its future, the rising brand trust and management's debt repayment strategy may present a buy-low opportunity for investors.
See More
Q1 Earnings Highlights for Sit-Down Dining Stocks
- Bloomin' Brands Performance: Bloomin' Brands reported revenues of $1.06 billion, flat year-on-year, exceeding analysts' expectations by 1.6%; despite the slowest revenue growth in the group, the stock has risen 38.2% since the earnings report, indicating market confidence in its future prospects.
- Kura Sushi's Strong Results: Kura Sushi achieved revenues of $80.02 million, up 23.3% year-on-year, outperforming analysts' expectations by 2.5%; although its stock has fallen 23.5% since reporting, it recorded the fastest revenue growth and highest full-year guidance increase among peers.
- Brinker International's Mixed Quarter: Brinker International reported revenues of $1.47 billion, up 3.2% year-on-year, in line with analysts' expectations; despite a slight EBITDA beat, it delivered the weakest performance in the group, with a 1.2% stock increase reflecting cautious market sentiment.
- First Watch's Robust Growth: First Watch reported revenues of $331 million, up 17.3% year-on-year, meeting analysts' expectations, and exceeded EBITDA and same-store sales estimates; despite a 9.7% stock decline, its stable performance highlights its competitive position in the market.
See More
Restaurant Chains Face Sales Slowdown Due to Rising Gas Prices
- Gas Price Impact: The U.S. conflict with Iran has driven gas prices above $4.50 per gallon, resulting in a record low for consumer sentiment, with 43% of surveyed drivers cutting back on dining out and takeout, directly affecting restaurant sales performance.
- Industry Traffic Decline: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, indicating that consumers are opting for lower-cost dining options in a high gas price environment, posing ongoing risks for many restaurant chains.
- Applebee's Strategy: To attract budget-conscious consumers, Applebee's is accelerating its rollout of an All-You-Can-Eat special priced at $15.99, aiming to boost traffic and enhance its competitive position in the market amidst rising costs.
- Market Share Shifts: Despite the overall decline in restaurant spending, brands like Chili's and Burger King have seen market share gains, with Chili's CEO noting that strong brands will become stronger, reflecting the dynamic changes in the market under economic pressure.
See More
Restaurant Sales Slow as Gas Prices Rise
- Sales Slowdown: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, primarily due to rising gas prices, which have led consumers, especially low-income groups, to cut back on dining out.
- Applebee's Strategy: To attract budget-conscious diners, Applebee's is accelerating its rollout of an All-You-Can-Eat special for $15.99, aiming to boost traffic and enhance its competitive position in the market amid rising costs.
- Market Share Competition: Some restaurant CEOs see the rise in gas prices as an opportunity to capture market share from weaker competitors, with Chili's CEO noting an acceleration in their market share as overall restaurant spending declines.
- Diverse Fast-Food Performance: Despite the overall sales slowdown, McDonald's reported a 3.7% same-store sales growth in Q1, driven by increased spending from higher-income consumers, while Burger King achieved a 5.8% growth, highlighting significant performance disparities among brands.
See More
Insider at Bloomin' Brands (BLMN.US) Plans to Sell $30.86 Million in Common Stock via Form 144
Stock Offering Announcement: Insider Starboard Value LP plans to sell 3.8 million shares of its common stock on May 8.
Market Value: The total market value of the shares being sold is approximately $30.86 million.
See More
Bloomin' Brands Q1 2026 Earnings Call Insights
- Revenue Growth: Bloomin' Brands reported Q1 total revenues of $1.06 billion, reflecting a 1% year-over-year increase despite facing 4.6% commodity inflation and 3.1% labor inflation, showcasing the company's resilience in adversity.
- Brand Performance: Outback's comparable sales fell by 30 basis points with traffic down 240 basis points, while Carrabba’s and Bonefish saw increases of 130 and 610 basis points respectively, indicating significant performance disparities among brands that necessitate a stronger overall strategy.
- Service Model Innovation: The company launched a new service model in April, planning for each server to manage four tables during peak times, aimed at enhancing customer experience and improving service efficiency, which is expected to positively impact future performance.
- Future Outlook: Management expects Q2 U.S. comparable restaurant sales to grow between 1% and 2%, with adjusted earnings per share projected between $0.27 and $0.32, reflecting a cautiously optimistic view on future growth.
See More
Investment Choices in Dining: Bloomin' Brands vs. Texas Roadhouse
- Financial Health Comparison: Bloomin' Brands reported nearly $4 billion in revenue for FY 2025, an 11% decline year-over-year, with a net income of approximately $96 million, indicating significant pressure in the competitive casual dining market, particularly sensitive to beef price volatility.
- Growth Potential Analysis: Texas Roadhouse generated about $5.9 billion in revenue for FY 2025, a 9.4% increase, with a net income of $405.6 million, demonstrating its efficient operational model and strong profitability, giving it a competitive edge in the industry.
- Risk Assessment: Bloomin' Brands faces intense competition from Darden Restaurants and Brinker International, with a debt-to-equity ratio of 9.2 indicating heavy reliance on debt, which may impact future financial flexibility.
- Investment Opportunity Discussion: Despite Bloomin' Brands' forward P/E of 8.6, significantly lower than the industry average of 29.5, suggesting skepticism about its future, the rising brand trust and management's debt repayment strategy may present a buy-low opportunity for investors.
See More
Q1 Earnings Highlights for Sit-Down Dining Stocks
- Bloomin' Brands Performance: Bloomin' Brands reported revenues of $1.06 billion, flat year-on-year, exceeding analysts' expectations by 1.6%; despite the slowest revenue growth in the group, the stock has risen 38.2% since the earnings report, indicating market confidence in its future prospects.
- Kura Sushi's Strong Results: Kura Sushi achieved revenues of $80.02 million, up 23.3% year-on-year, outperforming analysts' expectations by 2.5%; although its stock has fallen 23.5% since reporting, it recorded the fastest revenue growth and highest full-year guidance increase among peers.
- Brinker International's Mixed Quarter: Brinker International reported revenues of $1.47 billion, up 3.2% year-on-year, in line with analysts' expectations; despite a slight EBITDA beat, it delivered the weakest performance in the group, with a 1.2% stock increase reflecting cautious market sentiment.
- First Watch's Robust Growth: First Watch reported revenues of $331 million, up 17.3% year-on-year, meeting analysts' expectations, and exceeded EBITDA and same-store sales estimates; despite a 9.7% stock decline, its stable performance highlights its competitive position in the market.
See More
Restaurant Chains Face Sales Slowdown Due to Rising Gas Prices
- Gas Price Impact: The U.S. conflict with Iran has driven gas prices above $4.50 per gallon, resulting in a record low for consumer sentiment, with 43% of surveyed drivers cutting back on dining out and takeout, directly affecting restaurant sales performance.
- Industry Traffic Decline: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, indicating that consumers are opting for lower-cost dining options in a high gas price environment, posing ongoing risks for many restaurant chains.
- Applebee's Strategy: To attract budget-conscious consumers, Applebee's is accelerating its rollout of an All-You-Can-Eat special priced at $15.99, aiming to boost traffic and enhance its competitive position in the market amidst rising costs.
- Market Share Shifts: Despite the overall decline in restaurant spending, brands like Chili's and Burger King have seen market share gains, with Chili's CEO noting that strong brands will become stronger, reflecting the dynamic changes in the market under economic pressure.
See More
Restaurant Sales Slow as Gas Prices Rise
- Sales Slowdown: According to Black Box Intelligence, restaurant traffic fell 2.3% in March compared to the previous year, primarily due to rising gas prices, which have led consumers, especially low-income groups, to cut back on dining out.
- Applebee's Strategy: To attract budget-conscious diners, Applebee's is accelerating its rollout of an All-You-Can-Eat special for $15.99, aiming to boost traffic and enhance its competitive position in the market amid rising costs.
- Market Share Competition: Some restaurant CEOs see the rise in gas prices as an opportunity to capture market share from weaker competitors, with Chili's CEO noting an acceleration in their market share as overall restaurant spending declines.
- Diverse Fast-Food Performance: Despite the overall sales slowdown, McDonald's reported a 3.7% same-store sales growth in Q1, driven by increased spending from higher-income consumers, while Burger King achieved a 5.8% growth, highlighting significant performance disparities among brands.
See More
Insider at Bloomin' Brands (BLMN.US) Plans to Sell $30.86 Million in Common Stock via Form 144
Stock Offering Announcement: Insider Starboard Value LP plans to sell 3.8 million shares of its common stock on May 8.
Market Value: The total market value of the shares being sold is approximately $30.86 million.
See More
Bloomin' Brands Q1 2026 Earnings Call Insights
- Revenue Growth: Bloomin' Brands reported Q1 total revenues of $1.06 billion, reflecting a 1% year-over-year increase despite facing 4.6% commodity inflation and 3.1% labor inflation, showcasing the company's resilience in adversity.
- Brand Performance: Outback's comparable sales fell by 30 basis points with traffic down 240 basis points, while Carrabba’s and Bonefish saw increases of 130 and 610 basis points respectively, indicating significant performance disparities among brands that necessitate a stronger overall strategy.
- Service Model Innovation: The company launched a new service model in April, planning for each server to manage four tables during peak times, aimed at enhancing customer experience and improving service efficiency, which is expected to positively impact future performance.
- Future Outlook: Management expects Q2 U.S. comparable restaurant sales to grow between 1% and 2%, with adjusted earnings per share projected between $0.27 and $0.32, reflecting a cautiously optimistic view on future growth.
See More
