Bloomin’ Brands reported revenue rose 1.9% year-over-tear in Q3 to $1.08B to match the expectation of analysts. The increase in total revenues was primarily due to the benefit of Brazil value added tax exemptions, the effect of foreign currency translation, and the net impact of restaurant openings and closures.
Comparable sales fell 0.5% in the U.S. vs. +0.8% consensus, with the Outback Steakhouse, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar chains all down from a year ago. International comparable sales were up 4.1% year-over-year during the quarter.
Restaurant-level operating margin improved to 14.0% of sales from 13.1% a year ago. The boost was attributed to an increase in average check per person, the impact of certain cost saving and productivity initiatives, and the benefit of Brazil value added tax exemptions. Those positive factors were partially offset by labor, operating expense and commodity inflation, as well as higher advertising expense.
Looking ahead, the restaurant operator sees full-year EPS of $2.80 to $2.90 vs. $2.91 to $3.00 prior view and Q4 EPS of $0.64 to $0.74 vs. $0.77 consensus. U.S. comparable restaurant sales are seen coming in flat to +1% in Q4. “We remain focused on driving traffic and maintaining margins as we navigate the near-term sales environment,” updated CEP David Deno.
Shares of Bloomin Brands’ (BLMN) fell 6.70% premarket to $21.99.
Source: Seekingalpha
