What happened
Shares of Bloomin' Brands (BLMN 2.47%) jumped on Thursday after the restaurant company reported its fourth-quarter results. Bloomin' Brands beat analyst estimates across the board, reporting comparable sales growth and a significant earnings increase. The stock was up about 9.4% at 12:30 p.m. EST.
So what
Bloomin' Brands reported fourth-quarter revenue of $1.01 billion, down 5.9% year over year but $10 million higher than the average analyst estimate. The revenue decline was due to the fourth quarter of 2017 having an extra week. On a comparable basis, revenue rose by 1.7%.
Image source: Bloomin' Brands.
Comparable sales in the U.S. jumped 1.6% in the quarter, driven by a 2.9% increase at Outback Steakhouse and a 0.8% increase at Carrabba's Italian Grill. Both Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar reported small comparable sales declines, while Outback Steakhouse in Brazil managed a 2.4% comparable sales increase.
Non-GAAP earnings per share came in at $0.30, up from $0.18 in the prior-year period and $0.04 better than analysts were expecting. Adjusted operating margin was 4.3%, up 0.4 percentage points year over year.
Check out the latest Bloomin' Brandsearnings call transcript.
Now what
Bloomin' Brands expects to grow U.S. comparable sales by 2% to 2.5% in fiscal 2019. About 20 new restaurants are expected to be added to the system, and commodity inflation is seen at approximately 2%. Non-GAAP EPS is expected between $1.53 and $1.61, up from $1.50 in 2018.
While not all of Bloomin' Brands restaurant brands enjoyed growth during the fourth quarter, solid overall results and guidance calling for revenue and earnings growth in 2019 were enough to push the stock higher.
