Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casual and fine dining restaurant operator Bloomin' Brands
With that in mind, let's take a closer look at Bloomin' Brands and see what CAPS investors are saying about the stock right now.
Bloomin' Brands facts
|Headquarters (founded)||Tampa, Fla. (2006)|
|Market Cap||$1.6 billion|
|Trailing-12-Month Revenue||$3.9 billion|
|Management||Chairman/CEO Elizabeth Smith
CFO David Deno
|Trailing-12-Month Operating Margin||4.9%|
|Cash/Debt||$335.1 million / $1.8 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 79% of the 34 members who have rated Bloomin' Brands believe the stock will underperform the S&P 500 going forward.
Bloomin' Brands is an incongruous hodgepodge of good and bad. On the one hand, restaurants like Carrabbas, Bonefish Grill, and Outback are all reputable establishments and perhaps a few notches above the Red Lobster/Applebees/etc of the world. But there are a few compelling reasons why buying into this company concerns me. ... The P/E is 14.6x, which is unreasonably high based on the other metrics, such as 2.69% net profit margin, 0.9 current ratio, and a 21.4 debt to equity, which is unbelievably high. This looks like a bankruptcy in the making, especially compared to Darden, which pays a dividend, has twice the profit margin, the same PE, and a 1.2 debt to equity (but a 0.4 current ratio, which is also concerning).
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Darden Restaurants. The Motley Fool has a disclosure policy.
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