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Bloomin' Brands Bears The Brunt Of Softer Spending Environment, Analyst Cautions On Traffic/Margin Tensions

Benzinga ·  11/09/2023 04:18

BMO Capital Markets analyst Andrew Strelzik reiterated the Market Perform rating on Bloomin' Brands, Inc. (NASDAQ:BLMN), lowering the price target to $24 from $25. The company reported third-quarter FY23 sales growth of 2.3% year-on-year to $1.079 billion, missing the analyst consensus estimate of $1.085 billion. According to the analyst, valuation looks undemanding and margin management has been reliable. That said, the analyst highlights comp risk from the macro environment and remains concerned about positioning into a potentially softer spending environment, particularly with Outback traffic lagging. In addition, traffic/margin tensions could be rising with increasing ad spend and larger-scale reinvestment cannot

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