Trevor Neal Posted May 9, 2020 Share Posted May 9, 2020 Why did the Bloomin' Brands stock jump higher especially bearing in mind that its restaurants were closed amid the COVID-19 pandemic? Quote Link to comment Share on other sites More sharing options...
0 Criss Edward Posted May 9, 2020 Share Posted May 9, 2020 (edited) Hi Trevor, thanks for the question. Yes indeed, shares of Bloomin’ Brands surged higher yesterday after the company posted the latest quarterly results. As you are probably aware, the company owns restaurant chains, such as Outback Steakhouse and Carrabba’s Italian Grill. Despite the fact that its restaurants had been closed across the country, Bloomin’ Brands said its sales tripled on a huge increase in the carryout and delivery segment of its business. As a result, the surge in these segments offset losses from the fact that restaurants were closed. Therefore, the stock price surged as investors were expecting a darker outcome for the company. This move helped the stock to erase earlier losses from the week and finish 6% in green. Edited May 9, 2020 by Criss Edward Quote Link to comment Share on other sites More sharing options...
0 Nick R Posted June 24, 2020 Share Posted June 24, 2020 Hello Trevor, On May 8, shares of Blooming Brands rose 3% to $11.20. Still, the stock of the restaurant holding company is down 49% in 2020 as the restaurant industry took a blow due to the coronavirus pandemic. The company is doubling down on delivery services following a sharp increase in sales during the lockdown, according to the CEO of Blooming Brands, David Deno. The delivery services business tripled as people had to stay at home during the lockdown. “From the time it started until today we’ve tripled our off-premise business, so that means carryout and delivery,” Deno said, following the company’s Q1 earnings report announcement. “That’ll really help us as we go forward in our business.” According to the earnings report, the company’s same-store sales and net revenue plunged over 10% in the first quarter, compared to the same period from a year ago. Revenue of $1.01 billion failed to meet analysts’ estimates as well. Bloomin reported earnings per share of 14 cents, below the consensus estimates of 35 cents a share. The off-premise operations helped the company recover the losses incurred from normal operations, the CEO said. Around 60% of off-premise earnings came from takeout and delivery services, from both its own delivery network or third-party services. Recent investments in the company’s delivery network have made a significant impact and will continue to pay off, said Deno. “We’ve kept our off-premise sales, which is so important because that’s a strong sales base for us as we move forward,” he added. “We’re basically more than ... beating our variable costs as we open back up our restaurants even at 25% [seating capacity] because of our strong off-premise business.” Quote Link to comment Share on other sites More sharing options...
0 Harry Clark Posted July 21, 2020 Share Posted July 21, 2020 Hi Trevor, thanks for joining us here. While coronavirus pandemic hit Bloomin’ Brands’ operations hards in the short term, the amount of its available puts BB in a good position to overcome the crisis. To improve its cash balance, the company issued $202 million in convertible notes on May 6. As of June 11, 2020, Bloomin Brands holds $493 million in liquidity, $128 million of which is cash and $365 million of capacity on the company’s credit line. In the earnings call for first quarter 2020, Bloomin Brands said that its daily cash burn was approximate ~$6 to $8 million per week. During the call, Bloomin Brands said its revenues are down 20% to 25% compared to last year, which means that the company could be already nearing neutral cash flow levels. Quote Link to comment Share on other sites More sharing options...
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Trevor Neal
Why did the Bloomin' Brands stock jump higher especially bearing in mind that its restaurants were closed amid the COVID-19 pandemic?
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