BMO Capital is Talking About These 3 Restaurant Stocks

2. Bloomin’ Brands, Inc. (NASDAQ:BLMN)

Number of Hedge Fund Holders: 35

Bloomin’ Brands, Inc. (NASDAQ:BLMN) owns several casual dining restaurant chains under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar brands.

On August 1, BMO Capital analyst Andrew Strelzik maintained an Outperform rating on Bloomin’ Brands, Inc. (NASDAQ:BLMN) and lowered the price target to $29 from $33. Strelzik noted that the company’s Q2 earnings exceeded expectations. He added that even though the trends recovered in July from the previous month’s slowdown, they remain negative. Furthermore, Bloomin’ Brands, Inc. (NASDAQ:BLMN) management said that they don’t see the consumers managing their checks when spending at their restaurants. In fact, some of their brands continued to trade up.

Here is what Clearbridge Investments had to say about Bloomin’ Brands, Inc. (NASDAQ:BLMN) in its Q1 2022 investor letter:

“We initiated a new position in Bloomin’ Brands (NASDAQ:BLMN), in the consumer discretionary sector. The owner and operator of upscale casual dining brands, including Outback Steakhouse and Bonefish Grill, the company utilized the challenges of the COVID-19 pandemic to implement new productivity operations for its waitstaff and focus on improving corporate margins. As we transition from pandemic to endemic, the company should be able to meet the rebound in restaurant attendance with an improved cost structure and better operating leverage. We believe these long-term improvements and increased demand for dining are not reflected in the current share price.”