Bloomin’ Brands’ 3Q14 revenue growth was better than its peers

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BLMN’s revenue growth

In the last few parts of this series, we discussed Bloomin’ Brands’ (BLMN) same-store sales and unit growth. They’re two important revenue drivers in the restaurant industry. In this part of the series, we’ll discuss how they’ve translated into revenues for BLMN.

The company earns revenues from restaurant sales. It also earns revenues from franchise development fees and royalties—categorized as other revenues. Restaurant sales include sales from its five brands—as you can see in the following chart.

Overall revenues grew 10% to $1.1 billion. Revenues grew 10.1% during the quarter—from $0.96 million in 3Q13.

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Segment-wise restaurant sales revenues

Outback Steakhouse accounts for 62% of BLMN’s sales. It had a revenue growth of 11.4% to $669 million—from $585 million in the same quarter in 2013. Carrabba’s contributes 16% of BLMN’s revenues. It didn’t have any revenue growth. Its revenues were $168 million year-over-year (or YoY). Bonefish Grill accounts for 14% of BLMN’s revenues. It grew by 11.45% to $146 million—from $131 million YoY. Fleming’s contributes 6% to BLMN’s revenues. It grew by 7.14% to $60 million—from $56 million YoY.

Other revenues include franchise fees and royalties. They contribute less than 1% to BLMN’s revenues. They had a significant revenue decline from $10.1 million in 3Q13 to $6.2 million YoY. This was due to the closure of franchised restaurants.

BLMN’s peers

Brinker International (EAT) had a revenue growth of 3.9% YoY. The Cheesecake Factory (CAKE) had a revenue growth of 6%. Darden Restaurants (DRI) had a 0.5% decline in revenue. All of these restaurant chains are included in the Vanguard Total Stock Market (VTI).

So, BLMN’s revenue growth was impressive compared to its peers. In the next part of this series, we’ll discuss BLMN’s costs of operations.

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