Bloomin’ Brands’ year-to-date return as of 3Q14

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BLMN’s year-to-date return

As of November 2014, Bloomin’ Brands’ (BLMN) year-to-date (or YTD) return was -7.6%—compared to returns of 10.9% on the S&P 500 Index (SPX) and 7.4% for the Casual Restaurant segment, as we see in the following chart.

 BLMN YTD 2014-11-27

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BLMN’s competition

BLMN operates casual dining restaurants. To learn more read “Key restaurant industry formats: The casual dining business.” It competes with companies like Brinker International (EAT) and Texas Roadhouse (TXRH). EAT had a YTD return of 19.2%. TXRH had a YTD return of -14.8%.

The price-to-earnings ratio (or PE) is the price per share divided by the next 12 month (or NTM) forecasted earnings per share (or EPS). The average NTM PE was 21x—compared to BLMN’s 18.1x PE. This indicated that the company only traded 18.1x its earnings.

Based on the PE metric alone, this shows that the company is undervalued compared to its peers. It’s important to note that the last 12 month (or LTM) PE was 16x. This is lower than its NTM PE. This indicates that the NTM earnings are estimated downwards. BLMN doesn’t give dividends.

In contrast, if you invest in a broader portfolio—like the Vanguard Total Stock Market (VTI)—you would get a YTD return on investment of 9.9%.

Further reading

At Market Realist, we understand how companies performed compared to their previous results and their peers. We publish earnings overviews every quarter.

To read more about the restaurant industry, read our series “Why most key restaurant industry indicators are on the upswing,” “Must-know: A company overview of McDonald’s,” and “A business overview of Yum! Brands Inc.

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