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Investin’ in Bloomin’ Brands: A Key Business Overview

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Mar. 19 2015, Published 10:41 a.m. ET

Business Overview

Bloomin’ Brands (BLMN) operates casual dining–concept restaurants under the brand names Outback Steakhouse, Bonefish Grill, Carrabba’s Italian Grill, and Fleming’s Prime Steakhouse & Wine Bar across the United States and 21 other countries.

We’ll discuss each brand in the next part of this series in more detail. Bloomin’ Brands operated over 1,490 restaurants in a combination of company-owned and franchised business models. About 1,300 of these restaurants are company-owned. Check out this overview to learn more about the restaurant business.

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Revenue contribution by concept

As you can see in the chart above, half of Bloomin’s revenue comes from Outback Steakhouse, making it one of the most important brands, considering that only 61% of its restaurants are open for weekday lunches and dinners, with the remaining 39% open only for dinner on weekdays. LongHorn Steakhouse, under the umbrella of Darden Restaurants (DRI), and Texas Roadhouse (TXRH) are Outback Steakhouse’s closest peers. The Consumer Discretionary SPDR ETF (XLY) invests 10% of its holdings in restaurant stocks, including Darden.

Carrabba’s contributed 17% towards Bloomin’ Brands’ $4.3 billion in revenue. Only 55% of Carrabba’s Italian Grill restaurants are open for both lunch and dinner on weekdays, and the remaining 45% are open only for dinner on weekdays. Bonefish contributed 14%, and Fleming’s contributed 6% of the company’s revenue. Maggiano’s Little Italy, under the umbrella of Brinker International (EAT), offers a similar menu as Carrabba’s.

Bloomin’s International division contributed 13% towards the company’s revenue in fiscal 2014. This division includes revenue from restaurants outside the US. We’ll discuss the international division in more detail in the next part of this series.

Series overview

In this business overview series, you’ll learn more about Bloomin’ Brands as a company, its financial performance, what drives its revenue, its competition, its latest earnings in review, and the company’s stock performance over the years.

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