Bloomin' Brands Inc. Common Stock (BLMN)

FairStock Score: 45/100 — MIXED

Key Financials

Strengths

• Generates $20 million in annual free cash flow (3.7% yield on market cap)
• Revenue growth of 63.2% demonstrates strong top-line momentum
• Attractive 9.1% dividend yield providing steady income returns
• Established organization with 64,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($3) with negative 117% margin of safety—limited downside protection
• High leverage at 6.00x debt-to-equity increases financial risk and interest expense burden
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of -0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Bloomin' Brands Inc. Common Stock is a micro-cap consumer cyclical company valued at $549 million. Revenue stands at $4.0 billion, though the company is currently unprofitable. From a quality standpoint, Bloomin' shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of -0.2 warrants caution. On valuation, the stock is commanding a steep 63.9x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 63.2% and profit growth of 83.0%. The 9.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Bloomin''s 63% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $20 million in annual free cash flow (3.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 64x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer