By Dhirendra Tripathi
Investing.com – Bloomin’ Brands stock surged 11% Friday after a spate of positive news at the company that included an estimate-beating fourth quarter and the restoration of the quarterly dividend.
The company also plans to buy back shares worth up to $125 million.
“Over the past year we executed against our strategy resulting in sustained gains in off-premises, higher digital engagement, and improved operational efficiencies in the restaurants. As we move into 2022, we are well positioned to deliver on our long-term goals of growing sales,” CEO David Deno said in a press release.
Total revenue in the fourth quarter rose 29%, to top $1 billion, as more restaurants reopened after the pandemic and in-restaurant dining recovered. Revenue exceeded 2019 levels.
Operating margin improved because of higher comparable restaurant sales from in-restaurant dining and strong retention of off-premises sales, and higher franchise revenue. This was partially offset by higher labor costs and inflation in commodities and rent.
During the quarter, the company decided against replicating the significant promotional activity from 2019 at Outback Steakhouse, the largest of its four chains that include Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar.
The casual dining restaurant chain is forecasting 2022 revenue to be $4.3 billion to $4.35 billion with adjusted profit per share at $2.40 at the midpoint of its guidance range. It sees commodity inflation to be 11% to 13% in the year with labor inflation in high single digits.
Current-quarter revenue is seen between $1.1 billion and $1.13 billion.