JPMorgan Upgrades Bloomin' Brands (BLMN) to Neutral

JPMorgan analyst John Ivankoe upgraded Bloomin' Brands (NASDAQ: BLMN) from Underweight to Neutral with a price target of $13.00 (from $6.00).

The analyst comments: “We were pleased to have a private in-Outback Steakhouse full menu lunch with CEO Mike Spanos, CFO Eric Christel, President of Outback Pat Hafner and many others in brand management. This was our first official experience with the new Outback, which reminds us a lot of the brand of 20-30+ years ago when lines were often out the door. Certainly, the competitive landscape has changed massively since then, with $4.1m AUV Outback now ranked #36 in US industry sales vs #13 for $9.2m AUV Texas Roadhouse and #33 for $5.6m AUV Longhorn Steakhouse.

We don't need to fully re-litigate the causes of Outback's long decline from its 20-30 year-ago peak - but in general, multi-concept distraction, overdependence on debt to bolster short-term equity returns, and cost-outs that may not have placed the customer and employee first in the decision-making process all contributed. In his 25-month tenure at the helm, CEO Mike Spanos has acted to make changes in the following positions over the last 12-18 months – CFO Eric Christel, President of Outback Pat Hafner, President of Carrabba’s Kelia Bazile, President of Bonefish John Bettin, President of Fleming’s Pat English, Guest Insights & Analytics Ali Charri, CIO Rafael Sanchez and Supply Chain Randy Scruggs.”

For an analyst ratings summary and ratings history on Bloomin' Brands click here. For more ratings news on Bloomin' Brands click here.

Shares of Bloomin' Brands closed at $7.91 yesterday.

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