What Happened?
Shares of restaurant company Bloomin’ Brands (NASDAQ: BLMN) jumped 3.6% in the afternoon session after positive sentiment lifted the casual dining sector, highlighted by a significant analyst upgrade for competitor Brinker International (EAT).
The positive mood was sparked when UBS upgraded peer company Brinker International from a "Neutral" rating to a "Buy" and raised its price target. This action suggested growing confidence in the sit-down dining industry. Broader optimism was also present in the restaurant sector, as a survey of industry leaders showed that 82 percent expected growth to improve or remain stable in 2026 despite labor and economic pressures.
After the initial pop the shares cooled down to $6.70, up 3.3% from previous close.
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What Is The Market Telling Us
Bloomin' Brands’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 3.7% on the news that Freedom Capital Markets initiated coverage on the company with a Buy rating and a $10.00 price target. The price target suggested a potential 43% upside from the stock's price at the time of the report. The research firm believed Bloomin' Brands was in the early stages of a turnaround led by its Outback Steakhouse brand. This optimism was based on new leadership and several sales initiatives. These plans included improvements to steak quality, enhancements to the service model, and restaurant remodels, all aimed at driving growth.
Bloomin' Brands is up 4.9% since the beginning of the year, but at $6.70 per share, it is still trading 48.1% below its 52-week high of $12.89 from January 2025. Investors who bought $1,000 worth of Bloomin' Brands’s shares 5 years ago would now be looking at an investment worth $330.13.
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