Is Bloomin’ Brands (BLMN) a Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Mid Cap Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Mid Cap Strategy underperformed its Russell Midcap Index during the first quarter. On an absolute basis, the Strategy had losses across eight of the 11 sectors in which it was invested during the quarter. The leading detractors were the industrials and consumer discretionary sectors, while the leading contributor was the energy sector. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Clearbridge Investments Mid Cap Strategy mentioned Bloomin’ Brands, Inc. (NASDAQ:BLMN) and explained its insights for the company. Founded in 1987, Bloomin’ Brands, Inc. (NASDAQ:BLMN)  is a Tampa, Florida-based restaurant holding company with a $1.9 billion market capitalization. Bloomin’ Brands, Inc. (NASDAQ:BLMN)  delivered a 2.19% return since the beginning of the year, while its 12-month returns are down by -23.35%. The stock closed at $21.44 per share on April 14, 2022.

Here is what Clearbridge Investments Mid Cap Strategy has to say about Bloomin’ Brands, Inc. (NASDAQ:BLMN) in its Q1 2022 investor letter:

“We initiated a new position in Bloomin’ Brands (NASDAQ:BLMN), in the consumer discretionary sector. The owner and operator of upscale casual dining brands, including Outback Steakhouse and Bonefish Grill, the company utilized the challenges of the COVID-19 pandemic to implement new productivity operations for its waitstaff and focus on improving corporate margins. As we transition from pandemic to endemic, the company should be able to meet the rebound in restaurant attendance with an improved cost structure and better operating leverage. We believe these long-term improvements and increased demand for dining are not reflected in the current share price.

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Our calculations show that Bloomin’ Brands, Inc. (NASDAQ:BLMN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Bloomin’ Brands, Inc. (NASDAQ:BLMN) was in 40 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 37 funds in the previous quarter. Bloomin’ Brands, Inc. (NASDAQ:BLMN) delivered a -1.24% return in the past 3 months.

In April 2022, we published an article that includes Bloomin’ Brands, Inc. (NASDAQ:BLMN) in 10 Best Undervalued Small-Cap Stocks According to Hedge Funds. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page. 

Disclosure: None. This article is originally published at Insider Monkey.