Bloomin' Brands

Abstract

The 2007-09 Great Recession took a huge bite out of the U.S. restaurant industry as consumers ate out less often. Even during the subsequent economic recovery, ongoing financial concerns continued to depress the appetite for eating out. The casual dining sector, situated in the middle ground between fast food and fine dining, was particularly hard hit. By the summer of 2016, however, some investors were taking a fresh look at casual dining stocks. Their investment thesis was rooted in the belief that having experienced over a half dozen years of unremarkable, yet consistent economic growth, consumers would feel more inclined to eat out and be willing to splurge a little on those dining experiences. Students are asked to use valuation multiples to develop an investment recommendation for Bloomin’ Brands, a casual dining restaurant holding company, most famous for its Australian-themed Outback Steakhouse chain.

Learning Objective

To provide a comprehensive introduction to multiples valuation.

Appropriate for the Following Course(s)

financial statement analysis, valuation

Bloomin' Brands

teaching note and supplemental materials*

*TEACHING NOTES AND SUPPLEMENTAL MATERIALS ARE ONLY AVAILABLE TO EDUCATORS WHO HOLD TEACHING POSITIONS AT ACADEMIC INSTITUTIONS.