As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the sit-down dining industry, including Bloomin' Brands (NASDAQ:BLMN) and its peers.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 14 sit-down dining stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 0.9%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the sit-down dining stocks have fared somewhat better than others, they collectively declined, with share prices falling 4% on average since the previous earnings results.
Bloomin' Brands (NASDAQ:BLMN) Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin' Brands reported revenues of $1.20 billion, down 4% year on year, inline with analysts' expectations. It was a slower quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 24% since the results and currently trades at $18.99.
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Best Q1: BJ's (NASDAQ:BJRI) Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
BJ's reported revenues of $337.3 million, down 1.2% year on year, in line with analysts' expectations. It was an exceptional quarter for the company, with an impressive beat of analysts' same store sales, gross margin, and EPS expectations.
The stock is up 6.7% since the results and currently trades at $34.94.
Weakest Q1: Dine Brands (NYSE:DIN) Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Dine Brands reported revenues of $206.2 million, down 3.5% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' earnings and gross margin estimates.
The stock is down 14.9% since the results and currently trades at $37.14.
First Watch (NASDAQ:FWRG) Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.
First Watch reported revenues of $242.4 million, up 14.7% year on year, falling short of analysts' expectations by 1.1%. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.
The stock is down 29.2% since the results and currently trades at $17.8.
Brinker International (NYSE:NYSE:EAT) Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.12 billion, up 3.4% year on year, falling short of analysts' expectations by 0.1%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and optimistic earnings guidance for the full year.
The stock is up 36.7% since the results and currently trades at $67.87.
