Bloomin’ Brands stock price skyrockets after pickup orders tripled

Shares of Bloomin’ Brands (NASDAQ:BLMN) erupted more than 13% after the company announced pickup orders had tripled amid the COVID-19 pandemic.

Fundamental analysis: Carryout and delivery helping the company to survive

Bloomin’ Brands, the parent company of a few US-based casual dining restaurant chains, said that pickup orders tripled amid the COVID-19 outbreak. The parent company of Outback Steakhouse and Carrabba’s Italian Grill reported a lower-than-expected earnings of $0.14 per share, missing the analysts’ forecast of $0.35 per share. 

“From the time it started until today we’ve tripled our off-premise business, so that means carryout and delivery. That’ll really help us as we go forward in our business,” said CEO David Deno.

Moreover, the same-store sales dropped 10% compared to the same period a year ago, while revenue also missed expectations after coming in at $1.01 billion. 

“We’ve kept our off-premise sales, which is so important because that’s a strong sales base for us as we move forward. We’re basically more than … beating our variable costs as we open back up our restaurants even at 25% [seating capacity] because of our strong off-premise business,” said Deno. 

Still, the stock price rallied as the company was able to generate a strong revenue on carryout and delivery segments of business. Deno said that the pickup orders helped the company finish the quarter at a “breakeven”, offsetting losses caused by the restaurant closures. The surge in pickup orders put the company in a position to not fire or furlough any of its staff.

“We have not laid off one person or furloughed anybody in our company,” Deno said. “What that’s enabled us to do is, as the restaurants come back open, we have a trained staff opening the restaurants right away.”

Technical analysis: Stock price erupts higher

Bloomin’ Brands stock price surged 13.3% higher on Friday after the company reported a strong increase in pickup orders. The surge in price helped shares to erase losses from earlier in the week, and closed the week 6% higher. 

Shares of Bloomin’ Brands dropped nearly 80% in March after the company was forced to close its restaurants. The buyers have, in the meantime, managed to recover a portion of losses, trading again above the $10 mark. 

From here, the buyers will target the $15 mark, a major horizontal resistance, while the support is located around the $9 handle. 

Summary

Shares of Bloomin’ Brands skyrocketed on Friday after the company said pickup orders tripled amid the COVID-19 pandemic. The stock price closed the week 6% higher, and now looking to extend the rally to $15.