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. 

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. 

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.

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.