** Brokerage BofA downgrades casual dining restaurant chain Bloomin' Brands BLMN.O to "underperform" from "neutral", cuts PT to $13 from $18
** Notes co's steady decline in volumes and transaction counts, says while casual dining industry is notoriously slow in growth, BLMN's struggles have allowed competitors to expand in market share
** Says Chili's Grill & Bar operator Brinker International's EAT.N turnaround efforts act as a roadmap, with more spending on labor to improve service and marketing to draw customers needed
** Says that BLMN's in line to higher pricing vs competition and lack of scale advantages offers no room for reinvestment without hurting margins
** However, sees co's ability to maintain stable margins despite steadily reduced transactions to help with the reinvestment
** One out of 13 brokerages rate the stock "strong buy", 10 "hold" and two "sell", with a median PT of $15
** BLMN fell ~56% in 2024
(Reporting by Neil J Kanatt in Bengaluru)
((Neil.JKanatt@thomsonreuters.com))
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