Restaurant company Bloomin’ Brands (NASDAQ:BLMN) will be reporting results tomorrow before the bell. Here’s what investors should know.

Bloomin' Brands missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $1.04 billion, down 3.8% year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations.

Is Bloomin' Brands a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Bloomin' Brands’s revenue to decline 9.6% year on year to $1.08 billion, a reversal from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bloomin' Brands has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Bloomin' Brands’s peers in the sit-down dining segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 26.5%, beating analysts’ expectations by 9.6%, and BJ's reported revenues up 6.4%, topping estimates by 2.3%. Brinker International traded up 18% following the results while BJ's was also up 6.6%.

Read our full analysis of Brinker International’s results here and BJ’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the sit-down dining stocks have shown solid performance, the group has generally underperformed, with share prices down 3.7% on average over the last month. Bloomin' Brands is down 2.4% during the same time and is heading into earnings with an average analyst price target of $14.42 (compared to the current share price of $12.41).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.