Analysis: Concerns about tariffs impacting consumer spending may affect restaurant stocks, but BLMN is seen as a solid investment.

From Yahoo Finance: 2025-04-15 15:05:00

Restaurant stocks are facing volatility due to Trump’s tariffs, leading to fears of a recession and impacting consumer spending. UBS analyst Dennis Geiger believes that while tariffs’ direct impact on restaurants is manageable, there’s a risk of increased pressure on consumer spending. This concern affects all restaurant sectors, with fast food chains historically resilient during recessions.

Mario Carbone, Major Food Group chef, notes the positive trends in the luxury dining sector, with New York booming post-Covid. However, he warns about potential inflation affecting the industry and consumers if trends persist. Luxury food sectors may pass on these effects to consumers to maintain quality ingredients.

Bloomin’ Brands, Inc. (NASDAQ: BLMN) is a Florida-based restaurant holding company owning popular brands like Outback Steakhouse and Carrabba’s Italian Grill. Analysts expect the company to benefit from streamlining its business after selling part of its Brazil operations. The company is focusing on improving traffic and sales growth, with analysts optimistic about its potential and median price target of $7.05.

BLMN ranks 4th on the list of top restaurant stocks under $20. While it shows promise, some AI stocks may offer higher returns. Investors seeking AI opportunities should explore a report on the cheapest AI stock with significant upside potential. Overall, BLMN is seen as a solid investment, but alternative sectors like AI may present more lucrative opportunities for investors.

Read more: Is Bloomin Brands, Inc. (BLMN) the Top Restaurant Stock to Buy Under $20?