Let’s dig into the relative performance of Bloomin' Brands (NASDAQ:BLMN) and its peers as we unravel the now-completed Q1 sit-down dining earnings season.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 11 sit-down dining stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 2.3% below.

Luckily, sit-down dining stocks have performed well with share prices up 19.1% on average since the latest earnings results.

Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.05 billion, down 12.2% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EBITDA estimates.Bloomin' Brands Total Revenue

Bloomin' Brands delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 14.6% since reporting and currently trades at $9.08.

Read our full report on Bloomin' Brands here, it’s free.

Best Q1: Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.43 billion, up 27.2% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ same-store sales estimates.Brinker International Total Revenue

Brinker International scored the highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $148.64.

Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.

Story Continues

Weakest Q1: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $282.2 million, up 16.4% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

As expected, the stock is down 8.3% since the results and currently trades at $17.05.

Read our full analysis of First Watch’s results here.

Kura Sushi (NASDAQ:KRUS)

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Kura Sushi reported revenues of $64.89 million, up 13.3% year on year. This number met analysts’ expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts’ EBITDA estimates and a miss of analysts’ same-store sales estimates.

Kura Sushi had the weakest full-year guidance update among its peers. The stock is up 70.3% since reporting and currently trades at $70.44.

Read our full, actionable report on Kura Sushi here, it’s free.

BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $348 million, up 3.2% year on year. This result was in line with analysts’ expectations. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 33.9% since reporting and currently trades at $44.82.

Read our full, actionable report on BJ's here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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