Why Bloomin' Brands (BLMN) Is Down Today

NEW YORK (TheStreet) -- Bloomin' Brands (BLMN) was falling 1.6% to $24.30 Wednesday following the pricing of its 18 million share secondary offering.

The restaurant operator announced that it will price its 18 million share secondary offering at $24.50 a share. The offering is expected to close on March 10, 2014. Bloomin' Brandssaid the underwriters will have a 30-day option to purchase up to 2.7 million additional shares of common stock from certain selling stockholders.

The underwriting group for the offering is led by Bank of America-Merrill Lynch, Morgan Stanley, JP Morgan, Deutsche Bank, and Goldman Sachs.

Must read: Warren Buffett's 10 Favorite Dividend Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates BLOOMIN' BRANDS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLOOMIN' BRANDS INC (BLMN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Eating McDonald's Stock Might Make You Sick

Investors in Restaurant Stocks Still Need Strong Stomachs

Hurricane Irma Is Causing Destruction to Restaurant Stocks

Casual Dining Stocks Become Casualties

These Stocks Are Ready to Reverse Course