Shares of Bloomin’ Brands Inc.  climbed in early Monday trading despite the company reporting a decline in first-quarter sales on Friday.

CEO Mike Spanos is identifying various investments that are "necessary for the longer-term vitality" of the company's different businesses, according to JPMorgan. 

The Bloomin’ Brands Analyst: Analyst John Ivankoe maintained a Neutral rating and price target of $9.

The Bloomin’ Brands Thesis: While the estimates for fiscal 2026 and 2027 reflect significant reinvestment, not all of this may be needed to "recapture lost share from peers," Ivankoe said in the note.

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"The ongoing multi-market 14-store test is trying to assess the level of investment needed to drive traffic such as menu work (creating new menu items at a lower cost), making things easier and creating a more appealing environment," the analyst wrote.

While Bloomin’ Brands aims to further simplify its menu, with the aim of doing "fewer things better," it recognizes Outback's variety of items drives incremental traffic, he added.

Management's second-quarter comp guidance of -2.5% to -1.5% reflects the "continuation of a choppy macro and cautious consumer," Ivankoe stated.

BLMN Price Action: At the time of publication on Monday, shares of Bloomin’ Brands had risen by 14.18% to $8.34.

Read More: Bloomin’ Brands Stock Drops on Weak Guidance and Demand Concerns