Bloomin' Brands, Inc.

What they do

The company operates and franchises casual dining restaurants under four core brands. It generates revenue from company-owned restaurant sales and franchise royalties. Its largest brand is Outback Steakhouse, and it also has international operations, including a minority investment and franchising in Brazil.

Revenue drivers

• Outback Steakhouse — Largest brand; U.S. comparable sales grew 1.4% in Q2 2026.
• Carrabba's Italian Grill — Italian casual dining concept; U.S. comparable sales grew 1.7% in Q2 2026.
• Bonefish Grill — Seafood-focused concept; U.S. comparable sales grew 8.1% in Q2 2026, the strongest of the four brands.
• Fleming's Prime Steakhouse & Wine Bar — Upscale steakhouse; U.S. comparable sales grew 1.6% in Q2 2026.

Recent performance

In Q2 2026 (ended June 28, 2026), total revenues were $1,015.8 million, up 1.3% from $1,002.4 million in Q2 2025, driven by higher comparable sales. GAAP diluted EPS was $0.37, up from $0.29; adjusted diluted EPS was $0.39, up from $0.32. GAAP operating margin improved to 3.8% from 3.0%, and restaurant-level operating margin rose to 12.4% from 12.0%. Full-year 2025 revenue was $3.96 billion and net income was $8.2 million.

Strategy

Management is executing an 'Outback Turnaround' focused on improving food, service, experience, and affordability. They are investing in equipment upgrades and productivity initiatives, and prioritizing consistency across the brands. The company continues to manage its portfolio through restaurant closures and openings, and maintains a presence in Brazil as a minority investor and franchisor after a sale transaction.

Risks

• Turnaround execution risk — The company's ability to achieve expected benefits from its turnaround plans and cost-saving initiatives is uncertain.
• Food safety and supply chain — Any food-borne illness or contamination, even elsewhere in the industry, could hurt traffic and sales, and supply chain disruptions could raise costs.
• Competitive pressure — The restaurant industry is highly competitive, and consumer options continue to expand, which could affect pricing and traffic.
• Economic and tariff exposure — Tariff developments and inflation could affect consumer confidence, discretionary spending, and commodity costs, pressuring margins.

Outlook

Management raised full-year 2026 diluted and adjusted diluted EPS guidance following Q2 results. They cite continued progress on the Outback Turnaround. The 10-K and 10-Q caution about forward-looking risks, including economic conditions and transformational initiatives.