Bloomin’ Brands, the Tampa-based restaurant company behind Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar, reported mixed third-quarter results while rolling out a companywide turnaround strategy focused on long-term stability.
The company posted $928.8M in Q3 revenue, up 2.1% from a year earlier, driven by higher U.S. comparable sales and the net impact of restaurant openings and closures.
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All four brands delivered positive comparable store sales growth in the quarter, marking the first time since early 2023.
CEO Mike Spanos said the results reflect improving execution across the portfolio.
“We have great momentum in our business as demonstrated by our third quarter results,” Spanos said. “Consistency in food quality and the guest experience is the foundation of our turnaround.”
Profitability pressure remains
Despite higher revenue, profitability was pressured by rising costs and restaurant closures.
Bloomin’ Brands reported a GAAP operating loss margin of 3.9%, compared with a 0.9% operating margin in Q3 2024.
Adjusted operating income margin declined to 0.8%, down from 2.3% a year ago.
Restaurant-level operating margin fell to 9.2%, driven by higher labor, commodity and insurance costs, along with an unfavorable product mix. Pricing increases and cost-saving initiatives partially offset those pressures.
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The company reported a diluted loss per share of $0.54, compared with a loss of $0.01 in the prior-year quarter. On an adjusted basis, diluted loss per share was $0.03, down from adjusted earnings of $0.11 last year.
A significant portion of the quarter’s losses stemmed from $33.2M in impairment and closure charges, tied to underperforming locations.
Turnaround strategy centers on Outback Steakhouse
Bloomin’ Brands’ turnaround strategy places a clear emphasis on Outback Steakhouse, its largest and most recognizable brand.
The plan is built around four core priorities:
- Improving the dine-in experience through food quality and service consistency
- Strengthening brand relevance to attract new guests and increase visit frequency
- Reinvesting in people and culture to support frontline execution
- Refreshing restaurants to better reflect brand standards
To fund these initiatives, the company is reallocating capital away from shareholder payouts and toward operations and debt reduction.
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As part of that shift, the board suspended the dividend in October.
“We believe our strategic plan will drive long-term, sustainable and profitable growth,” Spanos said.
Restaurant closures and portfolio adjustments
During the quarter, Bloomin’ Brands closed 21 U.S. restaurants and chose not to renew leases on 22 additional locations, most of which will expire over the next four years.
The closures were completed in October. The company expects to record an additional $5M to $7M in severance and closure costs in Q4.
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Systemwide, Bloomin’ Brands operated 1,483 restaurants at the end of Q3, including 987 company-owned locations and 496 franchised restaurants across the U.S. and international markets.
Brand-by-brand performance
U.S. comparable sales for the quarter showed modest but broad-based gains:
- Outback Steakhouse: up 0.4%
- Carrabba’s Italian Grill: up 4.1%
- Bonefish Grill: up 0.8%
- Fleming’s Prime Steakhouse: up 1.2%
Combined U.S. comparable sales increased 1.2%.
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Traffic trends remain uneven, but higher average check sizes helped offset softer guest counts at several brands.
Future outlook
Bloomin’ Brands reaffirmed most of its full-year guidance and provided updated expectations:
- Full-year U.S. comparable sales: flat to up 0.5%
- Adjusted EPS: $1.10 to $1.15
- Labor inflation: approximately 3.5%
For the fourth quarter, the company expects U.S. comparable sales growth of 0.5% to 1.5%, with adjusted EPS of $0.23 to $0.28.
A Tampa company recalibrates
Headquartered in Tampa, Bloomin’ Brands remains one of the region’s most visible public companies, employing thousands across Florida and beyond.
While near-term financial pressure remains, leadership is betting that operational discipline and reinvestment will stabilize performance.
The company will discuss results and strategy further during its earnings call later today.
For Tampa’s business community, the message is clear: this is a reset year, not a retreat.
To read Bloomin’ Brands full earnings report, click here.