Bloomin’ Brands posted a fourth-quarter loss driven by impairment charges and higher operating costs, even as Outback Steakhouse reported its first quarter of positive traffic since late 2021.
The Tampa-based parent of Outback, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar recorded a net loss from continuing operations of $12.2 million, or $0.14 per diluted share, for the quarter ended Dec. 28. In the same quarter a year earlier, the company earned $10.7 million, or $0.12 per share.
Adjusted diluted earnings per share rose to $0.26 from $0.22.
Revenue increased 0.3% to $975.2 million. Restaurant sales edged higher, offset in part by lower franchise revenue.
For the full fiscal year, Bloomin’ reported diluted earnings from continuing operations of $0.10 per share, compared with a loss of $0.61 per share in fiscal 2024. Adjusted diluted earnings per share declined to $1.14 from $1.45.
The fourth quarter included a $28.2 million goodwill impairment tied to the Bonefish Grill reporting unit, along with asset impairment and closure costs related to underperforming restaurants. Those charges weighed on reported results.
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GAAP operating margin fell to negative 1.4% from positive 1.7% in the prior-year quarter. Adjusted operating margin slipped to 3.4% from 3.5%.
Restaurant-level operating margin declined to 11.5% from 12.4%. Higher commodity and labor costs compressed profitability, along with product mix. Pricing increases lifted average check at several brands and offset part of the pressure, but not enough to fully protect margins.
Bloomin’ expects commodity inflation of 4.5% to 5.5% in 2026 and labor inflation of 3% to 3.5%.
Comparable sales were mixed.
Outback reported a 0.6% decline in U.S. comparable sales. Traffic increased 0.9% year over year, marking the brand’s first quarter of positive traffic since the fourth quarter of 2021.
Carrabba’s posted 1.6% comparable sales growth. Bonefish declined 0.1%. Fleming’s increased 0.1%. Combined U.S. traffic rose 0.5%.
“Our fourth quarter results reflect our continued focus on disciplined execution and food quality to deliver a consistently great guest experience,” CEO Mike Spanos said in the earnings release. He said Outback’s traffic gain followed investments in steak quality and operational execution.
Bloomin’ launched a broader turnaround strategy in November that includes targeted investments at Outback. Management said it plans additional strategic investments this year aimed at long-term growth.
The company closed 29 U.S. restaurants during the quarter and opened five company-owned locations. It ended the year with 1,460 restaurants systemwide, including 1,095 in the United States.
Bloomin’ also reduced total debt to $787.4 million at year-end from $1.03 billion a year earlier. Cash and cash equivalents totaled $59.5 million.
2026 Outlook
Bloomin’ projects U.S. comparable restaurant sales growth of 0.5% to 2.5% in 2026. It expects diluted earnings per share of $0.70 to $0.85 and adjusted diluted earnings per share of $0.75 to $0.90.
For the first quarter of 2026, the company expects U.S. comparable sales to be flat to up 1% and diluted earnings per share of $0.54 to $0.59.
Bloomin’ plans capital expenditures of $185 million to $195 million in 2026. It expects to open six to eight new company-owned restaurants and 17 to 20 franchised locations.
The quarter showed early signs of traffic stabilization at Outback, the company’s largest brand, while profitability weakened under cost pressure and impairment charges.
The 2026 outlook reflects modest sales growth and continued margin sensitivity as the company invests in its turnaround.
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