Bloomin’ Brands (NASDAQ:BLMN) reported first-quarter results on Wednesday that exceeded Wall Street expectations and issued stronger-than-expected guidance for the current quarter, sending shares more than 7% higher.
The restaurant operator posted adjusted earnings per share of $0.67, surpassing analyst forecasts of $0.57 by $0.10.
Revenue totaled $1.04 billion, broadly in line with consensus estimates and roughly 1% higher than the same period last year.
Second-quarter guidance comes in ahead of forecasts
Bloomin’ Brands projected second-quarter adjusted earnings per share between $0.27 and $0.32.
The midpoint of $0.30 came in well above analyst expectations of $0.22 per share.
The company also reaffirmed its financial outlook for the full 2026 fiscal year.
Shares climbed 7.3% following the earnings release.
Company highlights operational consistency and guest experience
“We are pleased with our results in the first quarter as they reflect our focus on consistency of execution and delivering a great guest experience,” said Mike Spanos, chief executive officer of the company.
“Outback brand scores continue to improve, highlighting our craveable steaks and food quality.”
Comparable sales growth led by Bonefish Grill
Comparable restaurant sales in the United States increased 0.9% during the quarter.
Bonefish Grill delivered the strongest performance with comparable sales growth of 6.1%.
Carrabba’s Italian Grill reported growth of 1.3%, while Fleming’s Prime Steakhouse & Wine Bar posted a 0.8% increase.
Meanwhile, Outback Steakhouse recorded a slight comparable sales decline of 0.3%.
Margins improve despite inflation pressures
Restaurant-level operating margin improved slightly to 14.0%, compared with 13.9% in the prior-year period.
The company said the increase was supported by higher average guest spending, pricing actions, cost-saving measures and lower advertising expenses.
Those gains were partly offset by higher commodity, labor and operating costs linked to inflationary pressures.
Company expects continued sales growth
For the second quarter, Bloomin’ Brands forecast U.S. comparable restaurant sales growth between 1% and 2%.