Bloomin’ Brands, Inc. (NASDAQ:BLMN) delivered better-than-expected second-quarter earnings on Wednesday, though the restaurant operator lowered its full-year guidance as challenges persist at its flagship Outback Steakhouse chain.
The company, which owns Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse, reported adjusted earnings per share of $0.32 for the quarter, surpassing the consensus estimate of $0.28. Revenue reached $1 billion, just above analyst projections of $979.94 million and reflecting a modest 0.3% year-over-year increase.
“We are making progress to build a high capability team that is guest centric with an operational mindset,” said CEO Mike Spanos. “Our restaurant teams are focused on consistency of execution, and we remain committed to turning around Outback to deliver sustainable and profitable growth.”
Despite the earnings beat, restaurant-level operating margin declined to 12.0% from 14.0% a year ago. The drop was attributed to inflationary pressure on labor and food costs, higher insurance expenses, and an unfavorable shift in product mix.
Comparable restaurant sales showed mixed results across the brand portfolio. Outback Steakhouse, the company’s largest chain, saw same-store sales fall 0.6%, with a 1.0% decline in traffic. Carrabba’s Italian Grill and Fleming’s Prime Steakhouse posted gains of 3.9% and 3.8%, respectively. Bonefish Grill underperformed, with a 5.8% sales decline.
Looking to the third quarter, Bloomin’ Brands expects a loss per share in the range of $0.15 to $0.10, significantly below the analyst consensus of $0.05 in earnings. The company also lowered its full-year 2025 EPS guidance to a range of $1.00 to $1.10, compared to the previous consensus estimate of $1.23.
Bloomin’ Brands maintained its quarterly dividend of $0.15 per share, scheduled for payment on September 3 to shareholders of record as of August 19.
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