Bloomin’ Brands Announces 2026 Q2 Financial Results

About this update from Bloomin' Brands, Inc.

Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2026 (“Q2 2026”) compared to the second quarter 2025 (“Q2 2025”). CEO Comments “I am pleased with our financial results in the second quarter and our continued progress on the Outback Turnaround, which has led us to raise our full year earnings guidance,” said Mike Spanos, CEO. “We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.” Diluted EPS and Adjusted Diluted EPS The following table reconciles Diluted earnings per share from continuing operations to Adjusted diluted earnings per share from continuing operations for the periods indicated (unaudited):   Q2       2026   2025   CHANGE Diluted earnings per share: $ 0.37   $ 0.29   $ 0.08   Adjustments (1)   0.02       0.03       (0.01 ) Adjusted diluted earnings per share (1) $ 0.39     $ 0.32     $ 0.07               _______________ (1) Adjustments for Q2 2026 and Q2 2025 primarily relate to costs in connection with transformational and restructuring initiatives. Q2 2025 also includes costs associated with the foreign currency forward contracts. See non-GAAP Measures later in this release. Also see Tables Five and Six for further details regarding the nature of diluted earnings per share adjustments for the periods presented. Second Quarter Financial Results (dollars in millions, unaudited) Q2 2026   Q2 2025   CHANGE Total revenues $ 1,015.8     $ 1,002.4     1.3 %             GAAP operating income margin   3.8 %     3.0 %   0.8 % Adjusted operating income margin (1)   4.0 %     3.5 %   0.5 %             Restaurant-level operating margin (1)   12.4 %     12.0 %   0.4 % _______________ (1) See non-GAAP Measures later in this release. Also see Tables Four and Five for details regarding the nature of restaurant-level operating margin and operating income margin adjustments, respectively. The increase in Total revenues was primarily due to higher comparable restaurant sales partially offset by the net impact of restaurant closures and openings. GAAP operating income margin increased from Q2 2025 primarily due to an increase in restaurant-level operating margin, as detailed below, and lower costs in connection with transformational and restructuring initiatives. These impacts were partially offset by higher impairment and closing costs. Restaurant-level operating margin increased from Q2 2025 primarily due to: (i) higher average check per person, primarily due to pricing, (ii) productivity initiatives and (iii) lower pre-opening costs and health insurance expense. These impacts were partially offset by higher commodity, labor and operating costs, mainly due to inflation, and higher advertising expense. Adjusted operating income margin primarily excludes: (i) accelerated depreciation in Q2 2026 associated with equipment upgrades in connection with the turnaround strategy, (ii) Q2 2025 severance and other costs incurred as a result of transformational and restructuring initiatives and (iii) Q2 2025 costs associated with foreign currency forward contracts. Second Quarter Comparable Restaurant Sales THIRTEEN WEEKS ENDED JUNE 28, 2026   COMPANY-OWNED Comparable restaurant sales (stores open 18 months or more):     U.S.     Outback Steakhouse   1.4 % Carrabba’s Italian Grill   1.7 % Bonefish Grill   8.1 % Fleming’s Prime Steakhouse & Wine Bar   1.6 % Combined U.S.   2.3 % Fiscal 2026 Financial Outlook The table below presents our updated expectations for selected 2026 financial operating results. We are reaffirming all other aspects of our full-year financial guidance as previously communicated. Financial Results:   Prior Outlook   Current Outlook U.S. comparable restaurant sales   0.5% to 2.5%   1.0% to 2.0%           Diluted earnings per share (1)   $0.70 to $0.85   $0.85 to $0.95           Adjusted diluted earnings per share (1)   $0.75 to $0.90   $0.90 to $1.00 _______________ (1) Assumes diluted weighted average shares of approximately 86 million. Q3 2026 Financial Outlook The table below presents our expectations for selected fiscal Q3 2026 financial operating results. Financial Results:   Q3 2026 Outlook U.S. comparable restaurant sales   1.0% to 2.0%       Diluted earnings per share (1)   ($0.28) to ($0.23)       Adjusted diluted earnings per share (1)   ($0.27) to ($0.22) _______________ (1) Assumes diluted weighted average shares of approximately 86 million. Conference Call The Company will host a conference call today, August 5, 2026 at 8:00 AM EDT. The conference call will be webcast live from the Company’s website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company’s website after the call. About Bloomin’ Brands, Inc. Bloomin’ Brands, Inc. is one of the largest full-service dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company’s restaurant portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company owns, operates and franchises more than 1,440 restaurants in 46 states, Guam and 12 countries. For more information, please visit www.bloominbrands.com . Non-GAAP Measures In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include: (i) Restaurant-level operating income and the corresponding margin, (ii) Adjusted income from operations and the corresponding margin, (iii) Adjusted segment income from operations and the corresponding margin, (iv) Adjusted net income and (v) Adjusted diluted earnings per share. Restaurant-level operating margin is a non-GAAP financial measure widely regarded in the industry as a useful metric to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations, and we use it for these purposes. We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans. These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should refer to the reconciliations of non-GAAP measures in Tables Four, Five and Six included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period. Forward-Looking Statements Certain statements contained herein, including statements under the headings “CEO Comments”, “Fiscal 2026 Financial Outlook” and “Q3 2026 Financial Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as “guidance,” “believes,” “estimates,” “anticipates,” “expects,” “on track,” “feels,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to execute and achieve the expected benefits of our actions to focus on operational priorities, including our turnaround plans and cost-saving initiatives to fund such plans; consumer reaction to public health and food safety issues; increases in labor costs and fluctuations in the availability of employees and our ability to attract, train, and retain key personnel; increases in unemployment rates and taxes; competition; interruption or breach of our systems or loss of consumer or employee information; price and availability of commodities and other impacts of inflation and tariffs; our dependence on a limited number of suppliers and distributors; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; the impacts of our operations in Brazil as a minority investor and franchisor; our ability to address corporate citizenship and sustainability matters and investor expectations; local, regional, national and international economic conditions; changes in patterns of consumer traffic, consumer tastes and dietary habits; the effects of changes in tax laws; costs, diversion of management attention and reputational damage from any claims or litigation; government actions and policies, including the impact of U.S. government shutdowns; challenges associated with our remodeling, relocation and expansion plans; our ability to preserve the value of and grow our brands, including due to our limited control with respect to and the challenges facing the operations of our franchisees; consumer confidence and spending patterns; the effects of a health pandemic, weather, acts of God and other disasters and the ability or success in executing related business continuity plans; the Company’s ability to make debt payments and planned investments and the Company’s compliance with debt covenants; the cost and availability of credit; interest rate changes; and any impairments in the carrying value of goodwill and other assets. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement. Note: Numerical figures included in this release have been subject to rounding adjustments. TABLE ONE BLOOMIN’ BRANDS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)   THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Revenues               Restaurant sales $ 997,957     $ 984,771     $ 2,039,783     $ 2,014,288   Franchise and other revenues   17,852       17,595       35,699       37,672   Total revenues   1,015,809       1,002,366       2,075,482       2,051,960   Costs and expenses               Food and beverage   306,397       298,332       623,810       611,636   Labor and other related   312,670       315,494       632,879       630,744   Other restaurant operating   254,833       253,225       513,647       511,360   Depreciation and amortization   46,010       44,598       92,306       88,545   General and administrative   53,664       59,527       105,970       120,904   Provision for impaired assets and restaurant closings   3,972       1,540       9,504       1,890   Total costs and expenses   977,546       972,716       1,978,116       1,965,079   Income from operations   38,263       29,650       97,366       86,881   Interest expense, net   (11,141 )     (10,699 )     (23,553 )     (21,886 ) Income before benefit for income taxes   27,122       18,951       73,813       64,995   Benefit for income taxes   (6,672 )     (8,748 )     (16,963 )     (7,845 ) Loss from equity method investment, net of tax   (864 )     (1,806 )     (1,042 )     (3,097 ) Net income from continuing operations   32,930       25,893       89,734       69,743   (Loss) income from discontinued operations, net of tax   (350 )     779       82       525   Net income   32,580       26,672       89,816       70,268   Less: net income attributable to noncontrolling interests   1,236       1,253       2,818       2,697   Net income attributable to Bloomin’ Brands $ 31,344     $ 25,419     $ 86,998     $ 67,571                   Basic earnings per share (1):               Continuing operations $ 0.37     $ 0.29     $ 1.02     $ 0.79   Discontinued operations (* )     0.01     *     0.01   Net basic earnings per share $ 0.37     $ 0.30     $ 1.02     $ 0.80                   Diluted earnings per share (1):               Continuing operations $ 0.37     $ 0.29     $ 1.01     $ 0.79   Discontinued operations (* )     0.01     *     0.01   Net diluted earnings per share $ 0.36     $ 0.30     $ 1.01     $ 0.79                   Weighted average common shares outstanding:               Basic   85,559       85,041       85,418       84,971   Diluted   86,223       85,140       85,987       85,135   _______________ (1) Amounts may not add due to rounding. * Represents less than $0.01. TABLE TWO BLOOMIN’ BRANDS, INC. SEGMENT RESULTS (UNAUDITED) (dollars in thousands) THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED U.S. Segment JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Revenues               Restaurant sales $ 988,385     $ 975,295     $ 2,020,576     $ 1,995,425   Franchise and other revenues   10,247       10,533       20,509       21,306   Total U.S. segment revenues   998,632       985,828       2,041,085       2,016,731                   International Franchise Segment               Franchise revenues (1)   7,593       7,051       15,163       16,334                   Reconciliation               All other revenues (2)   9,584       9,487       19,234       18,895   Total revenues $ 1,015,809     $ 1,002,366     $ 2,075,482     $ 2,051,960                   Reconciliation of Segment Operating Income to Total Operating Income               Segment income from operations               U.S. $ 67,599     $ 68,461     $ 155,615     $ 156,131   International Franchise   7,409       6,838       14,745       15,842   Total segment income from operations   75,008       75,299       170,360       171,973   Unallocated corporate operating expense   (37,385 )     (46,422 )     (74,113 )     (86,190 ) Other income from operations (2)   640       773       1,119       1,098   Total income from operations $ 38,263     $ 29,650     $ 97,366     $ 86,881   _______________ (1) The twenty-six weeks ended June 29, 2025 includes one month of pre-Brazil Sale Transaction intercompany royalties. (2) Primarily includes revenues and income from operations related to its Hong Kong subsidiary. TABLE THREE BLOOMIN’ BRANDS, INC. SUPPLEMENTAL BALANCE SHEET INFORMATION   JUNE 28, 2026   DECEMBER 28, 2025 (dollars in thousands) (UNAUDITED)   Cash and cash equivalents $ 66,613     $ 59,461   Net working capital (deficit) (1) $ (614,443 )   $ (609,008 ) Total assets $ 3,118,055     $ 3,171,907   Total debt $ 702,788     $ 787,425   Total stockholders’ equity $ 435,068     $ 337,165   _______________ (1) We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures. TABLE FOUR BLOOMIN’ BRANDS, INC. RESTAURANT-LEVEL OPERATING INCOME AND MARGIN NON-GAAP RECONCILIATIONS (UNAUDITED) Consolidated THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Income from operations $ 38,263     $ 29,650     $ 97,366     $ 86,881   Operating income margin   3.8 %     3.0 %     4.7 %     4.2 % Less:               Franchise and other revenues   17,852       17,595       35,699       37,672   Plus:               Depreciation and amortization   46,010       44,598       92,306       88,545   General and administrative   53,664       59,527       105,970       120,904   Provision for impaired assets and restaurant closings   3,972       1,540       9,504       1,890   Restaurant-level operating income (1) $ 124,057     $ 117,720     $ 269,447     $ 260,548   Restaurant-level operating margin   12.4 %     12.0 %     13.2 %     12.9 % _______________ (1) The following categories of revenue and operating expenses are not included in restaurant-level operating income and the corresponding margin because we do not consider them reflective of operating performance at the restaurant-level within a period: (a) Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income. (b) Depreciation and amortization, which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants. (c) General and administrative expense, which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate office. (d) Asset impairment charges and restaurant closing costs. TABLE FIVE BLOOMIN’ BRANDS, INC. ADJUSTED INCOME FROM OPERATIONS AND MARGIN NON-GAAP RECONCILIATIONS (UNAUDITED) (dollars in thousands) THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED Consolidated JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Income from operations $ 38,263     $ 29,650     $ 97,366     $ 86,881   Operating income margin   3.8 %     3.0 %     4.7 %     4.2 % Adjustments:               Severance and other transformational costs (1)   2,865       3,542       6,246       9,600   Foreign currency forward contract costs (2)   —       2,233       —       4,561   Asset impairments and closure-related charges (3)   —       —       —       (1,929 ) Total income from operations adjustments   2,865       5,775       6,246       12,232   Adjusted income from operations $ 41,128     $ 35,425     $ 103,612     $ 99,113   Adjusted operating income margin   4.0 %     3.5 %     5.0 %     4.8 %                 U.S. Segment               Income from operations $ 67,599     $ 68,461     $ 155,615     $ 156,131   Operating income margin   6.8 %     6.9 %     7.6 %     7.7 % Adjustments:               Severance and other transformational costs (1)   2,865       —       6,246       —   Asset impairments and closure-related charges (3)   —       —       —       (1,710 ) Total income from operations adjustments   2,865       —       6,246       (1,710 ) Adjusted income from operations $ 70,464     $ 68,461     $ 161,861     $ 154,421   Adjusted operating income margin   7.1 %     6.9 %     7.9 %     7.7 %                 International Franchise Segment               Income from operations $ 7,409     $ 6,838     $ 14,745     $ 15,842   _______________ (1) Costs for the thirteen and twenty-six weeks ended June 28, 2026 relate to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy. Costs for the thirteen and twenty-six weeks ended June 29, 2025 include severance, professional fees and other costs incurred as a result of transformational and restructuring activities. (2) Represents costs in connection with the foreign currency forward contracts that mostly offset foreign currency exchange risk associated with installment payments from the Brazil Sale Transaction. (3) Primarily includes gains from certain lease terminations. TABLE SIX BLOOMIN’ BRANDS, INC. ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATIONS (UNAUDITED)   THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Net income from continuing operations $ 32,930     $ 25,893     $ 89,734     $ 69,743   Less: net income attributable to noncontrolling interests   1,236       1,253       2,818       2,697   Net income attributable to Bloomin’ Brands from continuing operations   31,694       24,640       86,916       67,046   Adjustments:               Income from operations adjustments (1)   2,865       5,775       6,246       12,232   Total adjustments, before income taxes   2,865       5,775       6,246       12,232   Tax effect of adjustments (2)   (504 )     (3,125 )     (1,750 )     (1,995 ) Net adjustments, continuing operations   2,361       2,650       4,496       10,237   Adjusted net income, continuing operations $ 34,055     $ 27,290     $ 91,412     $ 77,283                   Diluted earnings per share - continuing operations $ 0.37     $ 0.29     $ 1.01     $ 0.79   Adjusted diluted earnings per share - continuing operations $ 0.39     $ 0.32     $ 1.06     $ 0.91                   Diluted weighted average common shares outstanding   86,223       85,140       85,987       85,135   _______________ (1) See Table Five Adjusted Income from Operations and Margin Non-GAAP Reconciliations above for details regarding income from operations adjustments. (2) The tax effect of non-GAAP adjustments is determined by recomputing the Benefit for income taxes on an adjusted basis. The difference between the recomputed Benefit for income taxes and the GAAP Benefit for income taxes represents the tax effect of non-GAAP adjustments. The thirteen and twenty-six weeks ended June 29, 2025 also include an adjustment to Benefit for income taxes related to foreign currency gains on the Brazil Sale Transaction installment receivable. Following is a summary of the financial statement line item classification of the net income adjustments from continuing operations:   THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Depreciation and amortization $ 2,865     $ —     $ 6,246     $ —   General and administrative   —       5,775       —       14,243   Provision for impaired assets and restaurant closings   —       —       —       (2,011 ) Provision for income taxes   (504 )     (3,125 )     (1,750 )     (1,995 ) Net adjustments $ 2,361     $ 2,650     $ 4,496     $ 10,237   TABLE SEVEN BLOOMIN’ BRANDS, INC. COMPARATIVE RESTAURANT INFORMATION (UNAUDITED) Number of restaurants: MARCH 29, 2026   OPENINGS   CLOSURES   JUNE 28, 2026 U.S.               Outback Steakhouse               Company-owned 546   1   (3 )   544 Franchised 116     —     (1 )   115   Total 662     1     (4 )   659   Carrabba’s Italian Grill               Company-owned 186     —     —     186   Franchised 17     —     —     17   Total 203     —     —     203   Bonefish Grill               Company-owned 155     —     —     155   Franchised 2     —     —     2   Total 157     —     —     157   Fleming’s Prime Steakhouse & Wine Bar               Company-owned 65     —     (1 )   64   Other               Franchised 1     —     —     1   U.S. total 1,088     1     (5 )   1,084   International Franchise               Outback Steakhouse - Brazil 188     4     —     192   Outback Steakhouse - South Korea 101     —     (1 )   100   Other 65     —     (3 )   62   International Franchise total 354     4     (4 )   354   International - Company-owned               Outback Steakhouse - Hong Kong 10     —     —     10   System-wide total 1,452     5     (9 )   1,448   System-wide total - Company-owned 962     1     (4 )   959   System-wide total - Franchised 490     4     (5 )   489   TABLE EIGHT BLOOMIN’ BRANDS, INC. COMPARABLE RESTAURANT SALES, TRAFFIC AND AVERAGE CHECK PER PERSON INFORMATION (UNAUDITED)     THIRTEEN WEEKS ENDED   TWENTY-SIX WEEKS ENDED     JUNE 28, 2026   JUNE 29, 2025   JUNE 28, 2026   JUNE 29, 2025 Year over year percentage change:                 Comparable restaurant sales (restaurants open 18 months or more):                 U.S. (1)                 Outback Steakhouse   1.4 %   (0.6 )%   0.5 %   (0.9 )% Carrabba’s Italian Grill   1.7 %   3.9 %   1.5 %   2.6 % Bonefish Grill   8.1 %   (5.8 )%   7.0 %   (4.9 )% Fleming’s Prime Steakhouse & Wine Bar   1.6 %   3.8 %   1.1 %   4.5 % Combined U.S.   2.3 %   (0.1 )%   1.6 %   (0.3 )%                   Traffic:                 U.S.                 Outback Steakhouse   (2.8 )%   (1.0 )%   (2.6 )%   (2.6 )% Carrabba’s Italian Grill   (2.5 )%   0.7 %   (2.6 )%   0.2 % Bonefish Grill   4.5 %   (11.4 )%   3.7 %   (10.4 )% Fleming’s Prime Steakhouse & Wine Bar   (2.8 )%   (0.6 )%   (2.9 )%   (0.5 )% Combined U.S.   (1.9 )%   (2.0 )%   (1.8 )%   (3.0 )%                   Average check per person (2):                 U.S.                 Outback Steakhouse   4.2 %   0.4 %   3.1 %   1.7 % Carrabba’s Italian Grill   4.2 %   3.2 %   4.1 %   2.4 % Bonefish Grill   3.6 %   5.6 %   3.3 %   5.5 % Fleming’s Prime Steakhouse & Wine Bar   4.4 %   4.4 %   4.0 %   5.0 % Combined U.S.   4.2 %   1.9 %   3.4 %   2.7 % _______________ (1) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening. (2) Includes the impact of menu pricing changes, product mix and discounts.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260805587850/en/

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