Bloomin' Brands — Q3 2026 Earnings Summary

Financial Performance:

• Total revenues for Q3 2026 were $944.3 million, a 1.7% increase compared to $928.8 million in Q3 2025.
• Diluted loss per share was $(0.02) for Q3 2026, an improvement of $0.52 from $(0.54) in Q3 2025.
• Adjusted diluted loss per share was $(0.17) for Q3 2026, a deterioration of $(0.14) from $(0.03) in Q3 2025.
• GAAP operating income (loss) margin was 2.0% in Q3 2026, an improvement of 5.9 percentage points from (3.9)% in Q3 2025.
• Adjusted operating income margin was 0.3% in Q3 2026, a decrease of 0.5 percentage points from 0.8% in Q3 2025.
• Restaurant-level operating margin was 10.6% in Q3 2026, an increase of 1.4 percentage points from 9.2% in Q3 2025.
• Adjusted restaurant-level operating margin was 9.3% in Q3 2026, a decrease of 0.2 percentage points from 9.5% in Q3 2025.
• Q3 2026 revenues included $13.2 million of gift card breakage revenue resulting from a change in accounting estimate.
• Total debt was $767.972 million as of September 27, 2026, compared to $787.425 million as of December 28, 2025.
• Total stockholders' equity was $434.329 million as of September 27, 2026, compared to $337.165 million as of December 28, 2025.

Guidance and Future Outlook:

• Fiscal 2026 U.S. comparable restaurant sales guidance was lowered to 1% to 1.5% from the prior outlook of 1% to 2%.
• Fiscal 2026 diluted earnings per share guidance was raised to $1.06 to $1.11 from the prior outlook of $0.85 to $0.95.
• Fiscal 2026 adjusted diluted earnings per share guidance was raised to $0.97 to $1.02 from the prior outlook of $0.90 to $1.00.
• Q4 2026 U.S. comparable restaurant sales guidance is 0% to 1%.
• Q4 2026 diluted earnings per share guidance is $0.07 to $0.12.
• Q4 2026 adjusted diluted earnings per share guidance is $0.07 to $0.12.

Business Segments and Product Lines:

• U.S. comparable restaurant sales for the thirteen weeks ended September 27, 2026, increased 1.9% combined.
• Outback Steakhouse U.S. comparable sales increased 1.9% in Q3 2026.
• Carrabba's Italian Grill U.S. comparable sales increased 0.6% in Q3 2026.
• Bonefish Grill U.S. comparable sales increased 5.3% in Q3 2026.
• Fleming's Prime Steakhouse & Wine Bar U.S. comparable sales were flat (0%) in Q3 2026.
• Outback Steakhouse reported five consecutive quarters of year-over-year improvement in guest scores.
• The U.S. segment had 1,081 restaurants as of September 27, 2026, down from 1,084 at the start of the quarter (2 openings, 5 closures).
• The International Franchise segment had 361 restaurants as of September 27, 2026, up from 354 at the start of the quarter (8 openings, 1 closure).
• System-wide total restaurants were 1,452 as of September 27, 2026.

Market and Competitive Landscape:

• Revenue growth was driven by higher comparable restaurant sales and the gift card breakage revenue change, partially offset by net restaurant closures and openings.
• Restaurant-level operating margin improvement was driven by an increase in average check per person (primarily due to pricing), the gift card breakage revenue change, and productivity initiatives.
• These margin improvements were partially offset by higher commodity, operating, and labor costs due to inflation, and higher advertising expense.
• GAAP operating margin improvement was driven by lower impairment and closure costs, the increase in restaurant-level operating margin, and lapping of general and administrative expenses related to transformational and restructuring initiatives and foreign currency forward contracts, partially offset by higher compensation expense.

Risks and Challenges:

• The company faces risks related to consumer reaction to public health and food safety issues.
• Increases in labor costs, fluctuations in employee availability, and challenges in attracting, training, and retaining key personnel are noted risks.
• Inflation, tariffs, and price/availability of commodities continue to impact costs.
• The company notes risks associated with the Chapter 11 proceedings initiated by Out West, including the uncertainty of an offer to buy Out West's restaurants and potential risks related to operating those locations thereafter.
• Risks include political, social, and legal conditions in international markets, foreign currency exchange rates, and the company's dependence on a limited number of suppliers.
• The company faces risks related to the impairment of goodwill and other assets, as well as compliance with debt covenants.

Management Commentary and Tone:

• CEO Mike Spanos stated the company is "encouraged by our third quarter results and the continued progress on the Outback Turnaround."
• Management remains focused on consistent execution across food, service, experience, and affordability to strengthen the guest experience and drive sustainable long-term growth.

Other Key Points:

• The Q3 2026 adjusted diluted loss per share includes an adjustment to gift card breakage revenue resulting from a change in accounting estimate.
• Q3 2025 adjustments included impairment and closing costs related to closures and underperforming restaurants, costs from transformational and restructuring initiatives, and costs associated with foreign currency forward contracts.
• The company operates more than 1,440 restaurants in 46 states, Guam, and 12 countries.
• A conference call regarding these results was hosted on November 6, 2026.