Bloomin' Brands — Q3 2026 Earnings Summary

Financial Performance

• Total revenues for Q3 2026 were $944.3 million, a 1.7% increase from $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 margin improved to 2.0% in Q3 2026 from a loss of 3.9% in Q3 2025.
• Adjusted operating income margin was 0.3% in Q3 2026, down from 0.8% in Q3 2025.
• Restaurant-level operating margin increased to 10.6% in Q3 2026 from 9.2% in Q3 2025.
• Adjusted restaurant-level operating margin was 9.3% in Q3 2026, down from 9.5% in Q3 2025.
• Q3 2026 total revenues included $13.2 million of gift card breakage revenue resulting from a change in accounting estimate.
• GAAP operating income margin improvement was driven by lower impairment and closure costs, higher restaurant-level operating margin, and lapping of restructuring and foreign currency contract costs, partially offset by higher compensation expense.
• Restaurant-level operating margin increase was driven by higher average check per person (pricing), gift card breakage revenue, and productivity initiatives, partially offset by higher commodity, operating, and labor costs due to inflation, and higher advertising expense.
• Total debt as of September 27, 2026, was $767.972 million, down from $787.425 million as of December 28, 2025.
• Cash and cash equivalents were $90.736 million as of September 27, 2026, up from $59.461 million as of December 28, 2025.
• Net working capital was a deficit of $553.233 million as of September 27, 2026, compared to a deficit of $609.008 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 EPS guidance was raised to $1.06 to $1.11 from the prior outlook of $0.85 to $0.95.
• Fiscal 2026 Adjusted Diluted EPS 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 EPS guidance is $0.07 to $0.12.
• Q4 2026 Adjusted Diluted EPS guidance is $0.07 to $0.12.
• The company reaffirmed all other aspects of its full-year financial guidance as previously communicated.

Business Segments and Product Lines

• U.S. comparable restaurant sales for the 13 weeks ended September 27, 2026, were:
  • Outback Steakhouse: 1.9% increase.
  • Carrabba's Italian Grill: 0.6% increase.
  • Bonefish Grill: 5.3% increase.
  • Fleming's Prime Steakhouse & Wine Bar: 0% change.
  • Combined U.S.: 1.9% increase.
• System-wide restaurant count increased to 1,452 as of September 27, 2026, from 1,448 as of June 28, 2026, driven by 10 openings and 6 closures.
• U.S. company-owned restaurant count was 958 as of September 27, 2026, down from 959 as of June 28, 2026.
• Outback Steakhouse CEO Mike Spanos noted five consecutive quarters of year-over-year improvement in guest scores as part of the Outback Turnaround.
• The company focuses on consistent execution across food, service, experience, and affordability.

Market and Competitive Landscape

• The company operates in the full-service dining restaurant industry with a portfolio of 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.
• The company faces competition and market risks including consumer reaction to public health and food safety issues, labor cost increases, and inflation impacts on commodity and operating costs.

Risks and Challenges

• Risks include the ability to execute turnaround plans and cost-saving initiatives, consumer reaction to public health issues, labor availability and retention, and inflation.
• Risks related to the potential acquisition of Out West's restaurants, including unexpected costs, employee attrition, and customer perceptions.
• Risks include foreign currency exchange rates, political conditions in international markets, and the impact of operations in Brazil as a minority investor and franchisor.
• Risks include the Chapter 11 proceedings initiated by Out West and the Company's offer to buy Out West's restaurants.
• Risks include compliance with debt covenants, interest rate changes, and potential impairments in the carrying value of goodwill and other assets.

Management Commentary and Tone

• CEO Mike Spanos stated, "We are encouraged by our third quarter results and the continued progress on the Outback Turnaround."
• Management remains focused on strengthening the guest experience and driving sustainable long-term growth.
• The tone reflects encouragement regarding Q3 results and progress on operational priorities despite the adjusted loss per share widening.

Other Key Points

• The Q3 2026 Adjusted Diluted EPS includes an adjustment to gift card breakage revenue resulting from a change in accounting estimate.
• Q3 2025 Adjusted Diluted EPS excluded impairment and closing costs related to closures, transformational and restructuring initiatives, and foreign currency forward contract costs.
• The company hosted a conference call on November 6, 2026, at 8:00 AM ET, webcast live from its website.
• The company noted that negative working capital balances are common for restaurant companies due to cash collection timing and low inventory investment.
• Q3 2026 included a gain of $2.9 million from the sale of one U.S. surplus property.
• Q3 2025 included costs related to the decision to close 21 U.S. restaurants, not renew leases of 22 restaurants, and asset impairments related to five underperforming U.S. restaurants.
• Q3 2026 included costs associated with an updated field PTO policy in connection with the transition to a new human resources and payroll system.
• Q3 2026 included costs for accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.