Key Highlights

  • Bloomin' Brands (NASDAQ:BLMN) reported Q2 2026 revenue of $1.02 billion, up 1 percent year over year.
  • Adjusted diluted EPS of $0.39 beat the $0.28 estimate by 39.29 percent.
  • Outback Steakhouse posted its fourth consecutive quarter of guest metric improvement, with traffic up 6 points.
  • The company raised full-year 2026 adjusted diluted EPS guidance to $0.90 to $1.00 per share.

A Substantial EPS Beat Driven by Outback's Continued Turnaround

Bloomin' Brands (NASDAQ:BLMN), one of the largest casual dining restaurant companies headquartered in Tampa, Florida, and owner of well-known dining concepts including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse and Wine Bar, reported second quarter fiscal 2026 total revenues of $1.02 billion, up 1 percent year over year, with US comparable restaurant sales up 230 basis points and traffic down 190 basis points; adjusted diluted EPS was $0.39 versus $0.32 last year, and restaurant adjusted operating margin was 4.0 percent versus 3.5 percent.

Adjusted diluted EPS of $0.39 beat the $0.28 estimate by 39.29 percent, while revenue of $1.02 billion also topped the $1 billion estimate. Outback Steakhouse's turnaround showed guest metric improvements for the fourth consecutive quarter, with traffic up 6 points, atmosphere up 7 points, value up 6 points, intent to return up 5 points, driven by new steak lineup, improved reservation ratios up 4 tables during peak hours, and restaurant refresh program with 31 completed through 2026, targeting 45 to 50 for full year 2026, at 350K to 400K per location.

Comparable Sales Improve Across Nearly All Brand Concepts

Brand-level Q2 comparable sales showed Outback up 140 basis points, traffic down 280 basis points, Carrabba's up 170 basis points, traffic up 60 basis points, Bonefish up 810 basis points, traffic up 180 basis points, and Fleming's up 160 basis points, traffic down 280 basis points; declines partly attributed to strategic choice not to repeat dilutive third-party delivery offers from prior year.

The company raised full-year fiscal 2026 adjusted diluted EPS guidance to $0.90 to $1.00 per share, up from prior guidance of $0.75 to $0.90, improved mix trends, better cost controls, and reduced restaurant investment needs, now $36 million net investment, down from $50 million, with full-year capital expenditures still expected at $185 to $195 million. For third quarter fiscal 2026, the company guided US comparable sales expected between 1 to 2 percent, with adjusted diluted EPS expected between negative $0.27 and negative $0.22, reflecting a tax expense of approximately $5 million and negative equity method investment loss of negative $2 million, with marketing spend increasing by approximately $15 million year over year, about $10 million more for Outback specifically.

Balancing Broad-Based Brand Improvement Against a Seasonally Softer Third Quarter

The consistency of Outback's guest metric improvement across four consecutive quarters, alongside positive comparable sales at Carrabba's, Bonefish, and Fleming's, suggests Bloomin' Brands' turnaround efforts are gaining traction across its broader restaurant portfolio, not just its flagship Outback concept. Should this momentum continue, the raised full-year EPS guidance could prove achievable or conservative if current trends persist.

However, the company's third quarter guidance for an adjusted diluted loss per share reflects the seasonally softer nature of that period for casual dining combined with increased marketing investment, particularly at Outback, suggesting near-term profitability will remain under pressure even as the underlying turnaround progresses. The decision to increase marketing spend by approximately 15 million dollars year over year signals continued investment in sustaining the guest metric improvements observed so far.

Conclusion

Bloomin' Brands' second quarter results reflect a broad-based improvement across its restaurant portfolio, led by Outback Steakhouse's fourth consecutive quarter of guest metric gains, supporting a meaningful raise to full-year adjusted diluted EPS guidance. Whether the company sustains this momentum through a seasonally softer and marketing-investment-heavy third quarter may determine the ultimate trajectory of its turnaround story. Continued execution on the restaurant refresh program and new menu offerings will likely remain key factors supporting Outback's ongoing recovery.