BLMN — Bloomin' Brands, Inc.

Summary of Bloomin' Brands, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $975 million, up from $972 million year-over-year.
• U.S. Comparable Restaurant Sales: Flat, with traffic up 50 basis points.
• Outback Comp Sales: Down 60 basis points, but traffic increased by 90 basis points, marking the first positive traffic growth since Q4 2021.
• Adjusted Diluted Earnings Per Share: $0.26, compared to $0.22 last year, within guidance of $0.23 to $0.28.
• GAAP Diluted Loss Per Share: $0.14, compared to earnings of $0.12 last year.
• Adjusted Operating Margins: 3.4%, slightly down from 3.5% year-over-year.
• Total Debt: $728 million, reduced from over $1 billion at the end of 2024.

2. Strategic Updates and Business Highlights

• Turnaround Strategy: Focused on Outback, emphasizing consistency in food, service, experience, and value. Key initiatives include:
  • Delivering a remarkable dine-in experience with a new steak lineup and service model.
  • Driving brand relevancy through enhanced marketing strategies, shifting to 60% digital media.
  • Investing in restaurant refreshes, targeting $350,000 to $400,000 per location.
• Traffic Growth: Notable improvements in guest metrics and traffic across several brands, particularly Outback and Bonefish.
• New Service Model: Testing a new server-to-table ratio aimed at improving guest interaction, with a rollout planned for Q2 2026.

3. Forward Guidance and Outlook

• Fiscal 2026 Guidance:
  • U.S. comparable restaurant sales expected between 0.5% and 2.5%.
  • Adjusted diluted EPS projected at $0.75 to $0.90.
  • Total capital expenditures anticipated between $185 million and $195 million, with a focus on remodels and maintenance.
• First Quarter 2026 Expectations:
  • U.S. comparable restaurant sales projected to be flat to up 1%.
  • Adjusted diluted EPS expected between $0.57 and $0.62, impacted by winter weather.

4. Bad News, Challenges, or Points of Concern

• Comp Sales Performance: Outback's comp sales lagged behind the industry, with a noted decline in average check.
• Weather Impact: Severe winter weather negatively affected sales and traffic in early 2026, contributing to a projected 2.2% decline in sales.
• Operational Challenges: Consistency of execution remains a significant focus, with management acknowledging it as a key hurdle in the turnaround strategy.
• Commodity Inflation: Anticipated inflation of 4.5% to 5.5% in commodities, particularly beef, could pressure margins.

5. Notable Q&A Insights

• Sequential Trends: Management noted a strong start to Q1 2026, but traffic declined in the latter half of Q4 2025.
• Consumer Behavior: No significant changes in consumer behavior were observed, aside from some sensitivity in older cohorts managing their check sizes.
• Test Locations: Positive results from 42 test locations, validating the turnaround strategy and enhancing the test-and-learn culture.
• Managing Partner Investments: Investments aimed at competitive compensation for managing partners to reduce turnover and improve operational performance.
• Marketing Strategy: Marketing spend is expected to increase in the second half of 2026, aligned with the phased rollout of new initiatives.

This summary encapsulates the financial performance, strategic direction, and challenges faced by Bloomin' Brands, providing a comprehensive overview of the company's current standing and future outlook.