Bloomin' Brands reported third‑quarter 2025 revenue of $928.8 million, a 1.2% year‑over‑year increase driven by positive comparable sales across all four brands. The company’s adjusted diluted earnings per share of $0.03 beat analyst expectations of a $‑0.12 loss, a $0.09 improvement that reflects disciplined cost management and a favorable mix of higher‑margin Outback and Carrabba’s restaurants. GAAP operating loss margin widened to –3.9% from a modest loss in the prior year, while adjusted operating income margin improved to 0.8% as the company offset higher commodity and labor costs with pricing initiatives.
Comparable sales growth of 1.2% was led by Carrabba’s Italian Grill, which posted a 4.1% increase, and Outback Steakhouse, which added 0.4%. Restaurant‑level operating margin fell to 9.2% from 11.1% a year earlier, a contraction largely attributable to inflation‑driven commodity and labor expenses, higher insurance costs, and an unfavorable product‑cost mix. Adjusted restaurant‑level margin remained near 9.5%, indicating that the company’s pricing strategy is partially offsetting the cost pressures.
The quarter also saw the closure of 21 U.S. restaurants and $33.2 million in asset impairments and net closure charges. Management said the moves are part of a broader portfolio optimization plan designed to trim underperforming locations, reduce operating costs, and free cash flow for debt reduction and capital investments in the Outback brand.
Bloomin' Brands updated its full‑year 2025 outlook, projecting U.S. comparable sales of 0% to 0.5% and diluted EPS of $0.75 to $0.80, with adjusted diluted EPS of $1.10 to $1.15. For Q4, the company expects comparable sales of 0.5% to 1.5% and diluted EPS of $0.10 to $0.15, with adjusted diluted EPS of $0.23 to $0.28. The company also announced a suspension of its dividend, redirecting free cash flow toward strategic investments and debt repayment.
CEO Mike Spanos emphasized that the quarter’s positive comparable sales growth across all brands signals momentum for the turnaround plan. He noted that “our teams continue to focus on consistency of execution in food quality and the guest experience, the foundation for our turnaround.” Investors reacted positively to the earnings beat and the guidance lift, but the dividend suspension and restaurant closures introduced short‑term uncertainty, reflecting the company’s aggressive restructuring strategy.
Overall, the results suggest that Bloomin' Brands is making incremental progress on its turnaround, with revenue and comparable sales improving and cost controls narrowing losses. However, margin compression and the need for further portfolio optimization indicate that the company still faces significant headwinds. The updated guidance signals confidence in a modest recovery, but the long‑term outlook will depend on the successful execution of the Outback brand revitalization and continued cost discipline.
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