BLMN

What a fantastic six months it's been for Bloomin' Brands. Shares of the company have skyrocketed 52.7%, hitting $10.08. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move. Is now the time to buy Bloomin' Brands, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. We're happy investors have made money, but we're cautious about Bloomin' Brands. Here are three reasons you should be careful with BLMN, plus one stock we'd rather own. Same-store sales is a key performance indicator used to measure organic growth at restaurants open for at least a year. Bloomin' Brands's demand within its existing dining locations has barely increased over the last two years as its same-store sales were flat. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Bloomin' Brands's revenue to stall, close to its flat result for the past seven years. This projection doesn't excite us and indicates its newer menu offerings will not catalyze better top-line performance yet. Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. Bloomin' Brands's $1.92 billion of debt exceeds the $66.61 million of cash on its balance sheet. Furthermore, its 6× net-debt-to-EBITDA ratio (based on its EBITDA of $323.1 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. Bloomin' Brands could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Bloomin' Brands can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. Bloomin' Brands doesn't pass our quality test. After the recent surge, the stock trades at 11.2× forward P/E (or $10.08 per share). While this valuation is reasonable, we don't see a big opportunity at the moment. There are better stocks to buy right now. We'd suggest looking at the Amazon and PayPal of Latin America. WHILE YOU'RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Price targets for Bloomin' Brands have shifted from levels near $8 to around $12, reflecting a meaningful reset in how analysts are framing the stock. Recent commentary describes a more constructive but still cautious stance, with higher targets linked to the latest quarterly results, updated guidance, and early signs from the Outback U.S. turnaround. As you read on, you will see how these changing targets and mixed views shape the current narrative and what to watch as it evolves. Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Bloomin' Brands. Morgan Stanley, Citi, Deutsche Bank and Piper Sandler all raised price targets on Bloomin' Brands into a US$11 to US$12.75 range, which signals increased confidence in the current valuation framework after the latest results. Both Morgan Stanley and Deutsche Bank described the recent quarter as strong within casual dining, with Morgan Stanley pointing to results that beat modest expectations and supported an ongoing cycle of estimate revisions. Piper Sandler highlighted same store sales that came in above guidance, and pointed to management commentary on the Outback U.S. turnaround as relatively constructive, which supports the view that operational execution is improving. Morgan Stanley kept an Equal Weight rating, Citi and Piper Sandler stayed Neutral and Deutsche Bank kept a Hold, which shows that despite the higher targets, the overall stance on Bloomin' Brands remains cautious rather than outright positive. Piper Sandler flagged that reported traffic at Outback U.S. is still soft and Deutsche Bank described the turnaround as in the early innings, which leaves execution risk around guest traffic and longer term growth plans. Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives! We've flagged 4 risks for Bloomin' Brands. See which could impact your investment. Fair value moved from about US$8.63 to roughly US$11.32 per share. Revenue growth assumption shifted from about 1.32% to roughly 1.38%. Net profit margin expectation moved from about 3.16% to roughly 3.57%. Future P/E changed from about 8.19x to roughly 9.37x. The discount rate edged up from 12.46% to 12.54%. Narratives link Bloomin' Brands' business story to a financial forecast and fair value that adjust as new information comes in. They help you see how day to day news, guidance changes, and execution progress affect the longer term thesis. Head over to the Simply Wall St Community and follow the Narrative on Bloomin' Brands to stay up to date on: How menu simplification, value offerings like the Aussie 3 Course, and restaurant remodels are aimed at supporting guest satisfaction, traffic, and margins. The role of technology such as Ziosk tablemates, handheld devices, and AI driven scheduling in improving labor efficiency and service quality. Key risks from ongoing market share pressure, early stage turnaround efforts at Outback Steakhouse, and reliance on U.S. operations and dine in infrastructure. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BLMN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how sit-down dining stocks fared in Q2, starting with Bloomin' Brands (NASDAQ:BLMN). Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants. The 9 sit-down dining stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%. In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results. Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands. Bloomin' Brands reported revenues of $1.02 billion, up 1.3% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Bloomin' Brands delivered the slowest revenue growth among its peers. Interestingly, the stock is up 18% since reporting and currently trades at $10.52. Is now the time to buy Bloomin' Brands? Access our full analysis of the earnings results here, it’s free. Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands. The Cheesecake Factory reported revenues of $1.03 billion, up 7.7% year on year, outperforming analysts’ expectations by 2.9%. The business had a stunning quarter with an impressive beat of analysts’ same-store sales estimates and a beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $106.59. Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it’s free. Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners. Dine Brands reported revenues of $240.9 million, up 4.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates. The stock is flat since the results and currently trades at $35.00. Read our full analysis of Dine Brands’s results here. With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Texas Roadhouse reported revenues of $1.68 billion, up 11.1% year on year. This result met analysts’ expectations. Overall, it was a satisfactory quarter as it also logged same-store sales in line with analysts’ estimates. The stock is down 2.3% since reporting and currently trades at $203.39. Read our full, actionable report on Texas Roadhouse here, it’s free. Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands. Darden reported revenues of $3.72 billion, up 13.7% year on year. This print was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also logged a narrow beat of analysts’ same-store sales estimates but full-year revenue guidance meeting analysts’ expectations. The stock is up 3.8% since reporting and currently trades at $218.79. Read our full, actionable report on Darden here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Bloomin’ Brands delivered a positive second quarter, with results surpassing Wall Street expectations and driving a strong market reaction. The company’s leadership attributed the outperformance to progress on its Outback Steakhouse turnaround initiatives, including enhanced menu offerings, improved service models, and ongoing restaurant refreshes. CEO Michael Spanos highlighted that consistency in execution—particularly around food quality, guest experience, and value—has led to four consecutive quarters of improved guest scores, reinforcing momentum in the core Outback brand. Is now the time to buy BLMN? Find out in our full research report (it’s free). Revenue: $1.02 billion vs analyst estimates of $1.00 billion (1.3% year-on-year growth, 1.3% beat) Adjusted EPS: $0.39 vs analyst estimates of $0.29 (35.1% beat) Adjusted EPS guidance for the full year is $0.95 at the midpoint, beating analyst estimates by 9.3% Operating Margin: 3.8%, in line with the same quarter last year Locations: 1,448 at quarter end, down from 1,479 in the same quarter last year Same-Store Sales rose 2.3% year on year (-0.1% in the same quarter last year) Market Capitalization: $952.1 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Alexander Slagle (Jefferies) asked whether menu and service changes were driving performance evenly across the system or if results depended on local management. CEO Michael Spanos said guest trade-up to premium cuts exceeded test results and confirmed that consistency of execution is improving across locations, supported by new technology and staff training. Ashley (for Sara Senatore, Bank of America) asked how improved guest scores would translate into higher traffic. Spanos emphasized that results are not expected to be linear, citing the low frequency of guest visits and noting that early signs in some locations are promising, but broad-based traffic improvement will take time. John Ivankoe (JPMorgan) questioned the company’s approach to balancing premium menu offerings with value options. Spanos explained that the menu is designed with barbell pricing—affordable entry points like the Aussie 3-Course alongside premium steak upgrades—to appeal to a wide range of guests. John Ivankoe (JPMorgan, follow-up) inquired about the sufficiency of the remodel investment per location and whether additional phases might be required. Spanos responded that the current spend is adequate for meaningful upgrades and that about half of Outbacks have already received substantial remodels in recent years. Jeffrey Farmer (Gordon Haskett) asked about the relationship between menu pricing, commodity inflation, and margins, as well as advertising spend. CFO Eric Christel said pricing and inflation are largely balanced this year, while marketing spend is up $15 million year-over-year and increasingly focused on digital channels. In the coming quarters, the StockStory team will be closely monitoring (1) the pace and impact of Outback Steakhouse remodels on traffic and guest satisfaction, (2) the effectiveness of new menu and service enhancements in driving higher average checks, and (3) the return on increased marketing investment, particularly in digital channels. The ongoing balance between affordability and premium offerings, as well as cost discipline, will be pivotal for sustained profitability. Bloomin' Brands currently trades at $11.19, up from $8.92 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:00 a.m. ET Senior Vice President, IR, FP&A and International - Tara Kurian Chief Executive Officer - Mike Spanos Executive Vice President and Chief Financial Officer - Eric Christel Operator: Greetings and welcome to the Bloomin' Brands Fiscal Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. It is now my pleasure to introduce your host, Tara Kurian, Senior Vice President, IR, FP&A and International. Thank you, Ms. Kurian. You may begin. Tara Kurian: Thank you, and good morning, everyone. With me on today's call are Mike Spanos, our Chief Executive Officer, and Eric Christel, Executive Vice President and Chief Financial Officer. By now, you should have access to our fiscal second quarter 2026 earnings release and our investor presentation slides, both of which can be found on our website at www.bloominbrands.com in the Investor section. Throughout this conference call, we will be presenting results on an adjusted basis. An explanation of our use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures appear in our earnings release and investor presentation on our website, as previously described. Before we begin formal remarks, I'd like to remind everyone that part of our discussion today will include forward-looking statements, including a discussion of recent trends. These statements are subject to numerous risks and uncertainties that could cause actual results to differ in a material way from our forward-looking statements. Some of these risks are mentioned in our earnings release. Others are discussed in our SEC filings, which are available at www.sec.gov. During today's call, we'll provide a brief recap of our financial performance for the fiscal second quarter 2026, current thoughts on fiscal 2026 guidance, and an update on our turnaround strategy. Once we've completed these remarks, we'll open the call up for questions. With that, I would now like to turn the call over to Mike Spanos. Michael Spanos: Thanks, Tara, and good morning, everyone. I will discuss our second quarter results and provide an update on our turnaround. Eric will then review the financials and our thoughts on guidance. First, I want to congratulate our team on the progress on both the Outback Turnaround Plan and our financial results. Our focus on consistency of execution on food quality, service, experience, and providing affordable offers is making an impact. As Pat Hafner, President of Outback, told his team at our Managing Partner Conference in June, "Motivation gets you going. Consistency of execution keeps you growing." We remain committed to consistency of execution that delivers a cumulative impact in delivering a great guest experience. While success will not be linear, we believe these commitments will lead to sustainable and profitable growth in the long term. Turning to our second quarter results. Outback's Guest Metric Scores continue to improve, with year-over-year gains for the fourth consecutive quarter reinforcing that we are getting better every day. This is the power of consistency of execution. In Q2 of this year compared to Q2 of last year, Outback's Guest Scores increased across service by 7 points, atmosphere by 7 points, value by 6 points, intent to return by 5 points, food by 4 points, and brand trust by 2 points. I will share more details of our Outback turnaround progress shortly. Our Q2 U.S. comparable restaurant sales were positive 230 basis points with traffic down 190 basis points. We have continued to narrow the gap versus the industry as defined by Black Box each quarter, and our Q2 comp sales were in line with Black Box while traffic trailed by 110 basis points. Affordable entry price points at our casual dining brands, combined with consistent execution and craveable service, is improving our what-you-get-for-what-you-pay-for value equation. Outback's Q2 comp sales were up 140 basis points with traffic down 280 basis points. As we mentioned in our first quarter earnings call, we chose not to lap some dilutive traffic offerings from Q2 2025, particularly in our third-party delivery space. While third-party delivery remains a key part of our business and plays an important role for convenience, our focus is on delivering a remarkable dining experience to drive sustainable traffic growth. Outback continues to drive traffic and loyalty from the Aussie 3-Course affordability offering, with about 60% of the guests consistently trading up from the entry price point into the higher price tiers and approximately 20% trading up on the dessert option. Carrabba's comp sales were up 170 basis points with traffic of negative 250 basis points. Similar to Outback, we chose to not lap some dilutive third-party delivery offerings from prior year. This is the sixth consecutive quarter that Carrabba's drove positive comp sales, driven by continued focus on the in-restaurant experience and delivering elevated, authentic Italian food with warm hospitality. We are seeing positive results and increased guest satisfaction from our updated day-of-week offers and continued strong interaction with our experiential wine dinners. Bonefish's comp sales were up 810 basis points with traffic of positive 450 basis points. Bonefish continues to steadily improve traffic growth with momentum in day-of-the-week offers such as Margarita and Martini Mondays and Bang Shrimp Wednesdays. The team has done an excellent job of engaging guests with an energetic bar in a polished casual seafood environment, leveraging our core menu items for exciting affordability offers. Fleming's comp sales were up 160 basis points, with traffic down 280 basis points, and achieving the eighth consecutive quarter of positive comp sales growth. The team continues to provide memorable special occasions for our guests through disciplined execution and approachable offers. I will now update you on our turnaround focused on Outback Steakhouse. The turnaround is anchored on four strategic platforms as previously communicated, which are, first, deliver a remarkable dining experience; second, drive brand relevancy; third, reignite a culture of ownership and fun; fourth, invest in our restaurants. These platforms will be supported by non-guest-facing productivity savings, balanced capital allocation, and a strong management team. Starting with an update on the first platform to deliver a remarkable dine-in experience. The first step was the launch of our new steak lineup in November of last year. We continue to see our steak score in the top box. Consistent with Technomic, our Ziosk guest scores are showing noteworthy improvements year-over-year across intent to return, food quality, service, steak temperature, and value. The commitment to consistency of execution has driven four consecutive quarters of year-over-year improvements in Outback Guest Metric Scores. Moving to the next element of a remarkable dining experience, Craveable Service. As we have previously communicated, we identified that our 1 server to 6 table station ratio during peak hours didn't provide the right level of guest interaction and satisfaction. In Q2, we successfully rolled out our new service model to all Outbacks, reducing our ratio to 4 tables per server during peak hours. We are receiving positive guest feedback from this change. Our Q2 absolute service scores were over 90% top box and increased by nearly 3 points year-over-year. Like our steak quality, guests are telling us they see the difference in our enhanced service model, improving the what-you-get-for-what-you-pay-for value equation. Our Outbackers continue to leverage the tabletop Ziosk data to drive accountability and close any gaps in performance in each restaurant. We will continue our commitment to delivering a great guest experience with training for front-of-the-house Outbackers this month on our enhanced hospitality experience model to deliver a fun, casual, Aussie, No Rules, Just Right experience. Our second strategic platform is driving brand relevancy at Outback to differentiate the brand. We will embrace the core of our Aussie brand roots by inviting customers to come as our guest and leave as our mate. Our brand communication will primarily showcase the quality of our steak lineup with a balance of brand equity and the affordability of our Aussie 3-Course offer and craveable service. We are increasing our marketing spend year-over-year in the second half of this year, and will continue to shift our marketing mix into social and digital channels. Marketing will bring them in with a No Rules, Just Right, Aussie irreverence, and a relentless focus on consistent execution will bring guests back. Reignite a culture of ownership and fun is our third strategic platform. Our people are the key to our turnaround, and we are focused on having strong leadership throughout our restaurants, starting with our Managing Partners. Reigniting a culture of ownership and fun begins with recognizing the achievements of our partners and Outbackers. We held our Outback Managing Partners Conference in June. This was the first time since 2019 that we have had our partners together, and it was a great event to get them energized around the elements of the turnaround. We have great partners, and they are clear on their ownership to deliver a great guest experience. We were privileged to have one of our Outback founders, Tim Gannon, who invented the Bloomin' Onion, spend two days with our team, inspiring them on the core of the brand, our special culture, and the potential of our business based on the turnaround plan. What was particularly motivating was Tim's feedback that we are doing the right things to turn around Outback. I want to congratulate Market Vice President Robbie Atkins for being named Outbacker of the Year. Robbie exemplifies our principles and beliefs as a leader, setting the standard that success is growth in sales and profits and is the result of taking care of our people and guests. Congratulations, Robbie. Additionally, consistent with what we communicated in our previous earnings call, we implemented the first phase of an updated MP compensation model during Q2. The first phase of our MP compensation program has two key goals. First, to ensure total cash compensation is competitive with the local market, starting with a competitive base salary, and second, to ensure that total cash compensation remains tied to the growth of sales and profit of the restaurant. Lastly, let me update you on our fourth strategic platform, invest in our restaurants. We are on track with our goal to touch nearly all of the Outback restaurants by the end of 2028 with targeted initiatives to refresh the interior and exterior, expecting to spend on average between $350,000 and $400,000 per refresh location. We have completed approximately 31 Outback refreshes through the end of July and are on track to complete around 85 for the full year of 2026. This asset refresh approach focuses on improving guest ambiance in the restaurant interior and exterior, which will improve the dine-in experience. Additionally, we have completed the rollout of our chargrill expansion across Outback. This cooking platform enhancement allows our Outbackers to have the optimal cooking platform for our new steak proteins and non-steak proteins. Let me now turn it over to Eric to review our financial performance for Q2 and guidance for Q3 and full year fiscal 2026. Eric Christel: Thank you, Mike, and good morning, everyone. I would like to start by providing a recap of our continuing operations financial performance for the fiscal second quarter of 2026. Q2 total revenues were $1.02 billion compared to $1 billion last year, reflecting a 1% increase. Restaurant sales were up, driven by positive comparable restaurant sales of 230 basis points. We remain very focused on narrowing the gap to the industry in the near term and positioning ourselves to lead the industry in the long term. Average check increased by 420 basis points compared to 2025, with pricing partially offset by negative mix as we continue to invest in affordable offers for our guests. We are seeing an improvement in our mix compared to our original forecast, driven by the leadership and efforts of our Outback team in three key areas. First, we have enhanced our menu design to incent our guests to enjoy our combo offerings, which feature our outstanding steak and non-steak proteins together. Second, we are seeing guests trade up to more premium steak cuts once they engage with our servers and see the steaks on the menu. Third, we are seeing continued momentum from our non-alcoholic mocktails, providing a premium and experiential beverage experience to include low-calorie options such as our strawberry peach refresher to complement our Aussie-themed Mock Croc and Sharky Temple. As a result of what we are seeing in mix, this has a positive impact on the turnaround investment dollars, which I will explain in detail shortly. Off-premises sales were 24% of total U.S. sales in the quarter, consistent with Q2 last year. Outback's off-premises mix were 26% in the quarter and Carrabba's were 34%. Our GAAP diluted earnings per share was $0.37 compared to earnings of $0.29 per share last year. Our Q2 adjusted diluted earnings was $0.39 per share versus earnings of $0.32 per share last year. The difference between GAAP and adjusted GAAP operating results is approximately $3 million of adjustments in Q2 2026, primarily as a result of transformational and restructuring activities. The Q2 adjusted operating margins were 4.0% versus 3.5% last year. The 50-basis-point difference between this year and last year was driven by improved restaurant margins. Within restaurant margin, COGS was elevated compared to last year, driven by commodities inflation of 5.7%. Labor was favorable, driven by the lap of higher health insurance costs in the prior year, and other restaurant operating expense favorability was driven by non-guest-facing productivity. As it relates to our 33% retained ownership in Brazil, which is classified as an equity method investment, we recognize the loss of approximately $900,000 in Q2. We still expect the full year loss to be approximately $3 million to $4 million. According to our capital structure in Q2, total debt net of cash is $636 million. As of the end of Q2 2026, our leverage metrics were 3.7x on a lease-adjusted net leverage basis and 2.0x on a net debt to adjusted EBITDA basis. Our long-term lease-adjusted net leverage ratio goal remains 3.0x. Capital expenditures in the quarter were $44 million. We expect to complete a large amount of refreshes in Q3 of this year and taper off in Q4 as we focus on serving our guests during peak season. We still expect the full-year capital expenditures to be in the range of $185 million to $195 million. Consistent with our previous communication, our capital allocation priorities are to, one, invest in the base business, and two, pay down debt. Teams are committed to these priorities to provide a platform for the turnaround and a strong balance sheet to support growth. As I mentioned, we are seeing improved mixed trends at Outback, which has a positive impact on the turnaround investment needed in 2026. We had allocated $25 million for food investments, of which $18 million were specifically for mix, we now expect the mix investment to be $4 million. The turnaround investments now total $36 million down from $50 million. Productivity savings remain on track for $30 million for a net investment in 2026 of $6 million. Turning to our guidance this year, as it relates to the full year fiscal 2026, we expect U.S. comparable restaurant sales to be between 1% and 2%. We expect sales mix to improve by approximately 100 basis points, offset by slightly lower traffic as we make the strategic decision to not repeat profit dilutive offers from last year. We now expect our adjusted diluted earnings per share to be between $0.90 and $1. Our previous guidance was between $0.75 and $0.90. The increase in our earnings per share guidance range is attributable to our year-to-date performance, improved mixed trends, and better middle of the P&L cost controls. As it relates to the third quarter of 2026, we expect Q3 U.S. comparable restaurant sales to be between 1% and 2%. We expect Q3 adjusted diluted earnings per share to be between negative $0.27 and negative $0.22. We expect to have a tax expense of approximately $5 million in the quarter. Our full year tax rate is expected to be negative, which will drive a tax expense in Q3 due to our negative earnings outlook. We expect our 33% Brazil EMI to be approximately negative $2 million. Let me now turn it back over to Mike. Michael Spanos: Thanks, Eric. Overall, we are on track with our Outback turnaround, implementing and executing what we said we would do. We are building momentum in our guest feedback and Outbacker feedback tells us our strategy is sound. Our strategy is consistent and is, one, deliver a remarkable dining experience through improved steak quality, enhanced service, and consistency of execution. Two, drive brand relevancy to differentiate Outback. Three, reignite a culture of ownership and fun with a commitment to our people. Four, invest in our restaurants to refresh approximately 100% of Outbacks by 2028. Investment in the turnaround is supported by non-guest-facing productivity savings with a balanced capital allocation led by an outstanding set of leaders that are seasoned restaurant operators. We acknowledge that success is not linear, and we will continue to responsibly pace and sequence the investments to deliver a great guest experience and foster positive team member engagement. The leadership team continues to be committed to our strategy to provide long-term, sustainable profit growth and improving every day in how we operate our business. We will continue to be transparent in our progress. I want to close today's call by thanking all of our teams in the restaurants and restaurant support center. Our current results and our future potential would not be possible without the dedication, hard work, and commitment of our Outbackers, our Amigos, our Anglers, and our Associates to deliver remarkable guest experience every day. With that, let me open up the call for questions. Operator: [Operator Instructions] The first question comes from Alex Slagle with Jefferies. Please go ahead. Alexander Slagle: I wanted to ask on, I guess, as you're looking at the outcomes, the steak upgrades, service changes, are there any notable surprises sort of to how you're seeing the improved performance and experience metric shake out? I don't know if it's fairly broad-based and even, or if it's still more varied and dependent upon quality of the teams and the management teams you have in place, and also, you know, the improved mix and check performance that drove the guidance upside. Is that really more a direct reflection of some of the service changes and menu changes just trying to get the core of that? Michael Spanos: Yes, morning, Alex. It's Mike. So I'll break that down based on what seems to be three questions there. So on steak, we're really excited about what we're seeing in the steak lineup. It's performing really well. Our Outbackers are excited to sell it. Our back of the house is really excited as well executing it. We're seeing top box scores across the board. And the second piece of on steak, which has been a nice surprise, and it gets also to your mix question, we are seeing guests trade up more and more into the premium cuts. That's been better than what we had seen in our tests, when we did the test in 2025. The third thing I would say, and this also gets to your mix question, is what's also been very encouraging is seeing the combo reaction to not only the new steak lineup, but guests also engaging with our differentiated non-steak proteins. So when I look at all that, I feel really good. We're still focused on consistency of execution, leveraging Ziosk to get it right. So that's the steak lineup. I think Pat and the team have done a great job. And the other adjacent point on that too is having the chargrill expansion done. That just gives us a lot more capacity to nail the lineup and we feel really good about our optimal cooking platform. In terms of your question on the service, that one is playing out in early stages exactly as we wanted it to. Meaning, as we said, we wanted to get to 1 server 4-table station ratio during peak. That has worked really well. What has been really encouraging as we looked at the results is the pay of servers is almost exactly the same as it was before. We're seeing tips up as a percentage, tips shared down. And what we think is starting and we're seeing happening is we're just back to the ownership culture we have where the server owns the table. That's just so core to what Outback was back when it was great, and that's good. So we wanted to make sure we felt good about where the servers were, we wanted to feel good about, where the guests were, and our Ziosk results are showing us that in terms of the likelihood to recommend a server, intent to return, feel good about that. The last thing I'll say to your question on mix that I didn't cover, the other part that was really positive on mix, our team did a great job on the menu design, and I mentioned guests trading up on the premium cuts. But we've got really nice leverage on sides. Premium side steak toppers have been just well received by guests, that gives us nice tailwind. And we also did some work on premium sides, which is really nice, whether we have a Parmesan creamed corn that we introduced that has done very well. Our desserts have been up as well, whether it's guests trading up on the Chocolate Thunder or the Chocolate Chip Skillet. That's been a nice surprise, we're seeing guests spending when they feel great in a restaurant. Operator: Thank you. The next question comes from Sara Senatore with Bank of America. Please go ahead. Unknown Analyst: This is Ashley on for Sara. So you noted in the prepared remarks Outback's guest metrics improved for a fourth consecutive quarter, and you called out positive guest feedback from the full rollout of the new service model, but Outback's traffic was still down 2.5% in 2Q. How should we think about the bridge from better guest scores to actual traffic conversion? You know, are there any early markets or restaurants where, you know, these guest metric gains are already translating into higher frequency by customers? Michael Spanos: Yes, hey Ashley, good morning. As I've said, our focus is long-term. Our focus is sustainable traffic, profitable traffic, and as I've said, our success is not going to be linear. There's a cumulative effect, especially in this industry when our average guest frequency is about twice a year, where you combine what is momentum in the steak lineup, the service lineup, a service model that we have, the experience we're going to be rolling out and hospitality experience training over the next few weeks, and then the affordability offers. My experience in turnarounds, there's a flywheel on this. It takes time. I also know our Outbackers are telling us we're on the right path. I know our guests are telling us we're on the right path. One of our co-founders at a conference just said, we are absolutely on the right path, and we have locations, whether there's franchisees or current restaurants, when they have been doing what is true to the core of the brand, we grow traffic and we grow comp sales sustainably. So what the last thing I would say is I'm going to be super transparent and candid with our results about what's happening and what has happened. We're going to be careful not to over-project what we think is going to happen in terms of future traffic, et cetera. But confident it's going to come because we're seeing the results. Operator: Thank you. The next question comes from John Ivankoe with JPMorgan. Please go ahead. John Ivankoe: It's definitely interesting to kind of see your success and actually pushing or having your customers push the Outback brand higher through premium steaks, sides, toppings, what have you. So that's obviously an achievement that says a lot about your historic brand. So the question, I guess, is kind of on the other side, which is the opportunity that you have, you know, to achieve value through price points. In other words, you know, the brand I know was promoting things kind of in the mid-teens for a while, 3-course, what have you. Does it make sense to kind of come back and really, you know, re-establish that part of the menu and maybe engage in a core high-low, or should we just be focused on the core and the higher-end part of the menu for this point? Michael Spanos: Yes, morning, John. How you doing? I think we're doing that. What I mean by that is, in all the casual dining brands, and I'll stick to Outback, which is your question, we've been real sharp on providing barbell pricing. When you look at it, and that really starts with Aussie 3-Course, that is the entry point. That's the entry point of affordability, and that's especially the entry point for those households that are running under $100,000, and we're seeing good retention and frequency of use, and there's a lot of good items in there. You've got Chopped Steak, you've got Teriyaki Skewers, you got a great burger at the entry price point. So somebody can come in at $14.99 and feel really good about that value. The other end, which we've seen, is we, especially in the K-shaped economy this plays, we're also seeing guests trade up to the premium cuts. So they can get the strip, they can get our selection of ribeyes which is everything from a 13-ounce to 15-ounce and the boneless 20-ounce bone-in, we're seeing really good results there. And so we're seeing that trade up as well so I don't think there's going to be any change there. The other thing we've been really zoned in on is just consistency of execution, regardless of who it is. They love the brand. What we hear from our guests is they love our brand when we do it right. So I think that's going to be the approach and that's what we're seeing -- working right now. John Ivankoe: Okay, thank you. And if I can, on a follow-up, in terms of the remodel, interior and exterior, for $350,000 to $400,000, I don't need to tell you this, I don't think, but for a casual diner, especially with some age on it, that's a really low number, you know, so firstly, congratulations on being able to achieve that. And, you know, Mike, the question I'll ask you is, would you like to spend more if you could spend more? So in other words, are we kind of nailing it, you know, at this $350,000 to $400,000 where we won't have to revisit it for 10 years? Or might -- you know, this remodel, be kind of what's necessary as part of maybe a multi-stage remodel process as your overall financials allow you to? Michael Spanos: Yes, John, it is enough. And I say this on the last earnings call. First of all, we're focused on the right ambiance and the right touch points, interior and exterior, one that gives the guests the feel on the interior that we've updated items that matter to them, as well as on the exterior, which sends a signal to those driving by some things have changed. So, one, I'll focus on what we're doing and then the numbers. And the inside, it's predominantly tables, chairs, floors, some ceilings. We're also doing some touch-up on bar, the TV package. When you look at the exterior, there's a landscape, there's some painting, and there's lights. That's what it is, and that gets into that average of $350,000 to $400,000. Now if you look at the numbers, John, I mentioned this on the last call, if you just assume roughly just short of 600 total Outbacks, roughly half of them have already had either they're new or had pretty heavy remodels the last few years. So that leaves you a remainder of about 300 Outbacks and we're looking to get to about 100 a year. We think we'll get to approximately 85 this year and that's the plan. And as I said before, the results we've seen is we like the traffic lift after we've done those. We are going to see a nice 100 to 200 basis point lift about 6 months to a year after we get those done. John Ivankoe: Thank you, and I look forward to more time in restaurants. Michael Spanos: Yes, we'd like that, John. Thank you. Operator: The next question comes from Jeff Farmer with Gordon Haskett. Please go ahead. Jeffrey Farmer: I'm just curious what the menu pricing versus commodity inflation spread will look like as you get into the back half of the year, just sort of what that dynamic will look like and potentially how it will impact your margins as you move forward. Eric Christel: Sure. Hey, this is Eric. So we still see commodity inflation running basically 4.5% to 5.5% for the year. That's been consistent. We see pricing in about the 4.5% range. So pretty balanced. That's been our approach all year and will continue to be our approach. Jeffrey Farmer: Okay, and then you did touch on it, but as it relates to advertising weights, just as you move into the back half of this year, can you give us some context in terms of what that will look like in terms of advertising dollars versus what it was in the back half of 2025? And then just a little bit more color as it relates to how you guys are going to use those advertising dollars? Eric Christel: Yes, I'll go ahead and give the dollars and then I'll let Mike comment on the sort of strategy. Essentially, we're going to be up roughly $15 million versus prior year for the full year. That's roughly 3% of sales for the full year. It's about $10 million more in Outback and then the rest of the brands have a couple million apiece. So just with right in line with our plan. A lot of that is second half weighted as well. So right in plan. But about $15 million for all 4 brands, about $10 million more for Outback. Michael Spanos: Jeff, it's Mike. First on the pricing, which I think is important too, before I go to the market, remember that the checks going to probably move by about 3.5% because the mixed impact, we had to call out about 2.5% last call. But as Eric mentioned in the prepared remarks, we've just seen that mixed improvement as the Outback team's done a better job, as I mentioned. So that's what's moving that number up. On marketing, consistent with what I've been saying, first of all, I'm really excited what I'm seeing out of the marketing team in terms of the work that they've put together. And we're going to, from a strategic brand position, we're going to be all about the brand. The brand is about Aussie, it's about being a steakhouse, and that's the core of the brand with that irreverence, we're going to punch that up. The brand communication will absolutely be steak-centric, and that's going to reinforce what we're doing on steak excellence, it'll have the affordability, and there will be equity in there. We'll start to increase that in the second half. We've got what we're calling our hospitality training, which is going to further train up the front of the house how to bring that experience and energy into the restaurant. So you'll start to see that. And we'll have that split between equity, communication, and affordability. That'll be centered on our Aussie 3-Course. Eric already touched on the financials. The last thing I would say is just the mix. We'll continue to move the mix more into about a 60% digital, 40% linear TV as we move forward because the linear is important, but as we recruit more Gen-X, Gen-Zs, Millennials, we need to be more in that social digital space, which is where we're shifting. Operator: The next question comes from Brian Mullan with Piper Sandler. Please go ahead. Allison Arfstrom: Hello, this is Allison Arfstrom, on for Brian. You hosted the Managing Partners Summit for Outback for the first time since 2019, so I wanted to ask about anything interesting or surprising that you learned from a boots-on-the-ground perspective from the operators. Thank you. Michael Spanos: Yes, thanks for the question. It was an awesome session. The biggest takeaway to me was how energized our partners were with the Outback Turnaround Plan. So the engagement was extremely important. And Pat and the team did such a good job. There was an element of fun. There was an element of recognition. But there was an element of training and ownership. So everybody knows their roles and responsibilities and what exactly has got to be done because that's our culture of accountability. So I start there. And what was also very special was having Tim Gannon there, as I mentioned. When you have one of your co-founders there for two days telling the team we're doing the right things, and Tim, he's got it. I mean, he is on, and he was very clear with we're doing the right things. It was just great to have him there. So we all walked away. As Pat said, motivation gets you going, but it's about consistency of execution that keeps you growing. That's where we're at. Operator: This concludes our question and answer session. I would like to turn the conference back over to Mike Spanos for any closing remarks. Michael Spanos: Thank you once again for your investment and support of Bloomin' Brands. I want to close by thanking our people for their passion and commitment to each other and our guests. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Bloomin' Brands (BLMN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Bloomin' Brands (BLMN) is attracting fresh attention after reporting second quarter 2026 results on August 5, with higher revenue and net income than a year earlier, along with raised full year earnings guidance. See our latest analysis for Bloomin' Brands. Bloomin' Brands' latest earnings and higher full year guidance have coincided with a sharp shift in sentiment, with the stock posting a 1 day share price return of 32.85% and an 85.74% year to date share price return, while the 5 year total shareholder return is still down 46.51%. If strong moves in restaurant stocks have your attention, this could be a useful moment to broaden your search and check out 22 top founder-led companies Bloomin' Brands just delivered better earnings and lifted full year guidance, and the stock has surged in response. The core restaurant concepts may look stronger, but is the recent jump leaving the shares fairly priced or stretched? The most followed narrative for Bloomin' Brands pegs fair value at $8.63, compared with the latest close at $11.85, and uses a 12.46% discount rate to get there. Read the complete narrative. Want to see what kind of revenue path and margin rebuild need to line up with that fair value figure? The narrative leans on a specific earnings ramp, a tighter share count profile and a lower future earnings multiple than many restaurant stocks usually get. Result: Fair Value of $8.63 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to factor in risks for Bloomin' Brands, including ongoing cost pressure on margins and the possibility that Outback's turnaround takes longer than analysts expect. Find out about the key risks to this Bloomin' Brands narrative. The analyst narrative suggests Bloomin' Brands is 37.3% overvalued based on a $8.63 fair value. A different approach, the Simply Wall St DCF model, points the other way and indicates the stock is trading 35.5% below its future cash flow value of $18.37. Which set of assumptions feels more realistic to you? For a clearer picture of how that cash flow driven estimate is built, and what would need to hold for it to make sense, Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Bloomin' Brands for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Sentiment around Bloomin' Brands is clearly mixed, with both real concerns and genuine optimism in the recent data and narratives. If you want to move quickly and form your own view based on the full picture of risks and rewards, take a closer look at the 2 key rewards and 4 important warning signs If Bloomin' Brands has sharpened your focus, do not stop here. Use these ideas to spot other stocks that fit your style before the crowd moves. Target steady compounders by checking companies filtered for resilient balance sheets and consistent fundamentals using the solid balance sheet and fundamentals stocks screener (50 results). Hunt for potential mispriced opportunities by scanning the 51 high quality undervalued stocks that combine quality metrics with appealing valuations. Explore potential income streams by reviewing companies in the 8 dividend fortresses that focus on higher yielding and resilient payouts. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BLMN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Bloomin' Brands (BLMN) reported $1.02 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.3%. EPS of $0.39 for the same period compares to $0.33 a year ago. The reported revenue represents a surprise of +1.67% over the Zacks Consensus Estimate of $999.08 million. With the consensus EPS estimate being $0.28, the EPS surprise was +39.29%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Bloomin' Brands performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Number of restaurants - System-wide total: 1,448 versus the four-analyst average estimate of 1,459. Comparable restaurant sales - U.S. - Fleming?s Prime Steakhouse and Wine Bar: 1.6% versus 1.5% estimated by four analysts on average. Comparable restaurant sales - U.S. - Carrabba?s Italian Grill: 1.7% compared to the 1.1% average estimate based on four analysts. Comparable restaurant sales - U.S. - Outback Steakhouse: 1.4% compared to the 0.6% average estimate based on four analysts. Comparable restaurant sales - U.S. - Combined U.S.: 2.3% versus 1.1% estimated by four analysts on average. Geographic Revenue- Total U.S.: $998.63 million versus the two-analyst average estimate of $978.22 million. The reported number represents a year-over-year change of +1.3%. Geographic Revenue- Total U.S.- Franchise and other revenues: $10.25 million compared to the $9.03 million average estimate based on two analysts. The reported number represents a change of -2.7% year over year. Geographic Revenue- Total U.S.- Restaurant sales: $988.39 million versus the two-analyst average estimate of $969.21 million. The reported number represents a year-over-year change of +1.3%. Geographic Revenue- International Franchise- Franchise revenues: $7.59 million compared to the $7.59 million average estimate based on two analysts. The reported number represents a change of +7.7% year over year. Revenues- Restaurant sales: $997.96 million compared to the $981.41 million average estimate based on four analysts. The reported number represents a change of +1.3% year over year. Revenues- Franchise and other revenues: $17.85 million compared to the $17.35 million average estimate based on four analysts. The reported number represents a change of +1.5% year over year. Revenues- All other revenues: $9.58 million versus $9.84 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1% change. View all Key Company Metrics for Bloomin' Brands here>>> Shares of Bloomin' Brands have returned +11.8% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bloomin' Brands, Inc. (BLMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bloomin' Brands (BLMN) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +39.29%. A quarter ago, it was expected that this owner of Outback Steakhouse and other casual dining spots would post earnings of $0.57 per share when it actually produced earnings of $0.67, delivering a surprise of +17.54%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Bloomin' Brands, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.02 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.67%. This compares to year-ago revenues of $1 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bloomin' Brands shares have added about 44.6% since the beginning of the year versus the S&P 500's gain of 13%. While Bloomin' Brands has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bloomin' Brands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.19 on $921.96 million in revenues for the coming quarter and $0.86 on $3.96 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, El Pollo Loco Holdings (LOCO), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This Tex-Mex fast food chain is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +3.6%. The consensus EPS estimate for the quarter has been revised 8.3% higher over the last 30 days to the current level. El Pollo Loco Holdings' revenues are expected to be $131 million, up 4.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bloomin' Brands, Inc. (BLMN) : Free Stock Analysis Report El Pollo Loco Holdings, Inc. (LOCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenues: $1.02 billion in Q2 2026, a 1% increase from $1 billion in the prior year. Comparable Restaurant Sales (U.S.): Positive 230 basis points for Q2. Adjusted Diluted EPS: $0.39 per share, up from $0.32 per share in the prior year. GAAP Diluted EPS: $0.37 per share, compared to $0.29 per share last year. Adjusted Operating Margin: 4.0% in Q2, up 50 basis points from 3.5% last year. Average Check: Increased by 420 basis points year-over-year. Commodities Inflation: 5.7% in the quarter, impacting COGS. Outback Steakhouse Comparable Sales: Up 140 basis points, with traffic down 280 basis points. Carrabba's Comparable Sales: Up 170 basis points, with traffic down 250 basis points. Bonefish Grill Comparable Sales: Up 810 basis points, with traffic up 450 basis points. Fleming's Comparable Sales: Up 160 basis points, with traffic down 280 basis points. Off-Premises Sales: 24% of total U.S. sales in Q2, consistent with the prior year. Capital Expenditures: $44 million in Q2; full-year guidance remains $185 million to $195 million. Total Debt Net of Cash: $636 million at the end of Q2. Leverage Metrics: 3.7 times on a lease-adjusted net leverage basis and 2.0 times on a net debt-to-adjusted EBITDA basis. Brazil Equity Method Investment: Recognized a loss of approximately $900,000 in Q2. Full-Year 2026 Guidance: U.S. comparable restaurant sales expected between 1% and 2%; adjusted diluted EPS expected between $0.90 and $1.00. Q3 2026 Guidance: U.S. comparable restaurant sales expected between 1% and 2%; adjusted diluted EPS expected between negative $0.27 and negative $0.22. Warning! GuruFocus has detected 9 Warning Signs with BLMN. Is BLMN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Outback's guest metric scores improved for the fourth consecutive quarter, with notable year-over-year gains in service, atmosphere, value, intent to return, food, and brand trust. Q2 US comparable restaurant sales were positive 230 basis points, with Bonefish Grill leading with a strong 810 basis point comp sales increase and positive traffic growth of 450 basis points. The new service model at Outback, reducing server-to-table ratio to 4 tables per server during peak hours, has been successfully rolled out and is receiving positive guest feedback, with absolute service scores over 90% top box. Improved mix trends at Outback, driven by guests trading up to premium steak cuts and engaging with combo offerings, have reduced the expected turnaround investment from $50 million to $36 million. The company is on track with its restaurant refresh program, completing approximately 31 Outback refreshes through July and expecting to complete around 85 for the full year, with a positive traffic lift of 100-200 basis points observed post-refresh. Outback's traffic declined 190 basis points in Q2, and the company chose not to lap some dilutive traffic offerings from the prior year, particularly in third-party delivery, which negatively impacted traffic. Commodity inflation remains elevated at 5.7% in Q2, with full-year expectations of 4.5-5.5%, putting pressure on COGS and margins. The company expects a negative adjusted diluted EPS in Q3 2026, ranging from -$0.27 to -$0.22, due to negative earnings outlook and a tax expense of approximately $5 million. The equity method investment in Brazil continues to be a drag, with a loss of approximately $900,000 in Q2 and full-year losses expected to be $3-4 million. Despite improvements in guest scores, traffic conversion remains a challenge, with management acknowledging that success is not linear and that sustainable traffic growth will take time. Q: Can you provide more detail on the improved mix and check performance that drove the guidance upside, and is it a direct reflection of the steak upgrade and service changes?A: Mike Spanos, CEO, noted that the new steak lineup is performing well, with guests trading up to premium cuts more than expected. The combo offerings featuring steak and non-steak proteins are also driving mix. The new service model, reducing the server-to-table ratio to 4 tables during peak hours, is in early stages but performing as intended, with server pay nearly unchanged and tips up as a percentage. Guests are also trading up on premium sides, steak toppers, and desserts, contributing to the improved mix. Q: Outback's guest metrics improved for a fourth consecutive quarter, but traffic was still down 2.5% in Q2. How should we think about the bridge from better guest scores to actual traffic conversion?A: Mike Spanos, CEO, emphasized that the focus is on long-term, sustainable, and profitable traffic growth, which will not be linear. He highlighted the cumulative effect of improvements in steak quality, service, and the upcoming hospitality experience training. He noted that locations adhering to the brand's core values are seeing sustainable traffic and comp sales growth, and he remains confident traffic will improve as the flywheel effect takes hold. Q: Given the success in pushing guests to premium steaks and sides, does it make sense to reestablish the value price points, or should the focus remain on the higher-end part of the menu?A: Mike Spanos, CEO, explained that the company is using a barbell pricing strategy. The Aussie 3-course offer at $14.99 serves as the entry point for affordability, particularly for households earning under $100,000, while guests are also trading up to premium cuts like ribeyes. He emphasized consistency of execution across both ends of the menu, as guests love the brand when it is done right. Q: Is the $350,000 to $400,000 remodel cost sufficient, or might a multi-stage remodel process be needed as financials allow?A: Mike Spanos, CEO, confirmed the investment is sufficient, focusing on key interior touchpoints like tables, chairs, floors, and ceilings, as well as exterior updates like landscaping, painting, and lighting. With roughly 300 Outbacks needing refreshes, the plan is to complete about 85 this year and approximately 100 annually through 2028. He noted a 100 to 200 basis point traffic lift six months to a year after completion. Q: What will the menu pricing versus commodity inflation spread look like in the back half of the year, and how will it impact margins?A: Eric Christel, CFO, stated that commodity inflation is expected to run at 4.5% to 5.5% for the year, with pricing around 4.5%, keeping the two balanced. This approach has been consistent all year and will continue, with the check expected to move by about 3.5% due to mix improvements. Q: Can you provide context on advertising dollars for the back half of 2026 versus 2025 and how the dollars will be used?A: Eric Christel, CFO, said advertising spend will be up roughly $15 million year-over-year for the full year, about 3% of sales, with $10 million more allocated to Outback. Mike Spanos, CEO, added that the marketing strategy will be steak-centric, reinforcing brand equity and affordability, with a shift toward a 60% digital and 40% linear TV mix to reach younger demographics. Q: What was the most interesting or surprising takeaway from the Managing Partners Summit for Outback, the first since 2019?A: Mike Spanos, CEO, highlighted the energy and engagement of the managing partners with the turnaround plan. The event focused on training, ownership, and accountability, with co-founder Tim Gannon attending for two days and affirming the team is on the right path. The key message was that motivation gets you going, but consistency of execution keeps you growing. Q: Can you elaborate on the Q2 financial performance and the updated full-year guidance?A: Eric Christel, CFO, reported Q2 total revenues of $1.02 billion, up 1%, with U.S. comparable restaurant sales up 230 basis points. Adjusted diluted EPS was $0.39, up from $0.32 last year. The company raised full-year adjusted EPS guidance to $0.90-$1.00, driven by year-to-date performance, improved mix trends, and better cost controls. Q3 EPS is expected to be between negative $0.27 and negative $0.22 due to a negative tax expense. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the narrowing performance gap versus the industry to a focus on 'consistency of execution' across food quality, service, and affordability. The Outback turnaround is anchored on four strategic pillars: delivering a remarkable dining experience, driving brand relevancy, reigniting ownership culture, and asset reinvestment. A successful transition to a 1-server-to-4-table ratio during peak hours has improved absolute service scores to over 90% top box, enhancing the overall value equation. Strategic menu design and server engagement have driven a significant trade-up to premium steak cuts and combo offerings, resulting in better-than-expected sales mix. The company is intentionally lapping profit-dilutive third-party delivery offers from the prior year to focus on sustainable, high-margin dine-in traffic. Operational improvements are being supported by a new Managing Partner compensation model that aligns total cash compensation with local market rates and restaurant-level profit growth. Full-year adjusted EPS guidance was raised to $0.90-$1.00, reflecting year-to-date performance and improved middle-of-the-P&L cost controls. The company plans to touch nearly all Outback locations by 2028 through a refresh program, targeting approximately 85 locations in 2026 with an average spend of $350,000 to $400,000 per site. Marketing spend is expected to increase by approximately $15 million for the full year, with the spend being weighted toward the second half., shifting toward a 60% digital and 40% linear TV mix to target younger demographics. Management expects a 100 to 200 basis point traffic lift in remodeled restaurants approximately 6 to 12 months after completion. Guidance assumes commodity inflation will persist between 4.5% and 5.5%, largely balanced by pricing actions in the 4.5% range. Turnaround investment requirements for 2026 were reduced from $50 million to $36 million due to favorable mix trends and lower-than-expected investment needed for food. The company remains committed to a long-term lease-adjusted net leverage goal of 3.0x, prioritizing debt paydown alongside base business investment. Brazil operations, now an equity method investment, resulted in a $900,000 loss in Q2 with a full-year loss expectation of $3 million to $4 million. Q3 earnings are expected to be negative, which will paradoxically drive a tax expense of approximately $5 million due to the projected negative full-year tax rate. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that guests are trading up to premium cuts more frequently than seen in initial 2025 testing. The new 1:4 server-to-table ratio has kept server pay stable while increasing tip percentages and improving guest 'intent to return' scores. Management cautioned that success will not be linear due to an average guest frequency of twice per year, creating a 'flywheel' effect that takes time to manifest in traffic. The strategy focuses on sustainable, profitable traffic rather than chasing short-term volume through dilutive discounting. The 'Aussie 3-Course' offer serves as a critical $14.99 entry point for households earning under $100,000. This entry-level affordability is balanced by high-end trade-ups to 20-ounce bone-in ribeyes and premium sides like Parmesan creamed corn. Management confirmed this budget is sufficient as it targets high-impact touchpoints: tables, chairs, flooring, and exterior lighting/landscaping. The program targets the roughly 300 older Outback locations that have not received significant updates in recent years.