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Outback Remodels Accelerate: Can BLMN Unlock Traffic Gains?
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Key Takeaways
Bloomin' Brands plans about 85 Outback remodels in 2026, investing $350,000-$400,000 per restaurant.
Remodeled Outback locations have historically seen a 100-200-basis-point traffic lift within 6-12 months.
Outback's guest metrics improved for a fourth straight quarter, but second-quarter traffic still fell 2.8%.
Bloomin' Brands, Inc. (BLMN - Free Report) is stepping up investments in Outback Steakhouse restaurants as part of its turnaround strategy, with remodels emerging as a key lever to enhance the guest experience and rebuild traffic.
Management said on its second-quarter 2026 earnings call that Outback had completed about 31 refreshes through July and expects to finish around 85 locations in 2026. The company plans to invest $350,000-$400,000 per restaurant, focusing on targeted interior and exterior upgrades rather than costly overhauls. These include updates to tables, chairs, floors, ceilings, bars, televisions, landscaping, lighting and paint.
The accelerated rollout could provide a meaningful boost to traffic. Management noted that remodeled restaurants have historically delivered a 100-200 basis-point traffic lift approximately six months to one year after completion. With roughly 300 Outback locations still requiring similar attention, the opportunity remains sizable.
Importantly, the remodel program complements broader turnaround efforts. Outback’s guest metrics improved for the fourth consecutive quarter, while service scores, food quality and value perception strengthened. However, traffic still declined 2.8% in the second quarter, underscoring the need to convert better guest experiences into higher visit frequency.
As more refreshed restaurants come online, BLMN could gain a stronger platform for sustainable traffic growth, making remodel execution a critical catalyst for the Outback recovery.
DRI, TXRH Set a High Bar for Restaurant Traffic
Darden Restaurants (DRI - Free Report) and Texas Roadhouse (TXRH - Free Report) provide useful benchmarks for BLMN as it seeks to translate restaurant investments into stronger traffic. Darden’s portfolio includes LongHorn Steakhouse, a direct steakhouse competitor to Outback. LongHorn delivered 6.2% same-restaurant sales growth in fiscal 2027’s first quarter, highlighting the benefits of strong brand execution and customer experience.
Texas Roadhouse is another major competitor, particularly given its focus on food quality, service and value. The company reported 6.2% comparable restaurant sales growth in the second quarter of 2026, with management citing continued strong traffic trends.
For BLMN, these peers underscore the importance of converting operational improvements into sustained guest visits. Outback’s remodels, enhanced service model and upgraded steak offerings could strengthen its competitive position. Management expects remodels to generate a 100-200 basis-point traffic lift about six to 12 months after completion, making execution a key catalyst for BLMN’s turnaround.
BLMN’s Price Performance, Valuation and Estimates
Bloomin' Brands’ shares have gained 47.5% over the past six months against the industry’s 15.9% decline.
BLMN Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
On a forward 12-month price-to-earnings basis, BLMN trades at 8.08, below the industry average of 19.84.
BLMN’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past seven days, the Zacks Consensus Estimate for BLMN’s fiscal 2027 earnings per share has increased, as shown in the chart.
View the Zacks #1 Rank List
Image: Bigstock
Outback Remodels Accelerate: Can BLMN Unlock Traffic Gains?
Key Takeaways
Bloomin' Brands, Inc. (BLMN - Free Report) is stepping up investments in Outback Steakhouse restaurants as part of its turnaround strategy, with remodels emerging as a key lever to enhance the guest experience and rebuild traffic.
Management said on its second-quarter 2026 earnings call that Outback had completed about 31 refreshes through July and expects to finish around 85 locations in 2026. The company plans to invest $350,000-$400,000 per restaurant, focusing on targeted interior and exterior upgrades rather than costly overhauls. These include updates to tables, chairs, floors, ceilings, bars, televisions, landscaping, lighting and paint.
The accelerated rollout could provide a meaningful boost to traffic. Management noted that remodeled restaurants have historically delivered a 100-200 basis-point traffic lift approximately six months to one year after completion. With roughly 300 Outback locations still requiring similar attention, the opportunity remains sizable.
Importantly, the remodel program complements broader turnaround efforts. Outback’s guest metrics improved for the fourth consecutive quarter, while service scores, food quality and value perception strengthened. However, traffic still declined 2.8% in the second quarter, underscoring the need to convert better guest experiences into higher visit frequency.
As more refreshed restaurants come online, BLMN could gain a stronger platform for sustainable traffic growth, making remodel execution a critical catalyst for the Outback recovery.
DRI, TXRH Set a High Bar for Restaurant Traffic
Darden Restaurants (DRI - Free Report) and Texas Roadhouse (TXRH - Free Report) provide useful benchmarks for BLMN as it seeks to translate restaurant investments into stronger traffic. Darden’s portfolio includes LongHorn Steakhouse, a direct steakhouse competitor to Outback. LongHorn delivered 6.2% same-restaurant sales growth in fiscal 2027’s first quarter, highlighting the benefits of strong brand execution and customer experience.
Texas Roadhouse is another major competitor, particularly given its focus on food quality, service and value. The company reported 6.2% comparable restaurant sales growth in the second quarter of 2026, with management citing continued strong traffic trends.
For BLMN, these peers underscore the importance of converting operational improvements into sustained guest visits. Outback’s remodels, enhanced service model and upgraded steak offerings could strengthen its competitive position. Management expects remodels to generate a 100-200 basis-point traffic lift about six to 12 months after completion, making execution a key catalyst for BLMN’s turnaround.
BLMN’s Price Performance, Valuation and Estimates
Bloomin' Brands’ shares have gained 47.5% over the past six months against the industry’s 15.9% decline.
BLMN Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
On a forward 12-month price-to-earnings basis, BLMN trades at 8.08, below the industry average of 19.84.
BLMN’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past seven days, the Zacks Consensus Estimate for BLMN’s fiscal 2027 earnings per share has increased, as shown in the chart.
Image Source: Zacks Investment Research
Bloomin' Brands currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.