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Bloomin' Brands Q3 Loss Narrower Than Expected, Revenues Rise Y/Y
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Key Takeaways
Bloomin' Brands' Q3 revenues rose 1.7% to $944.3 million, beating estimates, while adjusted losses widened.
U.S. comparable sales grew 1.9%, but restaurant traffic declined 1.8% amid higher pricing.
Bloomin' Brands raised 2026 adjusted EPS guidance to 97 cents to $1.02, while narrowing sales growth outlook.
Bloomin’ Brands, Inc. (BLMN - Free Report) reported third-quarter 2026 results, with adjusted earnings and revenues outperforming the Zacks Consensus Estimate. The top line improved year over year, supported by higher comparable restaurant sales and a gift card breakage revenue adjustment. However, the adjusted loss widened from the year-ago quarter amid pressure on underlying operating margins and elevated costs.
The company reported an adjusted loss of 17 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 29.2%. The figure compared unfavorably with the year-ago adjusted loss of 3 cents per share. Revenues increased 1.7% year over year to $944.3 million, beating the consensus mark of $924 million by 2.2%.
BLMN's Q3 Revenue and Earnings Details
Restaurant sales increased 1.7% year over year to $927 million from $911.9 million. Franchise and other revenues rose 2.8% to $17.4 million from $16.9 million in the year-ago quarter.
This increase was primarily driven by higher comparable restaurant sales and $13.2 million in gift card breakage revenues resulting from a change in accounting estimate. These gains were partially offset by the net impact of restaurant closures and openings.
On a GAAP basis, Bloomin’ Brands reported a loss of 2 cents per share from continuing operations compared with a loss of 54 cents in the prior-year quarter. The improvement primarily reflected lower impairment and closure costs, higher restaurant-level operating margins and reduced restructuring-related expenses.
Bloomin' Brands, Inc. Price, Consensus and EPS Surprise
Bloomin’ Brands' Comparable Sales and Traffic Trends
Combined U.S. comparable restaurant sales increased 1.9% year over year compared with 1.2% growth in the prior-year quarter. Outback Steakhouse reported comparable sales growth of 1.9%, while Carrabba’s Italian Grill registered an increase of 0.6%.
Bonefish Grill recorded comparable sales growth of 5.3%, while Fleming’s Prime Steakhouse & Wine Bar reported flat comparable sales.
Combined U.S. restaurant traffic declined 1.8% compared with a 0.1% decrease a year ago. Traffic at Outback, Carrabba’s, Bonefish and Fleming’s declined 1.5%, 2.9%, 0.8% and 1.9%, respectively.
Meanwhile, the average check per person increased 3.7% across U.S. restaurants, primarily benefiting from pricing. Higher average checks helped offset weaker guest traffic during the quarter.
BLMN's Operating Costs and Margin Performance
Total costs and expenses declined 4.1% year over year to $925.8 million from $965.2 million. Food and beverage expenses increased to $278.4 million from $275.1 million, while labor and related expenses rose to $299.1 million from $297.4 million.
Other restaurant operating expenses declined to $251 million from $255.5 million. General and administrative expenses decreased to $54.3 million from $59.1 million.
Restaurant-level operating margin expanded 140 basis points year over year to 10.6%. However, adjusted restaurant-level operating margin contracted 20 basis points to 9.3%, primarily reflecting inflationary pressures on commodities, labor and operating expenses, along with higher advertising costs.
Adjusted operating income declined to $2.5 million from $7.8 million. The corresponding margin contracted 50 basis points to 0.3%.
Bloomin’ Brands' Segment Performance
U.S. segment revenues increased 1.6% year over year to $926.7 million from $912.3 million. Segment operating income increased to $47.2 million from $1.6 million in the prior-year quarter.
However, adjusted U.S. segment operating income declined to $31.1 million from $33.2 million. The adjusted segment operating margin contracted 20 basis points to 3.4%.
International Franchise segment revenues increased 9.7% year over year to $7.8 million. Segment operating income rose to $7.6 million from $7 million. At the end of the quarter, Bloomin’ Brands had 1,452 restaurants worldwide, including 958 company-owned and 494 franchised locations.
BLMN's Balance Sheet Highlights
As of Sept. 27, 2026, the company had cash and cash equivalents of $90.7 million compared with $59.5 million as of Dec. 28, 2025.
Total debt decreased to $768 million from $787.4 million at 2025-end. Total stockholders’ equity increased to $434.3 million from $337.2 million.
Bloomin’ Brands Raises 2026 Earnings Guidance
For 2026, management raised its adjusted earnings guidance in the range of 97 cents to $1.02 per share from the prior expectation of 90 cents to $1. GAAP earnings guidance was increased to $1.06-$1.11 per share from 85-95 cents.
However, the company narrowed its full-year U.S. comparable restaurant sales growth outlook to 1-1.5% from the previous range of 1-2%.
For the fourth quarter of 2026, Bloomin’ Brands expects U.S. comparable restaurant sales growth of 0-1%. Both GAAP and adjusted earnings are projected in the range of 7-12 cents per share.
Management remains focused on executing its Outback turnaround strategy, emphasizing food quality, service, restaurant experience and affordability. CEO Mike Spanos highlighted five consecutive quarters of year-over-year improvement in Outback guest scores, underscoring progress in the company's operational initiatives.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported third-quarter 2026 adjusted earnings of 27 cents per share, missing the Zacks Consensus Estimate of 29 cents by 6.9%. Earnings declined 6.9% from 29 cents per share in the year-ago quarter.
Chipotle’s quarterly revenues of $3.293 billion surpassed the consensus mark of $3.288 billion by 0.2% and increased 9.6% year over year. Growth was driven by new restaurant openings and comparable restaurant sales growth of 2.1%. Comps benefited from a 0.8% increase in transactions and a 1.3% rise in average checks. Digital sales contributed 38.8% to total food and beverage revenues. CMG opened 84 company-operated restaurants and five partner-operated restaurants internationally during the quarter.
Starbucks Corporation (SBUX - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of 80 cents per share, surpassing the Zacks Consensus Estimate of 73 cents by 9.6%. Earnings increased 53.8% year over year.
Starbucks’ net revenues of $9.14 billion missed the consensus mark of $9.27 billion by 1.4% and declined 4.5% year over year. Results benefited from stronger sales leverage and lower costs, while the shift to a licensed business in China weighed on reported revenues. Global comparable coffeehouse sales increased 7.2%. North America comparable sales advanced 7.9%, supported by higher average ticket and transactions. For fiscal 2027, SBUX expects non-GAAP earnings of $3.15-$3.25 per share and North America comparable sales growth of approximately 4%.
Domino’s Pizza, Inc. (DPZ - Free Report) reported third-quarter fiscal 2026 earnings of $4.60 per share, surpassing the Zacks Consensus Estimate of $4.33 by 6.2%. Earnings increased 12.7% from $4.08 per share in the year-ago quarter.
Domino’s quarterly revenues of $1.19 billion topped the consensus projection of $1.17 billion by 1.6% and increased from $1.15 billion a year ago. Growth was driven by higher supply-chain revenues and global franchise royalties, which more than offset lower U.S. company-owned store revenues following refranchising. Supply-chain revenues increased 7.1% year over year to $746.2 million, supported by higher order volumes and a 2.2% increase in food basket pricing. However, sluggish U.S. and international same-store sales and lower franchise advertising revenues partially offset the gains.
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Bloomin' Brands Q3 Loss Narrower Than Expected, Revenues Rise Y/Y
Key Takeaways
Bloomin’ Brands, Inc. (BLMN - Free Report) reported third-quarter 2026 results, with adjusted earnings and revenues outperforming the Zacks Consensus Estimate. The top line improved year over year, supported by higher comparable restaurant sales and a gift card breakage revenue adjustment. However, the adjusted loss widened from the year-ago quarter amid pressure on underlying operating margins and elevated costs.
The company reported an adjusted loss of 17 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 29.2%. The figure compared unfavorably with the year-ago adjusted loss of 3 cents per share. Revenues increased 1.7% year over year to $944.3 million, beating the consensus mark of $924 million by 2.2%.
BLMN's Q3 Revenue and Earnings Details
Restaurant sales increased 1.7% year over year to $927 million from $911.9 million. Franchise and other revenues rose 2.8% to $17.4 million from $16.9 million in the year-ago quarter.
This increase was primarily driven by higher comparable restaurant sales and $13.2 million in gift card breakage revenues resulting from a change in accounting estimate. These gains were partially offset by the net impact of restaurant closures and openings.
On a GAAP basis, Bloomin’ Brands reported a loss of 2 cents per share from continuing operations compared with a loss of 54 cents in the prior-year quarter. The improvement primarily reflected lower impairment and closure costs, higher restaurant-level operating margins and reduced restructuring-related expenses.
Bloomin' Brands, Inc. Price, Consensus and EPS Surprise
Bloomin' Brands, Inc. price-consensus-eps-surprise-chart | Bloomin' Brands, Inc. Quote
Bloomin’ Brands' Comparable Sales and Traffic Trends
Combined U.S. comparable restaurant sales increased 1.9% year over year compared with 1.2% growth in the prior-year quarter. Outback Steakhouse reported comparable sales growth of 1.9%, while Carrabba’s Italian Grill registered an increase of 0.6%.
Bonefish Grill recorded comparable sales growth of 5.3%, while Fleming’s Prime Steakhouse & Wine Bar reported flat comparable sales.
Combined U.S. restaurant traffic declined 1.8% compared with a 0.1% decrease a year ago. Traffic at Outback, Carrabba’s, Bonefish and Fleming’s declined 1.5%, 2.9%, 0.8% and 1.9%, respectively.
Meanwhile, the average check per person increased 3.7% across U.S. restaurants, primarily benefiting from pricing. Higher average checks helped offset weaker guest traffic during the quarter.
BLMN's Operating Costs and Margin Performance
Total costs and expenses declined 4.1% year over year to $925.8 million from $965.2 million. Food and beverage expenses increased to $278.4 million from $275.1 million, while labor and related expenses rose to $299.1 million from $297.4 million.
Other restaurant operating expenses declined to $251 million from $255.5 million. General and administrative expenses decreased to $54.3 million from $59.1 million.
Restaurant-level operating margin expanded 140 basis points year over year to 10.6%. However, adjusted restaurant-level operating margin contracted 20 basis points to 9.3%, primarily reflecting inflationary pressures on commodities, labor and operating expenses, along with higher advertising costs.
Adjusted operating income declined to $2.5 million from $7.8 million. The corresponding margin contracted 50 basis points to 0.3%.
Bloomin’ Brands' Segment Performance
U.S. segment revenues increased 1.6% year over year to $926.7 million from $912.3 million. Segment operating income increased to $47.2 million from $1.6 million in the prior-year quarter.
However, adjusted U.S. segment operating income declined to $31.1 million from $33.2 million. The adjusted segment operating margin contracted 20 basis points to 3.4%.
International Franchise segment revenues increased 9.7% year over year to $7.8 million. Segment operating income rose to $7.6 million from $7 million.
At the end of the quarter, Bloomin’ Brands had 1,452 restaurants worldwide, including 958 company-owned and 494 franchised locations.
BLMN's Balance Sheet Highlights
As of Sept. 27, 2026, the company had cash and cash equivalents of $90.7 million compared with $59.5 million as of Dec. 28, 2025.
Total debt decreased to $768 million from $787.4 million at 2025-end. Total stockholders’ equity increased to $434.3 million from $337.2 million.
Bloomin’ Brands Raises 2026 Earnings Guidance
For 2026, management raised its adjusted earnings guidance in the range of 97 cents to $1.02 per share from the prior expectation of 90 cents to $1. GAAP earnings guidance was increased to $1.06-$1.11 per share from 85-95 cents.
However, the company narrowed its full-year U.S. comparable restaurant sales growth outlook to 1-1.5% from the previous range of 1-2%.
For the fourth quarter of 2026, Bloomin’ Brands expects U.S. comparable restaurant sales growth of 0-1%. Both GAAP and adjusted earnings are projected in the range of 7-12 cents per share.
Management remains focused on executing its Outback turnaround strategy, emphasizing food quality, service, restaurant experience and affordability. CEO Mike Spanos highlighted five consecutive quarters of year-over-year improvement in Outback guest scores, underscoring progress in the company's operational initiatives.
BLMN’s Zacks Rank & Recent Retail-Wholesale Releases
BLMN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported third-quarter 2026 adjusted earnings of 27 cents per share, missing the Zacks Consensus Estimate of 29 cents by 6.9%. Earnings declined 6.9% from 29 cents per share in the year-ago quarter.
Chipotle’s quarterly revenues of $3.293 billion surpassed the consensus mark of $3.288 billion by 0.2% and increased 9.6% year over year. Growth was driven by new restaurant openings and comparable restaurant sales growth of 2.1%. Comps benefited from a 0.8% increase in transactions and a 1.3% rise in average checks. Digital sales contributed 38.8% to total food and beverage revenues. CMG opened 84 company-operated restaurants and five partner-operated restaurants internationally during the quarter.
Starbucks Corporation (SBUX - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of 80 cents per share, surpassing the Zacks Consensus Estimate of 73 cents by 9.6%. Earnings increased 53.8% year over year.
Starbucks’ net revenues of $9.14 billion missed the consensus mark of $9.27 billion by 1.4% and declined 4.5% year over year. Results benefited from stronger sales leverage and lower costs, while the shift to a licensed business in China weighed on reported revenues. Global comparable coffeehouse sales increased 7.2%. North America comparable sales advanced 7.9%, supported by higher average ticket and transactions. For fiscal 2027, SBUX expects non-GAAP earnings of $3.15-$3.25 per share and North America comparable sales growth of approximately 4%.
Domino’s Pizza, Inc. (DPZ - Free Report) reported third-quarter fiscal 2026 earnings of $4.60 per share, surpassing the Zacks Consensus Estimate of $4.33 by 6.2%. Earnings increased 12.7% from $4.08 per share in the year-ago quarter.
Domino’s quarterly revenues of $1.19 billion topped the consensus projection of $1.17 billion by 1.6% and increased from $1.15 billion a year ago. Growth was driven by higher supply-chain revenues and global franchise royalties, which more than offset lower U.S. company-owned store revenues following refranchising. Supply-chain revenues increased 7.1% year over year to $746.2 million, supported by higher order volumes and a 2.2% increase in food basket pricing. However, sluggish U.S. and international same-store sales and lower franchise advertising revenues partially offset the gains.