Bloomin’ Brands, Inc. (BLMN Quick QuoteBLMN - Free Report) emphasized progress in its Outback Steakhouse turnaround during its third-quarter 2026 earnings call, citing stronger guest satisfaction and improved restaurant execution despite continued traffic pressure.

Management also raised its full-year earnings outlook while lowering comparable sales expectations. Discussions centered on pricing discipline, profitability pressures, marketing investments and the potential acquisition of 61 franchised Outback restaurants.

BLMN Raises Earnings Outlook but Trims Sales View

Chief financial officer Eric Christel raised the 2026 adjusted earnings per share guidance to $0.97-$1.02 from $0.90-$1.00. However, U.S. comparable restaurant sales expectations narrowed to 1-1.5% from 1-2%.
For the fourth quarter, management projected comparable sales growth of 0-1% and adjusted earnings of $0.07-$0.12 per share.

During the Q&A, Jefferies and Raymond James analysts questioned the softer sales outlook. CEO Mike Spanos attributed the moderation to holiday calendar shifts, comparisons against prior-year promotions and delayed pricing actions at Outback and Bonefish. Management reiterated its commitment to avoiding unprofitable traffic growth.

Bloomin’ Brands Advances Outback Service Improvements

Spanos highlighted five consecutive quarters of year-over-year improvement in Outback guest satisfaction scores. Service, atmosphere and intent-to-return scores each improved three points in the third quarter.

The company completed its revised service model rollout, reducing peak-hour workloads to four tables per server. Management emphasized that better service consistency remains central to rebuilding customer loyalty.

Responding to a BMO Capital Markets analyst, Spanos explained that the revised model improved guest feedback while allowing servers to maintain or slightly increase earnings. Outback also reported a 1.9% comparable sales increase, although traffic declined 1.5%.

BLMN Expands Marketing and Restaurant Refreshes

Spanos discussed the October launch of Outback's Best Steaks Ever campaign, supported by the Aussie three-course offering and a limited-time $15.99 entry price.

Management increased annual marketing spending by $10 million, primarily in the second half. The company expects its advertising mix to reach approximately 60% digital and 40% linear television by year-end, compared with the historical 30-70% split.

The restaurant investment program also remains on schedule. Approximately 61 Outback refreshes were completed through October, with 85 targeted for 2026. Management expects roughly 100 additional refreshes in 2027, supporting its objective of reaching nearly all Outback locations by 2028.

Bloomin’ Brands Faces Cost and Margin Pressures

Christel reported third-quarter adjusted losses of 17 cents per share, narrower than the Zacks Consensus Estimate of a 24-cent loss. Revenues of $944.35 million exceeded the $924.43 million consensus.

Bloomin' Brands, Inc. Price, Consensus and EPS Surprise

Bloomin' Brands, Inc. price-consensus-eps-surprise-chart | Bloomin' Brands, Inc. Quote

However, adjusted operating margin declined to 0.3% from 0.8% a year earlier. Management cited turnaround investments, higher restaurant costs and increased general and administrative expenses.

Commodity inflation reached 4.6%, while labor inflation was 3.5%. During the Q&A, Spanos emphasized productivity initiatives involving labor scheduling, utilities and procurement. Christel reaffirmed approximately $30 million in productivity savings targeted for 2027.

BLMN Addresses Franchise Acquisition and Financing

Spanos discussed the bankruptcy filing of Out West, an Outback franchisee operating 61 restaurants. Bloomin’ Brands entered into a stalking horse purchase agreement covering those locations.

Responding to a Gordon Haskett analyst, Spanos characterized the franchisee's financial difficulties as specific to that operator rather than representative of the broader franchise network.

Christel stated that the potential transaction should not materially affect fourth-quarter results or the company's leverage objectives. Bloomin’ Brands also completed a $1.2 billion revolving credit facility refinancing, strengthening financial flexibility while maintaining debt reduction and restaurant investment priorities.

Bloomin’ Brands Maintains a Disciplined Turnaround Focus

Management's overarching message emphasized operational consistency, affordability and measured investment rather than aggressive promotional activity.

Spanos remained cautiously optimistic about consumer demand while acknowledging selective spending behavior. The company continues prioritizing improved guest experiences, restaurant productivity and sustainable traffic growth as its turnaround progresses.

What BLMN's Zacks Rank and Style Scores Indicate

BLMN currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Value Score of A, Growth Score of B and Momentum Score of A reflect favorable characteristics across these investment styles.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also holds a VGM Score of A, indicating attractive combined value, growth and momentum attributes. However, the Zacks Rank #3 provides a more measured signal than a top-ranked stock. Its ranking could change as analysts revise earnings estimates following the latest results.