Bloomin’ Brands Inc. announced in its quarterly earnings report published on Nov. 6 that it shuttered 21 Outback Steakhouse locations in October and declined to renew the leases on 22 others in the wake of sagging same-store sales.
Bloomin’ Brands, which also owns Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar, reported a net loss of $45.8 million for the 13-week period ended Sept. 28 after taking a $33.2 million impairment charge related to the restaurant closures.
Bloomin’ Brand’s total revenue of $928 million in the period topped analyst expectations of $904 million; however, with the losses the company announced it would suspend shareholder dividend payments in order to free up cash for its turnaround plans for Outback Steakhouse.
“We will reallocate available free cash flow into strategic investments in our base business and pay down debt,” said Bloomin’ Brands CEO Mike Spanos. “As a result, we have suspended the dividend. We believe our strategic plan will drive long-term, sustainable and profitable growth.”
Combined, Bloomin’ Brand’s four restaurant concepts saw year-over-year comparable sales tick up 1.2 percent during the quarter, but sales were softest at Outback Steakhouse, rising just 0.4 percent. It was the first period of positive sales since the second quarter of 2023. However, year-to-date sales at Outback are down 0.5 percent from the same period in 2024.
Year-over-year sales for the period at Bloomin’ Brand’s system-wide portfolio of nearly 1,500 restaurants open at least 18 months were highest at Carrabba’s Italian Grill, climbing 4.1 percent.
“We have great momentum in our business as demonstrated by our third-quarter results,” Spanos said. “All four brands drove positive comparable store sales growth for the first time since first quarter 2023. Our teams continue to focus on consistency of execution in food quality and the guest experience, the foundation for our turnaround.”
The company earmarked $50 million in capital to deploy starting in the second quarter of 2026: $25 million for improved food quality, including better cuts of steak; $10 million for marketing; $8 million for staff; and $7 million to improve guest services and the guest experience.
It will invest an additional $25 million in 2027 and 2028 for marketing-related expenses that support the turnaround efforts. Bloomin’ Brands also said it will renovate the interiors and exteriors of most of its restaurants by the end of 2028.
“We will focus on guest-facing areas that impact ambiance,” Spanos said. “We are getting back to our roots with a focus on steak and a focus on the quality of steaks.”
Bloomin’ Brands has 657 Outback Steakhouse locations in the United States, as well as another 351 franchised locations in Brazil, South Korea, and other countries. It owns another 10 Outback restaurants in Hong Kong and China.
