Bloomin' Brands, Inc.

Q2 2026 total revenues were $1.02 billion versus $1 billion last year, up 1%. GAAP diluted EPS was $0.37 versus $0.29 last year, and adjusted diluted EPS was $0.39 versus $0.32 last year. Adjusted operating margin was 4.0% versus 3.5% last year, a 50-basis-point improvement. U.S. comparable restaurant sales were up 230 basis points; Outback comps were up 140 bps, Carrabba’s up 170 bps, Bonefish up 810 bps, and Fleming’s up 160 bps. Average check increased by 420 basis points versus 2025, off-premises sales were 24% of total U.S. sales, and total debt net of cash was $636 million with lease-adjusted net leverage at 3.7x. Management now expects full-year fiscal 2026 U.S. comparable restaurant sales of 1% to 2% and adjusted diluted EPS of $0.90 to $1.00, up from prior guidance of $0.75 to $0.90. For Q3 2026, they expect U.S. comparable sales of 1% to 2% and adjusted diluted EPS of negative $0.27 to negative $0.22. Capital expenditures were $44 million in Q2, and full-year capex is still expected to be $185 million to $195 million. Turnaround investments are now expected to total $36 million, down from $50 million, with mix investment reduced from $18 million to $4 million and productivity savings on track for $30 million.

Mike Spanos framed the quarter as evidence that the Outback turnaround is working, emphasizing consistency in execution on food quality, service, experience, and affordability. He highlighted four straight quarters of improving guest scores, the rollout of the new service model, and stronger-than-expected guest trade-up into premium steaks and sides. His tone was confident but measured, repeatedly saying the progress is real but not linear and that the company will stay focused on sustainable, profitable growth.

Eric Christel led with the financial upside: revenue of $1.02 billion, adjusted EPS of $0.39, and adjusted operating margin of 4.0%, with margin improvement driven by better restaurant margins. He said commodity inflation remained around 5.7% in the quarter and that full-year commodity inflation is still expected to run 4.5% to 5.5%, roughly balanced by pricing around 4.5%. He also noted cash and balance-sheet priorities, with total debt net of cash at $636 million, lease-adjusted net leverage at 3.7x, capex of $44 million in the quarter, and full-year capex of $185 million to $195 million. He tied the raised EPS outlook to year-to-date performance, improved mix, and better middle-of-the-P&L cost control, while Brazil is still expected to be a $3 million to $4 million full-year loss and about negative $2 million in Q3.

Analysts focused on how the improved guest metrics are translating into actual traffic and whether Outback’s mix gains were sustainable. Management said the conversion will take time, describing it as a flywheel that builds through steak improvements, service changes, hospitality training, and affordability offers, and warned not to over-project near-term traffic. Another thread of questioning centered on pricing versus commodity inflation and marketing spend; Eric said pricing is running about 4.5% versus 4.5% to 5.5% commodity inflation, while advertising will rise by about $15 million versus last year, with about $10 million of that at Outback and a heavier second-half weight.