Bloomin' Brands, Inc.
For the period ended Jun 28, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2026 · Filed Aug 6, 2026
BLMN$9.75-6.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-29; filed 2026-05-07.
0001546417-26-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-28; filed 2026-08-06.
0001546417-26-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 114 previous paragraphs and 125 current paragraphs.
83 unchanged; 29 reworded; 9 added; 2 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
•Diluted earnings per share from continuing operations of $0.37 as compared to $0.29 for the second quarter of 2025.
Current report
•Labor and other related expense decreased as a percentage of Restaurant sales primarily due to 0.8% from an increase in average check per person and 0.2% from lower health insurance expense. These impacts were partially offset by 0.4% from higher hourly and field management labor costs, mainly due to wage rate inflation.
Current report
•General and administrative expense decreased primarily due to lapping costs related to transformational and restructuring initiatives and foreign currency forward contracts.
Current report
•Interest expense, netwas flat primarily due to lapping the interest income realized during the thirteen weeks ended June 29, 2025 in connection with the installment payments from the Brazil Sale Transaction. This was offset primarily by lower interest expense as a result of lower balances and interest rates on our revolving credit facility.
Current report
Benefit for income taxes for the thirteen weeks ended June 28, 2026 is lower than the thirteen weeks ended June 29, 2025 due to the impact of changes to the estimate of forecasted annual Income before benefit for income taxes relative to the prior quarter and the benefit of FICA Tax Credits for the thirteen weeks ended June 29, 2025.
Current report
Twenty-six weeks ended June 28, 2026 as compared to twenty-six weeks ended June 29, 2025
Current report
•Interest expense, netincreased primarily due to lapping the interest income realized during the twenty-six weeks ended June 29, 2025 in connection with the installment payments from the Brazil Sale Transaction. This was offset primarily by lower interest expense as a result of lower balances and interest rates on our revolving credit facility.
Current report
Benefit for income taxes for the twenty-six weeks ended June 28, 2026 is higher than for the twenty-six weeks ended June 29, 2025, despite higher Income before benefit for income taxes, primarily due to lower forecasted full-year Income before benefit for income taxes in 2026 compared to 2025, which increased the relative benefit of the FICA Tax Credits.
Current report
The decrease in U.S. Income from operations generated during the twenty-six weeks ended June 28, 2026 as compared to the twenty-six weeks ended June 29, 2025 was primarily due to: (i) higher commodity, operating and labor costs, mainly due to inflation, (ii) higher impairment expense and (iii) higher costs from accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy. These impacts were partially offset by: (i) an increase in average check per person, primarily due to pricing, and (ii) productivity initiatives.
Removed paragraphs (2)
Previous report
•Diluted earnings per share of $0.64 as compared to $0.50 for the first quarter of 2025.
Previous report
(Benefit) provision for income taxes for the thirteen weeks ended March 29, 2026 and March 30, 2025 includes thebenefit of FICA tax credits on certain employees’ tips relative to forecasted full year Income before (benefit) provision for income taxes. A higher forecasted full year Income before (benefit) provision for income taxes for 2025 when compared to forecasted full year Income before (benefit) provision for income taxes for 2026, resulted in provision for income taxes for the thirteen weeks ended March 30, 2025 as compared to benefit for income taxes for the thirteen weeks ended March 29, 2026.
Reworded paragraphs (29)
Previous wording
(i)Our ability to execute and achieve the expected benefits of our actions to focus on operational priorities, including our turnaround plans and cost-saving initiatives to fund such plans;
Current wording
(i)Our ability to execute and achieve the expected benefits of our actions to focus on operational priorities, including our turnaround plans and productivity initiatives to fund such plans;
Previous wording
(xi)The impacts of our operations in Brazil as a minority investor and franchisor following our sale transaction;
Current wording
(xi)The impacts of our operations in Brazil as a minority investor and franchisor;
Previous wording
(xvi)Our cost savings plans to enable reinvestment in our business, due to uncertainty with respect to macroeconomic conditions and the efficiency that may be added by the actions we take, and the projected benefits of our reinvestments;
Current wording
(xvi)Our productivity initiatives to enable reinvestment in our business, due to uncertainty with respect to macroeconomic conditions and the efficiency that may be added by the actions we take, and the projected benefits of our reinvestments;
Previous wording
We are one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. As of March 29, 2026, we owned and operated 962 restaurants and franchised 490 restaurants across 46 states, Guam and 12 countries. Our restaurant portfolio includes: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
Current wording
We are one of the largest full-service dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. As of June 28, 2026, we owned and operated 959 restaurants and franchised 489 restaurants across 46 states, Guam and 12 countries. Our restaurant portfolio includes: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
Previous wording
Financial Overview -Our financial overview for the thirteen weeks ended March 29, 2026 for continuing operations includes the following:
Current wording
Financial Overview -Our financial overview for the thirteen weeks ended June 28, 2026 includes the following:
Previous wording
•U.S. combined and Outback Steakhouse comparable restaurant sales of 0.9% and (0.3)%, respectively;
Current wording
•U.S. combined and Outback Steakhouse comparable restaurant sales of 2.3% and 1.4%, respectively;
Previous wording
•Increase in Total revenues of 1.0% as compared to the first quarter of 2025;
Current wording
•Increase in Total revenues of 1.3% as compared to the second quarter of 2025;
Previous wording
•Operating income and restaurant-level operating margins of 5.6% and 14.0%, respectively, as compared to 5.5% and 13.9%, respectively, for the first quarter of 2025;
Current wording
•Operating income and restaurant-level operating margins of 3.8% and 12.4%, respectively, as compared to 3.0% and 12.0%, respectively, for the second quarter of 2025;
Previous wording
•Operating income of $59.1 million as compared to $57.2 million in the first quarter of 2025; and
Current wording
•Operating income of $38.3 million as compared to $29.7 million in the second quarter of 2025; and
Previous wording
Restaurant Sales -Following is a summary of the change in Restaurant sales for the period indicated:
Current wording
Restaurant Sales -Following is a summary of the change in Restaurant sales for the periods indicated:
Previous wording
(1)Includes restaurant sales from 25 new restaurants, not included in our comparable restaurant sales base.
Current wording
(1)The thirteen and twenty-six weeks ended June 28, 2026 include restaurant sales from 24 and 26 new restaurants, respectively, not included in our comparable restaurant sales base.
Previous wording
(2)Includes restaurant sales from the closure of 38 restaurants since December 29, 2024.
Current wording
(2)The thirteen and twenty-six weeks ended June 28, 2026 include restaurant sales from the closure of 38 and 42 restaurants since March 30, 2025 and December 29, 2024, respectively.
Previous wording
Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.3% from commodity inflation. This impact was offset by 1.3% from an increase in average check per person, primarily due to menu pricing.
Current wording
•Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.6% from commodity inflation partially offset by 1.4% from an increase in average check per person, primarily due to menu pricing.
Previous wording
Other restaurant operating expense decreased as a percentage of Restaurant sales primarily due to: (i) 0.5% from cost-saving and productivity initiatives, (ii) 0.3% from lower advertising expense and (iii) 0.2% from an increase in average check per person. These impacts were partially offset by 0.8% from higher restaurant-level operating and supply expenses, mainly due to inflation.
Current wording
•Other restaurant operating expense decreased as a percentage of Restaurant sales primarily due to: (i) 0.5% from productivity initiatives, (ii) 0.3% from an increase in average check per person and (iii) 0.3% from a decrease in preopening expense. These impacts were partially offset by 0.5% from higher advertising expense and 0.3% from higher restaurant-level operating and supply expenses, mainly due to inflation.
Previous wording
Labor and other related expense increased as a percentage of Restaurant sales primarily due to 0.6% from higher hourly and field management labor costs, mainly due to wage rate inflation and health insurance, partially offset by 0.5% from an increase in average check per person.
Current wording
•Labor and other related expense decreased as a percentage of Restaurant sales primarily due to 0.6% from an increase in average check per person, partially offset by 0.4% from higher hourly and field management labor costs, mainly due to wage rate inflation.
Previous wording
General and administrative expense decreased primarily due to lapping severance and costs associated with our foreign currency forward contracts incurred during the thirteen weeks ended March 30, 2025.
Current wording
•General and administrative expense decreased primarily due to lapping costs related to severance, foreign currency forward contracts and transformational and restructuring initiatives.
Previous wording
(1)The increase was due to the impact of restaurant openings and higher comparable restaurant sales partially offset by restaurant closures.
Current wording
(1)The increases during the periods presented were due to higher comparable restaurant sales and the impact of restaurant openings partially offset by restaurant closures.
Previous wording
U.S. -The increase in U.S. Income from operations generated during the thirteen weeks ended March 29, 2026 as compared to the thirteen weeks ended March 30, 2025 was primarily due to: (i) an increase in average check per person, primarily due to pricing, (ii) cost-saving and productivity initiatives and (iii) lower advertising expense. These increases were partially offset by higher commodity, operating and labor costs, mainly due to inflation.
Current wording
U.S. -The decrease in U.S. Income from operations generated during the thirteen weeks ended June 28, 2026 as compared to the thirteen weeks ended June 29, 2025 was primarily due to: (i) higher commodity, operating and labor costs, mainly due to inflation, (ii) higher advertising expense, (iii) higher costs from accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy and (iv) higher impairment expense. These impacts were partially offset by: (i) an increase in average check per person, primarily due to pricing,(ii) productivity initiatives and (iii) lower pre-opening expense.
Previous wording
(1)The thirteen weeks ended March 30, 2025 includes one additional month of pre-Brazil Sale Transaction intercompany royalties from Brazil.
Current wording
(1)The twenty-six weeks ended June 29, 2025 includes one month of pre-Brazil Sale Transaction intercompany royalties.
Previous wording
(1)Costs for the thirteen weeks ended March 29, 2026 relate to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy. Costs for the thirteen weeks ended March 30, 2025 include severance, professional fees and other costs incurred as a result of transformational and restructuring activities.
Current wording
(1)Costs for the thirteen and twenty-six weeks ended June 28, 2026 relate to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy. Costs for the thirteen and twenty-six weeks ended June 29, 2025 include severance, professional fees and other costs incurred as a result of transformational and restructuring activities.
Previous wording
(3)Primarily includes gains from certain lease terminations for the thirteen weeks ended March 30, 2025.
Current wording
(3)Primarily includes gains from certain lease terminations.
Previous wording
(2)The tax effect of non-GAAP adjustments is determined by recomputing the (benefit) provision for income taxes on an adjusted basis. The difference between the recomputed (benefit) provision for income taxes and the GAAP (benefit) provision for income taxes represents the tax effect of non-GAAP adjustments. The thirteen weeks ended March 30, 2025 also includes an adjustment to (benefit) provision for income taxes related to foreign currency gains on the Brazil Sale Transaction installment receivable.
Current wording
(2)The tax effect of non-GAAP adjustments is determined by recomputing the Benefit for income taxes on an adjusted basis. The difference between the recomputed Benefit for income taxes and the GAAP Benefit for income taxes represents the tax effect of non-GAAP adjustments. The thirteen and twenty-six weeks ended June 29, 2025 also include an adjustment to Benefit for income taxes related to foreign currency gains on the Brazil Sale Transaction installment receivable.
Previous wording
System-Wide Sales -The following table provides a summary of sales of franchised restaurants by segment for the periods indicated:
Current wording
System-Wide Sales -The following table provides a summary of sales of franchised restaurants by reportable segment for the periods indicated:
Previous wording
As of March 29, 2026, we had $71.3 million in cash and cash equivalents, of which $5.4 million was held by foreign affiliates, and did not have aggregate undistributed foreign earnings from our consolidated foreign subsidiaries.
Current wording
As of June 28, 2026, we had $66.6 million in cash and cash equivalents, of which $5.9 million was held by foreign affiliates, and did not have aggregate undistributed foreign earnings from our consolidated foreign subsidiaries.
Previous wording
As of March 29, 2026, we had $728.7 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $16.3 million.
Current wording
As of June 28, 2026, we had $774.2 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $20.8 million.
Previous wording
Operating Activities - The increase in net cash provided by operating activities during the thirteen weeks ended March 29, 2026 as compared to the thirteen weeks ended March 30, 2025 was primarily due to higher cash earnings partially offset by changes in working capital.
Current wording
Operating Activities - The increase in net cash provided by operating activities during the twenty-six weeks ended June 28, 2026 as compared to the twenty-six weeks ended June 29, 2025 was primarily due to higher cash earnings and changes in working capital.
Previous wording
Investing Activities- Net cash used in investing activities during the thirteen weeks ended March 29, 2026 was due to capital expenditures. Net cash provided by investing activities during the thirteen weeks ended March 30, 2025 was primarily due to proceeds from the Brazil Sale Transaction, net of taxes withheld, partially offset by capital expenditures and payments on foreign currency forward contracts.
Current wording
Investing Activities- Net cash used in investing activities during the twenty-six weeks ended June 28, 2026 was due to capital expenditures. Net cash provided by investing activities during the twenty-six weeks ended June 29, 2025 was primarily due to proceeds from the Brazil Sale Transaction, net of taxes withheld, partially offset by capital expenditures and payments on foreign currency forward contracts.
Previous wording
Financing Activities -Net cash used in financing activities during the thirteen weeks ended March 29, 2026 was primarily due to net payments on the revolving credit facility. Net cash used in financing activities during the thirteen weeks ended March 30, 2025 was primarily due to net payments on the revolving credit facility from the Brazil Sale Transaction proceeds.
Current wording
Financing Activities -Net cash used in financing activities during the twenty-six weeks ended June 28, 2026 was primarily due to net payments on the revolving credit facility. Net cash used in financing activities during the twenty-six weeks ended June 29, 2025 was primarily due to: (i) net payments on the revolving credit facility from the Brazil Sale Transaction proceeds, (ii) payments of cash dividends and (iii) maturity settlement for the convertible senior notes due in 2025.
Previous wording
Working capital (deficit) includes: (i) Unearned revenue primarily from unredeemed gift cards of $321.4 million and $377.9 million as of March 29, 2026 and December 28, 2025, respectively, and (ii) current operating lease liabilities of $177.0 million and $176.3 million as of March 29, 2026 and December 28, 2025, respectively, with the corresponding operating right-of-use assets recorded as non-current on our Consolidated Balance Sheets. We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.
Current wording
Working capital (deficit) includes: (i) Unearned revenue primarily from unredeemed gift cards of $310.1 million and $377.9 million as of June 28, 2026 and December 28, 2025, respectively, and (ii) current operating lease liabilities of $176.8 million and $176.3 million as of June 28, 2026 and December 28, 2025, respectively, with the corresponding operating right-of-use assets recorded as non-current on our Consolidated Balance Sheets. We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.5% from commodity inflation partially offset by 1.4% from an increase in average check per person, primarily due to menu pricing.
Current report — wording carried from elsewhere
•Other restaurant operating expense decreased as a percentage of Restaurant sales primarily due to 0.5% from productivity initiatives partially offset by 0.3% from higher restaurant-level operating and supply expenses, mainly due to inflation.
Current report — wording carried from elsewhere
•Depreciation and amortization expense increased primarily due to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.
Current report — wording carried from elsewhere
•Provision for impaired assets and restaurant closings increased primarily due to higher impairment and other costs related to restaurant closures and underperforming restaurants.