Bloomin' Brands, Inc.

Bloomin' Brands, Inc. operates as one of the largest casual dining restaurant companies globally, with a diverse portfolio of restaurant concepts ranging from casual to fine dining. The company's primary operating entity is OSI Restaurant Partners, LLC. As of December 28, 2025, Bloomin' Brands owned and operated 967 restaurants and franchised 493 restaurants across 46 states, Guam, and 12 countries ¹.

The company's core business model involves generating revenue from both Company-owned restaurants and through the sale of franchise rights, along with ongoing royalties and other fees from franchised restaurants. Company-owned restaurants are wholly-owned or majority-owned, with their operating results consolidated. Unaffiliated franchise agreements grant third parties the right to establish and operate restaurants under the company's concepts, requiring an initial franchise fee and monthly royalties based on a percentage of gross restaurant sales ². Initial franchise fees are generally $40,000 ³ for U.S. franchisees and range between $35,000 ⁴ and $75,000 ⁵ for international franchisees. Monthly royalty fee percentages for U.S. franchisees range from 3.50% to 5.75% ⁶, while international franchisees pay between 2.75% and 5.00% ⁷ of gross restaurant sales.

The U.S. segment, which aggregates all U.S. operating segments, includes Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. As of December 28, 2025, the U.S. segment comprised 957 Company-owned restaurants and 138 franchised restaurants across 46 states ⁸. Outback Steakhouse is a casual steakhouse concept, Carrabba's Italian Grill offers authentic Italian cuisine, Bonefish Grill specializes in fish and wood-grilled specialties, and Fleming's Prime Steakhouse & Wine Bar is a contemporary fine dining steakhouse. In 2025, Outback Steakhouse's U.S. Company-owned restaurants generated an average check per person of $29 ⁹, Carrabba's Italian Grill $27 ¹⁰, Bonefish Grill $37 ¹¹, and Fleming's Prime Steakhouse & Wine Bar $110 ¹². In-restaurant sales constituted 75% ¹³ for Outback Steakhouse, 66% ¹⁴ for Carrabba's Italian Grill, 83% ¹⁵ for Bonefish Grill, and 97% ¹⁶ for Fleming's Prime Steakhouse & Wine Bar. Food & non-alcoholic beverage sales mix was 92% ¹⁷ for Outback Steakhouse, 90% ¹⁸ for Carrabba's Italian Grill, 81% ¹⁹ for Bonefish Grill, and 80% ²⁰ for Fleming's Prime Steakhouse & Wine Bar.

The International Franchise segment includes franchised restaurants operating outside the U.S. As of December 28, 2025, this segment included 355 franchised restaurants across 11 countries and Guam ²¹. This segment primarily features Outback Steakhouse and Carrabba's Italian Grill (Abbraccio Cucina Italiana) concepts, with menus adapted to local preferences. On December 30, 2024, the company completed the sale of 67% ²² of its Brazil operations, retaining a 33% ²³ interest, which is now accounted for under the equity method. All restaurants in Brazil are now operated as unconsolidated franchisees.

For the fiscal year ended December 28, 2025, total revenues were $3.955 billion ²⁴, a 0.1% ²⁵ increase from 2024. Restaurant sales were $3.884 billion ²⁶, and franchise and other revenues were $71.762 million ²⁷. Gross profit is not explicitly stated, but food and beverage costs were 30.3% ²⁸ of restaurant sales, labor and other related expenses were 31.9% ²⁹, and other restaurant operating expenses were 26.1% ³⁰. Income from operations was $37.163 million ³¹, representing an operating income margin of 0.9% ³². Net income attributable to Bloomin' Brands was $8.237 million ³³, resulting in diluted earnings per share of $0.10 ³⁴. Cash and cash equivalents stood at $59.461 million ³⁵ as of December 28, 2025. Total long-term debt, net, was $787.425 million ³⁶.

Comparing fiscal year 2025 to 2024, total revenues increased by 0.1% ³⁷. U.S. comparable restaurant sales increased by 0.2% ³⁸, with Outback Steakhouse experiencing a (0.5)% ³⁹ decrease, Carrabba's Italian Grill a 2.8% ⁴⁰ increase, Bonefish Grill a (2.2)% ⁴¹ decrease, and Fleming's Prime Steakhouse & Wine Bar a 2.5% ⁴² increase. Food and beverage costs increased as a percentage of Restaurant sales by 1.1% ⁴³ due to commodity inflation and 0.6% ⁴⁴ from unfavorable product mix, partially offset by a 1.0% ⁴⁵ increase in average check per person. Labor and other related expense increased by 1.3% ⁴⁶ due to higher hourly and field management labor costs. Operating income decreased from $139.808 million ⁴⁷ in 2024 to $37.163 million ⁴⁸ in 2025, and operating income margin declined from 3.5% ⁴⁹ to 0.9% ⁵⁰. Diluted EPS improved from $(0.61) ⁵¹ in 2024 to $0.10 ⁵² in 2025.

During 2025, the company opened 15 ⁵³ Outback Steakhouse restaurants and 3 ⁵⁴ Fleming's Prime Steakhouse & Wine Bar restaurants in the U.S., along with 1 ⁵⁵ Carrabba's Italian Grill. There were 40 ⁵⁶ U.S. restaurant closures. Internationally, 24 ⁵⁷ franchised restaurants were opened, and 7 ⁵⁸ were closed. A significant operational development was the completion of the Brazil Sale Transaction on December 30, 2024, where the company sold 67% ⁵⁹ of its Brazil operations and retained a 33% ⁶⁰ interest, transitioning these restaurants to an unconsolidated franchisee model. The company also announced a comprehensive turnaround strategy in November 2025, focusing on operational excellence, brand relevancy, culture, and restaurant investments. This strategy included the suspension of the quarterly dividend in October 2025 ⁶¹. Goodwill impairment charges of $28.2 million ⁶² were recorded for the Bonefish Grill reporting unit in 2025.

Management has outlined a comprehensive turnaround strategy, primarily centered on Outback Steakhouse, to foster long-term sustainable and profitable growth. This strategy is built upon four key platforms: delivering a remarkable dine-in experience through operational excellence and service enhancements, driving brand relevancy to attract new guests and increase visit frequency, reigniting a culture of ownership and fun by reinvesting in people, and investing in restaurants to refresh the existing asset base and ensure brand standards are met. These initiatives are supported by non-guest facing productivity savings, balanced capital allocation, and a strong management team.

Regarding growth areas, the company plans to continue pursuing international expansion opportunities through its franchise partners, leveraging established franchised markets in South America, Asia, and the Middle East, with a particular focus on Brazil. In the U.S., the company opportunistically pursues unit growth across its concepts through existing geography fill-in and market expansion. Specifically, the company plans to open approximately six ⁶³ additional Outback Steakhouse locations in 2026. A key part of the turnaround strategy involves remodeling nearly all Outback Steakhouse restaurants by the end of 2028 ⁶⁴, which is intended to maintain the relevance of the restaurants' ambiance and drive additional traffic.

Operationally, the company is focused on cost savings in areas that will not impact the guest, such as indirect spend and contract negotiations, as part of its non-guest facing productivity savings initiative. The filing indicates an anticipation of 4.5% to 5.5% ⁶⁵ commodity inflation for 2026. The company also leverages technology to support digital marketing and customer engagement, business analytics, restaurant operations, and productivity initiatives related to staffing, food waste management, and supply chain efficiency. Investments in data and technology infrastructure include brand websites, online ordering, pay-at-the-table technology, and mobile apps.

In terms of capital allocation, the company has adopted a dual approach to invest in the base business and focus on debt paydown. As a component of its turnaround strategy, the Board suspended the quarterly dividend in October 2025 ⁶⁶. The company estimates capital expenditures will total approximately $185 million to $195 million ⁶⁷ in 2026. The company has slowed down new unit development to prioritize refreshing existing restaurants and expects to use available free cash flow to pay down debt.

Management explicitly flagged several structural headwinds and execution risks. These include the ability to execute and achieve the expected benefits of turnaround plans and cost-saving initiatives, consumer reactions to public health and food safety issues, minimum wage increases, additional mandated employee benefits, and fluctuations in the cost and availability of employees. The company also faces challenges in recruiting and retaining high-quality leadership and team members, and competition in the highly competitive restaurant industry. Geopolitical and economic conditions, including tariffs, consumer confidence, and interest rates, are also identified as risks. The impacts of operations in Brazil as a minority investor and franchisor, and the ability to comply with corporate citizenship and sustainability reporting requirements, are also noted.

The company faces material risks including food safety and food-borne illness concerns, which could reduce demand and increase costs, exacerbated by supply chain issues and potential delays in deliveries. The restaurant industry is highly competitive, with numerous operators and new market entrants, leading to intense competition on price, service, location, and food quality. The company also faces growing competition from supermarkets offering prepared meals and from quick-service and fast-casual restaurants, as well as expanding home delivery services. Failure to recruit, train, and retain high-quality leadership, restaurant-level management, and hourly team members may inhibit successful operation and growth, particularly given active competition for personnel and a tight labor market. Changes in consumer preferences and perceptions, including health or dietary trends, sourcing concerns, and responses to environmental and animal welfare issues, could lessen demand for products. Dependence on a limited number of suppliers and distributors for major products like beef, with more than 80% ⁶⁸ of beef raw materials purchased from four suppliers in 2025, creates risks of shortages, interruptions, animal disease outbreaks, and price volatility. The inability to effectively manage the accelerated impact of social media, including adverse or inaccurate information, could damage brand reputation. Government regulations, including employment and labor laws (e.g., minimum wage increases, fair workweek legislation), alcoholic beverage control, food safety, and environmental regulations, could increase operating costs and affect business. Changes in tax laws, such as the 15% ⁶⁹ global minimum tax under OECD Pillar Two, and unanticipated tax liabilities could adversely affect profitability. Failure to adequately address corporate citizenship and sustainability matters, including diversity, equity, and inclusion, could damage reputation and adversely affect business. Risks associated with strategic actions like remodeling, relocation, and expansion plans, including the plan to remodel nearly all Outback Steakhouse restaurants by the end of 2028 ⁷⁰, may not yield anticipated benefits. Operating in foreign markets exposes the company to international economic, political, social, and legal conditions, differing cultures, diverse government regulations, and currency fluctuations. Challenging economic, political, and social conditions, including inflation (anticipated 4.5% to 5.5% ⁷¹ commodity inflation for 2026), geopolitical conflicts, and social unrest, may negatively impact consumer spending and increase costs. Cybersecurity breaches of confidential consumer and employee information, and other threats to technological systems, pose risks of negative publicity, loss of consumers, business interruption, and legal liabilities. Failure to enforce trademarks or other proprietary rights could adversely affect competitive position. Substantial outstanding indebtedness and restrictive covenants in debt agreements could limit the ability to raise additional capital or react to market changes. Litigation, including claims related to food-borne illness, wage and hour laws, and "dram shop" statutes, could have a material adverse impact. Significant adverse weather conditions, natural disasters, and widespread illnesses could disrupt operations and supply chains. Insurance policies may not provide adequate coverage, and fluctuating insurance costs could negatively impact profitability. Impairment in the carrying value of goodwill or other intangible or long-lived assets, as evidenced by the $28.2 million ⁷² goodwill impairment for Bonefish Grill in 2025, could adversely affect financial condition.

Management's message to shareholders emphasizes a comprehensive turnaround strategy, with a primary focus on Outback Steakhouse, designed to achieve long-term sustainable and profitable growth. The strategy is built on four key platforms: enhancing the dine-in experience through operational excellence and service, boosting brand relevancy to attract new guests and increase frequency, fostering a culture of ownership and fun by investing in employees, and refreshing existing restaurant assets to meet brand standards. These initiatives are supported by non-guest facing productivity savings, a balanced capital allocation approach, and a strong management team focused on operational mindset and guest centricity. As part of this balanced capital allocation, the Board suspended the quarterly dividend in October 2025 ⁷³, and the company expects to use available free cash flow to pay down debt. Management anticipates capital expenditures of approximately $185 million to $195 million ⁷⁴ in 2026.