Bloomin’ Brands’ third quarter results were met with a significant negative market reaction, reflecting investor concerns despite revenue and non-GAAP EPS coming in ahead of Wall Street expectations. Management cited the effects of ongoing operational challenges, particularly at Outback Steakhouse, and highlighted steps taken to improve consistency and value perception. CEO Michael Spanos described the quarter as a period of foundational change, noting that “we faced several critical challenges, including overly complex menus, unclear brand positioning, inconsistent guest experiences, a gap in steak quality and diminishing value perception.” The company responded by simplifying menus, introducing new value offerings, and leveraging technology to enhance guest feedback and service consistency.
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Bloomin' Brands (BLMN) Q3 CY2025 Highlights:
- Revenue: $928.8 million vs analyst estimates of $904.8 million (10.6% year-on-year decline, 2.7% beat)
- Adjusted EPS: -$0.03 vs analyst estimates of -$0.13 (76% beat)
- Adjusted EBITDA: $52.7 million vs analyst estimates of $47.38 million (5.7% margin, 11.2% beat)
- Management raised its full-year Adjusted EPS guidance to $1.13 at the midpoint, a 7.1% increase
- Operating Margin: -3.9%, down from 1.7% in the same quarter last year
- Locations: 1,483 at quarter end, up from 1,463 in the same quarter last year
- Same-Store Sales rose 1.2% year on year (-1.5% in the same quarter last year)
- Market Capitalization: $553.1 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bloomin' Brands’s Q3 Earnings Call
- Anisha Datt (Barclays) asked whether Q3 momentum continued into Q4 and what factors sustained performance. CEO Michael Spanos explained that trends had carried forward and credited value-driven offerings and meeting consumers “where they’re at.”
- Jeffrey Farmer (Gordon Haskett) pressed on drivers behind outperformance in same-store sales. Spanos cited more consistent execution and targeted value offers across brands as main contributors.
- Jon Tower (Citi) inquired about the success and future of the Aussie 3-Course platform, particularly in the context of beef inflation. Spanos responded that the offer was meeting expectations, with most guests trading up, and that pricing strategy would remain flexible to manage cost pressures.
- Brian Mullan (Piper Sandler) questioned the phasing of increased marketing investments and how these would be sequenced with operational changes. Spanos confirmed marketing increases would follow foundational improvements in steak quality and service, to avoid overloading restaurant teams.
- Sara Senatore (Bank of America) asked about the interplay between menu price increases and average check, as well as the impact of Ziosk on the guest experience. CFO Eric Christel noted price increases were consistent with guidance, while Spanos explained that Ziosk was improving both efficiency and guest feedback collection.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the impact of steak quality upgrades and the new service model on Outback’s guest metrics, (2) the effectiveness of increased digital marketing in attracting and retaining both lapsed and younger diners, and (3) whether ongoing cost savings and productivity initiatives can offset inflationary headwinds. Execution on restaurant remodels, as well as progress in menu optimization and operational simplification, will also serve as important markers of success.
Bloomin' Brands currently trades at $6.62, down from $7.25 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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