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TAMPA - On Wednesday, Bloomin’ Brands, Inc. (NASDAQ:BLMN) reported second-quarter adjusted earnings that exceeded analyst expectations, though the restaurant operator lowered its full-year guidance amid ongoing challenges at its flagship Outback Steakhouse brand.
The parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse posted adjusted earnings per share of $0.32 for the second quarter, surpassing the analyst consensus of $0.28. Revenue reached $1 billion, slightly above the $979.94 million analysts had expected and up 0.3% YoY.
"We are making progress to build a high capability team that is guest centric with an operational mindset," said CEO Mike Spanos. "Our restaurant teams are focused on consistency of execution, and we remain committed to turning around Outback to deliver sustainable and profitable growth."
Restaurant-level operating margin declined to 12.0% from 14.0% in the same quarter last year, primarily due to higher labor and commodity costs from inflation, increased insurance expenses, and unfavorable product cost mix.
Comparable restaurant sales results were mixed across the company’s portfolio. Outback Steakhouse, the company’s largest brand, saw comparable sales decline 0.6% with traffic down 1.0%. Carrabba’s Italian Grill and Fleming’s Prime Steakhouse performed better with comparable sales increases of 3.9% and 3.8% respectively, while Bonefish Grill struggled with a 5.8% decline.
For the third quarter, Bloomin’ Brands expects a loss per share between $0.15 and $0.10, well below the analyst consensus of $0.05 earnings per share. The company also reduced its full-year earnings guidance to between $1.00 and $1.10 per share, down from the analyst consensus of $1.23.
The company maintained its quarterly dividend of $0.15 per share, payable on September 3 to shareholders of record as of August 19.
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