Bloomin’ Brands Raises 2026 Earnings Outlook to $1.11 Despite Lower Sales Growth Forecast
Key Facts
Bloomin’ Brands raised its fiscal 2026 diluted earnings per share outlook to a range of $1.06 to $1.11, from $0.85 to $0.95, while lowering its estimate for comparable sales growth at its U.S. restaurants to 1%–1.5% from 1%–2%. The company reported the revision in its third-quarter results statement on November 6. The update pairs a higher earnings per share outlook with a more cautious estimate for comparable sales growth. The company also raised its adjusted diluted earnings per share outlook to $0.97–$1.02 from $0.90–$1.00. The annual guidance reflects a divergence between the expected earnings trajectory and the sales growth rate the company anticipates.
In the third quarter of 2026, the company reported total revenue of $944.3 million, up 1.7% from $928.8 million in the same period of 2025, according to the results statement. The company said the increase was mainly linked to higher comparable sales and a change in its estimate of gift card revenue. Total revenue included $13.2 million resulting from a change in the accounting estimate for revenue from unused gift cards. Investing.com reported revenue of $927.0 million, compared with analysts’ estimate of $925.6 million. Those figures remain attributed to the revenue measure cited in that report, while the company’s statement reported total revenue of $944.3 million.
The GAAP operating margin improved to 2.0% in the third quarter, from a loss margin of 3.9% a year earlier. At the restaurant level, the operating margin rose to 10.6% from 9.2%, but the adjusted restaurant-level margin fell to 9.3% from 9.5%. The company attributed the improvement in its overall operating margin mainly to lower asset impairment and closing costs, and a higher restaurant-level operating margin. The comparison with transformation expenses and foreign currency forward contracts recorded in the year-earlier period also helped. Higher compensation expenses partly offset those factors, according to the company’s statement.
The company said the restaurant-level operating margin benefited from a higher average check, mainly due to pricing, as well as the change in the accounting estimate for gift cards and productivity initiatives. This was partly offset by higher commodity, operating and labor costs due to inflation, along with increased advertising expenses. U.S. comparable sales grew 1.9% overall during the quarter. Comparable sales at Outback Steakhouse rose 1.9%, at Carrabba’s Italian Grill they increased 0.6%, and at Bonefish Grill they rose 5.3%. Investing.com reported that traffic at U.S. restaurants fell 1.8%, while the average check per person rose 3.7% due to pricing.
On a per-share basis, the company reported a GAAP diluted loss of $0.02 in the third quarter, compared with a loss of $0.54 a year earlier. The adjusted diluted loss was $0.17 per share, versus $0.03 in the third quarter of 2025. According to Investing.com, the adjusted loss was narrower than the $0.23 per share loss expected by the analyst consensus. Chief Executive Mike Spanos said Outback guest ratings improved year over year for five consecutive quarters through the third quarter. That development places guest ratings alongside the brand’s sales growth, as the report cited lower traffic and a higher average check.
For the fourth quarter of 2026, the company forecast U.S. comparable sales growth of 0% to 1%, and diluted and adjusted diluted earnings per share of $0.07 to $0.12 for each measure. Investing.com put the midpoint of the adjusted earnings per share outlook at $0.095, below the analyst consensus it cited at $0.14. The same report said the company’s shares rose 3.8% after the results announcement, while a separate summary cited in the evidence gave a conflicting indication of the share move; therefore, the available information does not provide a unified reading of the stock’s movement. The company was scheduled to hold a conference call to review its third-quarter results on November 6, 2026, at 8:00 a.m. Eastern Time. The upcoming guidance pairs a limited range for comparable sales growth with a forecast for positive earnings per share.