Bloomin’ Brands ended Q2 2026 with 1,448 system-wide restaurants, down from 1,452 at the beginning of the quarter, as nine restaurant closures exceeded five openings across a portfolio that includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
The reduction was concentrated primarily in the U.S., where the system declined to 1,084 restaurants from 1,088. Bloomin’ Brands opened one U.S. restaurant and closed five during the quarter.
Outback Steakhouse accounted for most of the U.S. closures. The brand ended Q2 with 659 domestic restaurants, down from 662, after opening one company-operated location while closing three company-owned restaurants and one franchised location.
Carrabba’s ended the quarter with 203 U.S. restaurants and Bonefish Grill with 157, with neither brand recording openings or closures during Q2. Fleming’s company-owned count declined from 65 to 64 following one closure.
Internationally, Bloomin’ Brands opened four franchised Outback restaurants in Brazil, increasing the brand’s Brazilian count to 192. One South Korean Outback and three other international franchised restaurants closed, leaving the total international franchise count unchanged at 354.
The smaller restaurant base did not prevent consolidated revenue from increasing. Q2 revenue rose 1.3% to approximately $1.016 billion from $1.002 billion, with higher comparable restaurant sales more than offsetting the net impact of restaurant closures and openings.
Combined U.S. comparable restaurant sales increased 2.3%. Bonefish Grill was the strongest performer with an 8.1% increase, followed by Carrabba’s at 1.7%, Fleming’s at 1.6% and Outback at 1.4%.
Traffic remained a challenge for most concepts. Combined U.S. traffic declined 1.9%, including decreases of 2.8% at Outback, 2.5% at Carrabba’s and 2.8% at Fleming’s. Bonefish was the exception, with traffic increasing 4.5%.
Higher average checks offset the traffic decline. Average check per person increased 4.2% across Bloomin’ Brands’ U.S. portfolio, including 4.2% increases at both Outback and Carrabba’s, 3.6% at Bonefish and 4.4% at Fleming’s.
Restaurant-level profitability also improved. Restaurant-level operating margin increased 40 basis points to 12.4%, benefiting from higher average checks, productivity initiatives and lower pre-opening and health insurance costs, partially offset by higher commodity, labor, operating and advertising expenses.
Restaurant-level operating income increased to approximately $124.1 million from $117.7 million. GAAP operating income margin improved 80 basis points to 3.8%, while adjusted operating income margin increased to 4% from 3.5%.
The company also reduced debt during the first half. Total debt stood at approximately $702.8 million at June 28 compared with $787.4 million at the end of fiscal 2025, while cash and cash equivalents increased to $66.6 million from $59.5 million.
Bloomin’ Brands raised its full-year earnings outlook as management cited progress in the Outback turnaround. GAAP diluted EPS is now expected at $0.85-$0.95, up from $0.70-$0.85, while adjusted diluted EPS guidance increased to $0.90-$1.00 from $0.75-$0.90.
The quarter therefore reflects a strategy focused less on expanding restaurant count and more on improving the economics and operating performance of the remaining portfolio, with comparable sales and margins rising even as the system contracted modestly.
KEY QUOTES:
“I am pleased with our financial results in the second quarter and our continued progress on the Outback Turnaround, which has led us to raise our full year earnings guidance. We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.”
Mike Spanos, CEO of Bloomin’ Brands
