8-K
Bloomin' Brands, Inc. (BLMN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) February 25, 2026
BLOOMIN’ BRANDS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-35625 | 20-8023465 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
2202 North West Shore Boulevard, Suite 500, Tampa, FL 33607
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (813) 282-1225
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
|---|---|---|---|
| Common Stock | $0.01 par value | BLMN | The Nasdaq Stock Market LLC<br><br>(Nasdaq Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On February 25, 2026, Bloomin’ Brands, Inc. issued a press release reporting its financial results for the thirteen weeks ended December 28, 2025. A copy of the release is attached as Exhibit 99.1.
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit<br><br>Number | Description |
|---|---|
| 99.1 | Press Release of Bloomin’ Brands, Inc. datedFebruary 25, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BLOOMIN’ BRANDS, INC. | |||
|---|---|---|---|
| (Registrant) | |||
| Date: | February 25, 2026 | By: | /s/ Eric Christel |
| Eric Christel | |||
| Executive Vice President and Chief Financial Officer<br>(Principal Financial Officer) |
Document
| NEWS | Exhibit 99.1 | |
|---|---|---|
| Tara Kurian | ||
| SVP, IR, FP&A, and International | ||
| (813) 830-5311 |
Bloomin’ Brands Announces 2025 Q4 Financial Results
Provides Full Year 2026 Financial Outlook
TAMPA, Fla., February 25, 2026 - Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the fourth quarter 2025 (“Q4 2025”) and the fiscal year ended December 28, 2025 (“Fiscal Year 2025”) compared to the fourth quarter 2024 (“Q4 2024”) and the fiscal year ended December 29, 2024 (“Fiscal Year 2024”).
CEO Comments
“Our fourth quarter results reflect our continued focus on disciplined execution and food quality to deliver a consistently great guest experience. Through these efforts, Outback achieved its first quarter of positive traffic since Q4 2021,” said Mike Spanos, CEO. “We launched our turnaround strategy in November with targeted investments in steak quality at Outback. Over the course of this year, we expect to make additional strategic investments as we look to drive long-term, sustainable, and profitable growth.”
Diluted EPS and Adjusted Diluted EPS
The following table reconciles Diluted (loss) earnings per share from continuing operations to Adjusted diluted earnings per share from continuing operations for the periods indicated (unaudited):
| Q4 | FISCAL YEAR | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | CHANGE | 2025 | 2024 | CHANGE | |||||||
| Diluted (loss) earnings per share: | $ | (0.14) | $ | 0.12 | $ | (0.26) | $ | 0.10 | $ | (0.61) | $ | 0.71 |
| Adjustments (1) | 0.40 | 0.10 | 0.30 | 1.04 | 2.06 | (1.02) | ||||||
| Adjusted diluted earnings per share (1) | $ | 0.26 | $ | 0.22 | $ | 0.04 | $ | 1.14 | $ | 1.45 | $ | (0.31) |
___________________
(1)Adjustments for Q4 2025 and Fiscal Year 2025 primarily include (i) goodwill impairment from the Bonefish Grill reporting unit, (ii) asset impairment and closing costs related to closures and underperforming restaurants, (iii) costs incurred as a result of transformational and restructuring activities and (iv) costs associated with the foreign currency forward contracts. Adjustments for Q4 2024 and Fiscal Year 2024 include (i) asset impairment and closing costs related to closures and underperforming restaurants, (ii) costs incurred as a result of transformational and restructuring activities and (iii) gains associated with the foreign currency forward contracts. See non-GAAP Measures later in this release. Also see Tables Four, Five and Six for further details regarding the nature of diluted earnings per share adjustments for the periods presented.
Fourth Quarter Financial Results
| (dollars in millions, unaudited) | Q4 2025 | Q4 2024 | CHANGE | |||||
|---|---|---|---|---|---|---|---|---|
| Total revenues | $ | 975.2 | $ | 972.0 | 0.3 | % | ||
| GAAP operating (loss) income margin | (1.4) | % | 1.7 | % | (3.1) | % | ||
| Adjusted operating income margin (1) | 3.4 | % | 3.5 | % | (0.1) | % | ||
| Restaurant-level operating margin (1) | 11.5 | % | 12.4 | % | (0.9) | % | ||
| Adjusted restaurant-level operating margin (1) | 11.6 | % | 12.4 | % | (0.8) | % |
___________________
(1)See non-GAAP Measures later in this release. Also see Tables Four and Five for details regarding the nature of restaurant-level operating margin and operating income margin adjustments, respectively.
•The increase in Total revenues was primarily due to the net impact of restaurant openings and closures partially offset by lower franchise revenues.
•GAAP operating income margin decreased from Q4 2024 primarily due to: (i) Bonefish Grill goodwill impairment, (ii) lapping 2024 gains and incurring 2025 costs associated with our foreign currency forward contracts and (iii) a decrease in restaurant-level operating margin, as detailed below. These decreases were partially offset by lower asset impairment and closing costs.
•Restaurant-level operating margin decreased from Q4 2024 primarily due to: (i) higher commodity and labor costs, mainly due to inflation, and (ii) unfavorable product cost mix. These decreases were partially offset by: (i) higher average check per person, primarily due to pricing, (ii) lower advertising expense and (iii) lower insurance expense.
•Adjusted operating income margin primarily excludes the Bonefish Grill goodwill impairment, certain asset impairment and closing costs and costs associated with the foreign currency forward contracts.
Fourth Quarter Comparable Restaurant Sales
| THIRTEEN WEEKS ENDED DECEMBER 28, 2025 | COMPANY-OWNED | |
|---|---|---|
| Comparable restaurant sales (stores open 18 months or more): | ||
| U.S. | ||
| Outback Steakhouse | (0.6) | % |
| Carrabba’s Italian Grill | 1.6 | % |
| Bonefish Grill | (0.1) | % |
| Fleming’s Prime Steakhouse & Wine Bar | 0.1 | % |
| Combined U.S. | — | % |
Fiscal 2026 Financial Outlook
The table below presents our expectations for selected 2026 financial operating results.
| Financial Results: | 2026 Guidance |
|---|---|
| U.S. comparable restaurant sales | 0.5% to 2.5% |
| Diluted earnings per share (1) | $0.70 to $0.85 |
| Adjusted diluted earnings per share (1)(2) | $0.75 to $0.90 |
| Effective income tax rate | Negative |
___________________
(1)Assumes diluted weighted average shares of 86 to 87 million.
(2)Includes estimated adjustments related to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.
| Other Selected Financial Data: | 2026 Guidance |
|---|---|
| Commodity inflation | 4.5% to 5.5% |
| Labor inflation | 3% to 3.5% |
| Capital expenditures | $185M to $195M |
| Number of new company-owned restaurants | 6-8 |
| Number of new franchised restaurants | 17-20 |
Q1 2026 Financial Outlook
The table below presents our expectations for selected fiscal Q1 2026 financial operating results.
| Financial Results: | Q1 2026 Outlook |
|---|---|
| U.S. comparable restaurant sales | Flat to 1% |
| Diluted earnings per share (1) | $0.54 to $0.59 |
| Adjusted diluted earnings per share (1)(2) | $0.57 to $0.62 |
___________________
(1)Assumes diluted weighted average shares of approximately 86 million.
(2)Includes estimated adjustments related to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.
Conference Call
The Company will host a conference call today, February 25, 2026 at 8:30 AM EST. The conference call will be webcast live from the Company’s website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company’s website after the call.
About Bloomin’ Brands, Inc.
Bloomin’ Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company’s restaurant portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company owns, operates and franchises more than 1,450 restaurants in 46 states, Guam and 12 countries. For more information, please visit www.bloominbrands.com.
Non-GAAP Measures
In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include: (i) Restaurant-level operating income, adjusted restaurant-level operating income and their corresponding margins, (ii) Adjusted income from operations and the corresponding margin, (iii) Adjusted segment income from operations and the corresponding margin, (iv) Adjusted net income and (v) Adjusted diluted earnings per share.
Restaurant-level operating margin is a non-GAAP financial measure widely regarded in the industry as a useful metric to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations, and we use it for these purposes.
We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans.
These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should
refer to the reconciliations of non-GAAP measures in Tables Four, Five and Six included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period.
Forward-Looking Statements
Certain statements contained herein, including statements under the headings “CEO Comments”, “Fiscal 2026 Financial Outlook” and “Q1 2026 Financial Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as “guidance,” “believes,” “estimates,” “anticipates,” “expects,” “on track,” “feels,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to execute and achieve the expected benefits of our actions to focus on operational priorities, including our turnaround plans and cost-saving initiatives to fund such plans; consumer reaction to public health and food safety issues; increases in labor costs and fluctuations in the availability of employees and our ability to attract, train, and retain key personnel; increases in unemployment rates and taxes; competition; interruption or breach of our systems or loss of consumer or employee information; price and availability of commodities and other impacts of inflation and tariffs; our dependence on a limited number of suppliers and distributors; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; the impacts of our operations in Brazil as a minority investor and franchisor; our ability to address corporate citizenship and sustainability matters and investor expectations; local, regional, national and international economic conditions; changes in patterns of consumer traffic, consumer tastes and dietary habits; the effects of changes in tax laws; costs, diversion of management attention and reputational damage from any claims or litigation; government actions and policies, including the impact of U.S. government shutdowns; challenges associated with our remodeling, relocation and expansion plans; our ability to preserve the value of and grow our brands, including due to our limited control with respect to and the challenges facing the operations of our franchisees; consumer confidence and spending patterns; the effects of a health pandemic, weather, acts of God and other disasters and the ability or success in executing related business continuity plans; the Company’s ability to make debt payments and planned investments and the Company’s compliance with debt covenants; the cost and availability of credit; interest rate changes; and any impairments in the carrying value of goodwill and other assets. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Note: Numerical figures included in this release have been subject to rounding adjustments.
| TABLE ONE | ||||||||
|---|---|---|---|---|---|---|---|---|
| BLOOMIN’ BRANDS, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| THIRTEEN WEEKS ENDED | FISCAL YEAR | |||||||
| DECEMBER 28, 2025 | DECEMBER 29, 2024 | 2025 | 2024 | |||||
| (in thousands, except per share data) | (UNAUDITED) | (UNAUDITED) | (UNAUDITED) | |||||
| Revenues | ||||||||
| Restaurant sales | $ | 958,026 | $ | 952,091 | $ | 3,884,234 | $ | 3,866,344 |
| Franchise and other revenues | 17,197 | 19,929 | 71,762 | 84,131 | ||||
| Total revenues | 975,223 | 972,020 | 3,955,996 | 3,950,475 | ||||
| Costs and expenses | ||||||||
| Food and beverage | 290,586 | 276,239 | 1,177,303 | 1,147,859 | ||||
| Labor and other related | 309,844 | 301,170 | 1,237,978 | 1,202,520 | ||||
| Other restaurant operating | 247,315 | 256,408 | 1,014,151 | 1,001,034 | ||||
| Depreciation and amortization | 44,188 | 45,146 | 177,680 | 175,580 | ||||
| General and administrative | 58,389 | 43,723 | 238,396 | 219,383 | ||||
| Provision for impaired assets and restaurant closings | 10,011 | 33,137 | 45,137 | 64,291 | ||||
| Goodwill impairment | 28,188 | — | 28,188 | — | ||||
| Total costs and expenses | 988,521 | 955,823 | 3,918,833 | 3,810,667 | ||||
| (Loss) income from operations | (13,298) | 16,197 | 37,163 | 139,808 | ||||
| Loss on extinguishment of debt | — | — | — | (136,022) | ||||
| Interest expense, net | (12,356) | (17,138) | (45,354) | (62,593) | ||||
| Loss before benefit for income taxes | (25,654) | (941) | (8,191) | (58,807) | ||||
| Benefit for income taxes | (16,450) | (13,526) | (26,699) | (12,134) | ||||
| Loss from equity method investment, net of tax | (1,308) | — | (4,742) | — | ||||
| Net (loss) income from continuing operations | (10,512) | 12,585 | 13,766 | (46,673) | ||||
| Loss from discontinued operations, net of tax | (1,251) | (90,122) | (537) | (75,982) | ||||
| Net (loss) income | (11,763) | (77,537) | 13,229 | (122,655) | ||||
| Less: net income attributable to noncontrolling interests | 1,712 | 1,924 | 4,992 | 5,363 | ||||
| Net (loss) income attributable to Bloomin’ Brands | $ | (13,475) | $ | (79,461) | $ | 8,237 | $ | (128,018) |
| Basic (loss) earnings per share (1): | ||||||||
| Continuing operations | $ | (0.14) | $ | 0.13 | $ | 0.10 | $ | (0.61) |
| Discontinued operations | (0.01) | (1.06) | (0.01) | (0.88) | ||||
| Net basic (loss) earnings per share | $ | (0.16) | $ | (0.94) | $ | 0.10 | $ | (1.49) |
| Diluted (loss) earnings per share (1): | ||||||||
| Continuing operations | $ | (0.14) | $ | 0.12 | $ | 0.10 | $ | (0.61) |
| Discontinued operations | (0.01) | (1.05) | (0.01) | (0.88) | ||||
| Net diluted (loss) earnings per share | $ | (0.16) | $ | (0.93) | $ | 0.10 | $ | (1.49) |
| Weighted average common shares outstanding: | ||||||||
| Basic | 85,214 | 84,845 | 85,062 | 85,905 | ||||
| Diluted | 85,214 | 85,428 | 85,307 | 85,905 |
_________________
(1)Amounts may not add due to rounding.
| TABLE TWO | ||||||||
|---|---|---|---|---|---|---|---|---|
| BLOOMIN’ BRANDS, INC. | ||||||||
| SEGMENT RESULTS | ||||||||
| THIRTEEN WEEKS ENDED | FISCAL YEAR | |||||||
| (dollars in thousands) | DECEMBER 28, 2025 | DECEMBER 29, 2024 | 2025 | 2024 | ||||
| U.S. Segment | (UNAUDITED) | (UNAUDITED) | (UNAUDITED) | |||||
| Revenues | ||||||||
| Restaurant sales | $ | 948,060 | $ | 942,568 | $ | 3,846,028 | $ | 3,812,604 |
| Franchise and other revenues | 9,358 | 9,940 | 40,397 | 44,530 | ||||
| Total U.S. segment revenues | 957,418 | 952,508 | 3,886,425 | 3,857,134 | ||||
| International Franchise Segment | ||||||||
| Franchise revenues | 7,817 | 9,988 | 31,297 | 39,490 | ||||
| Reconciliation | ||||||||
| All other revenues (1) | 9,988 | 9,524 | 38,274 | 53,851 | ||||
| Total revenues | $ | 975,223 | $ | 972,020 | $ | 3,955,996 | $ | 3,950,475 |
| Reconciliation of Segment Operating Income to Total Operating (Loss) Income | ||||||||
| Segment income from operations | ||||||||
| U.S. | $ | 22,301 | $ | 34,036 | $ | 180,033 | $ | 250,050 |
| International Franchise | 7,572 | 9,668 | 30,412 | 37,961 | ||||
| Total segment income from operations | 29,873 | 43,704 | 210,445 | 288,011 | ||||
| Unallocated corporate operating expense | (44,101) | (27,102) | (175,536) | (130,769) | ||||
| Other income (loss) from operations (1) | 930 | (405) | 2,254 | (17,434) | ||||
| Total (loss) income from operations | $ | (13,298) | $ | 16,197 | $ | 37,163 | $ | 139,808 |
_________________
(1)Primarily includes revenues and income (loss) from operations related to its Hong Kong subsidiary.
| TABLE THREE | ||||
|---|---|---|---|---|
| BLOOMIN’ BRANDS, INC. | ||||
| SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||
| DECEMBER 28, 2025 | DECEMBER 29, 2024 | |||
| (dollars in thousands) | (UNAUDITED) | |||
| Cash and cash equivalents | $ | 59,461 | $ | 70,056 |
| Net working capital (deficit) (1) | $ | (609,008) | $ | (631,817) |
| Total assets | $ | 3,171,907 | $ | 3,384,805 |
| Total debt | $ | 787,425 | $ | 1,027,398 |
| Total stockholders’ equity | $ | 337,165 | $ | 139,446 |
_________________
(1)We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.
| TABLE FOUR | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BLOOMIN’ BRANDS, INC. | ||||||||||||
| RESTAURANT-LEVEL AND ADJUSTED RESTAURANT-LEVEL OPERATING INCOME AND MARGINS NON-GAAP RECONCILIATIONS | ||||||||||||
| (UNAUDITED) | ||||||||||||
| Consolidated | THIRTEEN WEEKS ENDED | FISCAL YEAR | ||||||||||
| (dollars in thousands) | DECEMBER 28, 2025 | DECEMBER 29, 2024 | 2025 | 2024 | ||||||||
| (Loss) income from operations | $ | (13,298) | $ | 16,197 | $ | 37,163 | $ | 139,808 | ||||
| Operating (loss) income margin | (1.4) | % | 1.7 | % | 0.9 | % | 3.5 | % | ||||
| Less: | ||||||||||||
| Franchise and other revenues | 17,197 | 19,929 | 71,762 | 84,131 | ||||||||
| Plus: | ||||||||||||
| Depreciation and amortization | 44,188 | 45,146 | 177,680 | 175,580 | ||||||||
| General and administrative | 58,389 | 43,723 | 238,396 | 219,383 | ||||||||
| Provision for impaired assets and restaurant closings | 10,011 | 33,137 | 45,137 | 64,291 | ||||||||
| Goodwill impairment | 28,188 | — | 28,188 | — | ||||||||
| Restaurant-level operating income (1) | $ | 110,281 | $ | 118,274 | $ | 454,802 | $ | 514,931 | ||||
| Restaurant-level operating margin | 11.5 | % | 12.4 | % | 11.7 | % | 13.3 | % | ||||
| Adjustments: | ||||||||||||
| Employee benefits policy change (2) | 908 | — | 3,671 | — | ||||||||
| Closure-related charges | — | — | — | 434 | ||||||||
| Total restaurant-level operating income adjustments | 908 | — | 3,671 | 434 | ||||||||
| Adjusted restaurant-level operating income | $ | 111,189 | $ | 118,274 | $ | 458,473 | $ | 515,365 | ||||
| Adjusted restaurant-level operating margin | 11.6 | % | 12.4 | % | 11.8 | % | 13.3 | % |
_________________
(1)The following categories of revenue and operating expenses are not included in restaurant-level operating income and the corresponding margin because we do not consider them reflective of operating performance at the restaurant-level within a period:
(a)Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income.
(b)Depreciation and amortization, which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.
(c)General and administrative expense, which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.
(d)Asset impairment charges and restaurant closing costs and Goodwill impairment.
(2)Represents costs associated with updated field PTO policy in connection with the transition to a new human resources and payroll system.
| TABLE FIVE | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BLOOMIN’ BRANDS, INC. | ||||||||||||
| ADJUSTED INCOME FROM OPERATIONS AND MARGIN NON-GAAP RECONCILIATIONS | ||||||||||||
| (UNAUDITED) | ||||||||||||
| (dollars in thousands) | THIRTEEN WEEKS ENDED | FISCAL YEAR | ||||||||||
| Consolidated | DECEMBER 28, 2025 | DECEMBER 29, 2024 | 2025 | 2024 | ||||||||
| (Loss) income from operations | $ | (13,298) | $ | 16,197 | $ | 37,163 | $ | 139,808 | ||||
| Operating (loss) income margin | (1.4) | % | 1.7 | % | 0.9 | % | 3.5 | % | ||||
| Adjustments: | ||||||||||||
| Total restaurant-level operating income adjustments (1) | 908 | — | 3,671 | 434 | ||||||||
| Goodwill impairment (2) | 28,188 | — | 28,188 | — | ||||||||
| Asset impairments and closure-related charges (3) | 9,277 | 30,602 | 38,918 | 63,009 | ||||||||
| Severance and other transformational costs (4) | 6,575 | 2,500 | 22,762 | 10,621 | ||||||||
| Foreign currency forward contract costs (gains) (5) | 1,517 | (15,728) | 9,332 | (15,728) | ||||||||
| Total income from operations adjustments | 46,465 | 17,374 | 102,871 | 58,336 | ||||||||
| Adjusted income from operations | $ | 33,167 | $ | 33,571 | $ | 140,034 | $ | 198,144 | ||||
| Adjusted operating income margin | 3.4 | % | 3.5 | % | 3.5 | % | 5.0 | % | ||||
| U.S. Segment | ||||||||||||
| Income from operations | $ | 22,301 | $ | 34,036 | $ | 180,033 | $ | 250,050 | ||||
| Operating income margin | 2.3 | % | 3.6 | % | 4.6 | % | 6.5 | % | ||||
| Adjustments: | ||||||||||||
| Total restaurant-level operating income adjustments (1) | — | — | — | 434 | ||||||||
| Goodwill impairment (2) | 28,188 | — | 28,188 | — | ||||||||
| Asset impairments and closure-related charges (3) | 8,645 | 30,071 | 38,505 | 43,929 | ||||||||
| Severance and other transformational costs (4) | — | 2,500 | — | 6,500 | ||||||||
| Total income from operations adjustments | 36,833 | 32,571 | 66,693 | 50,863 | ||||||||
| Adjusted income from operations | $ | 59,134 | $ | 66,607 | $ | 246,726 | $ | 300,913 | ||||
| Adjusted operating income margin | 6.2 | % | 7.0 | % | 6.3 | % | 7.8 | % | ||||
| International Franchise Segment | ||||||||||||
| Income from operations | $ | 7,572 | $ | 9,668 | $ | 30,412 | $ | 37,961 |
_________________
(1)See Table Four Restaurant-level and Adjusted Restaurant-Level Operating Income and Margins Non-GAAP Reconciliations for details regarding restaurant-level operating income adjustments.
(2)Relates to goodwill impairment from the Bonefish Grill reporting unit.
(3)The thirteen weeks ended December 28, 2025 and fiscal year 2025 primarily include costs related to the closure of 21 U.S. restaurants and the decision not to renew the leases of 22 restaurants. Fiscal year 2025 also includes asset impairments related to five underperforming U.S. restaurants. The thirteen weeks ended December 29, 2024 and fiscal year 2024 include asset impairment related to older, underperforming restaurants. Fiscal year 2024 also includes other asset impairment and closure-related costs in connection with previous restaurant closures.
(4)Includes severance, professional fees and other costs incurred as a result of transformational and restructuring activities.
(5)Represents costs (gains) in connection with the foreign currency forward contracts that mostly offset foreign currency exchange risk associated with payments from the Brazil Sale Transaction.
| TABLE SIX | ||||||||
|---|---|---|---|---|---|---|---|---|
| BLOOMIN’ BRANDS, INC. | ||||||||
| ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATIONS | ||||||||
| (UNAUDITED) | ||||||||
| THIRTEEN WEEKS ENDED | FISCAL YEAR | |||||||
| (in thousands, except per share data) | DECEMBER 28, 2025 | DECEMBER 29, 2024 | 2025 | 2024 | ||||
| Net (loss) income attributable to Bloomin’ Brands | $ | (13,475) | $ | (79,461) | $ | 8,237 | $ | (128,018) |
| Loss from discontinued operations, net of tax | (1,251) | (90,122) | (537) | (75,982) | ||||
| Net (loss) income attributable to Bloomin’ Brands from continuing operations | (12,224) | 10,661 | 8,774 | (52,036) | ||||
| Adjustments: | ||||||||
| Income from operations adjustments (1) | 46,465 | 17,374 | 102,871 | 58,336 | ||||
| Loss on extinguishment of debt (2) | — | — | — | 135,797 | ||||
| Total adjustments, before income taxes | 46,465 | 17,374 | 102,871 | 194,133 | ||||
| Tax effect of adjustments (3) | (11,747) | (9,107) | (14,770) | (13,001) | ||||
| Net adjustments, continuing operations | 34,718 | 8,267 | 88,101 | 181,132 | ||||
| Adjusted net income, continuing operations | 22,494 | 18,928 | 96,875 | 129,096 | ||||
| Adjusted (loss) income, discontinued operations net of tax (4) | (1,251) | 13,723 | (537) | 30,246 | ||||
| Adjusted net income | $ | 21,243 | $ | 32,651 | $ | 96,338 | $ | 159,342 |
| Diluted (loss) earnings per share (5): | ||||||||
| Continuing operations | $ | (0.14) | $ | 0.12 | $ | 0.10 | $ | (0.61) |
| Discontinued operations | (0.01) | (1.05) | (0.01) | (0.88) | ||||
| Net diluted (loss) earnings per share | $ | (0.16) | $ | (0.93) | $ | 0.10 | $ | (1.49) |
| Adjusted diluted earnings per share (5): | ||||||||
| Continuing operations | $ | 0.26 | $ | 0.22 | $ | 1.14 | $ | 1.45 |
| Discontinued operations | (0.01) | 0.16 | (0.01) | 0.34 | ||||
| Adjusted net diluted earnings per share (6) | $ | 0.25 | $ | 0.38 | $ | 1.13 | $ | 1.79 |
| Diluted weighted average common shares outstanding | 85,214 | 85,428 | 85,307 | 85,905 | ||||
| Adjusted diluted weighted average common shares outstanding (6) | 85,562 | 85,428 | 85,307 | 88,900 |
________________
(1)See Table Five Adjusted Income from Operations and Margin Non-GAAP Reconciliations above for details regarding income from operations adjustments.
(2)Includes losses in connection with the repurchase of $83.6 million of the outstanding convertible senior notes due in 2025, including settlements of the related convertible senior note hedges and warrants.
(3)The tax effect of non-GAAP adjustments is determined by recomputing the benefit for income taxes on an adjusted basis. The difference between the recomputed benefit for income taxes and the GAAP benefit for income taxes represents the tax effect of non-GAAP adjustments.
(4)Includes net (loss) income from our Brazil operations for the periods presented. For fiscal year 2024, also includes adjustments for $68.3 million for impairment of assets held for sale and $33.8 million of deferred income tax expense resulting from the Brazil Sale Transaction and the tax effects of non-GAAP adjustments.
(5)Amounts may not add due to rounding.
(6)For the thirteen weeks ended December 28, 2025 and fiscal year 2024, includes shares that are excluded from GAAP diluted weighted average common shares outstanding due to a GAAP net loss, however, incorporated in adjusted diluted weighted average common shares outstanding as a result of the adjusted net income position.
Following is a summary of the financial statement line item classification of the net (loss) income adjustments from continuing operations:
| THIRTEEN WEEKS ENDED | FISCAL YEAR | |||||||
|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | DECEMBER 28, 2025 | DECEMBER 29, 2024 | 2025 | 2024 | ||||
| Labor and other related | $ | 908 | $ | — | $ | 3,671 | $ | 434 |
| General and administrative | 8,744 | (11,742) | 32,828 | 748 | ||||
| Provision for impaired assets and restaurant closings | 8,625 | 29,116 | 38,184 | 57,154 | ||||
| Goodwill impairment | 28,188 | — | 28,188 | — | ||||
| Loss on extinguishment of debt | — | — | — | 135,797 | ||||
| Provision for income taxes | (11,747) | (9,107) | (14,770) | (13,001) | ||||
| Net adjustments | $ | 34,718 | $ | 8,267 | $ | 88,101 | $ | 181,132 |
| TABLE SEVEN | ||||||||
| --- | --- | --- | --- | --- | ||||
| BLOOMIN’ BRANDS, INC. | ||||||||
| COMPARATIVE RESTAURANT INFORMATION | ||||||||
| (UNAUDITED) | ||||||||
| Number of restaurants: | SEPTEMBER 28, 2025 | OPENINGS | CLOSURES | DECEMBER 28, 2025 | ||||
| U.S. | ||||||||
| Outback Steakhouse | ||||||||
| Company-owned | 559 | 4 | (15) | 548 | ||||
| Franchised | 120 | — | (2) | 118 | ||||
| Total | 679 | 4 | (17) | 666 | ||||
| Carrabba’s Italian Grill | ||||||||
| Company-owned | 190 | 1 | (4) | 187 | ||||
| Franchised | 17 | — | — | 17 | ||||
| Total | 207 | 1 | (4) | 204 | ||||
| Bonefish Grill | ||||||||
| Company-owned | 162 | — | (6) | 156 | ||||
| Franchised | 4 | — | (2) | 2 | ||||
| Total | 166 | — | (8) | 158 | ||||
| Fleming’s Prime Steakhouse & Wine Bar | ||||||||
| Company-owned | 66 | — | — | 66 | ||||
| Other | ||||||||
| Franchised | 1 | — | — | 1 | ||||
| U.S. total | 1,119 | 5 | (29) | 1,095 | ||||
| International Franchise | ||||||||
| Outback Steakhouse - Brazil | 187 | 1 | — | 188 | ||||
| Outback Steakhouse - South Korea | 101 | — | — | 101 | ||||
| Other | 66 | — | — | 66 | ||||
| International Franchise total | 354 | 1 | — | 355 | ||||
| International - Company-owned | ||||||||
| Outback Steakhouse - Hong Kong/China | 10 | — | — | 10 | ||||
| System-wide total | 1,483 | 6 | (29) | 1,460 | ||||
| System-wide total - Company-owned | 987 | 5 | (25) | 967 | ||||
| System-wide total - Franchised | 496 | 1 | (4) | 493 | ||||
| TABLE EIGHT | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BLOOMIN’ BRANDS, INC. | ||||||||
| COMPARABLE RESTAURANT SALES, TRAFFIC AND AVERAGE CHECK PER PERSON INFORMATION | ||||||||
| (UNAUDITED) | ||||||||
| THIRTEEN WEEKS ENDED | FISCAL YEAR | |||||||
| DECEMBER 28, 2025 | DECEMBER 29, 2024 (1) | 2025 | 2024 (1) | |||||
| Year over year percentage change: | ||||||||
| Comparable restaurant sales (restaurants open 18 months or more): | ||||||||
| U.S. (2) | ||||||||
| Outback Steakhouse | (0.6) | % | (1.8) | % | (0.5) | % | (1.2) | % |
| Carrabba’s Italian Grill | 1.6 | % | (0.9) | % | 2.8 | % | — | % |
| Bonefish Grill | (0.1) | % | (1.5) | % | (2.2) | % | (3.2) | % |
| Fleming’s Prime Steakhouse & Wine Bar | 0.1 | % | 3.0 | % | 2.5 | % | 0.2 | % |
| Combined U.S. | — | % | (1.1) | % | 0.2 | % | (1.1) | % |
| Traffic: | ||||||||
| U.S. | ||||||||
| Outback Steakhouse | 0.9 | % | (4.7) | % | (1.2) | % | (4.2) | % |
| Carrabba’s Italian Grill | (0.9) | % | (4.5) | % | — | % | (3.2) | % |
| Bonefish Grill | 2.3 | % | (8.7) | % | (5.4) | % | (7.1) | % |
| Fleming’s Prime Steakhouse & Wine Bar | (2.4) | % | (3.5) | % | (1.2) | % | (5.8) | % |
| Combined U.S. | 0.5 | % | (5.1) | % | (1.4) | % | (4.4) | % |
| Average check per person (3): | ||||||||
| U.S. | ||||||||
| Outback Steakhouse | (1.5) | % | 2.9 | % | 0.7 | % | 3.0 | % |
| Carrabba’s Italian Grill | 2.5 | % | 3.6 | % | 2.8 | % | 3.2 | % |
| Bonefish Grill | (2.4) | % | 7.2 | % | 3.2 | % | 3.9 | % |
| Fleming’s Prime Steakhouse & Wine Bar | 2.5 | % | 6.5 | % | 3.7 | % | 6.0 | % |
| Combined U.S. | (0.5) | % | 4.0 | % | 1.6 | % | 3.3 | % |
____________________
(1)As a result of the 53rd week in 2023, U.S. comparable restaurant sales, traffic and average check per person for 2024, compare the thirteen weeks from September 30, 2024 through December 29, 2024 to the thirteen weeks from October 2, 2023 through December 31, 2023, and for the fifty-two weeks from January 1, 2024 through December 29, 2024 to the fifty-two weeks from January 2, 2023 through December 31, 2023.
(2)Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(3)Includes the impact of menu pricing changes, product mix and discounts.
SOURCE: Bloomin’ Brands, Inc.
11