MW Bloomin' Brands' stock slides as revenue falls short for a sixth straight quarter

By Ciara Linnane

Outback Steakhouse operator swings to a loss and offers soft guidance for 2025 amid continued pressure on fast-casual dining

Bloomin' Brands Inc.'s stock tumbled 2.5% early Wednesday, after the operator of Outback Steakhouse and Carrabba's Italian Grill reported fourth-quarter revenue that fell short of estimates, marking a sixth straight quarterly miss.

The Tampa, Fla.-based company, which also operates Bonefish Grill and Fleming's Prime Steakhouse, has been struggling in a weak environment for fast-casual dining after a long period of high inflation.

The stock has fallen 57% in the last 12 months, underperforming the S&P 500 SPX, which has gained 17.5%.

Bloomin' has been working to combat the trend by improving the guest experience, seeking ways to offer value to cash-strapped customers and enhance customer and digital capabilities.

"In my first six months, I have become even more confident that we have iconic brands with a strong right to succeed in on-trend, large scale categories," Chief Executive Mike Spanos said in prepared remarks. "I am also aware that our current results are not what we expect and are not representative of our potential."

Tampa, Fla.-based Bloomin' $(BLMN)$ had a net loss of $79.5 million, or 93 cents a share, for the quarter, after income of $43.3 million, or 45 cents a share, in the year-earlier period.

Adjusted for one-time items, it had EPS of 38 cents, a penny ahead of the 37-cent FactSet consensus.

But revenue fell 9.3% to $972.0 million from $1.072 billion a year ago, below the $1.085 billion FactSet consensus.

Combined U.S. same-restaurant sales fell 1.1%, while FactSet was expecting them to be flat. Same-restaurant sales fell at all franchises, except for Fleming's, where they rose 3%.

The company is planning changes to boost growth and drive sustainable sales, he said.

In December, Bloomin' completed the sale of 67% of its Brazil operations to a fund managed by a unit of Vinci Partners while retaining the remaining 33% interest.

The company expects 2025 adjusted EPS of $1.20 to $1.40, compared with a FactSet consensus of $1.77.

Same-restaurant sales are expected to be down 2% to flat, while FactSet is expecting a rise of 1%.

Commodity inflation is expected to range from 2.5% to 3.5%, while labor inflation is expected to be up 4% to 5%. Bloomin' is expecting to open 18 to 20 new restaurants.

For the first quarter, it expects adjusted EPS of 55 cents to 60 cents, while FactSet is expecting 67 cents. Same-restaurant sales are expected to down 1.5% to down 0.5%, while FactSet is expecting a gain of 1.0%.

-Ciara Linnane

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February 26, 2025 08:03 ET (13:03 GMT)

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