How Does Bloomin' Brands Company Work?

The company operates a multi-concept portfolio, including well-known brands that offer distinct culinary experiences. These brands cater to various market segments, from family-friendly casual dining to more upscale, refined experiences.

As of Q1 CY2025, the company managed a substantial presence with 1,466 locations. This extensive network allows for significant market reach and brand recognition across its various restaurant concepts.

Meticulous ingredient sourcing is a cornerstone of Bloomin' Brands' operations. By the end of 2024, 67% of its land-based protein was sourced from suppliers implementing water consumption reduction measures, highlighting a commitment to sustainability within its supply chain.

While in-restaurant dining remains a primary sales channel, off-premises sales are increasingly significant, accounting for 23% of U.S. revenue in Q1 2025, with third-party delivery at 11%. The company is enhancing customer service through technology, including new point-of-sale systems and tabletop technology to improve guest experience.

In early 2024, Bloomin' Brands closed 41 underperforming restaurants, including 36 Outback Steakhouses. This strategic 'rightsizing' was projected to reduce 2024 revenue by approximately $100 million but improve profit by about $4 million, signaling a focus on high-performing locations.

On December 30, 2024, the company sold 67% of its Brazil operations to a fund managed by Vinci Partners, retaining a 33% interest. This move reclassifies Brazil restaurants as unconsolidated franchises, altering revenue reporting and strategic oversight.

Despite closures, Bloomin' Brands plans to open 40-45 new units system-wide in 2024, with 15-18 new domestic Outback Steakhouses. Projections for 2025 include 18-20 company-owned and about 30 franchised restaurants.

Facing a 0.5% decrease in combined U.S. comparable sales in Q1 2025, the company is executing a multi-year turnaround, particularly for Outback Steakhouse. This includes menu simplification, aiming to reduce items by 10-20% across brands in 2025.

Bloomin' Brands is one of the largest casual dining companies globally, operating 1,466 locations as of Q1 CY2025. While it holds a substantial market presence, it acknowledges underperformance in market share for its Outback Steakhouse brand, indicating a competitive environment. Customer loyalty is a focus, but the company has experienced traffic issues, with U.S. comparable restaurant sales declining by 0.5% in Q1 2025.

The company faces significant risks from macroeconomic volatility and consumer caution, coupled with persistent inflation. For 2025, Bloomin' Brands anticipates commodity inflation between 2.5% and 3.5% and labor inflation of 4% to 5%. The success of the Outback Steakhouse turnaround strategy is a critical factor, with analysts noting concerns about its execution and potential margin impact.

Bloomin' Brands is actively working to simplify operations and enhance its value propositions to boost in-restaurant traffic. This includes streamlining menus, aiming to reduce items by 10-20% across its brands in 2025. Investments in technology, such as new point-of-sale systems and exploration of AI, are also part of the strategy to improve efficiency and guest experiences.

For the full year 2025, the company has reaffirmed its adjusted diluted EPS guidance, projecting it to be at the low end of the $1.20 to $1.40 range. U.S. comparable restaurant sales for Q2 2025 are expected to be between negative 2.5% and negative 1.5%. Bloomin' Brands also aims to reduce its debt leverage to below a 3.0x adjusted net leverage ratio by the end of 2025.