Bloomin' Brands (BLMN) Q2 2026 Earnings Report

Balanced call highlighting measurable operational and financial progress — improved guest scores, comp sales, mix, margins, and raised full-year EPS guidance — while also acknowledging tangible near-term challenges including year-over-year traffic declines, commodity cost pressures, a negative Q3 EPS outlook, ongoing Brazil losses, and leverage above the company target. Management reduced planned turnaround spend and is reallocating marketing investment to drive brand relevancy; the path to sustainable traffic recovery is described as cumulative and not linear.

Guidance: Bloomin' Brands expects U.S. comparable restaurant sales of 1.0%–2.0% for fiscal 2026 with sales mix improving ~100 basis points, and now targets full‑year adjusted diluted EPS of $0.90–$1.00 (up from prior $0.75–$0.90). For Q3 2026 the company forecasts U.S. comp sales of 1.0%–2.0% and adjusted diluted EPS of negative $0.27 to negative $0.22, with an expected Q3 tax expense of ~ $5M (driven by a negative full‑year tax rate) and a Q3 impact from the 33% Brazil equity method investment of about negative $2M (full‑year Brazil loss ~ negative $3M–$4M). Capital and balance‑sheet guidance includes full‑year capex of $185M–$195M (Q2 capex $44M), total debt net of cash of $636M, lease‑adjusted net leverage of 3.7x (goal 3.0x), and net debt/adjusted EBITDA of 2.0x; marketing is up ~ $15M year‑over‑year (~3% of sales; ~$10M of that at Outback). Operational and cost context driving the guidance: Q2 revenue $1.02B (+1%), Q2 U.S. comps +230 bps (traffic -190 bps), Outback Q2 comp +140 bps (traffic -280 bps), average check +420 bps, off‑premises 24% of U.S. sales, Q2 adjusted EPS $0.39 (GAAP $0.37), adjusted operating margin 4.0% vs 3.5% prior year, commodity inflation running ~4.5%–5.5% (Q2 commodities +5.7%), turnaround investments trimmed to $36M (from $50M) with mix investment down to $4M (from $18M), productivity savings on track for $30M and net 2026 turnaround investment of ~$6M.