Bloomin’ Brands (NASDAQ:BLMN) shares surged around 20% in pre-market trading after the restaurant operator reported second-quarter results that exceeded Wall Street expectations and raised its earnings guidance for the full year.
The company posted adjusted earnings of $0.39 per share, outperforming the analyst consensus estimate of $0.29 by $0.10. Revenue increased 1.3% year over year to $1.02 billion, exceeding market expectations of $1.0 billion.
Comparable sales improve across restaurant brands
Bloomin’ Brands recorded U.S. comparable restaurant sales growth of 2.3% during the quarter.
Bonefish Grill led the group’s performance with comparable sales growth of 8.1%, followed by Carrabba’s Italian Grill at 1.7%, Fleming’s Prime Steakhouse & Wine Bar at 1.6% and Outback Steakhouse at 1.4%.
Company raises full-year earnings guidance
Following the stronger-than-expected quarter, Bloomin’ Brands increased its adjusted earnings guidance for fiscal 2026.
The company now expects adjusted earnings per share of between $0.90 and $1.00, compared with its previous forecast of $0.75 to $0.90.
The midpoint of the revised range, $0.95 per share, is above the Wall Street consensus estimate of $0.87.
Management also refined its outlook for U.S. comparable restaurant sales, narrowing its forecast to growth of between 1.0% and 2.0%, compared with its previous range of 0.5% to 2.5%.
Chief Executive Officer Mike Spanos said the company continues to make progress with its turnaround strategy.
“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,” Spanos said. “We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.”
Third-quarter guidance comes in below expectations
Despite the improved full-year outlook, Bloomin’ Brands projected third-quarter adjusted earnings of between a loss of $0.27 and a loss of $0.22 per share.
The midpoint of the guidance, a loss of $0.245 per share, is below the analyst consensus estimate of a loss of $0.19.
Restaurant-level operating margin improved to 12.4% from 12.0% in the same period last year, supported by higher average guest spending driven by pricing actions and productivity improvements.
Those gains were partially offset by ongoing inflation in commodity costs, labour expenses and other operating costs.
Bloomin’ Brands stock price
