Bloomin' Brands Reports Slight Revenue Increase to $1.002 Billion in Q2 Fiscal 2025

Bloomin' Brands, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a slight increase in total revenues to $1.002 billion, up 0.3% from $999.4 million in the same period last year. Restaurant sales accounted for $984.8 million, a marginal increase from $977.8 million, while franchise and other revenues decreased to $17.6 million from $21.6 million. The company’s net income attributable to Bloomin' Brands was $25.4 million, or $0.30 per diluted share, compared to $28.4 million, or $0.32 per diluted share, in the prior year.

The financial performance reflects several operational challenges, including a decline in comparable restaurant sales, which fell by 0.1% across the U.S. and by 0.6% for Outback Steakhouse specifically. The company noted that increased costs related to food and labor, driven by inflation, contributed to a decrease in operating income to $29.7 million from $44.1 million in the previous year. The restaurant-level operating margin also declined to 12.0% from 14.0%, indicating pressures on profitability.

In terms of strategic developments, Bloomin' Brands completed the sale of a 67% stake in its Brazilian operations in December 2024, transitioning to a primarily franchised model in that market. This strategic shift is expected to enhance the company's focus on its core U.S. operations while reducing direct operational risks associated with international markets. The company reported a cash inflow of $103.9 million from this transaction, which was applied to its revolving credit facility.

Operationally, Bloomin' Brands operated 985 restaurants and franchised 494 as of June 29, 2025, with a slight reduction in total restaurant count compared to the previous year. The company experienced a decrease in customer traffic, particularly at Bonefish Grill, which saw a decline of 11.4% in traffic for the quarter. Despite these challenges, the average check per person increased across several brands, indicating a potential shift in consumer spending behavior.

Looking ahead, Bloomin' Brands anticipates continued pressure from inflation and labor costs but remains focused on enhancing operational efficiencies and leveraging its franchise model for growth. The company plans to invest approximately $190 million in capital expenditures for the fiscal year, aimed at remodeling and expanding its restaurant footprint. The management expressed confidence in maintaining compliance with debt covenants and expects to generate sufficient cash flow to meet its operational and financial obligations in the coming months.