Executive Summary

Q3 2025 revenue rose 2.1% year over year to $0.929B amid improved U.S. comps (+1.2%), but GAAP operating margin fell to -3.9% on $33.2M in impairments tied to restaurant closures; adjusted operating margin was 0.8% .
Adjusted diluted EPS was -$0.03, a beat versus Wall Street consensus of -$0.13*, while revenue beat consensus by ~$22.5M*; EBITDA missed consensus (actual ~$41.0M vs ~$47.4M*) .
Management launched an Outback-focused turnaround (steak quality, service model, brand relevancy, asset refresh) and suspended the dividend to reallocate free cash flow to investments and debt paydown .
FY25 guidance raised for adjusted EPS ($1.10–$1.15) and FY U.S. comps (0–0.5%); Q4 comps guided to 0.5–1.5% and adjusted EPS to $0.23–$0.28 .
CFO transition context: Q3 release signed by new CFO Eric Christel; prior EVP/CFO Michael Healy departed to Sky Zone in October 2025, highlighting leadership changes at BLMN .

What Went Well and What Went Wrong

What Went Well

All four brands posted positive U.S. comparable sales for the first time since Q1 2023; Combined U.S. comps +1.2% with traffic ~flat (-0.1%), and average check +1.3% in Q3 .
Adjusted EPS beat internal guidance (-$0.03 vs -$0.10 to -$0.15) and topped Street consensus (-$0.13*) on value platform execution (e.g., Aussie Three-Course), better marketing ROI, and operational consistency .
Strategic plan articulated with quantified investments (~~$75M over 2026–2028) and offsetting productivity savings (~~$80M), targeting steak excellence, service ratios (4 tables/server), marketing mix shift (60% digital), and asset refreshes .

Quotes:

“All four brands drove positive comparable store sales growth… the foundation for our turnaround.” — CEO Mike Spanos .
“Over 85% of our guests use Ziosk to pay… improving table turns by about five to seven minutes.” — CEO Mike Spanos .
“We are raising our adjusted diluted earnings per share range to be $1.10 to $1.15.” — CFO Eric Christel .

What Went Wrong

Margin compression: GAAP operating margin fell to -3.9% (from 0.9% YoY) and adjusted operating margin to 0.8% (from 2.3%) on higher commodity (+4.9%), labor (+3.3%), insurance (+60 bps), and cost mix headwinds, plus impairments .
Restaurant-level operating margin declined to 9.2% (adjusted 9.5%) from 11.1% YoY due to inflation and product mix; franchise revenues also fell YoY .
EBITDA missed Street consensus (actual ~$41.0M vs ~$47.4M*), reflecting pressure despite sales momentum; traffic remained negative or weak in some concepts (e.g., Bonefish -1.7% traffic) .

Financial Results

Revenue, EPS, and Estimates Comparison

Metric	Q3 2024	Q2 2025	Q3 2025	Q3 2025 vs Estimates
Total Revenues ($USD Billions)	$0.910	$1.002	$0.929	$0.906* (beat by ~$0.023B)*
GAAP Diluted EPS (Total)	$0.08	$0.30	-$0.54	N/A
Adjusted Diluted EPS (Cont. Ops)	$0.11	$0.32	-$0.03	-$0.13* (beat)
EBITDA ($USD Millions)	N/A	N/A	$40.98*	$47.38* (miss)

Values with asterisks (*) retrieved from S&P Global.

Margin Comparison

Margin Metric	Q3 2024	Q2 2025	Q3 2025
GAAP Operating Income Margin	0.9%	3.0%	-3.9%
Adjusted Operating Income Margin	2.3%	3.5%	0.8%
Restaurant-level Operating Margin	11.1%	12.0%	9.2%
Adjusted Restaurant-level Operating Margin	11.1%	12.0%	9.5%

Segment Breakdown (Q3 2025 vs Q3 2024)

Segment	Revenues Q3 2024 ($MM)	Revenues Q3 2025 ($MM)	Segment Income Q3 2024 ($MM)	Segment Income Q3 2025 ($MM)
U.S.	$887.3	$912.3	$38.9	$1.6
International Franchise	$9.9	$7.1	$9.6	$7.0
All Other (HK-related)	$12.7	$9.4	$(4.1)	$0.2

KPIs: Comps, Traffic, Average Check (U.S. Company-Owned)

Brand	Comps Q3 2024	Comps Q2 2025	Comps Q3 2025	Traffic Q3 2025	Avg Check Q3 2025
Outback	-1.3%	-0.6%	+0.4%	0.0%	+0.4%
Carrabba’s	+0.4%	+3.9%	+4.1%	+0.6%	+3.5%
Bonefish	-4.1%	-5.8%	+0.8%	-1.7%	+2.5%
Fleming’s	+1.2%	+3.8%	+1.2%	-1.2%	+2.4%
Combined U.S.	-1.5%	-0.1%	+1.2%	-0.1%	+1.3%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
U.S. Comparable Restaurant Sales	FY 2025	Not specified in Q2 release	0% to 0.5%	New/raised outlook versus earlier silence
Diluted EPS (GAAP)	FY 2025	$0.80 to $0.90	$0.75 to $0.80	Lowered
Adjusted Diluted EPS	FY 2025	$1.00 to $1.10	$1.10 to $1.15	Raised
Labor Inflation	FY 2025	~4%	~3.5%	Lowered
Commodity Inflation (COGS)	FY 2025	3% to 3.5%	Full-year COGS inflation 3%–3.5% (affirmed)	Maintained
Capital Expenditures	FY 2025	~$190M	~$190M	Maintained
U.S. Comparable Restaurant Sales	Q4 2025	N/A	0.5% to 1.5%	New
Adjusted Diluted EPS	Q4 2025	N/A	$0.23 to $0.28	New
Dividend	Ongoing	$0.15 declared in Q2 (paid Sept 3, 2025)	Suspended in October 2025	Suspended

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Value Platforms	Emphasis on “abundant everyday value offerings” guiding strategy	Continued focus; comps weak at Outback, but value supported check	Aussie Three-Course success; two-thirds trading up to higher tiers; improved ROI	Improving momentum
Operational Simplicity	Simplify agenda; SKU reductions; restructure	Ongoing transformational costs; margin pressure	Consistency of execution; leaders in-restaurant during peaks	Execution improving
Technology (Ziosk)	Not highlighted	Not highlighted	85% pay via Ziosk; table turns +5–7 minutes; granular guest feedback	Scaling and data-driven
Steak Quality & Service Model	Not detailed	Not detailed	Steak quality upgrade; chargrill capacity; server ratio to 4 tables; tests show strong lifts	Turnaround cornerstone
Marketing Mix	Not detailed	Not detailed	Shift to ~60% digital; incremental spend phased 2026–2028	Strategic reallocation
Tariffs/Macro	Choppy macro acknowledged	Inflation and insurance pressures; Brazil equity method loss	Monitoring beef inflation, tariffs for 2026 outlook	Cautious monitoring
Portfolio Actions	2024 closures referenced	Lease terminations gains; refranchised Brazil	Closed 21 U.S. restaurants; non-renewal of 22 leases; dividend suspended	Rationalization accelerating

Management Commentary

Strategic focus: “Our turnaround strategy… deliver a remarkable dining experience, drive brand relevancy, reignite a culture of ownership and fun, and invest in our restaurants.” — CEO Mike Spanos .
Steak-first positioning: “We are first and foremost a steakhouse… investing in the quality and cuts… expanding chargrill capacity.” — CEO Mike Spanos .
Service enhancement: “Reduced ratio of four tables per server during peak times… allows… a more consistent and enhanced experience.” — CEO Mike Spanos .
Capital allocation: “Use available free cash flow to pay down debt… reach 3.0x lease-adjusted leverage by end of 2028.” — CFO Eric Christel .
Marketing evolution: “Shift… to approximately a mix of 40% linear TV and 60% digital… increased marketing investments next year.” — CEO Mike Spanos .

Q&A Highlights

Comps momentum: Trends continued into October; value offers sustaining performance; improvement across age and income cohorts; slight check management >65 in alcohol, but visits remained positive .
Asset refresh: ~$400K per unit, guest-facing focus; leveraging Carrabba’s “light-touch” refresh template; target nearly all Outbacks by 2028 .
Marketing phasing: Incremental $10M in 2H26, plus $10M in 2027 and 2028; sequence operations → steak → service → marketing to avoid overload .
Closures: 21 closures across Outback, Bonefish, Carrabba’s; no further closures anticipated after thorough asset review .
Pricing/mix: Q3 pricing +3.7%; average check up +1.3% given value mix; off-premises 24% of U.S. sales (Outback 26%, Carrabba’s 34%) .

Estimates Context

Q3 2025: Adjusted EPS -$0.03 vs consensus -$0.13* (beat); revenue $0.929B vs $0.906B* (beat); EBITDA ~$41.0M vs ~$47.4M* (miss). Primary EPS estimates based on 12 contributors; revenue estimates from 11 contributors*. Values with asterisks (*) retrieved from S&P Global.
Q4 2025: Street expects EPS ~$0.25*; revenue ~$0.982B*. Management guides adjusted EPS $0.23–$0.28 and U.S. comps +0.5% to +1.5% .

Key Takeaways for Investors

Near-term: Expect continued sales momentum from value platforms and steak/service upgrades; watch margins as inflation (beef, insurance) and tariff visibility are 2026 swing factors .
Guidance: FY25 adjusted EPS raised to $1.10–$1.15; dividend suspension reallocates capital to turnaround and deleveraging, a potentially supportive catalyst for long-term equity value .
Turnaround execution: Monitor rollouts—steak upgrade (late Nov), service ratio (Q2’26), marketing mix (2H’26); Ziosk data should evidence local improvements .
Margin trajectory: Expect near-term margin pressure to ease as productivity savings (~$30M in 2026) scale and mix improves; however, EBITDA missed in Q3 vs Street*, underscoring execution risk . Values with asterisks (*) retrieved from S&P Global.
Portfolio quality: Closure of underperforming units and selective non-renewals should enhance average unit economics; track segment-level income and comps by brand .
Leverage: Pro forma deleveraging from Brazil installment (~$122M expected in Nov) improves net debt metrics; target 3.0x lease-adjusted leverage by 2028 .

This recap was synthesized from the Q3 2025 8-K earnings release and exhibits, the Q3 2025 earnings call transcript, and prior quarter releases for trend analysis – – – . Values with asterisks (*) retrieved from S&P Global.

Bloomin' Brands, Inc. (BLMN)·Q3 2025 Earnings Summary