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• Total Revenue: $1.05 billion, down 1.8% from 2024.

• US Comparable Restaurant Sales: Negative 50 basis points.

• Traffic: Negative 390 basis points.

• Average Check: Increased by 3.4% in Q1 versus 2024.

• Off-Premises Sales: 23% of total US sales.

• Third-Party Delivery Sales: 11% of total US sales.

• GAAP Diluted EPS: $0.50 versus negative $1 in 2024.

• Adjusted Diluted EPS: $0.59 versus $0.64 in 2024.

• Adjusted Operating Margins: 6.1% versus 7.8% last year.

• COGS Inflation: Approximately 1.5%.

• Labor Inflation: 3.7%.

• Total Debt Net of Cash: $860 million at the end of Q1.

• Net Debt to Adjusted EBITDA: 2.5 times.

• Lease Adjusted Net Leverage: 4.0 times.

• Quarterly Dividend: $0.15 per share, payable on June 4, 2025.

• Remaining Share Authorization: $97 million.

• Full Year Adjusted EPS Guidance: Expected at the low end of $1.20 to $1.40.

• Q2 Adjusted EPS Guidance: Between $0.22 and $0.27.

• Warning! GuruFocus has detected 4 Warning Signs with BLMN.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bloomin Brands Inc (NASDAQ:BLMN) achieved positive comparable sales at Carrabba's and Fleming's, indicating some brand strength.

• The company realized more savings in Q1 than originally forecasted as part of their organizational redesign initiative.

• Menu simplification efforts are underway, with significant reductions in menu items across various brands, aiming to improve operational efficiency.

• The rollout of Ziosk technology across Outback restaurants has been successful, enhancing customer experience and operational efficiency.

• The company is committed to reducing debt leverage, with plans to use proceeds from the Brazil transaction to pay down debt.

Negative Points

• Bloomin Brands Inc (NASDAQ:BLMN) underperformed the industry and lost market share as defined by Black Box, indicating competitive challenges.

• Total revenues in Q1 were down 1.8% from 2024, primarily due to restaurant closures and a decrease in comparable restaurant sales.

• US comparable restaurant sales were negative, with traffic down significantly, reflecting consumer pullback and macroeconomic challenges.

• Adjusted operating margins declined by 170 basis points year-over-year, driven by increased costs and inflationary pressures.

• The company anticipates being at the low end of their full-year adjusted diluted earnings per share range, due to a choppy macro environment and the extinguishment of a Brazil tax benefit.

Q & A Highlights

Q: Can you provide insights on the outlook for the remainder of the year, especially regarding the casual dining industry and Outback's value perception? A: Mike Spanos, CEO, acknowledged dissatisfaction with current performance compared to industry benchmarks. He emphasized progress on operational priorities like simplification and value improvement. The outlook assumes a choppy environment, with strategic work underway to enhance the value proposition.