Bloomin' Brands raises 2026 earnings outlook as Outback guests trade up

Outback diners trade up to premium steaks as same-store sales climb 1.4%

Bloomin’ Brands reported second-quarter profit of $31.3 million, or 36 cents a share, up from $25.4 million, or 30 cents a share, a year earlier. Stripping out certain one-time items, adjusted per-share earnings were 39 cents, ahead of the 29 cents analysts had anticipated, according to FactSet.

Total revenue rose 1.3% to $1.02 billion, topping analysts’ estimate of $1.00 billion. Same-store sales increased across all of Bloomin’ Brands’ restaurant chains, with its flagship Outback Steakhouse posting a 1.4% gain in U.S. same-store sales.

Shares of Bloomin’ Brands surged 31% to $11.72 in Wednesday morning trading following the results and the company’s raised outlook. The company lifted its full-year adjusted earnings guidance to 90 cents to $1 per share, up from a prior range of 75 cents to 90 cents.

“We are seeing guests trade up more and more into the premium cuts,” Chief Executive Mike Spanos told analysts Wednesday. “That’s been better than what we had seen when we did the test in 2025.”

Spanos said about 60% of Outback’s guests consistently trade up from the chain’s entry-level price point into higher tiers. Executives said customers are spending more per meal, adding premium side orders and desserts alongside higher-end steaks.

A recent redesign of Outback’s menu advertising its combo meals — which pair a steak with seafood or chicken — has been more effective than expected, Spanos said. “What’s also been very encouraging is seeing the combo reaction to not only the new steak lineup, but guests also engaging with our differentiated non-steak proteins,” he said.

Bloomin’ added lower-priced options to Outback’s menu to provide diners a more affordable entry point as part of a turnaround plan the company has been executing at its largest chain. Executives said the company is trying to win back customers and accelerate sales growth.

For the full year, Bloomin’ narrowed its guidance for U.S. same-store sales to growth of 1% to 2%, from a prior range of 0.5% to 2.5%. For the current third quarter, the company anticipates an adjusted per-share loss of 22 cents to 27 cents, compared with the 19-cent loss Wall Street is projecting. Quarterly same-store sales are expected to grow 1% to 2%.