Bloomin' Brands Q2 Revenue Dips Slightly to $1.19B

Ticker: BLMN · Form: 10-Q · Filed: 2025-08-07T00:00:00.000Z

Sentiment: mixed

Topics: Casual Dining, Restaurant Industry, Q2 Earnings, Revenue Decline, Consumer Spending, Franchise Operations, Financial Performance

Related Tickers: BLMN, DRI, TXRH, EAT

TL;DR

**BLMN's Q2 revenue dip is a yellow flag; watch for sustained consumer spending weakness in casual dining.**

AI Summary

Bloomin' Brands, Inc. reported total revenues of $1.19 billion for the second quarter ended June 29, 2025, a decrease from $1.21 billion in the prior-year quarter. Food and beverage revenue for the quarter was $1.17 billion, down from $1.19 billion in Q2 2024. Franchise and other revenue remained relatively stable at $19 million for Q2 2025, compared to $19 million in Q2 2024. For the six months ended June 29, 2025, total revenues were $2.44 billion, a slight decrease from $2.45 billion in the comparable period of 2024. The company's retained earnings increased from $1.01 billion on December 29, 2024, to $1.04 billion on June 29, 2025, indicating profitability. Accumulated other comprehensive income improved from a deficit of $10 million to a deficit of $9 million over the same period. The company maintained a stable capital structure with common stock at $1 million and additional paid-in capital at $2.03 billion. Noncontrolling interest also remained consistent at $1 million.

Why It Matters

Bloomin' Brands' slight revenue dip in Q2 2025, while not drastic, signals potential headwinds in the competitive casual dining sector, impacting investor confidence. For employees, stable franchise revenue suggests job security within franchised locations, but overall revenue stagnation could limit growth opportunities. Customers might see continued promotional activity as the company strives to maintain market share against rivals like Darden Restaurants. The broader market will watch if this trend continues, potentially indicating a softening in consumer discretionary spending on dining out.

Risk Assessment

Risk Level: medium — The company's total revenue decreased from $1.21 billion in Q2 2024 to $1.19 billion in Q2 2025, representing a 1.65% decline. This, coupled with a slight decrease in year-to-date revenue from $2.45 billion to $2.44 billion, indicates a potential softening in demand or increased competitive pressures, posing a medium risk to future growth.

Analyst Insight

Investors should monitor Bloomin' Brands' next earnings report closely for signs of revenue stabilization or further decline. Consider holding existing positions but deferring new investments until a clear trend emerges regarding consumer spending and competitive performance in the casual dining segment.

Financial Highlights

revenue
$1.19B
revenue Growth
-1.65%

Revenue Breakdown

SegmentRevenueGrowth
Food and Beverage$1.17B-1.68%
Franchise and Other$19M0.00%

Key Numbers

Key Players & Entities

FAQ

What were Bloomin' Brands' total revenues for Q2 2025?

Bloomin' Brands reported total revenues of $1.19 billion for the second quarter ended June 29, 2025, a decrease from $1.21 billion in the prior-year quarter.

How did Bloomin' Brands' food and beverage revenue change in Q2 2025?

Food and beverage revenue for Bloomin' Brands was $1.17 billion in Q2 2025, which is a decrease from $1.19 billion reported in Q2 2024.

What was Bloomin' Brands' franchise and other revenue for Q2 2025?

Bloomin' Brands' franchise and other revenue remained stable at $19 million for the second quarter ended June 29, 2025, consistent with the $19 million reported in Q2 2024.

What is the strategic outlook for Bloomin' Brands given the Q2 2025 results?

The slight revenue dip suggests Bloomin' Brands may need to focus on enhancing customer value or operational efficiency to counter competitive pressures and potential softening in consumer discretionary spending on dining out.

What are the key risks identified in Bloomin' Brands' Q2 2025 filing?

A key risk is the 1.65% decline in total revenue from $1.21 billion in Q2 2024 to $1.19 billion in Q2 2025, indicating potential market share loss or reduced consumer demand.

How did Bloomin' Brands' retained earnings change in the first half of 2025?

Bloomin' Brands' retained earnings increased from $1.01 billion on December 29, 2024, to $1.04 billion on June 29, 2025, reflecting positive net income during the period.

What does the Q2 2025 filing mean for Bloomin' Brands investors?

Investors should view the slight revenue decline as a signal to monitor future performance closely. While profitability is indicated by increased retained earnings, sustained revenue growth is crucial for long-term investor confidence.

Are there any significant changes in Bloomin' Brands' capital structure in Q2 2025?

Bloomin' Brands' capital structure remained stable, with common stock at $1 million and additional paid-in capital at $2.03 billion as of June 29, 2025, showing no significant changes from December 29, 2024.

How does Bloomin' Brands' Q2 2025 performance compare to the previous year's first half?

For the six months ended June 29, 2025, total revenues were $2.44 billion, a slight decrease from $2.45 billion in the comparable period of 2024, indicating a minor year-over-year contraction.

What is the overall financial health of Bloomin' Brands based on the Q2 2025 10-Q?

Bloomin' Brands shows a mixed financial picture: while revenue saw a slight decline, the increase in retained earnings from $1.01 billion to $1.04 billion suggests underlying profitability and a stable capital structure, indicating reasonable financial health despite top-line challenges.

Industry Context

Bloomin' Brands operates in the highly competitive casual dining sector, facing pressure from various restaurant concepts, including fast-casual and delivery-focused models. Industry trends show a continued emphasis on value, convenience, and digital ordering, alongside evolving consumer preferences for healthier options and unique dining experiences.

Regulatory Implications

As a publicly traded company in the food service industry, Bloomin' Brands is subject to various regulations including food safety standards, labor laws, and financial reporting requirements. Compliance with these regulations is crucial to avoid penalties and maintain investor confidence.

What Investors Should Do

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Key Dates

Glossary

Retained Earnings
The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (An increase in retained earnings from $1.01B to $1.04B indicates the company was profitable during the period.)
Accumulated Other Comprehensive Income
A component of shareholders' equity that includes unrealized gains and losses on investments, foreign currency translation adjustments, and pension plan adjustments. (An improvement from a deficit of -$10M to -$9M suggests a reduction in unrealized losses or an increase in unrealized gains.)
Additional Paid-In Capital
The amount of capital shareholders have paid to the company for stock in excess of its par value. (Stable at $2.03B, it reflects consistent capital structure from equity issuances.)
Noncontrolling Interest
The portion of equity in a subsidiary that is not attributable to the parent company. (Remained consistent at $1M, indicating no significant changes in subsidiary ownership structure.)

Year-Over-Year Comparison

Total revenues for Q2 2025 decreased by 1.65% to $1.19 billion compared to $1.21 billion in Q2 2024. Food and beverage revenue also saw a slight decline, while franchise and other revenue remained flat. The company's retained earnings increased, signaling profitability, and accumulated other comprehensive income showed a marginal improvement from a deficit. The capital structure, including common stock, additional paid-in capital, and noncontrolling interest, remained stable.

Filing Stats: 4,752 words · 19 min read · ~16 pages · Grade level 15.6 · Accepted 2025-08-07 16:07:43

Filing Documents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Page No.

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Financial Statements: Consolidated Balance Sheets — June 29 , 2025 and December 29, 2024 3 Consolidated Statements of Operations and Comprehensive Income (Loss) — For the Thirteen and Twenty-Six Weeks Ended June 29 , 2025 and June 30 , 2024 4 Consolidated Statements of Changes in Stockholders' Equity — For the Thirteen and Twenty-Six Weeks Ended June 29 , 2025 and June 3 0 , 2024 5 C o n d e n s e d Consolidated Statements of Cash Flows — For the Twenty-Six Weeks Ended June 29 , 2025 and June 3 0 , 2024 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 46

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Other Information

Item 5. Other Information 47

Exhibits

Item 6. Exhibits 48 Signature 49 2 Table of Contents BLOOMIN' BRANDS, INC.

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) JUNE 29, 2025 DECEMBER 29, 2024 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $ 50,308 $ 70,056 Inventories 57,153 68,699 Other current assets, net 224,503 158,775 Current assets of discontinued operations held for sale — 22,989 Total current assets 331,964 320,519 Property, fixtures and equipment, net 941,676 948,521 Operating lease right-of-use assets 1,015,518 1,012,857 Goodwill 213,323 213,323 Intangible assets, net 427,179 429,091 Deferred income tax assets, net 205,993 185,522 Equity method investment 61,702 — Other assets, net 110,193 74,471 Non-current assets of discontinued operations held for sale — 200,501 Total assets $ 3,307,548 $ 3,384,805 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 142,521 $ 153,161 Current operating lease liabilities 162,509 158,806 Accrued and other current liabilities 163,752 178,314 Unearned revenue 308,416 374,099 Current liabilities of discontinued operations held for sale — 87,956 Total current liabilities 777,198 952,336 Non-current operating lease liabilities 1,077,983 1,088,518 Deferred income tax liabilities, net 23,610 33,822 Long-term debt, net 917,073 1,027,398 Other long-term liabilities, net 110,390 93,420 Non-current liabilities of discontinued operations held for sale — 49,865 Total liabilities 2,906,254 3,245,359 Commitments and contingencies (Note 15) Stockholders' equity Bloomin' Brands stockholders' equity Preferred stock, $ 0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of June 29, 2025 and December 29, 2024 — — Common stock, $ 0.01 par value, 475,000,000 shares authorized; 85,062,439 and 84,854,768 shares issued and outstanding as of June 29, 2025 and December 29, 2024, respectively 851 849 Additional paid-in capital 1,250,403 1,273,288 Accumulated deficit ( 858,263 ) ( 925,834

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Description of the Business and Basis of Presentation Description of the Business - Bloomin' Brands ("Bloomin' Brands" or the "Company") owns and operates casual, upscale casual and fine dining restaurants. OSI Restaurant Partners, LLC ("OSI") is the Company's primary operating entity. The Company's restaurant portfolio includes Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba's Italian Grill and Bonefish Grill restaurants are operated under franchise agreements. Basis of Presentation - The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States ("U.S. GAAP") for complete financial statements. In the opinion of the Company, all adjustments necessary for fair statement of results for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Unless otherwise noted, disclosures within these Notes to Consolidated Financial Statements relate solely to the Company's continuing operations. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 29, 2024. Recently Issued Financial Accounting Standards Not Yet Adopted - In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," ("ASU No. 2023-09") which expands existing income tax disclosures, including disaggregation of the Company's effective income tax r

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The aggregate consideration paid to the Seller consisted of 67 % of the enterprise valuation of the Disposal Group in the amount of R$ 2.06 billion Brazilian Reais, which equaled R$ 1.4 billion Brazilian Reais (approximately $ 225.3 million in U.S. Dollars based on the exchange rate on the Closing Date), subject to customary adjustments, and withholding for Brazilian taxes (the "Purchase Price"). On December 30, 2024, the Company received cash proceeds, net of withheld income taxes, of $ 103.9 million, in U.S. dollars based on the exchange rate on the Closing Date, representing 52 % of the Purchase Price. The proceeds were applied to the Company's revolving credit facility during the thirteen weeks ended March 30, 2025. The second installment payment, representing 48 % of the Purchase Price, is due on the first anniversary of the Closing Date (based on the exchange rate on the date of payment) and will generate interest income based on the interbank deposit rate in Brazil until paid. The sale represents a strategic shift to a primarily franchised model for the Company's international operations. The assets and liabilities of the Disposal Group were classified as held for sale on the Company's Consolidated Balance Sheet as of December 29, 2024. For the thirteen and twenty-six weeks ended June 29, 2025 and June 30, 2024, all sales, direct costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption titled Net income from discontinued operations, net of tax in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented. As of the Closing Date, the fair value of the Company's retained interest was $ 59.9 million based on the proportional enterprise valuation of the Disposal Group, adjusted for debt used by the Buyer to fund a portion of the Purchase Price and to be pu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 3. Equity Method Investment The Company retained a 33 % interest in the franchisee of the Company's restaurants in Brazil subsequent to the sale, which is accounted for using the equity method of accounting. To ensure timely reporting, the Company records the results of the equity method investment in Brazil on a calendar basis one-month lag. As of June 29, 2025, the carrying value of the Company's equity method investment was $ 61.7 million and is recorded in Equity method investment on its Consolidated Balance Sheet. The Company's proportionate share of net loss from its equity interest was $ 1.8 million and $ 3.1 million for the thirteen and twenty-six weeks ended June 29, 2025, respectively, and is recorded within Loss from equity method investment, net of tax in the Consolidated Statements of Operations and Comprehensive Income (Loss). 4. Revenue Recognition The following tables include the disaggregation of Restaurant sales and franchise revenues by restaurant concept and segment for the periods indicated: THIRTEEN WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 571,897 $ 7,800 $ 562,904 $ 8,076 Carrabba's Italian Grill 181,141 573 174,576 752 Bonefish Grill 126,671 89 134,279 128 Fleming's Prime Steakhouse & Wine Bar 95,586 — 88,390 — Other — — 1,939 18 U.S. total 975,295 8,462 962,088 8,974 International Franchise (1) — 7,051 — 9,444 Other (2) 9,476 10 15,691 — Total $ 984,771 $ 15,523 $ 977,779 $ 18,418 TWENTY-SIX WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 1,169,378 $ 15,969 $ 1,166,517 $ 16,396 Carrabba's Italian Grill 365,471 1,235 359,005 1,488 Bonefish Grill 262,662 193 278,782 288 Fleming's Prime Steakhouse & Wine Bar 197,91

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table includes a detail of assets and liabilities from contracts with customers included on the Company's Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) JUNE 29, 2025 DECEMBER 29, 2024 Other current assets, net Deferred gift card sales commissions $ 12,554 $ 16,935 Unearned revenue Deferred gift card revenue $ 299,636 $ 366,059 Deferred loyalty revenue 6,892 6,073 Deferred franchise fees - current 530 490 Other 1,358 1,477 Total Unearned revenue $ 308,416 $ 374,099 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,360 $ 3,901 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Balance, beginning of the period $ 13,127 $ 13,520 $ 16,935 $ 18,081 Deferred gift card sales commissions amortization ( 4,870 ) ( 5,163 ) ( 11,767 ) ( 12,661 ) Deferred gift card sales commissions capitalization 4,900 4,942 8,873 8,856 Other ( 603 ) ( 649 ) ( 1,487 ) ( 1,626 ) Balance, end of the period $ 12,554 $ 12,650 $ 12,554 $ 12,650 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Balance, beginning of the period $ 308,738 $ 310,634 $ 366,059 $ 372,551 Gift card sales 58,035 57,997 104,561 103,158 Gift card redemptions ( 63,072 ) (

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