Bloomin' Brands Swings to Q3 Loss Amid Soaring Impairment Charges

Ticker: BLMN · Form: 10-Q · Filed: 2025-11-06T00:00:00.000Z

Sentiment: bearish

Topics: Restaurant Industry, Casual Dining, Q3 Earnings, Impairment Charges, International Expansion, Franchising Strategy, Divestiture

Related Tickers: BLMN, DRI, TXRH, EAT

TL;DR

**Bloomin' Brands' Q3 loss is a red flag, despite the Brazil sale; watch those impairment charges closely.**

AI Summary

Bloomin' Brands, Inc. (BLMN) reported a net loss attributable to Bloomin' Brands of $45.86 million for the thirteen weeks ended September 28, 2025, a significant decline from the net income of $6.91 million in the prior-year period. For the thirty-nine weeks ended September 28, 2025, the company posted a net income of $21.71 million, a substantial improvement from the net loss of $48.56 million in the same period of 2024. Total revenues increased to $928.81 million for the thirteen weeks ended September 28, 2025, up from $910.01 million in the comparable 2024 period, driven by a rise in restaurant sales to $911.92 million. However, total costs and expenses surged to $965.23 million, primarily due to a significant increase in provision for impaired assets and restaurant closings to $33.24 million from $5.60 million. The company completed the sale of 67% of its Brazil business on December 30, 2024, for approximately $225.3 million, shifting to a primarily franchised international model. This strategic divestiture contributed to a reclassification of foreign currency translation adjustments into earnings of $217.55 million for the thirty-nine weeks ended September 28, 2025, significantly impacting comprehensive income.

Why It Matters

This 10-Q reveals Bloomin' Brands' strategic pivot towards a franchised international model, exemplified by the Brazil sale, which could streamline operations and reduce capital intensity. However, the substantial increase in impairment charges to $33.24 million for the quarter signals potential underlying operational challenges or a re-evaluation of asset values within its continuing operations, which could concern investors. The competitive landscape in casual dining remains fierce, and these results suggest BLMN is navigating a complex environment, impacting its ability to generate consistent profits. Employees might face uncertainty if restaurant closings continue, while customers could see changes in the brand's global footprint.

Risk Assessment

Risk Level: high — The risk level is high due to the significant net loss of $45.86 million for the thirteen weeks ended September 28, 2025, compared to a net income of $6.91 million in the prior year. This was exacerbated by a massive increase in the provision for impaired assets and restaurant closings, which jumped from $5.60 million in Q3 2024 to $33.24 million in Q3 2025, indicating potential operational distress or a significant re-evaluation of asset values.

Analyst Insight

Investors should exercise caution and conduct further due diligence on the drivers behind the increased impairment charges and the Q3 net loss. Consider holding or reducing exposure until management provides clearer guidance on how they plan to address the rising costs and improve profitability in continuing operations, especially given the strategic shift post-Brazil sale.

Financial Highlights

debt To Equity
2.79
revenue
$2,980,773,000
operating Margin
N/A
total Assets
$3,280,063,000
total Debt
$962,248,000
net Income
$21,710,000
eps
N/A
gross Margin
N/A
cash Position
$66,479,000
revenue Growth
+0.1%

Revenue Breakdown

SegmentRevenueGrowth
Restaurant sales$911,920,000+2.5%
Franchise and other revenues$16,893,000-16.5%

Key Numbers

Key Players & Entities

FAQ

What were Bloomin' Brands' net income and revenue for the third quarter of 2025?

Bloomin' Brands reported a net loss attributable to Bloomin' Brands of $45.86 million for the thirteen weeks ended September 28, 2025. Total revenues for the same period were $928.81 million.

How did Bloomin' Brands' provision for impaired assets change in Q3 2025?

The provision for impaired assets and restaurant closings for Bloomin' Brands significantly increased to $33.24 million for the thirteen weeks ended September 28, 2025, up from $5.60 million in the comparable period of 2024.

What was the impact of the Brazil Sale Transaction on Bloomin' Brands' financials?

The Brazil Sale Transaction, completed on December 30, 2024, for approximately $225.3 million, resulted in a reclassification of foreign currency translation adjustments into earnings of $217.55 million for the thirty-nine weeks ended September 28, 2025. This sale represents a strategic shift to a primarily franchised model for international operations.

What is Bloomin' Brands' current cash and debt position?

As of September 28, 2025, Bloomin' Brands had cash and cash equivalents of $66.48 million and long-term debt, net, of $962.25 million. This compares to $70.06 million in cash and $1,027.40 million in long-term debt at December 29, 2024.

What are the key risks identified in Bloomin' Brands' 10-Q filing?

A key risk highlighted by the financial statements is the substantial increase in the provision for impaired assets and restaurant closings, which rose to $33.24 million in Q3 2025, indicating potential challenges in asset valuation or operational performance.

How did Bloomin' Brands' net income from continuing operations perform?

Bloomin' Brands reported a net loss from continuing operations of $45.47 million for the thirteen weeks ended September 28, 2025, compared to a net loss of $36 thousand in the prior-year period. For the thirty-nine weeks, net income from continuing operations was $24.28 million, up from a $59.26 million loss.

What is Bloomin' Brands' strategy for international operations?

Bloomin' Brands' strategy for international operations is shifting towards a primarily franchised model, as evidenced by the sale of 67% of its Brazil business on December 30, 2024.

What were Bloomin' Brands' basic and diluted earnings per share for Q3 2025?

Bloomin' Brands reported a net basic and diluted loss per share of $0.54 for the thirteen weeks ended September 28, 2025. This is a decrease from net basic and diluted earnings per share of $0.08 in the prior-year period.

What new accounting standards did Bloomin' Brands adopt or evaluate?

Bloomin' Brands early adopted ASU No. 2025-05, "Financial Instruments - Credit Losses," effective June 30, 2025, with no material impact. They are also evaluating ASU No. 2024-03, "Disaggregation of Income Statement Expenses," effective for their 2027 Form 10-K.

What are the primary restaurant brands owned by Bloomin' Brands?

Bloomin' Brands owns and operates several casual, upscale casual, and fine dining restaurants, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar.

Risk Factors

Industry Context

Bloomin' Brands operates in the highly competitive casual and upscale casual dining sector, facing evolving consumer preferences and economic pressures. The industry is characterized by significant brand loyalty, but also by intense competition from other restaurant chains, fast-casual concepts, and home dining options. Recent trends include a focus on value, digital ordering, and off-premise dining solutions.

Regulatory Implications

The company must comply with various regulations related to food safety, labor laws, and financial reporting standards (U.S. GAAP). Changes in tax laws or accounting pronouncements could also impact financial results. The divestiture of international operations may also involve navigating foreign regulatory environments.

What Investors Should Do

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Key Dates

Glossary

Provision for impaired assets and restaurant closings
An expense recognized when the carrying value of an asset (like property or equipment) exceeds its fair value, or when a restaurant is closed and its assets are written down. (A significant increase in this provision to $33.24 million in Q3 2025 indicates potential financial distress or strategic restructuring impacting profitability.)
Discontinued operations
A component of a business that has been sold, disposed of, or is classified as held for sale, and whose operations and cash flows can be clearly distinguished from the rest of the company. (The Brazil business sale is reported as discontinued operations, with its financial impact separated from continuing operations.)
Foreign currency translation adjustments
Gains or losses arising from the conversion of financial statements of foreign subsidiaries into the parent company's reporting currency. (A large reclassification of these adjustments ($217.55 million) into earnings for YTD 2025 is directly linked to the Brazil sale, significantly impacting comprehensive income.)
Equity method investment
An accounting method where an investor company records its share of the net income or loss of an investee company, typically when it has significant influence but not control. (Bloomin' Brands retains a 33% interest in its former Brazil business, accounted for as an equity method investment, with its carrying value at $64.7 million as of September 28, 2025.)
Accumulated deficit
The cumulative net losses of a company that have not been offset by net income. (The company has an accumulated deficit of $904.12 million as of September 28, 2025, indicating historical unprofitability.)

Year-Over-Year Comparison

Compared to the prior year's filing (December 29, 2024), Bloomin' Brands has seen a significant shift in its financial performance. Total assets have decreased from $3.38 billion to $3.28 billion, and total liabilities have also declined from $3.25 billion to $2.93 billion. Long-term debt has reduced from $1.03 billion to $962.25 million, and cash reserves have slightly decreased from $70.06 million to $66.48 million. The most notable change is the swing from a net loss of $48.56 million YTD 2024 to a net income of $21.71 million YTD 2025, though the most recent quarter (Q3 2025) showed a net loss of $45.86 million, a stark contrast to the prior year's Q3 net income.

Filing Stats: 4,725 words · 19 min read · ~16 pages · Grade level 15.1 · Accepted 2025-11-06 16:08:03

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 — September 28 , 2025 and December 29, 2024 3 Consolidated Statements of Operations and Comprehensive (Loss) Income — For the Thirteen and Thirty-Nine Weeks Ended September 2 8 , 2025 and September 29 , 2024 4 Consolidated Statements of Changes in Stockholders' Equity — For the Thirteen and T hirty-Nine Weeks Ended September 28 , 2025 and Se ptember 29 , 2024 5 Condensed Consolidated Statements of Cash Flows — For the T hirty-Nine Weeks Ended Se ptember 2 8 , 2025 and September 29 , 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 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 48

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 49

Exhibits

Item 6. Exhibits 50 Signature 51 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) SEPTEMBER 28, 2025 DECEMBER 29, 2024 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $ 66,479 $ 70,056 Inventories 59,178 68,699 Other current assets, net 225,592 158,775 Current assets of discontinued operations held for sale — 22,989 Total current assets 351,249 320,519 Property, fixtures and equipment, net 920,864 948,521 Operating lease right-of-use assets 987,871 1,012,857 Goodwill 213,323 213,323 Intangible assets, net 426,223 429,091 Deferred income tax assets, net 203,623 185,522 Equity method investment 64,709 — Other assets, net 112,201 74,471 Non-current assets of discontinued operations held for sale — 200,501 Total assets $ 3,280,063 $ 3,384,805 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 141,693 $ 153,161 Current operating lease liabilities 176,252 158,806 Accrued and other current liabilities 161,062 178,314 Unearned revenue 295,413 374,099 Current liabilities of discontinued operations held for sale — 87,956 Total current liabilities 774,420 952,336 Non-current operating lease liabilities 1,057,603 1,088,518 Deferred income tax liabilities, net 24,398 33,822 Long-term debt, net 962,248 1,027,398 Other long-term liabilities, net 113,387 93,420 Non-current liabilities of discontinued operations held for sale — 49,865 Total liabilities 2,932,056 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 September 28, 2025 and December 29, 2024 — — Common stock, $ 0.01 par value, 475,000,000 shares authorized; 85,166,769 and 84,854,768 shares issued and outstanding as of September 28, 2025 and December 29, 2024, respectively 852 849 Additional paid-in capital 1,239,678 1,273,288 Accumulated deficit ( 904,122

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, Inc. ("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. The Company utilizes a 52-53-week year ending on the last Sunday in December and its fiscal year ending December 28, 2025 will contain 52 weeks. 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. The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued be applied either prospectively for reporting periods after the effective date or retrospectively to prior periods presented. The Company is currently evaluating the impact ASU No. 2024-03 will have on its disclosures. Recent accounting guidance not discussed herein is not applicable, did not have or is not expected to have a material impact to the Company. 2. Discontinued Operations On December 30, 2024 (the "Closing Date"), an indirect wholly owned subsidiary of the Company (the "Seller") completed the sale of 67 % of the ownership interest in its business in Brazil (the "Disposal Group") to a fund managed by an affiliate of Vinci Partners Investments Ltd. (the "Buyer") (the "Brazil Sale Transaction"). Following the closing, the Brazil restaurants began operating as unconsolidated franchisees. 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, representing 48 % of the Purchase Price, is due on or before 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Net income from discontinued operations, net of tax , in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income includes the following for the periods indicated: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (dollars in thousands) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 Revenues $ — $ 135,372 $ — $ 393,981 Operating costs and expenses (1) — 126,274 — 376,074 Gain on sale of Brazil business (2) 560 — 5,135 — Income from operations 560 9,098 5,135 17,907 Provision for income taxes 371 1,521 4,421 3,767 Net income from discontinued operations, net of tax $ 189 $ 7,577 $ 714 $ 14,140 ____________________ (1) Includes royalty expense of $ 6.6 million and $ 19.5 million for the thirteen and thirty-nine weeks ended September 29, 2024, respectively, eliminated in consolidation prior to the Brazil Sale Transaction, with the corresponding royalty revenues recorded within Franchise and other revenues from continuing operations in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. (2) The thirteen and thirty-nine weeks ended September 28, 2025 i nclude $ 0.7 million and $ 3.6 million, respectively, of net foreign currency translation gains on contingent consideration assets and indemnification liabilities, as discussed below. Contingent Consideration Assets and Indemnification Liabilities - On the Closing Date , the Company recognized contingent consideration assets of $ 29.3 million, primarily judicial deposits, and indemnification liabilities of $ 6.9 million, primarily labor and tax exposures, within Other assets, net and Other long-term liabilities, net, respectively, on the Company's Consolidated Balance Sheet in connection with the Brazil Sale Transaction. As of September 28, 2025, the Company's balance of contingent consideration assets and indemnification liabilities, which are denomina

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 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 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 531,165 $ 7,359 $ 518,152 $ 7,542 Carrabba's Italian Grill 166,007 528 159,840 635 Bonefish Grill 119,976 69 118,941 97 Fleming's Prime Steakhouse & Wine Bar 85,395 — 78,424 — Other — — 1,695 30 U.S. total 902,543 7,956 877,052 8,304 International Franchise (1) — 7,146 — 9,945 Other (2) 9,377 14 12,732 — Total $ 911,920 $ 15,116 $ 889,784 $ 18,249 THIRTY-NINE WEEKS ENDED SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 1,700,543 $ 23,328 $ 1,684,669 $ 23,938 Carrabba's Italian Grill 531,478 1,763 518,845 2,123 Bonefish Grill 382,638 262 397,723 385 Fleming's Prime Steakhouse & Wine Bar 283,309 — 262,976 — Other — — 5,823 86 U.S. total

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