Bloomin’ Brands Q1 2026: Higher Profits Despite Flat Traffic as Bonefish Grill Leads Sales Gains
Adjusted EPS Up Eight Cents—Efficiency Drives Operating Income Growth
Bloomin’ Brands, parent to Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s, delivered a stronger first quarter in 2026, with adjusted diluted EPS climbing to $0.67 from $0.59 a year ago. Diluted EPS was $0.64, up from $0.50. These results were boosted by a blend of higher menu prices, productivity initiatives, and lower advertising expenses, even as the restaurant industry continues to wrestle with inflation and changing consumer habits.
Bonefish Grill Shines with 6.1% Same-Store Sales Growth—But Traffic Remains Negative across Most Brands
Bonefish Grill stood out with a 6.1% increase in comparable restaurant sales, recovering from last year’s decline. Meanwhile, Carrabba's posted a 1.3% gain, Fleming's grew 0.8%, and Outback Steakhouse slipped 0.3%. Despite these results, combined U.S. comparable traffic was still negative at –1.8%, though this marks an improvement from –3.9% the previous year. Notably, Bonefish Grill was the only major brand to post positive traffic (+3.0%), while Outback, Carrabba’s, and Fleming’s all saw customer counts decline.
| Brand | Q1 2026 Comparable Sales | Q1 2026 Traffic | Q1 2026 Avg. Check % Change |
|---|---|---|---|
| Outback Steakhouse | -0.3% | -2.4% | 2.1% |
| Carrabba’s Italian Grill | 1.3% | -2.7% | 4.0% |
| Bonefish Grill | 6.1% | 3.0% | 3.1% |
| Fleming’s | 0.8% | -2.9% | 3.7% |
| Combined U.S. | 0.9% | -1.8% | 2.7% |
Margins Edge Higher with Cost Savings and Menu Pricing
The company’s GAAP operating income margin edged up to 5.6% from 5.5%, while restaurant-level operating margin increased to 14.0% from 13.9%. These gains were driven by higher average spend per guest (combined +2.7%), as well as cost and productivity initiatives, which offset ongoing inflation in commodities and labor. Adjusted operating income margin was 5.9%, just below last year's 6.1% as some cost pressures lingered.
| Q1 2026 | Q1 2025 | Change | |
|---|---|---|---|
| Total Revenues ($M) | 1,059.7 | 1,049.6 | +1.0% |
| GAAP Op. Income Margin | 5.6% | 5.5% | +0.1 ppt |
| Restaurant-Level Margin | 14.0% | 13.9% | +0.1 ppt |
2026 Outlook Maintained amid Turnaround Focus
Bloomin’ Brands reaffirmed its full-year forecast, anticipating Q2 U.S. same-store sales gains between 1% and 2% and adjusted diluted EPS between $0.27 and $0.32. The company also ended Q1 with a stronger balance sheet, reporting $71.3 million in cash (up from $59.5 million at year-end) and reduced total debt to $752.6 million from $787.4 million. The number of systemwide restaurants declined slightly to 1,452, reflecting ongoing optimization of the portfolio.
Key Takeaways: Profits Grow as Brand Challenges Diverge
- Profit growth outpaced sales gains—efficiency and pricing matter as much as traffic in today's market.
- Bonefish Grill is the standout for comp sales and traffic, signaling that casual seafood is resonating with diners even as steak concepts lag.
- Outback’s traffic challenges highlight ongoing competitive pressures, though overall margins and profitability still rose.
- Investor focus may turn to whether Outback can close the traffic gap and if Bonefish’s surge is sustainable into Q2 and beyond.
As Bloomin’ Brands pursues its turnaround, investors and diners alike may want to keep an eye on how its cost management and menu strategies evolve—especially with Bonefish Grill currently leading the charge in both customer growth and sales momentum.
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