As locations close, Outback Steakhouse tries to fix a menu problem
Outback Steakhouse, owned by Bloomin' Brands, launched 'Best Steaks Ever' to improve steak quality and appointed Chef Efrem Cutler as Chief Steak Officer. The chain faces increased competition and has closed 11 U.S. locations in 2026, ending Q2 with 659 locations. JPMorgan upgraded Bloomin' Brands to Neutral with a $13 price target, citing a positive experience with the brand's leadership.
How this was made
The 30-second read
Why it matters
The upgrade signals perceived improvement, but the net effect depends on execution of the menu changes and store rationalization.
Market read
Analyst upgrade provides a short‑term trading angle, but ongoing closures keep risk elevated.
What to watch
Potential cost pressures from menu revamp and labor shortages could offset upside.
Background
Bloomin' Brands is shrinking its Outback Steakhouse footprint while attempting a menu overhaul and has received an analyst upgrade.
Ticker impact
JPMorgan upgraded Bloomin' Brands (BLMN) to Neutral and raised its price target to $13, citing a recent executive lunch and menu improvements.
likely modest upside as the market prices in the higher target and perceived turnaround.
The upgrade is a fresh, concrete catalyst; however, ongoing restaurant closures temper the upside.
Market effects
Casual‑dining sector may see renewed analyst focus on turnaround stories.
U.S. consumer‑discretionary sentiment could be modestly lifted.
Limited to U.S. restaurant equities.
Counterpoint
The upgrade may be premature given continued store closures and competitive pressure.
Key entities
- companyBloomin' Brands
Parent of Outback Steakhouse, ticker BLMN.
- analystJPMorgan
Upgraded BLMN to Neutral and raised price target.
