California-based restaurant chain operator files for bankruptcy as it blames state’s brutal wage laws

Bloomin Brands (BLMN) reported Q3 2026 U.S. comparable restaurant sales growth of 1.9%, with average check up 3.7%. Bonefish saw 5.3% comp sales growth. The company refinanced $1.2B in debt. Q3 adjusted loss per share was $0.17, with traffic down 1.8%. Q4 comp sales guidance is 0% to 1%, with adjusted EPS expected at $0.07 to $0.12. COGS and labor inflation pressured margins. One franchisee filed for bankruptcy, but BLMN has a bid for its 61 restaurants.

Out West Restaurant Group, an Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy, citing high labor costs and inflation. The company operates 61 locations and seeks to sell assets. Bloomin' Brands, the parent company, will buy the locations for $26.3 million. Experts discuss adapting to economic challenges. California's minimum wage and rising beef prices were cited as factors.

Bloomin' Brands (BLMN) reported Q3 2026 results, with U.S. comparable restaurant sales up 1.9% and traffic down 1.8%. Outback Steakhouse saw comp sales up 1.9% and traffic down 1.5%, while Carrabba's, Bonefish, and Fleming's showed mixed results. The company is pursuing a stalking horse purchase agreement for 61 restaurants, expecting the process to take a few months.

Bloomin' Brands reported a 1.9% increase in Outback comparable sales, driven by improved service and food quality. Management raised full-year 2026 adjusted EPS guidance to $0.97-$1.02. The company is investing in digital marketing and restaurant refreshes, while delaying pricing actions to balance inflation and consumer financial conditions. It also refinanced its $1.2 billion credit facility and aims for a 3.0 net leverage target by 2028.

Outback Steakhouse reported 1.9% same-store sales growth in Q3, with improved customer satisfaction but declining traffic. Parent company Bloomin’ Brands expects 0% to 1% growth in Q4 due to calendar shifts and promotional changes. Full-year same-store sales growth forecast was narrowed to 1% to 1.5%. Investments in quality and service impacted margins, but cost controls helped offset some costs. Bloomin’ Brands' total revenue rose 1.7% to $944.3M, with a net loss of $1.7M.

Bloomin' Brands (BLMN) updated its FY2026 EPS guidance to $0.97-$1.02 and expects 1%-1.5% U.S. comparable sales growth. CEO Michael Spanos announced a domestic franchisee's bankruptcy and the company's agreement to acquire 61 restaurants.