Q2 FY2026
Filed Aug 5, 2026Q2 Diluted EPS of $0.37 and Q2 Adjusted Diluted EPS of $0.39 Raises Full-Year Diluted and Adjusted Diluted EPS Guidance
Total revenues increased 1.3 %, comparable restaurant sales were positive across all four U.S. concepts, operating margins expanded, and the Company raised full-year diluted and adjusted diluted EPS guidance.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Fiscal 2026 U.S. comparable restaurant sales | 0.5% to 2.5% | 2.3 % | n/a |
| Fiscal 2026 Diluted earnings per share | $0.70 to $0.85 | $ 0.37 | n/a |
| Fiscal 2026 Adjusted diluted earnings per share | $0.75 to $0.90 | $ 0.39 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $ 1,015.8 | – | 1.3 % |
| GAAP operating income marginGAAP | 3.8 % | – | 0.8 % |
| Adjusted operating income marginnon-GAAP | 4.0 % | – | 0.5 % |
| Restaurant-level operating marginnon-GAAP | 12.4 % | – | 0.4 % |
| Diluted earnings per share from continuing operationsGAAP | $ 0.37 | – | $ 0.08 |
| Adjusted diluted earnings per share from continuing operationsnon-GAAP | $ 0.39 | – | $ 0.07 |
| U.S. Outback Steakhouse comparable restaurant salesother | 1.4 % | – | – |
| Carrabba’s Italian Grill comparable restaurant salesother | 1.7 % | – | – |
| Bonefish Grill comparable restaurant salesother | 8.1 % | – | – |
| Fleming’s Prime Steakhouse & Wine Bar comparable restaurant salesother | 1.6 % | – | – |
| Combined U.S. comparable restaurant salesother | 2.3 % | – | – |
Fiscal 2026 and Q3 2026 outlook
- NoteFiscal 2026 U.S. comparable restaurant sales: 1.0% to 2.0%
- NoteFiscal 2026 Diluted earnings per share: $0.85 to $0.95
- NoteFiscal 2026 Adjusted diluted earnings per share: $0.90 to $1.00
- NoteFiscal 2026 guidance assumes diluted weighted average shares of approximately 86 million.
- NoteQ3 2026 U.S. comparable restaurant sales: 1.0% to 2.0%
- NoteQ3 2026 Diluted earnings per share: ($0.28) to ($0.23)
- NoteQ3 2026 Adjusted diluted earnings per share: ($0.27) to ($0.22)
- NoteQ3 2026 guidance assumes diluted weighted average shares of approximately 86 million.
What drove it
- The increase in Total revenues was primarily due to higher comparable restaurant sales partially offset by the net impact of restaurant closures and openings.
- Restaurant-level operating margin increased primarily due to higher average check per person, primarily due to pricing, productivity initiatives, and lower pre-opening costs and health insurance expense.
- GAAP operating income margin increased primarily due to an increase in restaurant-level operating margin and lower costs in connection with transformational and restructuring initiatives.
- Bonefish Grill reported comparable restaurant sales of 8.1 %, the highest result among the four disclosed U.S. concepts.
- Management cited continued progress on the Outback Turnaround as supporting the increase in full-year earnings guidance.
Concerns
- Higher commodity, labor and operating costs, mainly due to inflation, and higher advertising expense partially offset restaurant-level margin improvement.
- Higher impairment and closing costs partially offset the increase in GAAP operating income margin.
- Q3 2026 guidance calls for diluted earnings per share of ($0.28) to ($0.23) and adjusted diluted earnings per share of ($0.27) to ($0.22).
- Total-revenue growth was partially offset by the net impact of restaurant closures and openings.
What to watch
- Whether U.S. comparable restaurant sales remain within the Fiscal 2026 outlook of 1.0% to 2.0%.
- Execution of the Outback Turnaround and the stated focus on food, service, experience, and affordability.
- Commodity, labor, operating and advertising costs, which partially offset second-quarter restaurant-level margin expansion.
- The impact of equipment upgrades associated with the turnaround strategy, which drove accelerated depreciation excluded from adjusted operating income margin.
Analysis
Bloomin' Brands reported Q2 2026 total revenues of $ 1,015.8, compared with $ 1,002.4 in Q2 2025, an increase of 1.3 %. The Company attributed the increase primarily to higher comparable restaurant sales, partially offset by the net impact of restaurant closures and openings. Combined U.S. comparable restaurant sales were 2.3 %, with all four disclosed concepts positive. Bonefish Grill led at 8.1 %, while U.S. Outback Steakhouse, Carrabba’s Italian Grill, and Fleming’s Prime Steakhouse & Wine Bar reported 1.4 %, 1.7 %, and 1.6 %, respectively.
Profitability improved despite cost pressure. GAAP operating income margin increased to 3.8 % from 3.0 %, adjusted operating income margin increased to 4.0 % from 3.5 %, and restaurant-level operating margin rose to 12.4 % from 12.0 %. The restaurant-level improvement reflected higher average check per person, primarily due to pricing, productivity initiatives, and lower pre-opening costs and health insurance expense. Higher commodity, labor and operating costs, mainly due to inflation, together with higher advertising expense, were offsets.
Diluted earnings per share from continuing operations rose to $ 0.37 from $ 0.29. Adjusted diluted earnings per share from continuing operations increased to $ 0.39 from $ 0.32. The release states that adjustments in Q2 2026 and Q2 2025 primarily related to transformational and restructuring initiatives, while Q2 2025 also included costs associated with foreign currency forward contracts. The Company also identified accelerated depreciation in Q2 2026 associated with turnaround-related equipment upgrades as an exclusion from adjusted operating income margin.
Management raised its Fiscal 2026 diluted earnings per share outlook to $0.85 to $0.95 from $0.70 to $0.85 and raised adjusted diluted earnings per share outlook to $0.90 to $1.00 from $0.75 to $0.90. Fiscal 2026 U.S. comparable restaurant sales guidance was narrowed to 1.0% to 2.0% from 0.5% to 2.5%. The updated annual outlook retains an assumption of diluted weighted average shares of approximately 86 million.
The near-term guide calls for Q3 2026 U.S. comparable restaurant sales of 1.0% to 2.0%, but diluted earnings per share of ($0.28) to ($0.23) and adjusted diluted earnings per share of ($0.27) to ($0.22). The principal items to monitor are the durability of comparable-sales performance, particularly at Outback, the trajectory of inflation-related restaurant costs and advertising expense, and the ability of productivity and turnaround initiatives to sustain margin gains.
Management, verbatim
I am pleased with our financial results in the second quarter and our continued progress on the Outback Turnaround, which has led us to raise our full year earnings guidance,
Mike Spanos, CEO
We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.
Mike Spanos, CEO
Not in the filing
stated, not guessed- GAAP operating income dollar amount
- Adjusted operating income dollar amount
- Restaurant-level operating income dollar amount
- GAAP net income
- Adjusted net income
- Gross profit and gross margin
- Operating expenses
- Income tax rate
- Diluted weighted average shares for Q2 2026
- Segment revenue
- Comparable restaurant sales prior-year or prior-quarter comparison figures for each concept
- Cash and cash equivalents
- Debt
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- All other previously communicated full-year guidance items reaffirmed without figures
- The filing text provided is truncated at the start of Table One, so the consolidated financial-statement tables and non-GAAP reconciliation tables are not available in the supplied document text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.