Outback Steakhouse Parent Bloomin Brands Q1 Earnings: Margin Contraction, High Debt, Weak Q2 Outlook

Bloomin’ Brands, Inc. BLMN reported first quarter adjusted earnings per share of 59 cents on Wednesday, beating the analyst consensus estimate of 56 cents.

Quarterly sales of $1.05 billion (down 1.8% year over year) outpaced the street view of $1.03 billion.

The decrease in total revenues was primarily due to the net impact of restaurant closures and openings and a decrease in comparable restaurant sales.

Also Read: US Restaurants Face Growth Hurdles As Macro Headwinds Mount, Says Analyst

Adjusted operating income margin in the quarter under review contracted to 6.1% from 7.8% in the year-ago period. 

Adjusted restaurant-level operating margin contracted to 13.9% from 15.5% a year ago, primarily due to lower revenues, higher operating, labor, and commodity costs, primarily due to inflation, and unfavorable product cost mix.

On April 23, the firm declared a quarterly cash dividend of $0.15 per share, payable on June 4, to stockholders of record at the close of business on May 20.

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The company exited the quarter with cash and equivalents worth $57.691 million, and total debt of $917.610 million.

Outlook: Bloomin’ Brands expects the second quarter adjusted EPS of $0.22 and $0.27, which is far lower than the $0.36 consensus estimate. The company reaffirmed its full-year 2025 adjusted EPS guidance of $1.20 to $1.40, compared to the $1.30 estimate.

“We are navigating a choppy macro environment and are leaning in to our abundant everyday value offerings. This is reflected in our current guidance,” said Mike Spanos, CEO.

Price Action: BLMN shares are trading higher by 0.76% to $7.990 premarket at last check Friday.

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