Outback Steakhouse traffic turns positive as Bloomin’ Brands launches turnaround strategy

Bloomin’ Brands (NASDAQ:BLMN) reported fourth-quarter 2025 financial results on Wednesday that signaled the early stages of a strategic pivot.

While the company faced significant non-cash charges, it achieved a critical operational milestone: Outback Steakhouse recorded its first quarter of positive guest traffic since late 2021.

For the quarter ended December 28, 2025, Bloomin’ Brands reported a GAAP diluted loss per share of $0.14, compared to earnings of $0.12 in the fourth quarter of 2024.

The results included substantial adjustments, primarily a goodwill impairment related to the Bonefish Grill division and costs associated with underperforming restaurant closures.

On an adjusted basis, diluted EPS rose to $0.26, up from $0.22 in the prior-year period.

CEO Mike Spanos, who initiated a comprehensive turnaround strategy in November 2024, attributed the traffic recovery at Outback to targeted investments in food quality—specifically steak upgrades—and a more disciplined guest experience.

For the full fiscal year 2025, the company reported GAAP diluted earnings per share of $0.10, down from $0.71 in 2024.

Adjusted diluted EPS for the year stood at $1.14, compared to $1.45 in the previous fiscal year.

The decline reflects ongoing labor and commodity inflation, as well as the impact of the company's decision to refranchise a majority stake in its Brazil operations earlier in the year.