Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $1 billion, slightly up from $999 million in the previous year [34] - U.S. comparable restaurant sales decreased by 10 basis points, while traffic declined by 200 basis points [35] - Adjusted diluted earnings per share for Q2 was $0.32, down from $0.45 in the previous year [36][37] - Adjusted operating margins were 3.5%, compared to 6% last year, primarily due to a decline in restaurant level margin and inflationary pressures [37] Business Line Data and Key Metrics Changes - Outback's off-premise sales accounted for 26% of total sales, while Carrabba's reached 35% [36] - Traffic performance at Outback improved throughout the quarter, driven by the introduction of the Aussie three-course offering [20][19] - Carrabba's experienced positive comparable sales growth, attributed to strong off-premise sales and experiential events [20][78] Market Data and Key Metrics Changes - U.S. traffic was down 2% in Q2, showing a sequential improvement from Q1 [19] - The company is still losing market share in the industry, as defined by Black Box, indicating ongoing challenges in the casual dining sector [20] Company Strategy and Development Direction - The primary focus is on turning around Outback, with a strategy centered on improving service quality, value, and menu simplification [5][6][25] - The company is implementing a new organizational structure to enhance operational efficiency and support the turnaround efforts [6][10] - Investments of approximately $3 million in 2025 are planned for expanding tests related to service quality and value [30][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for time to reverse market share trends and emphasizes the importance of consistent execution in operations [20][32] - The company is committed to reducing debt leverage and returning capital to shareholders while maintaining healthy cash flow [32][40] - Future guidance for adjusted diluted earnings per share is set between $1 and $1.1, reflecting various operational challenges and investments [41] Other Important Information - The company has completed a repair and maintenance survey to prioritize remodels and improve asset conditions [88] - A quarterly dividend of $0.15 per share has been declared, payable on September 3, 2025 [40] Q&A Session Summary Question: Inquiry about Outback general managers' compensation structure - Management is assessing the compensation structure to ensure it aligns with market averages and drives growth in sales and profits [50][51] Question: Prioritization of Outback turnaround initiatives - Management believes they are in the early stages of the turnaround and emphasizes the importance of service model, steak quality, and value components [54][56] Question: Details on the Aussie three-course offering - The offering has led to increased traffic and value satisfaction, with many guests trading up to higher price points [59][60] Question: Insights from the initial Outback test restaurants - Management noted the brand's potential and the importance of consistency in service, quality, and ambiance [64][66] Question: Performance of Outback in various regions - Performance was consistent across all geographies in Q2, with no significant outliers [94][95]