Bloomin’ Brands(US:BLMN)2025-11-06 15:00Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $929 million, up from $910 million in the previous year, driven by restaurant sales growth despite a decline in franchise and other revenue [16] - U.S. comparable restaurant sales increased by 120 basis points, while traffic decreased by 10 basis points, showing improvement compared to previous quarters [11][16] - Adjusted diluted loss per share was $0.03, better than the guidance range of negative $0.10 to $0.15, indicating operational improvements [17][20] Business Line Data and Key Metrics Changes - Outback's comparable sales were up 40 basis points with flat traffic, marking the first quarter of positive comp sales since Q2 2023 [11][12] - Bonefish's comp sales increased by 80 basis points, also achieving positive comp sales for the first time since Q2 2023, driven by promotional offers [13][14] - Flemings' comp sales rose by 120 basis points, maintaining sales momentum through experiential events and catering [14] Market Data and Key Metrics Changes - Off-premises sales accounted for 24% of total U.S. sales, consistent with Q3 of the previous year, with Outback's off-premises sales at 26% [17] - The average check increased by 1.3% compared to 2024, reflecting the company's focus on value offers [16] Company Strategy and Development Direction - The company is launching a holistic turnaround strategy focused on Outback Steakhouse, with approximately $75 million in investments planned from 2026 to 2028 [22][23] - Key strategic platforms include delivering a remarkable dining experience, driving brand relevancy, reigniting a culture of ownership, and investing in restaurant assets [23][24] - The turnaround strategy emphasizes steak quality, service improvements, and operational consistency to enhance guest experiences [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing positive trends into Q4, attributing success to meeting consumer needs with affordable pricing and value offerings [44] - The company is aware of potential macroeconomic challenges but believes dining out remains a priority for consumers, indicating resilience in the casual dining sector [45][46] - Future guidance includes expectations for U.S. comparable restaurant sales to be between flat and positive 50 basis points for the full year [20] Other Important Information - The company plans to refresh nearly 100% of Outback restaurants by the end of 2028, focusing on guest-facing areas to improve ambiance [32][37] - The dividend has been suspended to prioritize investments in restaurants and operational improvements [37] Q&A Session Summary Question: Can you expand on whether Q3 trends carried into October and what factors contributed to sustaining performance? - Management confirmed that Q3 trends have continued into Q4, driven by affordable entry price points and value offerings like the Aussie three-course [44] Question: Are there any underlying macro weaknesses that might be masked by improved results? - Management noted consistent traffic improvements across all brands and income groups, indicating that dining out remains a priority for consumers [45] Question: What factors contributed to the company outperforming Q3 same-store sales guidance? - Consistency in execution and effective marketing strategies that meet guests' needs were highlighted as key contributors to better-than-expected results [48][49] Question: Can you provide details on the remodels and potential spend levels? - Management stated that the average capital expenditure for remodels is $400,000 per unit, with targeted initiatives to refresh nearly all Outback locations by 2028 [54][55] Question: How will marketing investments be phased in over the next couple of years? - Incremental marketing investments are expected to begin in the second half of 2026, with a focus on ensuring operational execution is solid before ramping up marketing efforts [59][60]