Bloomin Brands Inc

Investors are rotating out of fast-food chains and into sit-down restaurants, according to Yahoo Finance Markets & Data Editor Jared Blikre. Cheesecake Factory, Bloomin' Brands, and BJ's Restaurants have outperformed, while Shake Shack is down 34% and Wingstop is down 67% over the past year. The spread between sit-down and high-growth fast-food names has widened to 66 points, surpassing the previous peak of 50 points set on November 18, 2019. Blikre says investors now want to see current traffic rather than expansion ambitions.

Bloomin' Brands reported fiscal second quarter 2026 results and raised its full-year adjusted earnings per share guidance to between $0.90 and $1.00, up from the prior range of $0.75 to $0.90. Total revenues rose 1% to $1.02 billion, with U.S. comparable restaurant sales up 230 basis points, while adjusted diluted EPS came in at $0.39 versus $0.32 a year earlier. The company attributed the improved outlook to year-to-date performance, better sales mix trends, and stronger cost controls, and it now expects full-year U.S. comparable sales growth of 1% to 2%. Outback Steakhouse's turnaround continues to show progress, with guest metric scores improving for a fourth consecutive quarter and the new service model fully rolled out, though traffic remains negative. For the third quarter, Bloomin' Brands expects U.S. comparable sales growth of 1% to 2% and an adjusted diluted loss per share between $0.27 and $0.22.

Bloomin' Brands raised its full-year earnings guidance after higher menu prices drove second-quarter profit above analyst expectations. The parent of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar reported net income of $31.3 million, or 36 cents a share, up from $25.4 million a year earlier. Adjusted earnings per share came in at 39 cents, beating the 29-cent consensus, while total revenue rose 1.3% to $1.02 billion. U.S. comparable restaurant sales grew 2.3%, led by an 8.1% jump at Bonefish Grill. The company now sees full-year adjusted diluted EPS of 90 cents to $1, up from its prior 75-to-90-cent range, and narrowed its U.S. comparable sales growth forecast to 1% to 2%. Shares rose 8% to $9.61 in pre-market trading.

Bloomin' Brands shares jumped 41% on May 6th after the company reported fiscal first quarter earnings that beat analyst estimates. The restaurant operator posted revenue of $1.1 billion and earnings per share of $0.65, meeting revenue expectations and exceeding profit forecasts. Comparable sales grew 0.9% in the quarter, reversing a 0.5% decline in the prior period, with Bonefish Grill sales up 6% while Outback Steakhouse dipped 0.3%. The stock is down 17.9% over the past year but up 30.7% year-to-date, and Miller Value recently disclosed a new position of two million shares worth $10.9 million.

Shares of Bloomin' Brands and Portillo's rose sharply in afternoon trading as WTI crude oil fell below $70 per barrel, easing pressure on consumer wallets. Bloomin' Brands gained 4.6% and Portillo's jumped 5.8%, benefiting from the broader rally in restaurant stocks triggered by the 3% drop in oil prices to their lowest since early March. The decline in energy costs acts as a de facto tax cut for middle- and lower-income consumers, boosting discretionary spending on dining out. The restaurant sector, particularly quick-service chains, is highly sensitive to gas prices, and cheaper fuel provides a much-needed catalyst for traffic recovery amid recent slowdowns due to inflation fatigue. Other stocks in the sector also surged, with Wendy's up 30% on retail enthusiasm and a CFO change, while McDonald's and Darden benefited from the macro tailwind.