Bloomin’ Brands Shuts 21 US Restaurants, Plans To Exit 22 More Leases in Turnaround Effort

• Bloomin’ Brands said that the turnaround strategy focuses on investment in the company’s restaurants to refresh its existing asset base to ensure restaurants are updated and reflect brand standards.
• The company said it now expects adjusted earnings per share to come between $1.10 and $1.15, compared with the previous forecast of $1.00 to $1.10.
• Bloomin’ Brands now sees U.S. comparable restaurant sales to be flat to a 0.5% increase for 2025.

Bloomin’ Brands (BLMN) said on Thursday that as part of its turnaround strategy, the company has closed down 21 U.S. restaurants and decided not to renew the leases of 22 U.S. restaurants, the majority of which expire over the next four years.

The company said that, including the impacts of these closures, it recognized asset impairments and net closure charges of $33.2 million during the third quarter. The closures of the 21 U.S. restaurants were completed in October, with an estimated $5 million to $7 million in related severance and closure charges to be recorded during the 13 weeks ended Dec. 28, 2025.

CEO View

“I am excited to announce our turnaround strategy, with a focus on the Outback Steakhouse brand. In support of our strategy, we will reallocate available free cash flow into strategic investments in our base business and pay down debt,” CEO Mike Spanos said.

“As a result, we have suspended the dividend. We believe our strategic plan will drive long-term, sustainable and profitable growth,” Spanos added.

The company stated that its turnaround strategy focuses on investing in the company’s restaurants to refresh its existing asset base, ensuring that restaurants are updated and reflect brand standards.

Annual Forecast

Shares of Bloomin’ Brands rose nearly 3% in premarket trading. The company stated that it now expects adjusted earnings per share to be between $1.10 and $1.15, compared with its previous forecast of $1.00 to $1.10.

Bloomin’ Brands now sees U.S. comparable restaurant sales to be flat to 0.5% up for 2025.

Its third-quarter total revenue came in at $928.8 million, compared with Wall Street expectations of $906.3 million, according to data compiled by Fiscal AI. The company posted adjusted loss per share of $0.03, compared with estimates of a loss of $0.13.

Shares of the company have declined nearly 57% in the last 12 months.  

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Also See: DuPont Announces $2 Billion Share Buyback: Why Did The Stock Tumble 7% Today?

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