Tampa, Florida, U.S.A.-based restaurant firm Bloomin’ Brands, which operates Outback Steakhouse, Bonefish Grill, and other restaurant chains, suffered from low revenue and decreased foot traffic at most of its restaurants during the third quarter of 2024.
The operator of more than 1,450 restaurants reported a 3.8 percent year-over-year drop in revenues in its Q3 2024 earnings report, bringing in around USD 1.4 billion (EUR 1.3 billion) in the period. The firm attributed the decline to lower comparable restaurant sales and the net impact of restaurant closures and openings, among other obstacles.
Bonefish Grill particularly suffered in the quarter, with its comparable restaurant sales dropping 4.1 percent and foot traffic to its restaurants dropping 10 percent in July 2024 compared to July 2023, according to data from customer data firm Placer.ai.
Comparable store sales declined 1.3 percent year over year at Outback Steakhouse locations, and 1.5 percent at Carrabba’s Italian Grill restaurants. However, sales at Fleming’s Prime Steakhouse & Wine Bar, which has nearly 70 locations around the U.S., rose 1.2 percent.
Customer traffic declined 1.7 percent at Outback Steakhouse during the third quarter, according to Placer.ai, due to “strategic rightsizing that included closing underperforming locations,” the firm said.
However Bloomin’ Brands confirmed in certain regions Outback Steakhouse locations are performing exceptionally well. In the U.S. states of Washington and Oregon, Outback Steakhouse visits soared 9 percent and 9.6 percent, respectively, during the third quarter. In California – Outback’s third-largest market – visits grew 5.3 percent in the quarter, which was significantly higher than the statewide average of 1.1 percent, Placer.ai said.
In an effort to boost U.S. business, Bloomin’ Brands announced it is refranchising 67 percent of its Outback Steakhouse restaurant operations in Brazil, handing off oversight to Brazilian private equity firm Vinci Partners for approximately USD 243 million (EUR 230 million).
“This transaction will allow us to simplify and focus on our domestic operations. Vinci is a significant asset management firm with a successful track record of partnerships in the restaurant space,” Bloomin’ CEO Mike Spanos said in a call with analysts, per Nation’s Restaurant News. “It has been my experience living and working internationally with franchise partners that combining powerful classic brands with local capability and expertise is the optimal business model to maximize future growth.”
Bloomin’ is retaining 33 percent ownership of the business, according to Spanos, and has an option to sell its remaining stake in 2028.
