Bloomin’ Brands, which operates Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar, reported a significant increase in its third-quarter sales.
Total revenue for the Tampa, Florida, U.S.A.-based company surged 967 percent versus the same quarter in 2019 and 31 percent versus Q3 2020.
The spike in total revenues was primarily due to higher comparable restaurant sales from in-restaurant dining and strong retention of off-premises sales, the net impact of restaurant openings and closures, and higher franchise revenues, the company said in a press release.
Bloomin’ Brands’ comparable restaurant sales surged 25.5 percent in the third quarter compared to 2019, and 9.5 percent versus the same quarter of 2020.
The company’s Fleming’s restaurant chain had the most-significant sales increase, climbing 59.6 percent in the quarter versus 2019 and 28 percent versus 2020.
Carrabba’s sales rose 28.8 percent versus 2019 and 17 percent versus 2020, while Bonefish Grill sales increased 36.6 percent versus 2019 and 5.7 percent versus 2019. Outback had an 18.3 percent increase versus 2019 and a 6 percent hike versus 2020.
“This performance is a result of the great work by our employees in the restaurants and the restaurant support center,” Bloomin’ Brands CEO David Deno said.
Bloomin’ Brands’ restaurant-level operating margin decreased primarily due to Carrabba’s Italian Grill royalty termination; higher labor costs and commodity inflation; and higher utilities, rent and operating expense.
While, the company has experienced “inflationary pressures,” it has levers available to “combat these headwinds and achieve our margin targets,” Deno said.
While third-quarter sales were strong, sales began decelerating in August “due to traditional seasonality and concerns over the [COVID-19] delta variant,” Bloomin’ Brands said.
“In addition, there was significant promotional activity during 2019 at Outback Steakhouse that we chose not to replicate in 2021, given the evolving consumer environment, including offers tied to the launch of our third-party delivery channel,” the company said.
Photo courtesy of Raymond C. Eichelberger/Shutterstock
