Bloomin' Brands Earnings Helped By Outback Sales Growth

Bloomin' Brands Inc. reported better-than-expected second-quarter earnings, helped by sales growth at its Outback Steakhouse restaurant chain.

The company, which also operates Carrabba's Italian Grill, has reported revenue gains since it went public in 2012, helped by new restaurant openings. During the latest quarter, it opened 14 new restaurants, including nine international locations.

Currency impact, which has whipped through the results of many U.S. companies, damped sales in the latest quarter.

Because of lower sales expectations at Bonefish Grill, which saw revenue slide 4.6% at comparable stores, the company was slightly less optimistic about its full-year results. Bloomin' now expects U.S. comparable restaurant growth to remain at about 1.5% as opposed to prior guidance that saw that threshold as the floor for sales expansion.

In the latest quarter, same-store sales grew 2% at domestic restaurants.

Outback posted same-store sales growth of 4%, while Fleming's Prime Steakhouse and Wine Bar posted a 3.2% increase. Carrabba's saw modest growth of 0.9%.

Outback's international same-store sales were down 11.8% in South Korea and up 3.4% in Brazil.

Overall, for the period ended June 28, Bloomin' reported a profit of $32.2 million, or 26 cents a share compared with a year-earlier profit of $26.4 million or 21 cents a share.

Excluding certain items, earnings in the most recent period was 28 cents a share, up from 27 cents a year earlier.

Revenue for the latest quarter sagged 1.1% to $1.1 billion, mostly because of currency impact, the company said.

Analysts polled by Thomson Reuters had predicted adjusted earnings of 27 cents a share and revenue of $1.11 billion.

Write to Ezequiel Minaya at [e-mail]

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