Q3 2025 Bloomin' Brands Inc Earnings Call

November 6, 2025

Yeah.

A brief question and answer session will follow management's prepared remarks.

It is now my pleasure to introduce your host Terra Korean senior Vice President IR F PNA and international.

MS. Karen you may begin.

Thank you and good morning, everyone with me on today's call are Mike <unk>, Our Chief Executive Officer, and Eric Crystal Executive Vice President and Chief Financial Officer by now you should have access to our fiscal third quarter 2025 earnings release, and our Investor presentation slides, both of which can be found on our website at double.

Ww Dot Bloom and brand Dot com in the investors section.

Throughout this conference call, we will be presenting results on an adjusted basis, an explanation of our use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures appear in our earnings release and Investor presentation on our website. As previously described before we begin formal remarks I'd like to remind everyone.

One that part of our discussion today will include forward looking statements, including a discussion of recent trends. These statements are subject to numerous risks and uncertainties that could cause actual results to differ in a material way from our forward looking statements. Some of these risks are mentioned in our earnings release, others are discussed in our SEC filings, which.

Are available at Www Dot SEC Dot Gov.

During today's call we will provide a brief recap of our financial performance for the fiscal third quarter 2025.

Current thoughts on fiscal 2025 guidance and our turnaround strategy. Once we've completed these remarks, we'll open the call up for questions with that I would now like to turn the call over to Mike span us. Thanks.

Thanks, Tara and good morning, everyone.

On today's call, we will discuss three topics.

First I will summarize my observations during my first year in our actions against our operational priorities that we communicated in February to simplify the agenda deliver a great guest experience and turnaround outback.

Eric and I will review, our third quarter results and updated guidance for this year.

Third I am very excited for Erik and I to share the details of our turnaround strategy I would also like to welcome Eric <unk> to his first earnings call.

Let's start with my observations on our progress against our operational priorities.

We have a great culture and team and it is a privilege to lead this team as we embark upon our turnaround.

<unk> brands is a company of restaurants with four founder inspired brands.

Sure and spirit as an organization is grounded in our principles and beliefs, inspiring and how we serve each other and our guests unites us with a common vision that our success achieved one restaurant at a time.

By growth in sales and profits and is the result of taking care of our people and guests.

To build upon that culture and execute a strategic transformation. It is important to get the right leadership team in place with.

The changes made to the team this year have reinforced a culture grounded in our founders principles and beliefs executing with an operational mindset and a passion for guest hospitality.

We each bring different but critical and complementary experiences and skills to the table.

Our recently announced Fleming's brand President Pat English exemplifies a passion for the team our guests and consistency of execution that has 35 years of fine dining operational leadership experience, including two decades with <unk> our.

Our brand presidents are all new to roll this year and importantly, they are all operators that collectively averaged 34 years of restaurant industry experience.

I would also like to thank Selina Henry for her leadership and impact on the <unk> and Bloom and brands business over her impressive 13 year career with the organization we wish her the best in her future.

In addition to our culture and team we have iconic brands with strong equity strong cash flow healthy balance sheet and ample liquidity to enable a turnaround we compete in large and growing categories like steak and Italian however, we faced several critical challenges including over.

Complex menus.

Unclear brand positioning inconsistent guest experiences.

GAAP and stay quality and diminishing value perception.

We have drifted away from making decisions centered on the guest experience.

Solving these challenges, especially at outback are necessary to turnaround the company.

Our leadership team started addressing these problems with a focus on the three operating priorities our.

Our approach is to control what we can control meet the guests where they are while keeping execution simpler for our restaurant teams.

To simplify the agenda, we re franchise, our restaurants in Brazil streamlined our corporate structure by removing layers reduced menu skews by 10% to 20%.

The reduced <unk> that added complexity in the restaurants.

To deliver a great guest experience, we knew we needed to address the consistency of execution and food service experience and value.

What you get for what you pay for value equation.

Operator: All participants are in listen-only mode. A brief question-and-answer session will follow management's prepared remarks. It is now my pleasure to introduce your host, Tara Kurian, Senior Vice President, IR, FP&A, and International. Thank you, Ms. Kurian. You may begin.

We introduced everyday value offers in all of our casual dining brands, leading with the <unk> three course at Outback, which is resonating with our guest and is easily executed.

Turnaround the company.

Our leadership team started addressing these problems with a focus on the three operating priorities are.

Our approach is to control what we can control meet the guests where they are while keeping execution simpler for our restaurant teams.

Part of delivering a great guest experience is making it simpler and smoother in order to achieve that while gaining critical service feedback at the individual restaurant level, we installed <unk> across the Opex system.

To simplify the agenda, we re franchise, our restaurants in Brazil streamlined our corporate structure by removing layers reduced menu skews by 10% to 20% and reduced <unk> that added complexity in the restaurants.

Tara Kurian: Thank you, and good morning, everyone. With me on today's call are Mike Spanos, our Chief Executive Officer, and Eric Crist, Executive Vice President and Chief Financial Officer. By now, you should have access to our fiscal third quarter 2025 earnings release and our investor presentation slides, both of which can be found on our website at www.BloominBrands.com in the investor section. Throughout this conference call, we will be presenting results on an adjusted basis. An explanation of our use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures appear in our earnings release and investor presentation on our website as previously described. Before we begin formal remarks, I'd like to remind everyone that part of our discussion today will include forward-looking statements, including a discussion of recent trends.

Over 85% of our guests use <unk> to pay for their meal saving them time, and improving table turns by about five to seven minutes.

We're also using guests feedback on their experience as a recognition and coaching tool at each restaurant are.

To deliver a great guest experience, we knew we needed to address the consistency of execution and food service experience and value.

<unk> data shows that our efforts are working we have seen dine in customer metrics improve several points across attempt to return.

What you get for what you pay for value equation.

We introduced everyday value offers in all of our casual dining brands, leading with the Aussie three course at Outback, which is resonating with our guest and is easily executed.

Steak accuracy value and overall satisfaction.

And the last of our operating priorities was to turnaround Outback. We all believe that we can reenergize the brand and deliver sustainable growth and most importantly, our <unk> believe in the future potential.

In addition to these elements I've already mentioned <unk> and the Outback team committed themselves to listening learning and serving our outback, Brazil guests and focusing on being in restaurant during peak hours and days.

Tara Kurian: These statements are subject to numerous risks and uncertainties that could cause actual results to differ in a material way from our forward-looking statements. Some of these risks are mentioned in our earnings release, others are discussed in our SEC filings, which are available at www.SEC.gov. During today's call, we'll provide a brief recap of our financial performance for the fiscal third quarter 2025, current thoughts on fiscal 2025 guidance, and our turnaround strategy. Once we've completed these remarks, we'll open the call up for questions. With that, I would now like to turn the call over to Mike Spanos.

Over 85% of our guests use <unk> to pay for their meal saving them time, and improving table turns by about five to seven minutes.

Success of our restaurant business is determined on the ground and there is no substitute for getting our leaders in the restaurants when it matters.

We're also using guests feedback on their experience as a recognition and coaching tool at each restaurant are.

<unk> data shows that our efforts are working we have seen dine in customer metrics improve several points across attempt to return.

<unk> <unk> over 200 restaurant visits by Pat and myself, we are committed to raising the bar on standards and recipe execution for great food and service, while removing complexity for our Packers.

Steak accuracy value and overall satisfaction.

And the last of our operating priorities was to turnaround Outback. We all believe that we can reenergize the brand and deliver sustainable growth and most importantly, our outback are believe in the future potential.

We also needed to test and learn.

Mike Spanos: Thanks, Tara, and good morning, everyone. On today's call, we will discuss three topics. First, I will summarize my observations during my first year and our actions against our operational priorities that we communicated in February to simplify the agenda, deliver a great guest experience, and turnaround Outback. Second, Eric and I will review our third quarter results and updated guidance for this year. Third, I am very excited for Eric and me to share the details of our turnaround strategy. I would also like to welcome Eric to his first earnings call. Let's start with my observations and our progress against our operational priorities. We have a great culture and team, and it is a privilege to lead this team as we embark upon our turnaround. Bloomin' Brands, Tara Kurian, is a company of restaurants with four founder-inspired brands.

Earlier this year, we had 14 restaurants in test, which were largely focused on menu simplification innovation and guest experience.

In addition to these elements I've already mentioned Pat after in the Outback team committed themselves to listening learning and serving our outback present guests.

In September we expanded the test to 42 restaurants across several markets.

These restaurants have integrated test cells would stay quality menu innovation enhanced service models and value components.

And focusing on being in restaurant during peak hours and days <unk>.

The success of our restaurant business is determined on the ground and there is no substitute for getting our leaders in the restaurants when it matters.

Throughout this year. We also ran isolated tests focused specifically on steak quality and changes to the service model. These tests have accelerated our learnings influenced our immediate business actions validated our strategic initiatives and provided us with a better understanding of the change management realities of scale.

<unk> <unk> over 200 restaurant visits by Pat and myself, we are committed to raising the bar on standards and recipe execution for great food and service, while removing complexity for our <unk>.

Lean improvements, which heavily influenced the sequencing we have planned for the initiatives in our turnaround strategy for Outback.

We also needed to test and learn.

Mike Spanos: Our culture and spirit as an organization is grounded in our principles and beliefs, inspiring how we serve each other and our guests. It unites us with a common vision that our success is achieved one restaurant at a time, measured by growth in sales and profits, and is the result of taking care of our people and guests. To build upon that culture and execute a strategic transformation, it is important to get the right leadership team in place. The changes made to the team this year have reinforced the culture grounded in our founders' principles and beliefs, executing with an operational mindset and a passion for guest hospitality. We each bring different, but critical and complementary experiences and skills to the table. Our recently announced Bloomin' Brands President, Pat English, exemplifies a passion for the team, our guests, and consistency of execution.

Earlier this year, we had 14 restaurants in test, which were largely focused on menu simplification innovation and guest experience in September we expanded the test to 42 restaurants across several markets.

We will maintain a test and learn culture here at Outback and we plan to use our test environments to continue to refine and test new ideas.

Turning to our third quarter results and updated guidance for 2025.

These restaurants have integrated test cells, which state quality.

Our focus this past year on our operational priorities is translating into improved guest metrics and sales and traffic gains.

Menu innovation enhanced service models and value components.

Throughout this year. We also ran isolated tests focused specifically on stay quality and changes to the service model. These tests have accelerated our learnings influenced our media business actions validated our strategic initiatives and provided us with a better understanding of the change management realities of scale.

Putting us in a strengthened position to execute our turnaround strategy.

We believe our Q3 momentum is reflective of these foundational efforts.

Our Q3 sales comp was up 120 basis points, which was 130 basis points better than Q2.

In U S traffic was negative 10 basis points, which was 190 basis points better than Q2.

Eileen improvements, which heavily influenced the sequencing we have planned for the initiatives in our turnaround strategy for Outback.

Our focus has been primarily on outback over the last year all brands achieved positive comp sales growth this quarter for the first time since Q1 2023.

Mike Spanos: Pat has 35 years of fine dining operational leadership experience, including two decades with Bloomin' Brands. Our brand presidents are all new to role this year, and importantly, they are all operators that collectively average 34 years of restaurant industry experience. I would also like to thank Shalina Henry for her leadership and impact on the Bloomin' Brands Tara Kurian business over her impressive 13-year career with the organization. We wish her the best in her future. In addition to our culture and team, we have iconic brands with strong equity, strong cash flow, a healthy balance sheet, and ample liquidity to enable a turnaround. We compete in large and growing categories like steak and Italian. However, we face several critical challenges, including overly complex menus, unclear brand positioning, inconsistent guest experiences, a gap in steak quality, and diminishing value perception.

We will maintain a test and learn culture here at Outback and we plan to use our test environments to continue to refine and test new ideas.

Turning to our third quarter results and updated guidance for 2025.

Our casual dining brands executed value offers to meet the guests where they are economically.

Our focus this past year on our operational priorities is translating into improved guest metrics and sales and traffic gains.

Outback comp sales were up 40 basis points with traffic flat. This was the first quarter of positive comp sales for Opex since Q2 of 2023.

Putting us in a strengthened position to execute our turnaround strategy. We believe our Q3 momentum is reflective of these foundational efforts.

Outback continues to see traffic from the obviously three course, offering which starts with an entry price point of $14 99.

Our Q3 sales comp was up 120 basis points, which was 130 basis points better than Q2.

And we continue to see about two thirds of guests trading up to higher tiers of $17 99.

In U S traffic was negative 10 basis points, which was 190 basis points better than Q2.

$20 99.

We have also seen a significant improvement in Outback brand trust by plus six points year over year and improvements in guest scores across food service value and atmosphere.

While our focus has been primarily on outback over the last year all brands achieved positive comp sales growth this quarter for the first time since Q1 2023.

Our casual dining brands executed value offers to meet the guests where they are economically.

Additionally, we are encouraged by our improved media ROI as we are being disciplined and communicating the right message in the right channels and at the right times to drive efficiency and effectiveness.

Mike Spanos: We had drifted away from making decisions centered on the guest experience. Solving these challenges, especially at Outback, is necessary to turn around the company. Our leadership team started addressing these problems with a focus on the three operating priorities. Our approach is to control what we can control, meet the guests where they are, while keeping execution simpler for our restaurant teams. To simplify the agenda, we refranchised our restaurants in Brazil, streamlined our corporate structure by removing layers, reduced menu SKUs by 10 to 20%, and reduced LTOs that added complexity in the restaurants. To deliver a great guest experience, we knew we needed to address the consistency of execution in food, service, experience, and value—the what you get for what you pay for value equation.

Outback comp sales were up 40 basis points with traffic flat. This was the first quarter of positive comp sales for Opex since Q2 of 2023.

Higher returns gives us increased conviction in the marketing investment we have planned to make as part of the outback turnaround.

Outback continues to see traffic from the obviously three course, offering which starts with an entry price point of $14 99.

<unk> comp sales were up 410 basis points with positive traffic of 60 basis points. Its growth was led by in restaurant value of dinner Dolce for two for $45 experiential wine dinners lunch.

And we continue to see about two thirds of guests trading up to higher tiers of $17 99.

$20 99.

We have also seen a significant improvement in Outback brand trust by plus six points year over year and improvements in guest scores across food service value and atmosphere.

And off premises.

Bonefish comp sales were up 80 basis points with traffic of negative 170 basis points. This was the first quarter of positive comp sales for bonefish since Q2 of 2023.

Its recent improvement has been driven by day of the week offers with $5 Martini, Margarita Mondays and $7 Bang Wednesdays and its pre fixed launch offerings starting at $14 90.

Mike Spanos: We introduced everyday value offers in all of our casual dining brands, leading with the Aussie Three-Course at Outback, which is resonating with our guests and is easily executed. Part of delivering a great guest experience is making it simpler and smoother. In order to achieve that while gaining critical service feedback at the individual restaurant level, we installed Ziosk across the Outback system. Over 85% of our guests use Ziosk to pay for their meal, saving them time and improving table turns by about five to seven minutes. We are also using guest feedback on their experience as a recognition and coaching tool at each restaurant. Our Ziosk data shows that our efforts are working. We have seen dine-in customer metrics improve several points across intent to return, steak accuracy, value, and overall satisfaction. The last of our operating priorities was to turn around Outback.

Higher returns gives us increased conviction in the marketing investment we have planned to make as part of the outback turnaround.

Fleming's comp sales were up 120 basis points with traffic down 120 basis points.

<unk> comp sales were up 410 basis points with positive traffic of 60 basis points. Its growth was led by in restaurant value of dinner adult JV for two for $45 experiential wine dinners lunch.

<unk> has maintained its sales momentum within restaurant traffic driven by experiential events.

<unk> service and its events and catering platforms.

We are excited with our momentum, but we know we need to continue to improve our results to grow market share.

And off premises.

Bonefish comp sales were up 80 basis points with traffic of negative 170 basis points. This was the first quarter of positive comp sales for bonefish since Q2 of 2023.

We know in restaurant dining is our biggest opportunity we know it will take time to reverse our market share trends and we remain focused on improving our execution every day.

Its recent improvement has been driven by day of the week offers with $5 Martini, Margarita Mondays and $7 Bang Wednesdays and its pre fixed launch offerings starting at $14 90.

Let me turn it over to Eric to review, our financial performance for the quarter before we cover the strategy update.

Thank you, Mike and good morning, everyone.

I would like to start by providing a recap of our continuing operations financial performance for the fiscal third quarter of 2025.

Fleming's comp sales were up 120 basis points with traffic down 120 basis points.

Mike Spanos: We all believe that we can re-energize the brand and deliver sustainable growth. Most importantly, our outbackers believe in the future potential. In addition to these elements I've already mentioned, Pat Hafner and the Outback team committed themselves to listening, learning, and serving our outbackers and guests, and focusing on being in restaurants during peak hours and days. The success of a restaurant business is determined on the ground, and there is no substitute for getting our leaders in the restaurants when it matters. Between Ziosk and over 200 restaurant visits by Pat and myself, we are committed to raising the bar on standards and recipe execution for great food and service, while removing complexity for our outbackers. We also needed to test and learn. Earlier this year, we had 14 restaurants in test, which were largely focused on menu simplification, innovation, and guest experience.

Total revenues were $929 million compared to $910 million last year rests.

<unk> has maintained its sales momentum within restaurant traffic driven by experiential events.

Restaurant sales were up driven by the net impact of restaurant openings and closures as well as U S comparable restaurant sales.

<unk> service and its events and catering platforms.

This was partially offset by a decline in franchise and other revenue as the royalty rate on Brazil. This year is less than the intercompany royalty received last year.

We are excited with our momentum, but we know we need to continue to improve our results to grow market share.

We know in restaurant dining is our biggest opportunity we know it will take time to reverse our market share trends and we remain focused on improving our execution every day.

As Mike mentioned U S comparable restaurant sales were up 120 basis points and traffic was down 10 basis points.

These results were below the casual dining industry, they exceeded our expectations as improvements begin to take hold.

Let me turn it over to Eric to review, our financial performance for the quarter before we cover the strategy update.

Average check increased one 3% compared to 2024 as we continue to invest in value offers for our guests.

Thank you, Mike and good morning, everyone.

I would like to start by providing a recap of our continuing operations financial performance for the fiscal third quarter of 2025.

Off premises sales were 24% of total U S sales in the quarter consistent with Q3 last year.

Total revenues were $929 million compared to $910 million last year rests.

Alpex off premises mix of sales were 26% in the quarter and Carrabba's where 34%.

Restaurant sales were up driven by the net impact of restaurant openings and closures as well as U S comparable restaurant sales.

Mike Spanos: In September, we expanded the test to 42 restaurants across several markets. These restaurants have integrated test sales with steak quality, menu innovation, enhanced service models, and value components. Throughout this year, we also ran isolated tests focused specifically on steak quality and changes to the service model. These tests have accelerated our learnings, influenced our immediate business actions, validated our strategic initiatives, and provided us with a better understanding of the change management realities of scaling improvements, which heavily influenced the sequencing we have planned for the initiatives in our turnaround strategy for Outback. We will maintain a test and learn culture here at Outback, and we plan to use our test environments to continue to refine and test new ideas. Turning to our third quarter results and updated guidance for 2025.

Our GAAP diluted loss per share was <unk> 54, compared to a loss of <unk> <unk> per share last year. Our Q3 adjusted diluted loss was <unk> <unk> per share versus earnings of <unk> 11 per share last year.

This was partially offset by a decline in franchise and other revenue as the royalty rate on Brazil. This year is less than the intercompany royalty received last year.

As Mike mentioned U S comparable restaurant sales were up 120 basis points and traffic was down 10 basis points.

Negative three was above our guidance range of negative 10 to negative 15.

The primary difference between GAAP and adjusted diluted loss per share is approximately $43 million of adjustments incurred in Q3 2025, as a result of the restaurant closures and impairments transformational and restructuring activities foreign currency forward contracts that partially offset risk.

These results were below the casual dining industry, they exceeded our expectations as improvements begin to take hold.

Average check increased one 3% compared to 2024 as we continue to invest in value offers for our guests.

Off premises sales were 24% of total U S sales in the quarter consistent with Q3 last year.

<unk> with the purchase price installment payments on the Brazil transaction and a change in our employee benefits policy.

Alpex off premises mix of sales were 26% in the quarter and Carrabba's where 34%.

Q3, adjusted operating margins were eight 8% versus two 3% last year.

Our GAAP diluted loss per share was <unk> 54, compared to a loss of <unk> <unk> per share last year our.

The 150 basis point difference between this year and last year was driven by one Cogs inflation of four 9%, we lapped a significant rebate from Q3 of last year, which drove a higher inflation rate. This quarter, we expect the full year cogs inflation to be between three and three 5%.

Mike Spanos: Our focus this past year on our operational priorities is translating into improved guest metrics, sales, and traffic gains, putting us in a strengthened position to execute our turnaround strategy. We believe our Q3 momentum is reflective of these foundational efforts. Our Q3 sales comp was up 120 basis points, which was 130 basis points better than Q2. US traffic was negative 10 basis points, which was 190 basis points better than Q2. While our focus has been primarily on Outback over the last year, all brands achieved positive comp sales growth this quarter for the first time since Q1 2023. All casual dining brands executed value offers to meet the guests where they are economically. Outback comp sales were up 40 basis points, with traffic flat. This was the first quarter of positive comp sales for Outback since Q2 2023.

Our Q3 adjusted diluted loss was <unk> <unk> per share versus earnings of <unk> 11 per share last year.

I gave three was above our guidance range of negative 10 to negative 15.

Two labor inflation of three 3% as we continue to experience inflationary pressure on wages, we expect the full year labor inflation to be approximately three 5% and.

And three higher operating and supply expenses, mostly driven by inflation as well as 60 basis points from higher insurance expense.

<unk> with the purchase price installment payments on the Brazil transaction and a change in our employee benefits policy.

As it relates to our 33% retained ownership in Brazil, which is classified using equity method investment accounting.

Q3, adjusted operating margins were eight 8% versus two 3% last year the.

We recognized a loss of 300000 in Q3.

The 150 basis point difference between this year and last year was driven by one cogs inflation of four 9%.

This was slightly better than our expectation driven by updated estimates on the stepped up fair value basis of accounting for the assets.

Lapped a significant rebate from Q3 of last year, which drove a higher inflation rate. This quarter, we expect the full year cogs inflation to be between three and three 5%.

We expect the total impact on the full year to be approximately negative $5 million.

Turning to our capital structure in Q3.

Mike Spanos: Outback continues to see traffic from the Aussie Three-Course offering, which starts with an entry price point of $14.99. We continue to see about two-thirds of guests trading up to the higher tiers of $17.99 and $20.99. We have also seen a significant improvement in Outback's brand trust by ±6 points year over year, and improvements in guest scores across food, service, value, and atmosphere. Additionally, we are encouraged by our improved media ROI as we are being disciplined in communicating the right message in the right channels and at the right times to drive efficiency and effectiveness. Our higher returns give us increased conviction in the market investment we have planned to make as part of the Outback turnaround. For Outback, comp sales were up 410 basis points with positive traffic of 60 basis points.

Total debt net of cash is $896 million, our leverage metrics are four three times on a lease adjusted net leverage basis and two nine times on a net debt to adjusted EBITDA basis.

<unk> labor inflation of three 3% as we continue to experience inflationary pressure on wages, we expect the full year labor inflation to be approximately three 5% and three higher operating and supply expenses, mostly driven by inflation as well as 60 basis points from higher insurance expense.

We expect the second installment of the Brazil Refranchising transaction to be received this month and we will apply the proceeds to our revolver.

Anticipate this payment to be approximately $122 million.

As it relates to our 33% retained ownership in Brazil, which is classified using equity method investment accounting, we recognized a loss of 300000 in Q3.

Adjusting for an updated FX rate and withholding taxes.

This does include approximately $15 million of interest income on the receivable.

This was slightly better than our expectation driven by updated estimates on the stepped up fair value basis of accounting for the assets. We expect the total impact on the full year to be approximately negative $5 million.

We expect lease adjusted net leverage to move from four three times to 4.0 times and net debt to EBITDA to move from two nine times to two five times on a pro forma basis with the proceeds applied to the Q3 balance.

Turning to our capital structure in Q3 <unk>.

Total debt net of cash is $896 million, our leverage metrics are four three times on a lease adjusted net leverage basis and two nine times on a net debt to adjusted EBITDA basis.

Turning to our guidance.

We are raising our U S comp sales guidance range for the full year to be between flat to positive 50 basis points, driven primarily by our current momentum.

Mike Spanos: Its growth was led by in-restaurant value of dinner and Dulce for Two for $45, experiential wine dinners, lunch, and off-premises. Bonefish comp sales were up 80 basis points with traffic of negative 170 basis points. This was the first quarter of positive comp sales for Bonefish since Q2 2023. Its recent improvement has been driven by day-of-the-week offers with $5 martini margarita Mondays and $7 Bang Wednesdays, and its prefix launch offering starting at $14.90. Bloomin's comp sales were up 120 basis points, with traffic down 120 basis points. Bloomin's has maintained its sales momentum with in-restaurant traffic driven by experiential events, elevated service, and its events and catering platforms. We are excited with our momentum, but we know we need to continue to improve our results to grow market share. We know in-restaurant dining is our biggest opportunity.

We are raising our adjusted diluted earnings per share range to be $1 10 to $1 15.

We expect the second installment of the Brazil Refranchising transaction to be received this month and we will apply the proceeds to our revolver.

As a reminder, we are in a tax benefit situation driven by FICA tip credits relative to earnings we expect an adjusted tax benefit in the range of approximately $10 million to $12 million in 2025, which is included in our updated guidance we.

Anticipate this payment to be approximately $122 million adjusting for an updated FX rate and withholding taxes.

This does include approximately $15 million of interest income on the receivable.

We continue to track toward capital expenditures of approximately $190 million for the full year.

As it relates to the fourth quarter 2025, we expect U S comparable restaurant sales to be between positive 50 basis points and positive for 150 basis points. We expect <unk> three course to continue to have a positive impact on our sales as we are lapping underperforming promotions from 2024.

Turning to our guidance.

We are raising our U S comp sales guidance range for the full year to be between flat to positive 50 basis points, driven primarily by our current momentum.

We expect Q4 adjusted diluted earnings per share to be between 23 and 28.

We are raising our adjusted diluted earnings per share range to be $1 10 to $1 15.

This earnings per share range includes an estimated negative impact from our 33%, Brazil ownership to be approximately $1 5 million let.

As a reminder, we are in a tax benefit situation driven by FICA tip credits relative to earnings.

Let me turn it back over to Mike to walk through the strategy update.

Mike Spanos: We know it will take time to reverse our market share trends, and we remain focused on improving our execution every day. Let me turn it over to Eric to review our financial performance for the quarter before we cover the strategy update.

We expect an adjusted tax benefit in the range of approximately $10 million to $12 million in 2025, which is included in our updated guidance.

Thanks, Eric.

As I mentioned, our strong Q3 results and operating momentum give us confidence to now launch our holistic turnaround strategy focused on Outback steakhouse.

We continue to track toward capital expenditures of approximately $190 million for the full year.

As it relates to the fourth quarter 2025, we expect U S comparable restaurant sales to be between positive 50 basis points and positive 150 basis points. We expect <unk> to continue to have a positive impact on our sales as we are lapping underperforming promotions from 2024.

Eric Crist: Thank you, Mike, and good morning, everyone. I would like to start by providing a recap of our continuing operations financial performance for the fiscal third quarter of 2025. Total revenues were $929 million compared to $910 million last year. Restaurant sales were up, driven by the net impact of restaurant openings and closures, as well as US comparable restaurant sales. This was partially offset by a decline in franchise and other revenue as the royalty rate on Brazil this year is less than the intercompany royalty received last year. As Mike mentioned, US comparable restaurant sales were up 120 basis points, and traffic was down 10 basis points. Though these results were below the casual dining industry, they exceeded our expectations as improvements begin to take hold. Average check increased 1.3% compared to 2024 as we continue to invest in value offers for our guests.

Through our testing this year, we identified no regret investments that are critical to the success of the turnaround or our <unk> and our guests are telling us that these are the right things to do and are consistent with our foundation in terms of quality service and experience and we know they are required to deliver.

We expect Q4 adjusted diluted earnings per share to be between 23 and 28.

Liver sustainable profit growth and market share gains.

This earnings per share range includes an estimated negative impact from our 33%, Brazil ownership to be approximately $1 5 million let.

We have identified approximately $75 million of investments across 2026 through 2028 with approximately $50 million being spent in 2026 the.

Let me turn it back over to Mike to walk through the strategy update.

Thanks, Eric.

The investments will be across state quality service, our people the guest experience and marketing.

As I mentioned, our strong Q3 results and operating momentum give us confidence to now launch our holistic turnaround strategy focused on Outback steakhouse for our.

We will offset the turnaround investments with approximately $80 million of non guest facing productivity in 2026 through 2028 with approximately $30 million occurring in 2026.

Testing this year, we identified no regret investments that are critical to the success of the turnaround or our <unk> and our guests are telling us that these are the right things to do and are consistent with our foundation in terms of quality service and experience and we know they are required to deliver.

Eric Crist: Off-premises sales were 24% of total US sales in the quarter, consistent with Q3 last year. Outback's off-premises mix of sales were 26% in the quarter, and Carrabba's were 34%. Our GAAP-diluted loss per share was $0.54 compared to a loss of $0.01 per share last year. Our Q3 adjusted diluted loss was $0.03 per share versus earnings of $0.11 per share last year. Negative $0.03 was above our guidance range of negative $0.10 to negative $0.15. The primary difference between GAAP and adjusted diluted loss per share is approximately $43 million of adjustments incurred in Q3 2025 as a result of the restaurant closures and impairments, transformational and restructuring activities, foreign currency forward contracts that partially offset risk associated with the purchase price installment payments on the Brazil transaction, and a change in our employee benefits policy.

In simple terms 2026 is the year with the majority of investments with a net investment of approximately $20 million.

Sustainable profit growth and market share gains.

Eric will provide additional details of how this is allocated across each of these areas.

We have identified approximately $75 million of investments across 2026 through 2028 with approximately $50 million being spent in 2026.

Our turnaround strategy is based on four strategic platforms.

Which are to one deliver a remarkable dining experience.

The investments will be across state quality service, our people the guest experience and marketing.

To drive brand relevancy, three reignite, a culture of ownership and fund four invest in our restaurants.

We will offset the turnaround investments with approximately $80 million of non guest facing productivity in 2026 through 2028 with approximately $30 million occurring in 2026.

These platforms will be supported by <unk>.

First non guest facing productivity savings.

Balanced capital allocation and third a strong management team.

Simple terms 2026 is the year with the majority of investments with a net investment of approximately $20 million.

The first platform is deliver a remarkable dining experience.

A remarkable dining experience starts with a commitment to steak excellence.

Eric Crist: Q3 adjusted operating margins were 0.8% versus 2.3% last year. The 150 basis point difference between this year and last year was driven by, one, COGS inflation of 4.9%. We lapped a significant rebate from Q3 of last year, which drove a higher inflation rate this quarter. We expect the full year COGS inflation to be between 3% and 3.5%. Two, labor inflation of 3.3% as we continue to experience inflationary pressure on wages. We expect the full year labor inflation to be approximately 3.5%. Three, higher operating and supply expenses mostly driven by inflation, as well as 60 basis points from higher insurance expense. As it relates to our 33% retained ownership in Brazil, which is classified using equity method investment accounting, we recognize a loss of $300,000 in Q3.

Eric will provide additional details of how this is allocated across each of these areas.

Simply put we are getting back to our roots of serious food and a focus on stake we are first and foremost a steakhouse. Our investments include investing in the quality and cuts of the stakes to deliver a competitive and craveable lineup that delivers value. We're also investing in our cooking equipment.

Our turnaround strategy is based on four strategic platforms.

Which are to one deliver a remarkable dining experience.

To drive brand relevancy, three reignite, a culture of ownership and fund four.

<unk> expanding <unk> capacity that we will have the optimal cooking platform across steaks and other proteins we.

Or invest in our restaurants.

These platforms will be supported by <unk>.

We are committed to the consistent training necessary to ensure we continue to have exceptional state quality taste specs and accuracy in.

First non guest facing productivity savings.

Balanced capital allocation and third our strong management team.

And our task the steak enhancements delivered averaged 10 point lift across guest satisfaction taste value intent to reorder and quality perception. These.

The first platform is deliver a remarkable dining experience.

A remarkable dining experience starts with a commitment to steak excellence.

These gains combined with enthusiastic outback or feedback gives us strong conviction to move forward with investing in our state quality nationally later this month.

Eric Crist: This was slightly better than our expectation, driven by updated estimates on the stepped-up fair value basis of accounting for the assets. We expect the total impact on the full year to be approximately negative $5 million. Turning to our capital structure in Q3, total debt net of cash is $896 million. Our leverage metrics are 4.3x on a lease-adjusted net leverage basis, and 2.9x on a net debt to adjusted EBITDA basis. We expect the second installment of the Brazil refranchising transaction to be received this month, and we will apply the proceeds to our revolver. We anticipate this payment to be approximately $122 million, adjusting for an updated FX rate and withholding taxes. This does include approximately $15 million of interest income on the receivable.

Another element of our remarkable dining experiences craveable service as I mentioned on the last call. We identified that are six tables to one server ratio during peak hours wasn't providing the right level of guest interaction and outback or satisfaction.

Adding expanding <unk> capacity that we will have the optimal cooking platform across steaks and other proteins we.

We are committed to the consistent training necessary to ensure we continue to have exceptional state quality taste specs and accuracy in.

We believe a reduced ratio of four tables per server during peak times, which is more in line with casual dining best practices will allow <unk> to provide a more consistent and enhanced experience for our guests similar to steak excellence, we ramp independent test earlier this year with the reduced table to serve our ratio.

And our task the steak enhancements delivered an average 10 point lift across guest satisfaction taste value intent to reorder and quality perception. These.

We saw an increase in our intent to return attentiveness and likelihood to recommend service scores from our guests our operators in the test also had positive feedback because servers have the time to positively engage with their guests.

These gains combined with enthusiastic outback or feedback gives us strong conviction to move forward with investing in our state quality nationally later this month.

Eric Crist: We expect lease-adjusted net leverage to move from 4.3x to 4.0x and net debt to EBITDA to move from 2.9x to 2.5x on a pro forma basis with the proceeds applied to the Q3 balance. Turning to our guidance, we are raising our US comp sales guidance range for the full year to be between flat to positive 50 basis points, driven primarily by our current momentum. We are raising our adjusted diluted earnings per share range to be $1.10 to $1.15. As a reminder, we are in a tax benefit situation driven by FICA tip credits relative to earnings. We expect an adjusted tax benefit in the range of approximately $10 to $12 million in 2025, which is included in our updated guidance. We continue to track toward capital expenditures of approximately $190 million for the full year.

Another element of our remarkable dining experiences craveable service.

These results and feedback give us confidence in rolling the service model out across the Opex system, starting in Q2 of next year.

As I mentioned on the last call. We identified that are six tables to one server ratio during peak hours wasn't providing the right level of guest interaction and outback or satisfaction.

Once we have the execution of our enhanced steak lineup right.

We believe a reduced ratio of four tables per server during peak times, which is more in line with casual dining best practices will allow our <unk> to provide a more consistent and enhanced experience for our guests.

The final element of delivering a remarkable dining experience is consistency of execution.

We are leading with an operational mindset that prioritizes. The guest first and has delivered with great food and great service as I mentioned earlier, our leaders are in our restaurants during peak hours to focus on operational excellence and accountability to standards.

Similar to steak excellence, we ramp independent test earlier this year with the reduced table to serve our ratio.

We saw an increase in our intent to return attentiveness and likelihood to recommend server scores from our guests our operators in the test also had positive feedback because servers have the time to positively engage with their guests.

We are leveraging technology to help our restaurant leaders.

Easily check for outliers and guest metrics scores.

Eric Crist: As it relates to the fourth quarter 2025, we expect US comparable restaurant sales to be between positive 50 basis points and positive 150 basis points. We expect Aussie Three-Course to continue to have a positive impact on our sales as we are lapping underperforming promotions from 2024. We expect Q4 adjusted diluted earnings per share to be between $0.23 and $0.28. This earnings per share range includes an estimated negative impact from our 33% Brazil ownership to be approximately $1.5 million. Let me turn it back over to Mike to walk through the strategy update.

Our strong focus on consistency of execution. This past year as demonstrated by the strong business momentum in Q3 and improved guest metrics scores gives us further confidence in the turnaround plan.

These results and feedback give us confidence in rolling the service model out across the Opex system.

Starting in Q2 of next year once we have the execution of our enhanced steak lineup right.

The second platform is to drive brand relevancy.

We need to make outback more relevant.

The final element of delivering a remarkable dining experience is consistency of execution.

Opex Steakhouse has incredible brand equity it is the pioneer of the casual steakhouse industry.

We are leading with an operational mindset that prioritizes the guest first and has delivered with great food and great service.

We have strong brand awareness and a tremendous opportunity to convert that awareness into restaurant visits to do so we must differentiate opex brand positioning building greater relevancy, while deepening the connection with our guests and emphasizing that we are first and foremost a steakhouse funding.

As I mentioned earlier, our leaders are in our restaurants during peak hours to focus on operational excellence and accountability to standards.

Mike Spanos: Thanks, Eric. As I mentioned, our strong Q3 results and operating momentum give us confidence to now launch our holistic turnaround strategy focused on Outback Steakhouse. Through our testing this year, we identified no regret investments that are critical to the success of the turnaround. Our Outbackers and our guests are telling us that these are the right things to do, and are consistent with our foundation in terms of quality, service, and experience. We know they are required to deliver sustainable profit growth and market share gains. We have identified approximately $75 million of investments across 2026 through 2028, with approximately $50 million being spent in 2026. The investments will be across steak quality, service, our people, the guest experience, and marketing. We will offset the turnaround investments with approximately $80 million of non-guest-facing productivity in 2026 through 2028, with approximately $30 million occurring in 2026.

We are leveraging technology to help our restaurant leaders.

Or easily check for outliers and guest metrics scores.

Fundamentally we are going back to the core greatness the outback brand.

OPEC led through craveable food value and an emotional connection with the server and managing partner.

However, the key differentiator was the fun casual and adventure some Australian spirit.

The second platform is to drive brand relevancy.

Focusing on no rules, just right and <unk> is the core of the brand culture and the harder the experienced that created loyalty with our guests.

We need to make outback more relevant.

Outback Steakhouse has incredible brand equity it is the pioneer of the casual steakhouse industry we.

Our intent is simple comments, our guest leave US Army sharpen brand positioning will serve as a foundational element of our turnaround helping to recruit new guests reengage lapsed users and drive frequency among our loyal base.

We have strong brand awareness and a tremendous opportunity to convert that awareness into restaurant visits to do so we must differentiate outback brand positioning building greater relevancy, while deepening the connection with our guests and emphasizing that we are first and foremost a steakhouse fund.

We're also leaning into steak centric equity in our brand communication.

Fundamentally we are going back to the core greatness the outback brand.

We're reasserting, our backs authority and stake through menu redesign refreshed creative and elevated food photography that showcases our craveable steak forward offerings, yes.

Outback led through craveable food value and an emotional connection with the server and managing partner.

However, the key differentiator was the fun casual and adventure some Australian spirit.

Yes, we'll see our revamped high quality steak lineup front and center highlighting the thickness freshness and craftsmanship of every court along with our signature Outback seasoning that sets us apart.

Mike Spanos: In simple terms, 2026 is the year with the majority of investments, with a net investment of approximately $20 million. Eric will provide additional details of how this is allocated across each of these areas. Our turnaround strategy is based on four strategic platforms, which are to, one, deliver a remarkable dining experience, two, drive brand relevancy, three, reignite a culture of ownership and fun, and four, invest in our restaurants. These platforms will be supported by, first, non-guest-facing productivity savings, second, balanced capital allocation, and third, a strong management team. The first platform is deliver a remarkable dining experience. A remarkable dining experience starts with a commitment to steak excellence. Simply put, we are getting back to our roots of serious food and a focus on steak. We are first and foremost a steakhouse.

Focusing on no rules, just right and <unk> is the core of the brand culture and the heart of the experienced that created loyalty with our guests.

The steak centric focus will also strengthen our value equation by offering menu variety and affordability across multiple price points enhancing what guests get for what they pay for.

Our intent is simple comments, our guest leave us or May sharpen brand positioning will serve as a foundational element of our turnaround helping to recruit new guests reengage lapsed users and drive frequency among our loyal base.

We will continue to lead with the depth and stake excellence, while while leveraging our non steak protein variety with disciplined breath.

We're also leaning into steak centric equity in our brand communication.

The brand's relevancy as marketing effectiveness over the past year, we've significantly improved our marketing efficiency by redirecting spend towards digital channels and simplifying our message to make it more focused and impactful.

We're reasserting, our backs authority and stake through menu redesign refreshed creative and elevated food photography that showcases our craveable steak forward offerings.

We will see our revamped high quality steak lineup front and center highlighting the thickness freshness and craftsmanship of every court along with our signature Alpex seasoning that sets us apart.

Our marketing actions earlier this year driver conviction to further evolve our media strategy shifting from a legacy mix of 70% linear television and 30% digital to approximately a mix of 40% linear television and 60% digital.

<unk> centric focus will also strengthen our value equation by offering menu variety and affordability across multiple price points and.

This change reflects how guests now consume media ensures we deliver the right message through the right channels and at the right time to maximize traffic and returns with renewed confidence in our brand positioning and turnaround momentum we plan to increase our marketing investments next year.

The enhanced seamless guest get for what they pay for we.

Mike Spanos: Our investments include investing in the quality and cuts of the steaks to deliver a competitive and craveable lineup that delivers value. We are also investing in our cooking equipment, including expanding chargrill capacity, so that we will have the optimal cooking platform across steaks and other proteins. We are committed to the consistent training necessary to ensure we continue to have the exceptional steak quality, taste, specs, and accuracy. In our tests, these steak enhancements delivered an average 10-point lift across guest satisfaction, taste, value, intent to reorder, and quality perception. These gains, combined with enthusiastic outbacker feedback, give a strong conviction to move forward with investing in our steak quality nationally later this month. Another element of a remarkable dining experience is craveable service.

We will continue to lead with the depth and stake excellence, while while leveraging our non steak protein variety with disciplined breath.

Supporting the brand's relevancy as marketing effectiveness over the past year, we've significantly improved our marketing efficiency by redirecting spend towards digital channels and simplify our message to make it more focused and impactful.

The third platform reignite, a culture of ownership and fun.

Our turnaround will be delivered by and through our people every brand has a field guide it's.

It's a small booklet that explains the principles or beliefs for the brand every outback or has one I have one it states of our success is based in our belief that people want to be part of something that can be proud of is fun and that includes in values them, our packers have pride and ownership and the success of a restaurant.

To enhance our already strong culture, we are making investments across leadership development engagement training field compensation and recognition.

This begins with ensuring we have the right managing partner for every one of our restaurants, our managing partners are owners and leaders rest.

Mike Spanos: As I mentioned on the last call, we identified that our six tables to one server ratio during peak hours wasn't providing the right level of guest interaction and outbacker satisfaction. We believe a reduced ratio of four tables per server during peak times, which is more in line with casual dining best practices, will allow our outbackers to provide a more consistent and enhanced experience for our guests. Similar to steak excellence, we ran independent tests earlier this year with the reduced table-to-server ratio. We saw an increase in our intent to return, attentiveness, and likelihood to recommend server scores from our guests. Our operators in the test also had positive feedback because servers have the time to positively engage with their guests.

The restaurants with stability in the managing partner role has been proven to be our most successful, including having the lowest hourly turnover and strong engagement leading to improved performance.

The third platform reignite, a culture of ownership and fun.

Our turnaround will be delivered by and through our people every brand has a field guide.

It's a small booklet that explains the principles and beliefs for the brand every outback or has one I have one it states of our success is based in our belief that people want to be part of something that can be proud of is fun and that includes in values them, all Packers have pride and ownership and the success of the restaurant.

To retain the best partners they need to be compensated competitively.

And incentivized to drive the operational priorities.

We are committed to our people and we know that when we take care of our people, our outback or serve each other and the guest with pride and ownership.

To enhance our already strong culture, we are making investments across leadership development engagement training field compensation and recognition.

Our fourth platform is invest in our restaurants.

As I've said on prior calls we need to invest back into our restaurants. Our goal is to touch nearly all of the outback restaurants by the end of 2028 with targeted initiatives to refresh the interior and exterior with this asset refresh we will focus on guest facing areas the air.

This begins with ensuring we have the right managing partner for every one of our restaurants, our managing partners are owners and leaders for.

Mike Spanos: These results and feedback give us confidence in rolling the service model out across the Outback system, starting in Q2 of next year, once we have the execution of our enhanced steak lineup right. The final element of delivering a remarkable dining experience is consistency of execution. We are leading with an operational mindset that prioritizes the guest first, and is delivered with great food and great service. As I mentioned earlier, our leaders are in our restaurants during peak hours to focus on operational excellence and accountability to standards. We are leveraging technology to help our restaurant leaders more easily check for outliers and guest metric scores. Our strong focus on consistency of execution this past year, as demonstrated by the strong business momentum in Q3 and improved guest metric scores, gives us further confidence in the turnaround plan. The second platform is to drive brand relevancy.

Restaurants with stability in the managing partner role has been proven to be our most successful, including having the lowest hourly turnover and strong engagement leading to improved performance.

Does that make a positive impact and restaurant ambiance, we've tested various remodel scopes this year and will leverage learnings as we rollout the asset refresh broadly.

To retain the best partners they need to be compensated competitively.

These investments and this renewed focus gives us confidence that our guests will have a better in restaurant experience to complement the other platforms of the turnaround.

And incentivized to drive the operational priorities we.

We are committed to our people and we know that when we take care of our people, our outback or serve each other and the guest with pride and ownership.

I'll now turn it back over to Eric to walk through the investments productivity and capital allocation.

Our fourth platform is invest in our restaurants.

Thanks, Mike as we think about the construct for next year, Mike mentioned, there are no regret investments that support and enable their turnaround.

These total to approximately $50 million in 2026, we expect this to be the bulk of the turnaround investments.

These investments will be offset by approximately $30 million of productivity for a net investment of approximately $20 million in 2026.

Areas that make a positive impact and restaurant ambiance.

Mike Spanos: We need to make Outback more relevant. Outback Steakhouse has incredible brand equity. It is the pioneer of the casual steakhouse industry. We have strong brand awareness, and a tremendous opportunity to convert that awareness into restaurant visits. To do so, we must differentiate Outback's brand positioning, building greater relevancy while deepening the connection with our guests, and emphasizing that we are first and foremost a steakhouse. Fundamentally, we are going back to the core greatness of the Outback brand. Outback led through craveable food, value, and an emotional connection with the server and managing partner. However, the key differentiator was the fun, casual, and adventuresome Australian spirit. Focusing on no rules, just right, and hospitality is the core of the brand culture and the heart of the experience that created loyalty with our guests. Our intent is simple: come as our guest, leave as our mate.

The $50 million of investment will primarily be concentrated in Q2 through Q4 of next year and will support the investments in center of the plate food quality, including stake excellence improvements and menu redesign of approximately $25 million investing in service and the guest experience of approximately $7 million in <unk>.

We have tested various remodel scopes this year and will leverage learnings as we rollout the asset refresh broadly.

These investments and this renewed focus gives us confidence that our guests will have a better in restaurant experience.

Complement the other platforms of the turnaround.

I will now turn it back over to Eric to walk through the investments productivity and capital allocation.

And our people of approximately $8 million.

We also intend to increase our marketing spend by approximately $10 million as part of the overall $50 million investment.

Thanks, Mike as we think about the construct for next year, Mike mentioned, there are no regret investments that support and enable their turnaround.

In addition to the approximate $50 million of turnaround investments in 2026, we plan to invest approximately $25 million across 2027, and 2028 for a total investment cost of approximately $75 million.

These total to approximately $50 million in 2026, we expect this to be the bulk of the turnaround investments.

These investments will be offset by approximately $30 million of productivity for a net investment of approximately $20 million in 2026.

The majority of the $25 million will be an increase in marketing spend to support the turnaround efforts.

The $50 million of investment will primarily be concentrated in Q2 through Q4 of next year and we will support the investments in center of the plate food quality, including stake excellence improvements and menu redesign of approximately $25 million investing in service and the guest experience of approximately $7 million in <unk>.

In addition to the approximate 30 million of productivity savings for 2026, we have identified an additional $50 million of non guest facing productivity across 2027, and 2028 for a total of approximately $80 million and productivity.

Mike Spanos: Sharpened brand positioning will serve as a foundational element of our turnaround, helping to recruit new guests, reengage lapse users, and drive frequency among our loyal base. We are also leaning into steak-centric equity in our brand communication. We're reasserting Outback's authority in steak through menu redesign, refreshed creative, and elevated food photography that showcases our craveable steak-forward offerings. Guests will see our revamped high-quality steak lineup front and center, highlighting the thickness, freshness, and craftsmanship of every cut, along with our signature Outback seasoning that sets us apart. The steak-centric focus will also strengthen our value equation by offering menu variety and affordability across multiple price points, enhancing what guests get for what they pay for. We will continue to lead with depth and steak excellence, while leveraging our non-steak protein variety with disciplined breadth. Supporting the brand's relevancy is marketing effectiveness.

For productivity, we are targeting areas that are non guest facing we are negotiating cost with suppliers optimizing product selections and eliminating unnecessary vendor spend.

Vesting and our people of approximately $8 million.

We also intend to increase our marketing spend by approximately $10 million as part of the overall $50 million investment.

We are also focused on tighter processes in the restaurants, leveraging technology for increased data visibility and outlier management.

We're optimizing labor scheduling and focusing on areas, where we can simplify operations in the back of the house.

In total we estimate savings next year to be approximately $30 million spread relatively evenly throughout the year.

The majority of the $25 million will be an increase in marketing spend to support the turnaround efforts.

In addition to the approximate 30 million of productivity savings for 2026, we have identified an additional $50 million of non guest facing productivity across 2027% and 2028 for a total of approximately $80 million and productivity.

These savings apply across brands and at the corporate level.

On our capital allocation, our strategy will be twofold, one to invest in the base business as well as our restaurants and two to pay down debt.

Capital expenditures next year will be slightly more than what we will spend this year with the primary change in capital being a shift of dollars previously spent on new restaurants, or its restaurant asset refreshes and remodels as.

Productivity, we are targeting areas that are non guest facing we're negotiating cost with suppliers optimizing product selections and eliminating unnecessary vendor spend.

Mike Spanos: Over the past year, we've significantly improved our marketing efficiency by redirecting spend towards digital channels and simplifying our message to make it more focused and impactful. Our marketing actions earlier this year drive our conviction to further evolve our media strategy, shifting from a legacy mix of 70% linear TV and 30% digital to approximately a mix of 40% linear TV and 60% digital. This change reflects how guests now consume media, ensures we deliver the right message through the right channels, and at the right time to maximize traffic and returns. With renewed confidence in our brand positioning and turnaround momentum, we plan to increase our marketing investments next year. The third platform reignites a culture of ownership and fun. Our turnaround will be delivered by and through our people. Every brand has a field guide.

We are also focused on tighter processes in the restaurants, leveraging technology for increased data visibility and outlier management.

As Mike mentioned, we are focused on refreshing nearly 100% of the outbox by the end of 2028.

We will get started in Q1 next year and we'll look to spend an average of $400000 per unit. The great News is we are modeling our approach after carrabba's demonstrated the success of a lighter touch guest facing focused asset refresh strategy that also yielded traffic improvements and improved employee satisfaction.

We are optimizing labor scheduling and focusing on areas, where we can simplify operations and the back of the house.

In total we estimate savings next year to be approximately $30 million spread relatively evenly throughout the year.

These savings apply across brands and at the corporate level.

On our capital allocation, our strategy will be twofold, one to invest in the base business as well as our restaurants and to pay down debt.

Yeah.

This year, we completed a detailed review of our restaurant base and identified 21, underperforming restaurants, which we closed last week.

Capital expenditures next year will be slightly more than what we will spend this year with the primary change in capital being a shift of dollars previously spent on new restaurants or its restaurant asset refreshes and Remodels as Mike mentioned, we are focused on refreshing nearly 100% of the outbox by the end of 2028.

We also identified 22 restaurants in which we would not renew the lease most of those leases expire in the next four years.

Our goal is to focus our resources on the remaining healthier restaurants.

As part of our new capital allocation strategy, we suspended the dividend.

We believe that the best use of capital today is to invest in our restaurants, our guests and our employees and are confident that this will deliver sustainable growth in our business.

Mike Spanos: It's a small booklet that explains the principles and beliefs for the brand. Every Outbacker has one. I have one. It states that our success is based on our belief that people want to be part of something they can be proud of, is fun, and that includes and values them. Outbackers have pride and ownership in the success of their restaurant. To enhance our already strong culture, we are making investments across leadership development, engagement, training, field compensation, and recognition. This begins with ensuring we have the right managing partner for every one of our restaurants. Our managing partners are owners and leaders. Restaurants with stability in the managing partner role have been proven to be our most successful, including having the lowest hourly turnover and strong engagement, leading to improved performance.

In terms of leverage our goal is to reach 3.0 times on a lease adjusted leverage basis by the end of 2028 as such we will use available free cash flow to pay down debt. As we think about 2026. There are two items. We are monitoring closely that will influence our annual guidance and that is one where beef inflation.

Faction.

This year, we completed a detailed review of our restaurant base and identified 21, underperforming restaurants, which we closed last week.

Lands for next year.

And two visibility into expected tariff impacts.

It also identified 22 restaurants in which we would not renew the lease most of those leases expire in the next four years.

With this in mind and aligned with our historical cadence we will provide detailed 2026 guidance on our February earnings call as well as how we are thinking of our go forward multiyear targets. Once we established our 2026 baseline.

Our goal is to focus our resources on the remaining healthier restaurants.

As part of our new capital allocation strategy, we suspended the dividend.

We believe that the best use of capital today is to invest in our restaurants, our guests and our employees and are confident that this will deliver sustainable growth in our business.

Let me turn it back over to Mike.

Mike Spanos: To retain the best partners, they need to be compensated competitively and incentivized to drive the operational priorities. We are committed to our people, and we know that when we take care of our people, our outbackers serve each other and the guests with pride and ownership. Our fourth platform is invest in our restaurants. As I've said on prior calls, we need to invest back into our restaurants. Our goal is to touch nearly all of the Outback restaurants by the end of 2028 with targeted initiatives to refresh the interior and exterior. With this asset refresh, we will focus on guest-facing areas, the areas that make a positive impact in restaurant ambiance. We have tested various remodel scopes this year, and will leverage learnings as we roll out the asset refresh broadly.

Thanks, Eric.

We've covered a lot of material and we'll update you in February with further details as Eric stated.

In terms of leverage our goal is to reach three times on a lease adjusted leverage basis by the end of 2028 as such we will use available free cash flow to pay down debt. As we think about 2026. There are two items. We are monitoring closely that will influence our annual guidance and that is one where beef inflation.

In summary.

We are highly confident our strategy will firmly placed outback steakhouse on the right course for sustainable long term and profitable growth.

Through this strategy, we will one deliver remarkable dining experience through improved steak quality enhanced service and consistency of execution.

And lands for next year.

And two visibility into expected tariff impacts.

To drive brand relevancy to differentiate outback with a return to our brand roots.

Reignite, a culture of ownership and fund with a commitment to our people.

Or invest in our restaurants to refresh approximately 100% of Opex by 2028.

Let me turn it back over to Mike.

Thanks, Eric.

We will enable this strategy with non guest facing productivity savings a balanced capital allocation and a strong management team.

We've covered a lot of material and we'll update you in February with further details as Eric stated.

Mike Spanos: These investments and this renewed focus give us confidence that our guests will have a better in-restaurant experience to complement the other platforms of the turnaround. I will now turn it back over to Eric to walk through the investments, productivity, and capital allocation.

In summary.

We are highly confident our strategy will firmly place outback steakhouse on the right course for sustainable long term and profitable growth.

We have the right team in place to execute this turnaround and have momentum our leadership team is aligned and committed to the turnaround. We all have confidence in the success of Outback Steakhouse and more broadly bloom and brands.

Eric Crist: Thanks, Mike. As we think about the constructs for next year, Mike mentioned there are no regret investments that support and enable the turnaround. These total to approximately $50 million in 2026. We expect this to be the bulk of the turnaround investments. These investments will be offset by approximately $30 million of productivity, for a net investment of approximately $20 million in 2026. The $50 million of investment will primarily be concentrated in Q2 through Q4 of next year, and will support the investments in center-of-the-plate food quality, including steak excellence improvements and menu redesign of approximately $25 million, investing in service and the guest experience of approximately $7 million, and investing in our people of approximately $8 million. We also intend to increase our marketing spend by approximately $10 million as part of the overall $50 million investment.

Through this strategy, we will one deliver remarkable dining experience through improved stay quality enhanced service and consistency of execution.

We know that when we invest in the guest <unk> the tools to succeed and provide a quality dining experience outback can and does win this.

To drive brand relevancy to differentiate outback with a return to our brand roots.

This is evident in the initial improvements in metrics such as guest satisfaction and intent to return.

Free reignite, a culture of ownership and fund with a commitment to our people.

We will continue to be transparent on our progress interactions.

Four invest in our restaurants to refresh approximately 100% of Opex by 2028.

Lastly, and most importantly, all of our results and future potential would not be possible without the dedication commitment and the leadership of our people in the restaurants and the restaurant support Center every day, they show up and give their best for guests and each other.

We will enable this strategy with non guest facing productivity savings a balanced capital allocation and a strong management team.

I am incredibly proud of our <unk>, our <unk>, our anglers and our associates.

You for what you do and your commitment to making the bloom and brands turnaround of success.

Know that when we invest in the guest <unk> the tools to succeed and provide a quality dining experience outback can and does win.

With that let me open up the call for questions.

Eric Crist: In addition to the approximate $50 million of turnaround investments in 2026, we plan to invest approximately $25 million across 2027 and 2028 for a total investment cost of approximately $75 million. The majority of the $25 million will be an increase in marketing spend to support the turnaround efforts. In addition to the approximate $30 million of productivity savings for 2026, we've identified an additional $50 million of non-guest-facing productivity across 2027 and 2028 for a total of approximately $80 million in productivity. For productivity, we are targeting areas that are non-guest-facing. We are negotiating costs with suppliers, optimizing product selections, and eliminating unnecessary vendor spend. We are also focused on tighter processes in the restaurants, leveraging technology for increased data visibility and outlier management. We are optimizing labor scheduling, and focusing on areas where we can simplify operations in the back of the house.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone you are using a speakerphone. Please pick up your handset before pressing the keys.

This is evident in the initial improvements in metrics such as guest satisfaction and intent to return.

We will continue to be transparent on our progress interactions.

If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Please limit yourself to one question and one follow up.

At this time, we will pause momentarily to assemble our roster.

Okay.

I am incredibly proud of our <unk>, our <unk>, our anglers and our associates.

For what you do and your commitment to making the bloom and brands turnaround a success.

Our first question comes from Jeff Bernstein with Barclays. Please go ahead.

With that let me open up the call for questions.

Alright.

Thank you.

I wanted to ask a question on Com you highlighted strong momentum Q theory Nick.

Can you expand on whether that John Kerry.

Eric Crist: In total, we estimate savings next year to be approximately $30 million, spread relatively evenly throughout the year. These savings apply across brands and at the corporate level. On our capital allocation, our strategy will be twofold: one, to invest in the base business, as well as our restaurants, and two, to pay down debt. Capital expenditures next year will be slightly more than what we will spend this year, with the primary change in capital being a shift of dollars previously spent on new restaurants towards restaurant asset refreshes and remodels. As Mike mentioned, we are focused on refreshing nearly 100% of the Outbacks by the end of 2028. We will get started in Q1 next year and will look to spend an average of $400,000 per unit.

October across all the brands and what factors contributed to this.

Jorge.

If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Good morning, So our Q3 trends have continued into Q4, and our Q4 guidance and full year guidance assumes that those trends are maintained.

Please limit yourself to one question and one follow up.

At this time, we will pause momentarily to assemble our roster.

Okay.

And the second part of your question.

Okay.

I just think we're meeting the consumer where they're at.

We're creating the right variety of affordable luxury price points value. An example, that's been the Aussie three course.

Our first question comes from Jeff Bernstein with Barclays. Please go ahead.

Okay, great and as a follow up.

Alright.

Are you seeing any underlying macroeconomic weakness that might be masked by year end.

Thank you.

I wanted to ask a question on Com you highlighted strong momentum Q.

Al.

We had encouraging trends across the board.

Sorry, Nick.

Can you expand on whether that John Kerry.

Eric Crist: The great news is we are modeling our approach after Carrabba's, demonstrated the success of a lighter touch, guest-facing-focused asset refresh strategy that also yielded traffic improvements and improved employee satisfaction. This year, we completed a detailed review of our restaurant base and identified 21 underperforming restaurants, which we closed last week. We also identified 22 restaurants in which we would not renew the lease. Most of those leases expire in the next four years. Our goal is to focus our resources on the remaining, healthier restaurants. As part of our new capital allocation strategy, we suspended the dividend. We believe that the best use of capital today is to invest in our restaurants, our guests, and our employees, and are confident that this will deliver sustainable growth in our business.

October across all the brands and what factors contributed to this.

I look at the quarter traffic improvements in growth they were consistent and all the brands and that was across income groups and ages.

Jorge.

Good morning, So our Q3 trends have continued into Q4, and our Q4 guidance and full year guidance assumes that those trends are maintained.

Check averages were also up low to mid single digits across income groups and age groups.

And we did see larger party sizes offset by slightly lower PPA.

And second part of your question.

Maybe where we saw a little bit of slight check management was in the cohorts over 65 years old and that was predominantly a beer or wine and liquor.

I just think we're meeting the consumer where they're at.

We're creating the right variety of affordable luxury price points value. An example, that's been the Aussie three course.

And importantly, what we liked as they chose to dine out based on the visitation results which were positive.

Okay, great and as a follow up.

So to me what this tells me is it's just another validation that dining out remains a very affordable luxury consumers regardless of their income levels are age they want to get out they want to prioritize experiences other other forms of discretionary spending and I think we did.

Are you seeing any underlying macroeconomic weakness that might be masked by year end.

Al.

We had encouraging trends across the board.

Eric Crist: In terms of leverage, our goal is to reach 3.0x on a lease-adjusted leverage basis by the end of 2028. As such, we'll use available free cash flow to pay down debt. As we think about 2026, there are two items we are monitoring closely that will influence our annual guidance, and that is, one, where beef inflation lands for next year, and two, visibility into expected tariff impacts. With this in mind, and aligned with our historical cadence, we will provide detailed 2026 guidance on our February earnings call, as well as how we are thinking of our go-forward multi-year targets once we establish our 2026 baseline. Let me turn it back over to Mike.

I look at the quarter traffic improvements in growth they were consistent and all the brands and that was across income groups and ages.

Mindful of the environment, which means we got to keep meeting the consumer and the guests where they are at economically.

Check averages were also up low to mid single digits across income groups and age groups.

Great. Thank you.

And we did see larger party sizes offset by slightly lower PPA.

Our next question comes from Jeffrey Farmer with Gordon Haskett. Please go ahead.

Maybe where we saw a little bit of slight check management was in the cohorts over 65 years old and that was predominantly a beer or wine and liquor.

Thanks, you just touched on it but just was hoping to get a little bit of a deeper dive into.

How the company materially outperformed that Q3 same store sales guidance, specifically sort of the factors that contributed to that that better or much stronger than expected result.

And importantly, what we like is they chose to dine out based on the visitation results which were positive.

Hey, Jeff I think it was a couple of things predominantly one is we're just executing with more consistency of execution and that starts with our leaders our leaders have tremendous they are out there with the teams during peak hours and I just think that's given us a great.

Mike Spanos: Thanks, Eric. We have covered a lot of material, and we'll update you in February with further details as Eric stated. In summary, we are highly confident our strategy will firmly place Outback Steakhouse on the right course for sustainable, long-term, and profitable growth. Through this strategy, we will, one, deliver a remarkable dining experience through improved steak quality, enhanced service, and consistency of execution. Two, drive brand relevancy to differentiate Outback with a return to our brand roots. Three, reignite a culture of ownership and fun with a commitment to our people. Four, invest in our restaurants to refresh approximately 100% of Outbacks by 2028. We will enable this strategy with non-guest-facing productivity savings, a balanced capital allocation, and a strong management team. We have the right team in place to execute this turnaround and have momentum. Our leadership team is aligned and committed to the turnaround.

<unk> the environment, which means we got to keep meeting the consumer and the guests where they are at economically.

Execution dividend, that's the first thing and then the second thing in all of our casual dining brands.

Great. Thank you.

I think our marketers and operators did a great job again, focusing on meeting the guests where they are at regardless of the economic cohort and you think about the brand's Aussie three course.

Our next question comes from Jeffrey Farmer with Gordon Haskett. Please go ahead.

Thanks, you just touched on it but just was hoping to get a little bit of a deeper dive into.

At Outback very very positive at Carrabba's. The team did a great job with experiential wine dinners Bonefish, we had everything from $5 Margarita Mondays, we had $14 90 pre fixed lunch menus and we've done a really nice job of Carrabba's and outback with $10 take home just getting that average check.

How the company materially outperformed that Q3 same store sales guidance, specifically sort of the factors that contributed to that better or much stronger than expected result.

So I think that's what it is it's just really being there meeting the guests where they were at in providing the right. What you get for what you pay for relationship.

Okay. Thank you for that and again, you just touched on it with the cohorts, but obviously as you know theres a lot of focus on income cohorts age cohorts are.

Execution dividend, that's the first thing and then the second thing in all of our casual dining brands.

Mike Spanos: We all have confidence in the success of Outback Steakhouse and, more broadly, Bloomin' Brands. We know that when we invest in the guests, give Outbackers the tools to succeed, and provide a quality dining experience, Outback can and does win. This is evident in the initial improvements in metrics such as guest satisfaction and intent to return. We will continue to be transparent on our progress and our actions. Lastly, and most importantly, all of our results and future potential would not be possible without the dedication, the commitment, and the leadership of our people in the restaurants and the restaurant support center. Every day, they show up and give their best to the guests and each other. I'm incredibly proud of our Outbackers, our Mikos, our Anglers, and our associates. Thank you for what you do and your commitment to making the Bloomin' Brands turnaround a success.

I think our marketers and operators did a great job again, focusing on meeting the guests where they are at regardless of the economic cohort and you think about the brand's Aussie three course at Outback very very positive at Carrabba's. The team did a great job with experiential wine dinners.

Relative trends across those cohorts, but can you share some detail about what youre seeing.

With the Outback customer base, and maybe more specifically how does the outback customer base sort of stuck out a shake out across income and age cohorts.

As I said for the quarter, we saw consistent performance across all the age.

Bonefish, we had everything from $5 Margarita Mondays, we had $14 90 pre fixed lunch menus and we've done a really nice job of Carrabba's and outback with $10 take home just getting that average check up so I think thats. What it is it's just really being there meeting the guests where they were at in providing the right what you get.

The income groups across Outback steady consistent growth that was Erin.

Flat traffic and that was consistent in all those groups. There were no outliers value is working for us.

For what you pay for relationship.

Okay. Thank you.

Okay. Thank you for that and again, you just touched on it with the cohorts, but obviously as you know theres a lot of focus on income cohorts each cohorts relative.

Our next question comes from John <unk>.

<unk> with JP Morgan. Please go ahead.

Our relative trends across those cohorts, but can you share some detail about what youre seeing.

Mike Spanos: With that, let me open up the call for questions.

Hi, This is crystal ball for John My question is on Remodels, you mentioned average Capex 400000 per unit, but there are some stores that are over 20 years old.

With the Outback customer base, and maybe more specifically how does the outback customer base sort of stock out of shake out across income and age cohorts.

Operator: We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. Our first question comes from Jeff Bernstein with Barclays. Please go ahead.

Bit more needed now could you potentially bucket by number of units.

As I said for the quarter, we saw consistent performance across all the age.

What are the various spend levels with Stephen.

Well I'm not going to get into the specifics of buckets per spend but as Eric said, we're highly confident that our asset refresh plan. It enables us touch every nearly every outback over the next three years and they are very targeted initiatives.

The income groups across Outback steady consistent growth that was Erin.

Flat traffic and that was consistent in all of those groups. There were no outliers value is working for us.

I was just to refresh the interior and exterior at an average cost of about $400000 per location.

Okay. Thank you.

Our next question comes from John <unk>.

We're going to focus on the guest facing areas and we're going to focus on what makes a positive impact to the guest what I would add is if you go back to previous calls we talked about our outside maintenance survey data, we use that to really be very surgical and we also have tested various remodel scopes that we also talked about we're leveraging that.

<unk> with JP Morgan. Please go ahead.

Hi, This is crystal ball for John My question is on Remodels, you mentioned, an average Capex was 400000 per unit.

[Analyst]: Hi. This is Anisha Dhat on for Jeff Bernstein. I wanted to ask a question on comps. You highlighted strong momentum in Q3. Can you expand on whether that trend carried into October across all the brands, and what factors contributed to sustaining that performance?

And there are some stores that are over 20 years old.

More needed.

Those learnings and lastly, Pat led this at Carrabba's, we were very excited with what we saw post those light touch refreshes.

Would you participate bucket by number of units.

What are the various spend levels.

Mike Spanos: Good morning. Our Q3 trends have continued into Q4, and our Q4 guidance and full-year guidance assumes that those trends maintain. The second part of your question, I just think we're meeting the consumer where they're at. We're creating the right variety of affordable entry price points, value, and an example that's been the Aussie Three-Course.

We saw 100 to 200 basis points of traffic lift post those so so it will be higher some will be lower but we think with targeted initiatives. We can really do a good job hitting nearly all of them by the end of 2028.

Thank you and I have a follow up on average check do you see further investment here.

All of us to refresh the interior and exterior at an average cost of about $400000 per location, we're going to focus on the guest facing areas and we're going to focus on what makes a positive impact to the guest what I would add is if you go back to previous calls we talked about our outside maintenance survey data, we use that to reach.

Yes.

Value and ultimately traffic.

No I don't think so.

I would answer that is first based off the tests.

[Analyst]: Great. As a follow-up, are you seeing any underlying macro weakness that might be masked by your improved results?

Feedback from our out backers our own work. We believe this is the right investment level across each of the elements of the strategy.

Be very surgical we also have tested various remodel scopes that we also talked about we're leveraging those learnings and lastly, Pat led this at Carrabba's. We were very excited with what we saw post those light touch refreshes.

Mike Spanos: We had encouraging trends across the board when I look at the quarter. Traffic improvements and growth, they were consistent in all the brands, and that was across income groups and ages. Check averages were also up low to mid-single digits across income groups and age groups. We did see larger party sizes offset by slightly lower PPA. Maybe where we saw a little bit of slight check management was in the cohorts over 65 years old, and that was predominantly in beer, wine, and liquor. Importantly, what we liked is they chose to dine out based on the visitation results, which were positive. To me, what this tells me is it's just another validation that dining out remains a very affordable luxury. Consumers, regardless of their income levels or their age, they want to get out.

Now, we're going to be judicious in analyzing those investments and making sure we're getting the right returns and it also implies that if we see really good returns and there is a benefit we're going to consider looking to invest more in.

And as I said since I joined we're going to be highly transparent about what we do every step of the way.

Thank you.

Our next question comes from Brian Mullan with Piper Sandler. Please go ahead.

Thank you and I have a follow up on average check do you see further investment here.

Okay. Thanks.

Yes.

Just a question on the marketing part I think you're addressing some of the prepared remarks, but it sounds like investments in marketing are going to be a part of it.

Value.

Perfect.

No I don't think so the way I would answer that is first based off the tasks feedback from our out backers our own work. We believe this is the right investment level across each of the elements of our strategy.

Process, just talk about how maybe you're going to stay the same over the next couple of years.

I imagine there's a balance that can drive traffic in the short term, but maybe you want to make sure the product and service models suggest.

Talk about the approach and how that will build.

Mike Spanos: They want to prioritize experiences over other forms of discretionary spending. I think we did. We were mindful of the environment, which means we got to keep meeting the consumer and the guests where they're at economically.

Okay Brian.

Ill take it to how we're thinking about the sequencing of investments specifically to marketing the incremental marketing is assumed to begin predominantly in the second half of 2026.

And as I said since I joined we're going to be highly transparent about what we do every step of the way.

[Analyst]: Great. Thank you.

That's $10 million and then as Eric said, we would look to add another $10 million 27, and another $10 million 28, obviously, it's pay as you go and Youre right. We have thought about the total execution of the platforms in a more of a sequential manner, because we want to be very thought.

Thank you.

Operator: Our next question comes from Jeffrey Farmer with Gordon Haskett. Please go ahead.

Our next question comes from Brian Mullan with Piper Sandler. Please go ahead.

Mike Spanos: Thanks. You just touched on it, but just was hoping to get a little bit of a deeper dive into how the company materially outperformed the Q3 same-store sales guidance, specifically sort of the factors that contributed to that better or much stronger than expected result.

Okay. Thanks.

Just a question on the marketing part I think you're addressing some of the prepared remarks, but it sounds like investments in marketing youre going to be a part of it.

Poll that we allow our outback or has to be brilliant at the basics, we don't want to overload them with tasks. So step one was get the operational priorities get the foundation of base execution right. That's been honed in on this year second we're launching state quality at the end of this month and we're going to work hard at getting that.

Round process, just talk about how maybe you are going to stay the same over the next couple of years.

I imagine there's a balance that can drive traffic in the short term, but maybe you want to make sure the product and service models right. So just talk.

Mike Spanos: Yeah. Hey, Jeff. I think it was a couple of things predominantly. One is we're just executing with more consistency of execution. That starts with our leaders. Our leaders are tremendous. They're out there with the teams during peak hours. I just think that's given us a great executional dividend. That's the first thing. The second thing, in all of our casual dine brands, I think our marketers and operators did a great job, again, focusing on meeting the guests where they are at, regardless of the economic cohort. You think about the brands, Aussie 3-Course at Outback, very, very positive. At Carrabba's, the team did a great job with experiential wine dinners. Bonefish, we had everything from $5 Margarita Mondays. We had $14.90 prefixed lunch menus.

Talk about the approach and how that will build.

Yes, Brian I'll take it to how we're thinking about the sequencing of investments specifically to marketing the incremental marketing is assumed to begin predominantly in the second half of 2026 that's.

Right and then in Q2 of 2006 will launch the elements of the service model and then after that comes the marketing and then the nice thing about <unk> is going to allow us to keep evaluating location by location geography by geography on how we're doing on the execution.

Okay. Thank you and then just a modeling clarification on the closures can you give us a sense of what brands those will be.

At the concentrator that and then with all the assessing of the portfolio has done. This year do you think you're done on the closure front or as you progress another year or two could there potentially be a little bit more.

For that we allow our outback or has to be brilliant at the basics, we don't want to overload them with tasks. So step one was get the operational priorities get the foundation of base execution right. That's been honed in on this year second we're launching state quality at the end of this month and we're going to work hard at getting that.

Mike Spanos: We've done a really nice job at Carrabba's, Outback with $10 take-home, just getting that average check up. I think that's what it is. It's just really being there, meeting the guests where they're at, and providing the right what you get for what you pay for relationship.

Yes, the closures were outback bonefish and Carrabba's.

At this time, we don't see any more action needed as we said we've been very thorough in our asset evaluation over this last year and Thats where were at at this point.

Mike Spanos: Thank you for that. You just touched on it with the cohorts. Obviously, as you know, there's a lot of focus on income cohorts, age cohorts, relative trends across those cohorts. Can you share some detail about what you're seeing with the Outback customer base? Maybe more specifically, how does the Outback customer base sort of stack out or shake out across income and age cohorts?

Okay. Thank you.

Our next question comes from Jon Tower with Citi. Please go ahead.

Okay. Thank you and then just a modeling clarification on the closures can you give us a sense of what brands those will be.

Great. Thanks for taking the question.

Maybe just digging into the Aussie three course can you can you help us think about or speak to how that mixed in during the third quarter. It sounds like it's been relatively successful in terms of the different levels that you're offering the guests.

Mike Spanos: As I said, for the quarter, we saw consistent performance across all the age and income groups across Outback, steady, consistent growth that was there. We had flat traffic, and that was consistent in all those groups. There were no outliers. Value is working for us.

How are you thinking about this business.

Yes, the closures were outback bonefish and Carrabba's.

Value platform going into 2026, obviously beef inflation is out there, it's well discussed amongst investors.

At this time, we don't see any more action needed as we said we've been very thorough in our asset evaluation over this last year and that's where we're at at this point.

Mike Spanos: Okay, thank you.

How are you thinking about holding the line on pricing there should be run into a fairly significant wallet of beef inflation over the next 12 or 24 months.

Operator: Our next question comes from John Ivankoe with JPMorgan. Please go ahead.

Okay. Thank you.

Yes, John So I got two questions. There. So first starting on your question about <unk> three course.

[Analyst]: Hi. This is Christabel for John. The question is on remodels. You mentioned average CapEx is $400,000 per unit. As there are some stores that are over 20 years old, it could suggest that there's a bit more needed. Could you potentially bucket by number of units what the various spend levels could be?

Our next question comes from Jon Tower with Citi. Please go ahead.

We were very pleased with like the results in Aussie three courses, it's mixing exactly where we expected it to.

Great. Thanks for taking the question.

Maybe just digging into the Aussie three course can you can you help us think about or speak to how that mix in during the third quarter. It sounds like it's been relatively successful in terms of the different levels that you're offering the guests.

And as I said, what I like about it is two thirds of the guests are trading up into that 17 $99 99.

Mike Spanos: Well, I'm not going to get into the specifics of buckets per spend. As Eric said, we're highly confident that our asset refresh plan enables us to touch nearly every Outback over the next three years. They're very targeted initiatives, and it allows us to refresh the interior and exterior at an average cost of about $400,000 per location. We're going to focus on the guest-facing areas, and we're going to focus on what makes a positive impact to the guest. What I would add is if you go back to previous calls, we talked about our outside maintenance survey data. We use that to really be very surgical. We also have tested various remodel scopes that we also talked about. We're leveraging those learnings. Lastly, Pat led this at Carrabba's. We were very excited with what we saw post those light touch refreshes.

What I would comment as well we've got a lot of guests trading up on desserts, as well, which is really encouraging theyre spending an extra three blocks to get a chocolate thunder versus getting the cheesecake.

How are you thinking about this business.

Value platform going into 2026, obviously beef inflation is out there, it's well discussed amongst investors.

So very consistent what we expected in our plans consistent with 25 are to continue and all the casual dine brands to have a value offer because we need to be very mindful of pricing with inflation, but we also have to meet the guests where they are at to get them to engage in a lot of them show up thinking theyre going to buy the <unk> III <unk>.

How are you thinking about holding the line on pricing there should we run into a fairly significant wallet of beef inflation over the next 12 or 24 months.

Yes, John.

And they pick a picture on the menu and they eat something else and that's a good dynamic.

Two questions. There. So first on your question about <unk>. Three course, we were very pleased with like the results in Aussie III courses, it's mixing exactly where we expected it to.

In terms of beef, what I would say is.

For 25, we see this as a mid single digits a reality.

And as I said, what I like about it is two thirds of the guests are trading up into that 17 $99 99.

We will communicate what we see beef doing in February when we get to the 2026 guidance.

What I didn't comment as well, we got a lot of guests trading up on desserts, as well, which is really encouraging they're spending an extra three blocks to get a chocolate thunder versus getting the cheesecake.

I would say two other things one we have like the resiliency of the beef category it.

Mike Spanos: We saw 100 to 200 basis points of traffic lift post those. Some will be higher, some will be lower, but we think with targeted initiatives, we can really do a good job hitting nearly all of them by the end of 2028.

It continues to grow Americans are engaged in it and one other thing that I think it's important as the relative value works for us and what I mean by that is we're getting a lot of guests feedback that guests know they can come in to outback get a perfectly cooked stake at a great value get a couple sides get a great experience.

So very consistent what we expected.

Our plans consistent with 25 arc to continue in all of the casual dine brands to have a value offer because we need to be very mindful of pricing with inflation, but we also have to meet the guests where they're at to get them to engage in a lot of them show up thinking theyre going to buy the <unk> three course in.

[Analyst]: Thank you. As a follow-up on average check, do you see further investment here in order to drive component of value and ultimately traffic?

Mike Spanos: No, I don't think so. The way I would answer that is, first, based off the tests, feedback from our outbackers, our own work, we believe this is the right investment level across each of the elements of the strategy. We're going to be judicious in analyzing those investments and making sure we're getting the right returns. It also implies that if we see really good returns and there's a benefit, we're going to consider looking to invest more. As I said, since I joined, we're going to be highly transparent about what we do every step of the way.

<unk>.

And they are out of the house, but yet it's almost the same cost as what they're paying for beef at retail.

Pick a picture on the menu and they eat something else and Thats a good dynamic.

With that again tells me as Americans want to get out they're going to prioritize getting other house into casual dine over other discretionary spending.

In terms of beef, what I would say is.

For 25, we see this as a mid single digits a reality.

We will communicate what we see would be doing in February when we get to the 2026 guidance.

Yes, it makes sense to me.

People don't want to risk the idea of screwing up the stake at home go to you guys in and get a good experience in the process as well so.

I'd say two other things one we like the resiliency of the beef category continues to grow Americans are engaged in it and one other thing that I think it's important as the relative value works for us and what I mean by that is we're getting a lot of guests feedback that guests know they can come in to outback get a perfect.

I guess one of the other questions that I had you had offered a lot with respect to the business transformation over the next 12 to 36 months.

[Analyst]: Thank you.

Operator: Our next question comes from Brian Mullan with Piper Sandler. Please go ahead.

I'm curious you talked about menu redesign.

And some of the savings behind a.

[Analyst]: Hey, thanks. Just a question on the marketing part. I think you addressed this some in the fair marks, but it sounds like investments in marketing are going to be a part of the turnaround process. Just talk about how maybe you're going to phase this in over the next couple of years. I imagine there's a balance that can drive traffic in the short term, but maybe you want to make sure the product and service model is right. Just talk about the approach and how that will build.

Cook steak at a great value get a couple sides get a great experience.

Running through the P&L I'm, just curious do you feel like the menu.

<unk> also optimized today I think you have gone through and cleaned up some of the skus over the past 12, plus months, but do you feel like theres more to be done there.

And they are out of the house, but yet it's almost the same cost as what they're paying for beef at retail.

With that again tells me as Americans want to get out they're going to prioritize getting other house into casual dine over other discretionary spending.

Or are you at a good point today.

We can do more menu redesign is definitely a journey.

Mike Spanos: Yeah, Brian, I'll take it to how we're thinking about the sequencing of investments. Specifically to marketing, the incremental marketing is assumed to begin predominantly in the second half of 2026. That's $10 million. As Eric said, we would look at another $10 million in 2027 and another $10 million in 2028. Obviously, it's pay as you go. You're right. We have thought about the total execution of the platforms in more of a sequential manner because we want to be very thoughtful that we allow our outbackers to be brilliant at the basics. We don't want to overload them with tasks. Step one was get the operational priorities, get the foundation of base execution right. That's what we've been honed in on this year. Second, we're launching state quality at the end of this month, and we're going to work hard at getting that right.

Yes, it makes sense to me.

What we did we reduce 10% to 20% of the Skus. This last year to simplify the complexity for the back of the house as well as the front of the house, but revenue management is fluid part of menu design is creating affordability and a variety of entry price points, we're going to continue to iterate on that and that's also by the way.

People don't want to <unk>.

The idea of screwing up the stake at home go to you guys in and get a good experience in the process as well so.

I guess one of the other questions that I had you had offered a lot with respect to the business transformation over the next 12 to 36 months.

I'm curious you talked about menu redesign.

We're using our 42 test locations four we're using that as a good learning lab across the board understand the assortment choice affordability and what the guest wants.

And some of the savings behind.

Running through the P&L I'm, just curious do you feel like the menu.

So optimized today I think you have gone through and cleaned up some of the skus over the past 12 plus months, but do you feel like there is more to be done there.

Great. Thanks for taking the questions.

Our next question comes from Brian Vaccaro with Raymond James. Please go ahead.

Or are you at a good point today.

Good morning, and thanks for all the detail on the turnaround really helpful.

We can do more menu redesign is definitely a journey I like what we did.

On a couple of the aspects there.

You talked about improving the state quality could you elaborate on some of the changes youre, making there where whether it would be changes in products back the types of states Navy that youll be featuring.

We reduced 10% to 20% of the Skus. This last year to simplify the complexity for the back of the house as well as the front of the house, but revenue management is fluid part of menu design is creating affordability and a variety of entry price points, we're going to continue to iterate on that and that's also by the way what we're using our 42 test location.

Mike Spanos: In Q2 2026, we'll launch the elements of the service model. After that comes the marketing. The nice thing about Ziosk, it's going to allow us to keep evaluating location by location, geography by geography, on how we're doing on the execution.

Or changes and cooking procedures.

Yes, Brian.

Good question. So in terms of state quality I start with what I said in the prepared remarks that we'll get back to our roots of <unk>.

[Analyst]: Thank you. Just a modeling clarification on the closures. Can you give a sense of what brands those will be concentrated at? With all the assessing of the portfolio done this year, do you think you're done on the closure front? As you progress another year or two, could there potentially be a little bit more?

Four we are using that as a good learning lab across the board understand assortment choice affordability and what the guests want.

<unk> excellence and just being a great steakhouse and that SaaS of our steak lineup. We're also going to have breadth and discipline into nonstate proteins, which has been a big differentiator for us over the years going back to the founders.

<unk>.

Great. Thanks for taking the questions.

Our next question comes from Brian Vaccaro with Raymond James. Please go ahead.

We do with this stake lineup, we're going to launch the end of this month, we believe we've got the best steaks in the category.

Mike Spanos: Yeah. The closures were Outback, Bonefish, and Carrabba's. At this time, we don't see any more action needed. As we said, we've been very thorough in our asset evaluation over this last year, and that's where we're at at this point.

Good morning, and thanks for all the detail on the turnaround really helpful. Just on a couple of the aspects there.

Right now I think we've got the best barrel cuts delays out there. We're really excited about the <unk>. We think it's going to have a better performance better tenderness, we're going to be I really like our <unk> lineup, that's going to be coming and we're going to have just I think a great fit cut strip and.

You talked about improving the state quality could you elaborate on some of the changes youre, making there whether it would be changes in products back the types of states Navy that youll be featuring.

[Analyst]: Okay. Thank you.

Or changes and cooking procedures.

I'll leave it at that but the <unk>, they're really proud.

Yes, Brian.

Operator: Our next question comes from Jon Tower with Citigroup. Please go ahead.

It's a really good question. So in terms of state quality I start with what I said in the prepared remarks that we're getting back to our roots of steak excellence and just being a great steakhouse and that SaaS of our steak lineup. We're also going to have breadth and discipline into nonstate proteins, which has been a big differentiator for us over the years.

Pride the cell is high and to me. That's what just gives me a lot of conviction and confidence where we're doing the right thing here.

[Analyst]: Great. Thanks for taking the question. Maybe just digging into the Aussie Three-Course, can you help us think about or speak to how that mixed in during the third quarter? It sounds like it's been relatively successful in terms of the different levels that you're offering the guests. How are you thinking about this business or this value platform going into 2026? Obviously, beef inflation is out there. It's well-discussed amongst investors. How are you thinking about holding the line on pricing there should we run into a fairly significant wall of beef inflation over the next 12 or 24 months?

Alright. Thank you and also just on the guest experience and talking about the consistency of execution.

Is there any way to level set either currently sort of or the rate of improvement, but just sort of level set what youre seeing in any metrics and what you're tracking on that.

Going back to the founders.

We do with this stake lineup, we're going to launch the end of this month, we believe we've got the best steaks in the category.

And right now I think we've got the best barrel cut delays out there. We're really excited about the <unk>. We think it's going to have a better performance better tenderness, we're going to be I really like our <unk> lineup, that's going to be coming and we're going to have just I think a great fit cut strip and.

The percentage of guests with the problem.

Or other metrics that you might be able to share and how that might be improving year on year across the system or within your test markets.

Test pilot stores in 42 stores and then maybe as a tack onto that you talked about investing in your managers and just maybe some more color on the changes to their comp plan or how they are being incentivized sort of tying in.

I'll leave it at that but.

Mike Spanos: Yeah, John. I got two questions there. First, starting on your question about Aussie Three-Course, we're very pleased. We like the results in Aussie Three-Course. It's mixing exactly where we expected it to. What I like about it is 2/3 of the guests are trading up into that $17.99, $20.99. What I didn't comment as well, we got a lot of guests trading up on desserts as well, which is really encouraging. They're spending an extra $3 to get a Chocolate Thunder versus getting the cheesecake. Very consistent with what we expected. Our plans, consistent with 2025, are to continue in all the casual dine brands to have a value offer because we need to be very mindful of pricing with inflation, but we also have to meet the guests where they're at to get them to engage.

<unk>, they're really proud the pride the cell is high and to me. That's what just gives me a lot of conviction and confidence where we're doing the right thing here.

And at the time there.

The compensation to the performance of the stores that they're managing thank you.

Alright. Thank you and also just on the guest experience and talking about the consistency of execution.

Yes, you bet, Brian so on the.

Survey data we've looked at a few different things. One is we've looked at comprehensive satisfaction surveys, we've used that especially on the stake work.

Is there any way to levels that either currently sort of or the rate of improvement, but just sort of level set what youre seeing in any metrics and what you're tracking on that.

We also have just leverage the heck out of <unk> and specifically on <unk>. We look at attempt to return we look at guest satisfaction, we look at complaints per 10000, and we're able to.

The percentage of guests with the problem.

Or other metrics that you might be able to share and how that might be improving year on year across the system or within your test markets.

Compartmentalize or bucket those by location by GBP to really get at the issues.

First pilot stores in 42 stores and then maybe as a tack onto that you talked about investing in your managers and just maybe some more color on the changes to their comp plan or how they are being incentivized sort of tying in at that time.

Mike Spanos: A lot of them show up thinking they're going to buy the Aussie Three-Course, and they pick a picture on the menu, and they eat something else. That's a good dynamic. In terms of beef, what I would say is, for 2025, we see this as a mid-single digits reality. We'll communicate what we see beef doing in February when we get to the 2026 guidance. I'd say two other things. One, we like the resiliency of the beef category. It continues to grow. Americans are engaged in it. One other thing that I think is important is the relative value works for us. What I mean by that is we're getting a lot of guest feedback that guests know they can come into Outback, get a perfectly cooked steak at a great value, get a couple sides, get a great experience.

So that I think we're going to continue to do that in terms of the MP comp.

Sure.

What I would say there is our principles and beliefs.

The culture is grounded in our managing partners, we know that growing the sales and profits of every restaurant starts with our partners.

There there are compensation to the performance of the stores that they're managing thank you.

Yes, you bet, Brian so.

And therefore, we are making investments in the field compensation, we knew to ensure we're competitive in the market that allows us to have the right partners enroll and that structure that drives that ownership aligns its got aligned with our business objectives. What's exciting is those investments in field compensation. There can always enhance the team member of the guest experience.

Survey data we've looked at a few different things. One is we've looked at comprehensive satisfaction surveys, we've used that especially on the stake work.

Also have just leverage the heck out as the ask and specifically on <unk>. We look at attempt to return we look at guest satisfaction, we look at complaints per 10000, and we're able to.

We've seen lower hourly lower manager turnover, when we have tenured partners enroll.

Compartmentalize or bucket those by location by GBP to really get at the issues.

As far as the specifics.

I want to be.

So.

Wanted to directly and first communicate to our partners.

And we're going to continue to do that in terms of the MP comp.

Mike Spanos: They're out of the house, but yet it's almost the same cost as what they're paying for beef at retail. What that again tells me is Americans want to get out. They're going to prioritize getting out of the house into casual dine over other discretionary spending.

And I'll leave it at that here out of respect to them when we need to have the discussion directly with them on how we're moving forward.

<unk>.

What I would say there is our principles and beliefs.

The culture is grounded in our managing partners, we know that growing the sales and profits of every restaurant starts with our partners and.

Understood. Thank you very much.

Thank you.

[Analyst]: Yeah, it makes sense to me. People don't want to risk the idea of screwing up a steak at home, go to you guys, and get a good experience in the process as well. I guess one of the other questions that I had, you had offered a lot with respect to the business transformation over the next 12 to 36 months. I'm curious, you talked about menu redesign, and some of the savings behind, running through the P&L. I'm just curious, do you feel like the menu is also optimized today? I think you've gone through and cleaned up some of the SKUs over the past 12-plus months, but do you feel like there's more to be done there, or are you at a good point today?

Our next question comes from Sara Senatore with Bank of America. Please go ahead.

Thank you.

Quick housekeeping question and then a question on that.

Thank you.

Let me know how much price you out on the menu I'm just trying to reconcile I think with probably like kind of 4% price versus more miles increase in Sac, but then what you said about scene.

What's exciting is those investments in field compensation theyre going to always enhance the team member of the guest experience, we've seen lower hourly lower manager turnover when we have tenured partners enroll.

Some good spending patterns.

Different cohort.

As far as specifics.

If you could just talk to that dynamic and then like I said.

I want to be.

Wanted to directly and first communicate to our partners.

I have a question on <unk>.

Sure Hi, Sarah it's Eric So our Q3 pricing was up three 7%, that's just a tick slightly higher than our full year guidance of mid threes and also we expect Q4 to also be in the mid threes on pricing, it's a pretty balanced.

And I'll leave it at that here out of respect to them, what we need to have the discussion directly with them on how we are moving forward.

Understood. Thank you very much.

Mike Spanos: We can do more. Menu redesign is definitely a journey. I like what we did where we reduced 10% to 20% of the SKUs this last year to simplify the complexity for the back of the house, as well as the front of the house. Revenue management is fluid. Part of menu design is creating affordability and a variety of entry price points. We're going to continue to iterate on that. That's also, by the way, what we're using our 42 test locations for. We're using that as a good learning lab across the board to understand assortment, choice, affordability, and what the guest wants.

Thank you.

Our next question comes from Sara Senatore with Bank of America. Please go ahead.

And then the mix component with that.

Smaller parties or I guess or was that mix across different.

Alright, thank you.

Quick housekeeping question and then a question Matt.

The different concepts.

Thank you.

Secondly, we got less than that.

Let me know how much price you have on the menu I'm just trying to reconcile I think with probably like kind of 4% price versus more miles increase in Sac, but then what you said about scene.

Just wanted to make sure I understood.

Yes, so we're seeing pretty consistent mix.

Within our expectations of about down two it's really driven by <unk>, three course, and our take home a lot of the experiential dinners.

Some good spending patterns.

Different cohort.

<unk> and other events that are happening across the four brands.

Maybe you could just talk about Brexit and then and then all right. Thanks a lot.

Got it okay. Thank you and then could you talk about sort of functionality.

Quick question on var.

[Analyst]: Great. Thanks for taking the questions.

Hey, Sara it's Eric So our Q3 pricing was up three 7%, that's just a tick slightly higher than our full year guidance of mid threes and also we expect Q4 to also be in the mid threes on pricing, it's a pretty balanced.

Paul.

Operator: Our next question comes from Brian Vaccaro with Raymond James. Please go ahead.

Wondering how you kind of balance I mean, as you pointed out yes. The service experience is really important.

Full service brands or how do you balance.

Mike Spanos: Good morning, and thanks for all the detail on the turnaround. Really helpful. Just on a couple of the aspects there, you talked about improving the steak quality. Could you elaborate on some of the changes you're making there, whether it be changes in product spec, the types of steaks maybe that you'll be featuring, or changes in cooking procedures?

What you.

Hi, there Amit.

Thanks, Paul.

And then the mix component with that.

What is that.

Our option with the server.

Smaller parties or I guess or was that mix across different.

Full service brands.

Whether this would just be kind of pull up a table versus ordering capability things.

The difference.

Thank you Sir.

We've got less than that.

Things like games. So your your your I guess philosophy on that.

Just wanted to make sure I understood.

Mike Spanos: Yeah, Brian, it's a really good question. In terms of steak quality, I start with what I said in the prepared remarks. We're getting back to our roots of steak excellence and just being a great steakhouse. That's the depth of our steak lineup. We're also going to have breadth and discipline in the non-steak proteins, which has been a big differentiator for us over the years going back to the founders. With this steak lineup, we're going to launch at the end of this month. We believe we've got the best steaks in the category. Right now, I think we've got the best barrel-cut fillets out there. We're really excited about the sirloin. We think it's going to have better performance, better tenderness. I really like our ribeye lineup that's going to be coming.

Yes, so we're seeing pretty consistent mix.

Well, a part of our remarkable dining experiences.

Within our expectations of about down two it's really driven by <unk>, three course, and our take home a lot of the experiential dinners.

Emotional connection that our guests feel with our servers and our partners that is foundational and that's not going away.

<unk> and other events that are happening across the four brands.

Got it okay. Thank you and then.

At the same time, we know a lot of guests want things simpler faster easier and they want to engage in technology. So when we get out as the assets I think are a few things that we like.

Can you talk about sort of functionality.

Paul.

Wondering how you kind of balance I mean, as you pointed out yes. The service experience is really important.

Foodservice brands or how do you balance.

Number one we've got over 85% of our guests love to use that to pay and that's really nice in terms of table turns and they get out of the restaurant faster and we're going to continue to enable that second.

What you.

Thanks, Paul.

Yes.

Our interaction with the server.

Full service brands.

We love the engagement rate, where they give us feedback and that gives us real time data at each restaurant by shift for coaching our recognition.

Whether this will talk with you.

Kind of pay off the table versus ordering capability.

Mike Spanos: We're going to have just, I think, a great thick-cut strip. I'll leave it at that. The outbackers, they're really proud. The pride to sell is high, and to me, that's what just gives me a lot of conviction and confidence we're doing the right thing here.

So your your your I guess philosophy on that.

Third we do leverage it for gaming.

Well.

Part of our remarkable dining experiences.

That's worked.

And then there are certain menu items the guests can reorder order on their own but it is to order off the menu youre going through our server.

Emotional connection that our guests feel with our servers and our partners that is foundational and that's not going away.

Mike Spanos: All right. Thank you. Also, just on the guest experience and talking about the consistency of execution, is there any way to level set either currently, sort of, or the rate of improvement, but just sort of level set what you're seeing in any metrics and what you're tracking on that? Do you track the percentage of guests with the problem, or other metrics that you might be able to share and how that might be improving year-on-year across the system or within your test markets, your test pilot stores in the 42 stores? Maybe as a tack on to that, you talked about investing in your managers and just maybe some more color on the changes to their comp plan or how they're being incentivized, sort of tying their compensation to the performance of the stores that they're managing. Thank you.

Thank you.

At the same time, we know a lot of guests want things simpler faster easier and they want to engage in technology. So when we get out is the asset I think there are a few things that we like.

Yeah.

Our next question comes from Savi <unk> with Goldman Sachs. Please go ahead.

Thanks for taking the question I have a follow up on the marketing part.

Number one we've got over 85% of our guests love to use that to pay and Thats really nice in terms of table turns and they get out of the restaurant faster and we're going to continue to enable that second.

Can you give any color on how youre planning on communicating the business turnaround with consumers to drive trial at Outback, particularly with lapsed guests who might have.

We love the engagement rate, where they give us feedback and that gives us real time data at each restaurant by shift for coaching our recognition.

Somewhat of an outdated and then Jonathan what youll be offering.

And then kind of similarly to that.

Any color on how you would be trying to drive trial and frequency specifically with the younger cohort.

Third we do leverage it for gaming.

That's worked.

I assume that shift towards digital advertising is probably part of that but any additional color you could add would be appreciated. Thanks.

And then there are certain menu items the guests can reorder order on their own but it is to order off the menu youre going through our server.

Yes, you got it right first you got to start with the marketing brings folks in the restaurant, but we got to execute really well because that brings them back and that part of that word of mouth. So to me you start there.

Mike Spanos: Yeah, you bet, Brian. On the survey data, we've looked at a few different things. One is we've looked at comprehensive satisfaction surveys. We've used that especially on the steak work. We also have just leveraged the heck out of Ziosk. Specifically on Ziosk, we look at intent to return, guest satisfaction, and complaints per 10,000. We're able to compartmentalize or bucket those by location, by JVP, to really get at the issues. I think we're going to continue to do that. In terms of the MP comp, what I'd say there is our principles and beliefs, the culture is grounded in our managing partners. We know that growing the sales and profits of every restaurant starts with our partners, and therefore, we are making investments in the field compensation. We need to ensure we're competitive in the market.

Thank you.

Our next question comes from SEBI Farley with Goldman Sachs. Please go ahead.

The brand communication, which has been after a lot of good work on the strategic brand positioning.

Thanks for taking the question I have a follow up on the marketing part can you give any color on how youre planning on communicating the business turnaround with consumers to drive trial at Outback, particularly with lapsed guests you might have.

He will be steak centric and there will also be an element of emotional connection and youre going to get that off battalion experience, that's going to be in there as well as the value components. We get we're going to we're going to stay clear to that we're going to be back to the Aussie routes and now as far as so that's the right message is.

Somewhat of an outdated and then Jonathan what youll be offering.

And then similarly to that.

Any color on how you would be trying to drive trial and frequency specifically with the younger cohort.

Far as the channels you are right, we are moving more towards a 40% linear TV, 60% digital that's going to give us both better rois and also to be targeted in terms of retention and recruitment and so we'll look at which non protein items that we get a little more dirt.

I assume that shift toward digital advertising is probably part of that but any additional color you could add would be appreciated. Thanks.

Yes, you got it right first you got to start with the marketing brings folks in the restaurant, but we got to execute really well because that brings them back and that part of that is word of mouth. So to me you start there.

Mike Spanos: That allows us to have the right partners enroll. That structure that drives that ownership has got to align with our business objectives. What's exciting is those investments in field compensation, they're going to always enhance the team member, the guest experience. We've seen lower hourly, lower manager turnover when we have tenured partners enroll. As far as the specifics, I want to be—I want to directly and first communicate to our partners. I'll leave it at that here. Out of respect to them, we need to have the discussion directly with them on how we're moving forward.

On digital to recruit some younger cohorts and Thats part of the work, we're doing but again, what I want to stress, we're not going to do that we're not going to turn on that extra marketing until we're really confident we are tight on execution consistency of execution on state and service.

The brand communication, which has been after a lot of good work on the strategic brand positioning.

He will be steak centric and there will also be an element of emotional connection and youre going to get that cost fatality experience, that's going to be in there as well as the value components. We get we're going to we're going to stay clear to that we're going to be back to the Aussie routes and now as far as so that's the right message is.

This concludes our question and answer session I would like to turn the conference back over to Mike Spanos for any closing remarks.

Thank you once again for your investment and support of Bloom and brands I want to close by thanking our people for their passion their ownership and commitment to each other and our guests. We are on our path forward because of you. Thank you.

Mike Spanos: Understood. Thank you very much.

Mike Spanos: Thank you.

Operator: Our next question comes from Sara Senatore with Bank of America. Please go ahead.

Eric Crist: Thank you. Just, I guess, one quick housekeeping question and then a question about Ziosk. Could you just let me know how much price you had on the menu? I'm just trying to reconcile, I think it was probably kind of 4% price versus a more modest increase in check, but then what you said about seeing some good spending patterns across different cohorts. If you could just talk to that dynamic, and then, like I said, I have a question on Ziosk.

On digital to recruit some younger cohorts and Thats part of the work, we're doing but again, what I want to stress is we are not going to do that we're not going to turn on that extra marketing until we're really confident we are tight on execution consistency of execution on state and service.

Okay.

This concludes the conference. Thank you for attending today's presentation you may now disconnect.

Mike Spanos: Sure. Hey, Sara, it's Eric. Our Q3 pricing was up 3.7%. That's just a tick slightly higher than our full-year guidance of mid-threes. We expect Q4 to also be in the mid-threes on pricing. Pretty balanced.

This concludes our question and answer session I would like to turn the conference back over to Mike <unk> for any closing remarks.

Thank you once again for your investment and support of woman brands I want to close by thanking our people for their passion their ownership and commitment to each other and our guests. We are on a path for because of you. Thank you.

Eric Crist: The mix component, was that smaller parties, or I guess, or was that mixed across different, the different concepts? Just like I said, the average check was up less than that. So just wanted to make sure I understood that dynamic.

Okay.

This concludes the conference. Thank you for attending today's presentation you may now disconnect.

Mike Spanos: Yeah. We're seeing pretty consistent mix within our expectations of about down two. It's really driven by Aussie Three-Course, $10 take-home, a lot of the experiential dinners, and other events that are happening across the four brands.

Yeah.

[music].

Eric Crist: Got it. Okay. Thank you. Could you talk about sort of the functionality that Ziosk has? I'm wondering how you kind of balance. I mean, as you pointed out, the service experience is really important to a full-service brand. How do you balance kind of what you digitize or automate through Ziosk versus what is an interaction with the server? I know different full-service brands have had different views on whether it should just be kind of pay at the table versus ordering capabilities versus things like games. Your, I guess, philosophy on that?

Mike Spanos: Well, part of a remarkable dining experience is the emotional connection that our guests feel with our servers and our partners. That is foundational, and that's not going away. At the same time, we know a lot of guests want things simpler, faster, easier, and they want to engage in technology. What we get out of Ziosk, I think, are a few things that we like. Number one, we've got over 85% of our guests love to use it to pay, and that's really nice in terms of table turns, and they get out of the restaurant faster, and we're going to continue to enable that. Second, we love the engagement rate where they give us feedback, and that gives us real-time data at each restaurant by shift for coaching and recognition. Third, we do leverage it for gaming, so that's worked.

Mike Spanos: There are certain menu items the guests can reorder on their own. To order off the menu, you're going through our server.

Eric Crist: Thank you.

Operator: Our next question comes from Teddy Farley with Goldman Sachs. Please go ahead.

[Analyst]: Thanks for taking the question. I have a follow-up on the marketing part. Can you give any color on how you're planning on communicating the business turnaround with consumers to drive trial at Outback, particularly with lapsed guests who might have somewhat of an outdated image of what you'll be offering? Similarly to that, any color on how you would be trying to drive trial and frequency specifically with the younger cohort? I assume that the shift toward digital advertising is probably part of that, but any additional color you could add would be appreciated. Thanks.

Mike Spanos: Yeah, you got it right. First, you got to start with the marketing brings folks in the restaurant, but we got to execute really well because that brings them back. That's part of that's word of mouth. To me, you start there. In terms of the brand communication, which has been after a lot of good work on the strategic brand positioning, we will be steak-centric, and there will also be an element of emotional connection, and you're going to get that hospitality experience. That's going to be in there as well as the value components we get. We're going to stay clear to that. We're going to be back to the Aussie roots. Now, as far as—that's the right message. As far as the channels, you're right, we're moving more towards a 40% linear TV, 60% digital.

Mike Spanos: That's going to give us both better ROIs and also to be targeted in terms of retention and recruitment. We'll look at which non-protein items that we get a little more direct on digital to recruit some younger cohorts. That's part of the work we're doing. What I want to stress is we're not going to do that. We're not going to turn on that extra marketing until we're really confident we are tight on execution, consistency of execution on steak, and service.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Mike Spanos for any closing remarks.

Mike Spanos: Thank you once again for your investment and support of Bloomin' Brands. I want to close by thanking our people for their passion, their ownership, and commitment to each other and our guests. We are on our path forward because of you. Thank you.

Operator: This concludes the conference. Thank you for attending today's presentation. You may now disconnect.

Q3 2025 Bloomin' Brands Inc Earnings Call

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