By Connor Hart
Inflation-weary consumers are still eating out.
Bloomin' Brands and Dine Brands Global both reported higher revenue in the first quarter, as value offers, menu updates and turnaround efforts helped to offset still-elevated costs and cautious consumer spending.
Shares of Bloomin' popped 36%, to $7.82, shortly after Wednesday's opening bell. Dine Brands' stock was up 6%, to $29.84.
Bloomin', the owner of Outback Steakhouse and Carrabba's Italian Grill, said its turnaround efforts are continuing to gain momentum. The company has been taking steps to improve dining experiences, drive brand relevancy and remodel restaurants across its portfolio, particularly at its Outback Steakhouse banner.
Outback's new steak lineup--which the company launched last fall--continues to drive sales, and operational improvements helped raise overall guest-satisfaction scores for a third consecutive quarter, Chief Executive Mike Spanos said on a call with analysts.
Bloomin' also is accelerating restaurant remodels, aiming to refresh nearly all Outback locations by the end of 2028 at an expected cost of $350,000 to $400,000 per restaurant, he said.
Still, margins remained under pressure. Chief Financial Officer Eric Christel said commodity inflation rose 4.6% in the quarter, driven in part by persistently high beef prices amid a shortage of U.S. cattle. Higher labor costs also weighed on results, though those pressures were partly offset by lower advertising spending and productivity gains.
Looking ahead, Bloomin' maintained its outlook for the year, calling for same-restaurant sales to be up 0.5% to 2.5%, and for adjusted earnings of 75 cents to 90 cents a share.
The company guided for same-restaurant sales to grow 1% to 2% and adjusted earnings of 27 cents to 32 cents a share in the current quarter, compared with Wall Street models for same-restaurant sales to grow 1.2% and adjusted earnings of 22 cents a share.
The outlooks came as Bloomin' reported higher profit and revenue in the first quarter. Comparable-restaurant sales, or those from stores open 18 months or more, were up 0.9%, ahead of analysts expectations for a 0.5% gain.
Dine Brands also reported higher revenue, with Chief Executive John Peyton saying the company continues to benefit from its focus on value offerings, culturally relevant marketing and disciplined execution.
Same-restaurant sales, which account for store openings and closings, increased 1.9% across its Applebee's Neighborhood Bar + Grill banner during the latest quarter. IHOP's same-restaurant sales were flat.
Profit slipped to $7.4 million from $8.2 million a year ago. On an adjusted basis, though, earnings of $1.07 a share came in ahead of Wall Street models for $1 a share.
Looking ahead, Dine Brands reaffirmed its outlook for flat to 2% same-restaurant sales growth across both Applebee's and IHOP this year.
The company also said it remains on track to have about 80 domestic dual-branded restaurants open by the end of the year. Its dual-branded restaurants combine Applebee's and IHOP under one roof, a format Peyton previously said delivers stronger sales and margins than standalone locations.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
May 06, 2026 10:22 ET (14:22 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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