A major restaurant company is continuing to trim its footprint as it works to strengthen some of its biggest brands, with more closures ahead.
The latest shutdowns come as the company navigates a broader turnaround plan that includes updating restaurants, improving the customer experience, and reassessing its store base. While sales have remained positive across much of the business, traffic trends remain a challenge at some of its most recognizable chains.
Founded in 1988 in Tampa, Florida, Bloomin’ Brands Inc. is one of the world’s largest casual dining companies with more than 1,440 restaurants across 46 states, Guam, and 12 countries. Its portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar.
Bloomin’ Brands restaurant closures
During the second quarter of fiscal 2026, which ended June 28, Bloomin’ Brands (BLMN) closed nine restaurants across its system while opening five, leaving the company with 1,448 locations at the end of the quarter. Four of the closures were company-owned restaurants, and five were franchised.
The closures were concentrated at two of its brands.
- Outback Steakhouse: Closed four U.S. locations, leaving 659 restaurants.
- Outback Steakhouse International: Closed four locations, leaving 354 restaurants.
- Fleming’s Prime Steakhouse & Wine Bar: Closed one U.S. location, leaving 64 restaurants.
Bloomin’ Brands also opened one company-owned Outback Steakhouse restaurant and four internationally franchised Outback Steakhouse locations in Brazil during the quarter.
The company’s restaurant count fell by four locations during the quarter, as nine closures outpaced five openings.
Bloomin’ Brands has been reshaping its restaurant footprint as part of a broader effort to improve performance and focus investment on locations with stronger growth potential.
Why Bloomin’ Brands is closing locations
Bloomin’ Brands’ latest results show a mixed picture for its restaurant portfolio.
Revenue increased 1.3% year over year to $1.02 billion during the second quarter, while comparable U.S. restaurant sales climbed 2.3%. The company also raised its full-year 2026 U.S. comparable-sales outlook to between 1% and 2%, compared with its previous range of 0.5% to 2.5%.
At the same time, customer traffic declined across several of its brands.
Outback Steakhouse’s U.S. traffic fell 2.8% during the quarter, even as comparable restaurant sales increased 1.4% and average check per person rose 4.2%.
Fleming’s Prime Steakhouse & Wine Bar also reported a 2.8% decrease in U.S. traffic, while comparable restaurant sales climbed 1.6% and average check per person climbed 4.4%.
The trends were not uniform across the company’s portfolio. Bonefish Grill reported an 8.1% increase in comparable sales and a 4.5% rise in traffic, while Carrabba’s Italian Grill’s comparable sales were up 1.7%, despite a 2.5% decline in traffic.
That combination of positive sales and weaker traffic illustrates how higher customer spending can help offset fewer visits, but companies still need to ensure individual locations can generate sustainable returns.
Bloomin’ Brands’ second-quarter results also showed that its restaurant-level operating margin increased to 12.4%, compared with 12% a year earlier. The company attributed the improvement primarily to higher average checks, productivity initiatives, and lower pre-opening costs, partially offset by higher commodity, labor, and operating expenses.
Bloomin’ Brands turnaround strategy and Outback Steakhouse closures
Bloomin’ Brands has been pursuing a multi-year turnaround strategy focused primarily on Outback Steakhouse since announcing the plan in November 2025.
The strategy centers on four areas: improving the dine-in experience, strengthening brand relevance, rebuilding its culture, and investing in its restaurants. The company is also using productivity savings and disciplined capital allocation to support those investments.
Here’s some of my previous coverage of restaurant closures:
- Popular breakfast chain closes half its restaurants
- Restaurant giant quietly closes locations across major brands
- Fast-growing chicken chain closes 207 restaurants, cuts expansion
As part of the strategy, Bloomin’ Brands closed 21 U.S. restaurants in 2025 and chose not to renew the leases on 22 additional U.S. locations. The company said the majority of those leases were set to expire over the following four years.
Restaurant closures are only one part of the company’s strategy. Bloomin’ Brands is also investing heavily in upgrading its existing locations.
During its second-quarter earnings call, CEO Mike Spanos said the company completed approximately 31 Outback Steakhouse refreshes through the end of July and was on track to complete around 85 during 2026.
The company expects to spend $350,000 to $400,000 per refresh, with a goal of refreshing 100% of Outback Steakhouse restaurants by the end of 2028.
The refresh program is intended to improve the restaurant environment and support the company’s broader effort to bring customers back to its locations.
Bloomin’ Brands has also adjusted its expected spending on the broader turnaround. Management said its total 2026 turnaround investment is now expected to be about $36 million, down from the previously expected $50 million, while productivity savings remain on track for approximately $30 million.
“I am pleased with our financial results in the second quarter and our continued progress on the Outback Turnaround,” Spanos said in the company’s earnings report. “We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.”
For Bloomin’ Brands, the latest closures are part of a larger effort to reshape its restaurant base while investing heavily in locations it believes have the strongest potential for long-term growth.
Related: 17-year-old Mexican restaurant chain closes all locations