Bloomin’ Brands has closed 21 Outback Steakhouse restaurants in the United States and plans more closures as leases end. This move marks a pullback in a crowded casual dining market where Outback has lost about 10% of its U.S. locations over the last ten years. Outback once had about 750 restaurants in the country, but it now operates around 670.
Its latest same-store sales grew only 0.4%, while Texas Roadhouse and LongHorn Steakhouse each grew more than 5% in the same period. That gap shows how much faster competitors are expanding, which makes it harder for Outback to stay profitable with thin margins. Analysts say Outback’s higher menu prices, frequent discounts, and weaker value perception have hurt it against more flexible rivals.
Texas Roadhouse attracts customers with affordable prices and energetic dining rooms, while LongHorn draws them with large portions and steady growth in new locations. Both chains score better in customer satisfaction and foot traffic, as diners focus more on value than on long-standing brand names. Outback’s typical check is about 29 dollars per person, which is higher than its main rivals. Competitors also spend more on staff training and refreshing their restaurants, which helps them pull ahead.
Closure Impact Across the Country
The company closed the 21 restaurants in October 2025, and another 22 leases will expire over the next four years in Florida, Texas, Alabama, Wisconsin, Maryland, Louisiana, and New York. This spread shows that the retreat covers many regions, not just one troubled area. The shutdowns affect local economies because landlords must find new tenants for prime spots in shopping centers and near highways. Nearby stores lose some customer traffic when a busy restaurant closes.
Many hourly workers lose jobs or see their hours drop, although some move to other restaurants owned by Bloomin’ Brands, such as Carrabba’s. Regular customers often find doors locked with brief notices, and some communities lose a social meeting place. While Outback pulls back, its rivals gain strength. Texas Roadhouse generated almost 5.5 billion dollars in sales in 2024 and grew about 14.7% that year, which supports new restaurant openings.
LongHorn increased sales by about 7.2% and continues to add locations at a steady pace. Their growth contrasts with Outback’s shrinking footprint and helps drive stronger guest counts and revenue trends at those brands.
Money Pressures and Future Choices
Bloomin’ Brands recorded 33 million dollars in charges tied to impairments and closures in the most recent quarter and stopped paying its shareholder dividend to save cash. The company plans to invest about 400,000 dollars per restaurant to remodel almost every Outback by 2028. The upgrades focus on brighter interiors, updated bars, and better setups for takeout orders. Chief executive Mike Spanos says operations have good momentum and that customers still like the brand.
Investors do not fully agree, as some see the cost cuts and closures as necessary cleanup while others worry they point to deeper problems. The company’s stock has lagged behind competitors, as investors question its traffic trends and market value. Outback’s small sales increase offers a hint of hope, but experts doubt that menu tweaks and new décor alone can beat rivals that post mid-single-digit gains.
The chain now faces a key choice: become leaner and stronger or keep shrinking as Texas Roadhouse and LongHorn grow. With more leases set to end and more possible closures, the next few years will show whether its value improvements and store upgrades can win back loyal guests and restore profit.
Sources:
FinanceBuzz, Outback Steakhouse Closes 21 Locations With More on …, 19 Jan 2026
CNN, Outback abruptly closed 21 restaurants, 6 Nov 2025
Yahoo Finance, Outback’s parent company abruptly closed 21 restaurants, 6 Nov 2025
USA Today, Outback Steakhouse closures planned in Bloomin’ Brands …, 6 Nov 2025
Restaurant Dive, Bloomin’ to invest $50M in Outback Steakhouse overhaul …, 5 Nov 2025
New York Post, Outback Steakhouse owner abruptly shutters 21 …, 6 Nov 2025