v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 28, 2026
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition Revenue Recognition
The following tables include the disaggregation of Restaurant sales and franchise revenues by restaurant concept and reportable segment for the periods indicated:
THIRTEEN WEEKS ENDED
JUNE 28, 2026JUNE 29, 2025
(dollars in thousands)RESTAURANT SALESFRANCHISE REVENUESRESTAURANT SALESFRANCHISE REVENUES
U.S.
Outback Steakhouse$576,278 $7,755 $571,897 $7,800 
Carrabba’s Italian Grill181,118 575 181,141 573 
Bonefish Grill133,087 72 126,671 89 
Fleming’s Prime Steakhouse & Wine Bar97,902 — 95,586 — 
U.S. total988,385 8,402 975,295 8,462 
International Franchise— 7,593 — 7,051 
Other (1)9,572 11 9,476 10 
Total$997,957 $16,006 $984,771 $15,523 
TWENTY-SIX WEEKS ENDED
JUNE 28, 2026JUNE 29, 2025
(dollars in thousands)RESTAURANT SALESFRANCHISE REVENUESRESTAURANT SALESFRANCHISE REVENUES
U.S.
Outback Steakhouse$1,176,588 $15,764 $1,169,378 $15,969 
Carrabba’s Italian Grill365,605 1,162 365,471 1,235 
Bonefish Grill273,565 141 262,662 193 
Fleming’s Prime Steakhouse & Wine Bar204,818 — 197,914 — 
U.S. total2,020,576 17,067 1,995,425 17,397 
International Franchise (2)— 15,163 — 16,334 
Other (1)19,207 27 18,863 32 
Total$2,039,783 $32,257 $2,014,288 $33,763 
________________
(1)Includes Restaurant sales for Company-owned restaurants in Hong Kong.
(2)The twenty-six weeks ended June 29, 2025 includes one month of pre-Brazil Sale Transaction intercompany royalties.
The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated:
(dollars in thousands)JUNE 28, 2026DECEMBER 28, 2025
Other current assets, net
Deferred gift card sales commissions$12,919 $17,155 
Unearned revenue
Deferred gift card revenue$302,404 $370,439 
Deferred loyalty revenue5,557 5,695 
Deferred franchise fees - current538 544 
Other1,596 1,255 
Total Unearned revenue$310,095 $377,933 
Other long-term liabilities, net
Deferred franchise fees - non-current$4,387 $4,408 

The following table is a rollforward of deferred gift card sales commissions for the periods indicated:
THIRTEEN WEEKS ENDEDTWENTY-SIX WEEKS ENDED
(dollars in thousands)JUNE 28, 2026JUNE 29, 2025JUNE 28, 2026JUNE 29, 2025
Balance, beginning of the period$13,633 $13,127 $17,155 $16,935 
Deferred gift card sales commissions amortization(4,839)(4,870)(11,640)(11,767)
Deferred gift card sales commissions capitalization4,633 4,900 8,685 8,873 
Other(508)(603)(1,281)(1,487)
Balance, end of the period$12,919 $12,554 $12,919 $12,554 

The following table is a rollforward of unearned gift card revenue for the periods indicated:
THIRTEEN WEEKS ENDEDTWENTY-SIX WEEKS ENDED
(dollars in thousands)JUNE 28, 2026JUNE 29, 2025JUNE 28, 2026JUNE 29, 2025
Balance, beginning of the period$313,425 $308,738 $370,439 $366,059 
Gift card sales56,776 58,035 104,884 104,561 
Gift card redemptions(62,817)(63,072)(160,244)(160,666)
Gift card breakage(4,980)(4,065)(12,675)(10,318)
Balance, end of the period$302,404 $299,636 $302,404 $299,636 
Franchise Revenue - Effective December 31, 2023, the Company entered into an Amended & Restated Holistic Resolution Agreement (the “2023 Resolution Agreement”) with Cerca Trova Southwest Restaurant Group, LLC (d/b/a Out West Restaurant Group) and certain of its affiliates (collectively, “Out West”), who currently operate 71 franchised Outback Steakhouse restaurants in the western United States. The 2023 Resolution Agreement provided for forbearance regarding prior defaults and established operating covenants to maintain such forbearance. During the thirteen weeks ended June 28, 2026, the Company received notice from the agent for Out West’s senior lender that Out West was in default of its separate Credit and Guaranty Agreement, dated as of April 25, 2017 (as amended or otherwise modified from time to time, the "Credit Agreement”) and Forbearance Agreement and Fourth Amendment to Credit and Guaranty Agreement (the “Forbearance Agreement”) with such agent and senior lenders as Out West was no longer in compliance with one or more covenants of such agreements. The agent and senior lenders have not yet elected to take any specific actions with respect to the default notice and have not yet elected to terminate the Forbearance Agreement, Credit Agreement, or other credit documents. Out West continues to operate its restaurants in the ordinary course and was current in its obligations to the Company as of June 28, 2026, including payment of royalties and other fees. If the senior lenders exercise their rights under their Forbearance Agreement with respect to this default, or the Forbearance Agreement expires or is terminated, the lenders have a priority right to payment of amounts due and may exercise creditor remedies against Out West, subject to applicable law and loan documents, including foreclosure on Out West’s assets. At this time, the Company is unable to predict the outcome of this situation or possible actions by Out West or Out West’s lenders or any alternatives that these parties may consider, which could include a court-supervised process. The Company is working with Out West and other parties to mitigate potential disruptions and is actively evaluating the Company’s operational, contractual and strategic alternatives to address Out West’s near-term liquidity constraints and longer-term operations.