Restaurant company Bloomin’ Brands swung to a loss in the fourth fiscal quarter amid lower sales.

For the quarter ended December 31, revenues from continuing operations fell 9.3 per cent to $972 million. Consolidated revenues, including the Brazil business – that was classified as discontinued operations – dropped 8.2 per cent to $1.096 billion.

The company completed the sale of 67 per cent of its Brazil operations to a fund managed by an affiliate of Vinci Partners in December. The Brazil restaurants began operating as unconsolidated franchises after the transaction.

Comparable restaurant sales in the US were down 1.1 per cent, with Outback Steakhouse down 1.8 per cent, Carrabba’s Italian Grill down 0.9 per cent, Bonefish Grill down 1.5 per cent and Fleming’s Prime Steakhouse & Wine Bar up 3 per cent.

On the bottom line, Bloomin’ Brands reported a net loss of $77.5 million compared to a net income of $45.5 million in the prior year. 

The company’s continuing operations recorded a net income of $12.5 million, while its discontinued operations had a net loss of $90.1 million.

For the full year, revenues fell 5.2 per cent to $3.95 billion. The company swung to a net loss of $122 million from a net income of $254 million in the prior year.

CEO Mike Spanos said the results are not what management expected and are not representative of the company’s potential. 

“We are making changes to address our near-term execution as well as drive sustainable sales and profit growth,” he added.

The company expects US comparable restaurant sales to decrease 0.5-1.5 per cent in the first quarter of FY25 and to be flat or down 2 per cent for the full year.

“Our guidance for the first quarter and full year is reflective of where we are and our go-forward short-term performance,” Spanos said.