Q2 Diluted EPS of $0.32 and Q2 Adjusted
Diluted EPS of $0.51
Updates Full Year 2024 Guidance
Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for
the second quarter 2024 (“Q2 2024”) compared to the second quarter
2023 (“Q2 2023”).
CEO Comments “In the second
quarter, the casual dining industry was softer than anticipated,”
said David Deno, CEO. “While our comparable sales growth outpaced
the industry in Q2, we did not meet our expectations. We are very
focused on developing a path to sustainable growth at Outback and
are making progress in improving the guest experience, providing
meaningful value, and enhancing customer and digital capabilities.
Our full year guidance has been updated to reflect current industry
trends and our teams remain focused on delivering long-term
sustainable growth.”
Diluted EPS and Adjusted Diluted
EPS The following table reconciles Diluted earnings per
share to Adjusted diluted earnings per share for the periods
indicated (unaudited):
Q2
2024
2023
CHANGE
Diluted earnings per share
$
0.32
$
0.70
$
(0.38
)
Adjustments (1)
0.19
—
0.19
Adjusted diluted earnings per share
(1)
$
0.51
$
0.70
$
(0.19
)
_______________
(1) Adjusted diluted earnings per share
for the thirteen weeks ended June 25, 2023 has been recast to
remove the previously included non-GAAP adjustment of 5.0 million
diluted weighted average common shares outstanding related to the
convertible note hedge contracts entered into at the issuance of
the 2025 Notes. See non-GAAP Measures later in this release. Also
see Tables Four, Six and Seven for details regarding the nature of
diluted earnings per share adjustments for the periods
presented.
Second Quarter Financial
Results
(dollars in millions,
unaudited)
Q2 2024
Q2 2023
CHANGE
Total revenues
$
1,118.9
$
1,152.7
(2.9
)%
GAAP operating income margin
4.1
%
7.8
%
(3.7
)%
Adjusted operating income margin
(1)(2)
5.7
%
7.8
%
(2.1
)%
Restaurant-level operating margin (2)
14.3
%
16.4
%
(2.1
)%
_______________
(1) See Table Six for details regarding
the nature of operating income margin adjustments.
(2) See non-GAAP Measures later in this
release.
- The decrease in Total revenues was primarily due to: (i) lower
comparable restaurant sales, (ii) the net impact of restaurant
closures and openings, and (iii) the benefit from the Brazil value
added tax exemptions during 2023.
- GAAP operating income margin decreased from Q2 2023 primarily
due to: (i) a decrease in restaurant-level operating margin, as
detailed below, (ii) higher impairment and closure costs, and (iii)
higher depreciation and amortization expense.
- Restaurant-level operating margin decreased from Q2 2023
primarily due to: (i) lower restaurant sales, as discussed above,
(ii) higher labor, operating and commodity costs, primarily due to
inflation, (iii) unfavorable product mix and (iv) higher
advertising expense. These decreases were offset by an increase in
average check per person and the impact of certain cost-saving and
productivity initiatives.
- Adjusted income from operations primarily excludes impairment
and closure costs primarily in connection with the decision to
close nine restaurants in Hong Kong and the Q4 2023 decision to
close 36 older, predominately underperforming restaurants.
Second Quarter Comparable Restaurant
Sales(1)
THIRTEEN WEEKS ENDED JUNE 30,
2024
COMPANY-OWNED
Comparable restaurant sales (stores open
18 months or more):
U.S.
Outback Steakhouse
(0.1
)%
Carrabba’s Italian Grill
2.0
%
Bonefish Grill
(2.0
)%
Fleming’s Prime Steakhouse & Wine
Bar
(1.1
)%
Combined U.S.
(0.1
)%
International
Outback Steakhouse - Brazil (2)
(1.1
)%
_______________
(1) For Q2 2024, comparable restaurant
sales compare the thirteen weeks from April 1, 2024 through June
30, 2024 to the thirteen weeks from April 3, 2023 through July 2,
2023. See Table Ten for details regarding our fiscal and comparable
basis calendars.
(2) Excludes the effect of fluctuations in
foreign currency rates and the benefit of Brazil value added tax
exemptions. Includes trading day impact from calendar period
reporting.
Dividend Declaration and Share
Repurchases On July 23, 2024, our Board of Directors
declared a quarterly cash dividend of $0.24 per share, payable on
September 4, 2024 to stockholders of record at the close of
business on August 20, 2024.
Year to date through August 2, 2024, we repurchased 9.9 million
shares for a total of $263.1 million during 2024 and had $99.4
million of share repurchase authorization remaining under the 2024
Share Repurchase Program.
Fiscal 2024 Financial
Outlook The table below presents our updated
expectations for selected 2024 financial operating results. We are
reaffirming all other aspects of our full-year financial guidance
as previously communicated.
Financial Results:
Prior Outlook
Current Outlook
U.S. comparable restaurant sales
Flat to +2%
Down 1% to Flat
Capital expenditures
$270M to $290M
$260M to $270M
GAAP effective tax rate
29% to 31%
26% to 28%
Adjusted effective tax rate
14% to 16%
8% to 10%
GAAP diluted earnings per share (1)
$0.79 to $0.94
$0.25 to $0.45
Adjusted diluted earnings per share
(1)
$2.51 to $2.66
$2.10 to $2.30
_______________
(1) Assumes diluted weighted average
shares of approximately 90 million.
Q3 2024 Financial Outlook
The table below presents our expectations for selected fiscal Q3
2024 financial operating results.
Financial Results:
Q3 2024 Outlook
U.S. comparable restaurant sales
Down 2% to Flat
GAAP diluted earnings per share (1)
$0.15 to $0.23
Adjusted diluted earnings per share
(1)
$0.17 to $0.25
_______________
(1) Assumes diluted weighted average
shares of approximately 87 million.
Conference Call The Company
will host a conference call today, August 6, 2024 at 8:15 AM EDT.
The conference call will be webcast live from the Company’s website
at http://www.bloominbrands.com under the Investors section. A
replay of this webcast will be available on the Company’s website
after the call.
About Bloomin’ Brands, Inc.
Bloomin’ Brands, Inc. is one of the largest casual dining
restaurant companies in the world with a portfolio of leading,
differentiated restaurant concepts. The Company has four
founder-inspired brands: Outback Steakhouse, Carrabba’s Italian
Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine
Bar. The Company owns and operates more than 1,450 restaurants in
46 states, Guam and 13 countries, some of which are franchise
locations. For more information, please visit
www.bloominbrands.com.
Non-GAAP Measures In
addition to the results provided in accordance with GAAP, this
press release and related tables include certain non-GAAP measures,
which present operating results on an adjusted basis. These are
supplemental measures of performance that are not required by or
presented in accordance with GAAP and include: (i) Restaurant-level
operating income, adjusted restaurant-level operating income and
their corresponding margins, (ii) Adjusted income from operations
and the corresponding margin, (iii) Adjusted segment income from
operations and the corresponding margin, (iv) Adjusted net income
and (v) Adjusted diluted earnings per share.
Restaurant-level operating margin is a non-GAAP financial
measure widely regarded in the industry as a useful metric to
evaluate restaurant-level operating efficiency and performance of
ongoing restaurant-level operations, and we use it for these
purposes, overall and particularly within our two segments.
We believe that our use of non-GAAP financial measures permits
investors to assess the operating performance of our business
relative to our performance based on GAAP results and relative to
other companies within the restaurant industry by isolating the
effects of certain items that may vary from period to period
without correlation to core operating performance or that vary
widely among similar companies. However, our inclusion of these
adjusted measures should not be construed as an indication that our
future results will be unaffected by unusual or infrequent items or
that the items for which we have made adjustments are unusual or
infrequent or will not recur. We believe that the disclosure of
these non-GAAP measures is useful to investors as they form part of
the basis for how our management team and Board of Directors
evaluate our operating performance, allocate resources and
administer employee incentive plans.
These non-GAAP financial measures are not intended to replace
GAAP financial measures, and they are not necessarily standardized
or comparable to similarly titled measures used by other companies.
We maintain internal guidelines with respect to the types of
adjustments we include in our non-GAAP measures. These guidelines
endeavor to differentiate between types of gains and expenses that
are reflective of our core operations in a period, and those that
may vary from period to period without correlation to our core
performance in that period. However, implementation of these
guidelines necessarily involves the application of judgment, and
the treatment of any items not directly addressed by, or changes
to, our guidelines will be considered by our disclosure committee.
You should refer to the reconciliations of non-GAAP measures in
Tables Four, Five, Six and Seven included later in this release for
descriptions of the actual adjustments made in the current period
and the corresponding prior period.
Forward-Looking Statements
Certain statements contained herein, including statements under the
headings “CEO Comments”, “Fiscal 2024 Financial Outlook” and “Q3
2024 Financial Outlook” are not based on historical fact and are
“forward-looking statements” within the meaning of applicable
securities laws. Generally, these statements can be identified by
the use of words such as “guidance,” “believes,” “estimates,”
“anticipates,” “expects,” “on track,” “feels,” “forecasts,”
“seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,”
“could,” “would” and similar expressions intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. These forward-looking
statements include all matters that are not historical facts. By
their nature, forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from the Company’s forward-looking statements. These risks and
uncertainties include, but are not limited to: consumer reaction to
public health and food safety issues; increases in labor costs and
fluctuations in the availability of employees; increases in
unemployment rates and taxes; competition; interruption or breach
of our systems or loss of consumer or employee information; price
and availability of commodities and other impacts of inflation; our
dependence on a limited number of suppliers and distributors;
political, social and legal conditions in international markets and
their effects on foreign operations and foreign currency exchange
rates; the impact of the strategic review process for our Brazil
operations or any resulting action or inaction; our ability to
address corporate citizenship and sustainability matters and
investor expectations; local, regional, national and international
economic conditions; changes in patterns of consumer traffic,
consumer tastes and dietary habits; the effects of changes in tax
laws; costs, diversion of management attention and reputational
damage from any claims or litigation; government actions and
policies; challenges associated with our remodeling, relocation and
expansion plans; our ability to preserve the value of and grow our
brands; consumer confidence and spending patterns; the effects of a
health pandemic, weather, acts of God and other disasters and the
ability or success in executing related business continuity plans;
the Company’s ability to make debt payments and planned investments
and the Company’s compliance with debt covenants; the cost and
availability of credit; interest rate changes; and any impairments
in the carrying value of goodwill and other assets. Further
information on potential factors that could affect the financial
results of the Company and its forward-looking statements is
included in its most recent Form 10-K and subsequent filings with
the Securities and Exchange Commission. The Company assumes no
obligation to update any forward-looking statement, except as may
be required by law. These forward-looking statements speak only as
of the date of this release. All forward-looking statements are
qualified in their entirety by this cautionary statement.
Note: Numerical figures included in this release have been
subject to rounding adjustments.
TABLE ONE
BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(in thousands, except per share
data)
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Revenues
Restaurant sales
$
1,103,565
$
1,137,330
$
2,283,052
$
2,365,564
Franchise and other revenues
15,301
15,364
31,141
31,876
Total revenues
1,118,866
1,152,694
2,314,193
2,397,440
Costs and expenses
Food and beverage
336,063
351,226
693,892
735,440
Labor and other related
328,913
325,934
672,115
667,476
Other restaurant operating
280,821
273,338
571,093
556,265
Depreciation and amortization
49,525
47,565
98,807
93,867
General and administrative
61,152
63,358
127,928
129,162
Provision for impaired assets and
restaurant closings
16,261
1,827
27,134
5,151
Total costs and expenses
1,072,735
1,063,248
2,190,969
2,187,361
Income from operations
46,131
89,446
123,224
210,079
Loss on extinguishment of debt
—
—
(135,797
)
—
Interest expense, net
(14,802
)
(12,961
)
(28,418
)
(25,405
)
Income (loss) before provision for income
taxes
31,329
76,485
(40,991
)
184,674
Provision for income taxes
1,698
6,483
11,668
21,244
Net income (loss)
29,631
70,002
(52,659
)
163,430
Less: net income attributable to
noncontrolling interests
1,228
1,725
2,810
3,842
Net income (loss) attributable to Bloomin’
Brands
$
28,403
$
68,277
$
(55,469
)
$
159,588
Earnings (loss) per share:
Basic
$
0.33
$
0.77
$
(0.64
)
$
1.80
Diluted
$
0.32
$
0.70
$
(0.64
)
$
1.63
Weighted average common shares
outstanding:
Basic
86,688
88,559
86,856
88,838
Diluted
88,632
97,401
86,856
97,706
TABLE TWO
BLOOMIN’ BRANDS, INC.
SEGMENT RESULTS
(UNAUDITED)
(dollars in thousands)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
U.S. Segment
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Revenues
Restaurant sales
$
962,088
$
993,438
$
1,992,984
$
2,074,007
Franchise and other revenues
12,085
11,791
24,293
24,218
Total revenues
$
974,173
$
1,005,229
$
2,017,277
$
2,098,225
International Segment
Revenues
Restaurant sales (1)
$
141,477
$
143,892
$
290,068
$
291,557
Franchise and other revenues
3,216
3,573
6,848
7,658
Total revenues
$
144,693
$
147,465
$
296,916
$
299,215
Reconciliation of Segment Income (Loss)
from Operations to Consolidated Income from Operations
Segment income (loss) from operations
U.S.
$
79,677
$
103,008
$
177,161
$
236,251
International
(874
)
20,486
14,888
44,994
Total segment income from operations
78,803
123,494
192,049
281,245
Unallocated corporate operating
expense
(32,672
)
(34,048
)
(68,825
)
(71,166
)
Total income from operations
$
46,131
$
89,446
$
123,224
$
210,079
_______________
(1) Includes $9.6 million and $19.2
million of Restaurant sales during the thirteen and twenty-six
weeks ended June 25, 2023, respectively, in connection with value
added tax exemptions resulting from Brazil tax legislation.
TABLE THREE
BLOOMIN’ BRANDS, INC.
SUPPLEMENTAL BALANCE SHEET
INFORMATION
JUNE 30, 2024
DECEMBER 31, 2023
(dollars in thousands)
(UNAUDITED)
Cash and cash equivalents
$
117,919
$
111,519
Net working capital (deficit) (1)
$
(567,059
)
$
(659,021
)
Total assets
$
3,394,168
$
3,424,081
Total debt, net
$
1,001,982
$
780,719
Total stockholders’ equity
$
289,693
$
412,003
_______________
(1) We have, and in the future may
continue to have, negative working capital balances (as is common
for many restaurant companies). We operate successfully with
negative working capital because cash collected on restaurant sales
is typically received before payment is due on our current
liabilities, and our inventory turnover rates require relatively
low investment in inventories. Additionally, ongoing cash flows
from restaurant operations and gift card sales are typically used
to service debt obligations and to make capital expenditures.
TABLE FOUR
BLOOMIN’ BRANDS, INC.
RESTAURANT-LEVEL AND ADJUSTED
RESTAURANT-LEVEL OPERATING INCOME AND MARGINS NON-GAAP
RECONCILIATIONS
(UNAUDITED)
Consolidated
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Income from operations
$
46,131
$
89,446
$
123,224
$
210,079
Operating income margin
4.1
%
7.8
%
5.3
%
8.8
%
Less:
Franchise and other revenues
15,301
15,364
31,141
31,876
Plus:
Depreciation and amortization
49,525
47,565
98,807
93,867
General and administrative
61,152
63,358
127,928
129,162
Provision for impaired assets and
restaurant closings
16,261
1,827
27,134
5,151
Restaurant-level operating income (1)
$
157,768
$
186,832
$
345,952
$
406,383
Restaurant-level operating margin
14.3
%
16.4
%
15.2
%
17.2
%
Adjustments:
Asset impairments and closure-related
charges
—
—
434
—
Total restaurant-level operating income
adjustments
—
—
434
—
Adjusted restaurant-level operating
income
$
157,768
$
186,832
$
346,386
$
406,383
Adjusted restaurant-level operating
margin
14.3
%
16.4
%
15.2
%
17.2
%
_______________
(1) The following categories of revenue and operating expenses are
not included in restaurant-level operating income and the
corresponding margin because we do not consider them reflective of
operating performance at the restaurant-level within a period: (a)
Franchise and other revenues, which are earned primarily from
franchise royalties and other non-food and beverage revenue
streams, such as rental and sublease income. (b) Depreciation and
amortization, which, although substantially all of which is related
to restaurant-level assets, represent historical sunk costs rather
than cash outlays for the restaurants. (c) General and
administrative expense, which includes primarily
non-restaurant-level costs associated with support of the
restaurants and other activities at our corporate offices. (d)
Asset impairment charges and restaurant closing costs, which are
not reflective of ongoing restaurant performance in a period.
U.S.
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Income from operations
$
79,677
$
103,008
$
177,161
$
236,251
Operating income margin
8.2
%
10.2
%
8.8
%
11.3
%
Less:
Franchise and other revenues
12,085
11,791
24,293
24,218
Plus:
Depreciation and amortization
40,616
39,376
80,584
77,539
General and administrative
26,112
22,436
51,908
47,941
Provision for impaired assets and
restaurant closings
2,135
1,827
13,071
5,151
Restaurant-level operating income
$
136,455
$
154,856
$
298,431
$
342,664
Restaurant-level operating margin
14.2
%
15.6
%
15.0
%
16.5
%
Adjustments:
Asset impairments and closure-related
charges
—
—
434
—
Total restaurant-level operating income
adjustments
—
—
434
—
Adjusted restaurant-level operating
income
$
136,455
$
154,856
$
298,865
$
342,664
Adjusted restaurant-level operating
margin
14.2
%
15.6
%
15.0
%
16.5
%
International
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
(Loss) income from operations
$
(874
)
$
20,486
$
14,888
$
44,994
Operating (loss) income margin
(0.6
)%
13.9
%
5.0
%
15.0
%
Less:
Franchise and other revenues
3,216
3,573
6,848
7,658
Plus:
Depreciation and amortization
6,695
6,125
13,956
12,044
General and administrative
5,313
6,635
13,142
14,308
Provision for impaired assets and
restaurant closings
14,126
—
14,063
—
Restaurant-level operating income
$
22,044
$
29,673
$
49,201
$
63,688
Restaurant-level operating margin
15.6
%
20.6
%
17.0
%
21.8
%
TABLE FIVE
BLOOMIN’ BRANDS, INC.
CONSOLIDATED RESTAURANT-LEVEL
OPERATING MARGIN NON-GAAP RECONCILIATIONS
(UNAUDITED)
THIRTEEN WEEKS ENDED
FAVORABLE (UNFAVORABLE) CHANGE
QUARTER TO DATE
JUNE 30, 2024
JUNE 25, 2023
REPORTED AND ADJUSTED
REPORTED AND ADJUSTED
Restaurant sales
100.0
%
100.0
%
Food and beverage
30.5
%
30.9
%
0.4
%
Labor and other related
29.8
%
28.7
%
(1.1
)%
Other restaurant operating
25.4
%
24.0
%
(1.4
)%
Restaurant-level operating margin
14.3
%
16.4
%
(2.1
)%
TWENTY-SIX WEEKS ENDED
FAVORABLE (UNFAVORABLE) CHANGE
YEAR TO DATE
JUNE 30, 2024
JUNE 25, 2023
REPORTED AND ADJUSTED
(1)
REPORTED AND ADJUSTED
Restaurant sales
100.0
%
100.0
%
Food and beverage
30.4
%
31.1
%
0.7
%
Labor and other related
29.4
%
28.2
%
(1.2
)%
Other restaurant operating
25.0
%
23.5
%
(1.5
)%
Restaurant-level operating margin
15.2
%
17.2
%
(2.0
)%
_______________
(1) See Table Four Restaurant-level and
Adjusted Restaurant-Level Operating Income and Margins Non-GAAP
Reconciliations for details regarding restaurant-level operating
margin adjustments. All restaurant-level operating margin
adjustments for the periods presented were recorded within Labor
and other related expense.
TABLE SIX
BLOOMIN’ BRANDS, INC.
ADJUSTED INCOME FROM
OPERATIONS AND MARGIN NON-GAAP RECONCILIATIONS
(UNAUDITED)
(dollars in thousands)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
Consolidated
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Income from operations
$
46,131
$
89,446
$
123,224
$
210,079
Operating income margin
4.1
%
7.8
%
5.3
%
8.8
%
Adjustments:
Total restaurant-level operating income
adjustments (1)
—
—
434
—
Asset impairments and closure-related
charges (2)
16,225
—
28,746
—
Strategic initiative fees (3)
1,000
—
1,000
—
Total income from operations
adjustments
17,225
—
30,180
—
Adjusted income from operations
$
63,356
$
89,446
$
153,404
$
210,079
Adjusted operating income margin
5.7
%
7.8
%
6.6
%
8.8
%
U.S. Segment
Income from operations
$
79,677
$
103,008
$
177,161
$
236,251
Operating income margin
8.2
%
10.2
%
8.8
%
11.3
%
Adjustments:
Total restaurant-level operating income
adjustments (1)
—
—
434
—
Asset impairments and closure-related
charges (4)
2,173
—
13,858
—
Strategic initiative fees (3)
1,000
—
1,000
—
Total income from operations
adjustments
3,173
—
15,292
—
Adjusted income from operations
$
82,850
$
103,008
$
192,453
$
236,251
Adjusted operating income margin
8.5
%
10.2
%
9.5
%
11.3
%
International Segment
(Loss) income from operations
$
(874
)
$
20,486
$
14,888
$
44,994
Operating (loss) income margin
(0.6
)%
13.9
%
5.0
%
15.0
%
Adjustments:
Asset impairments and closure-related
charges (5)
14,051
—
14,100
—
Total income (loss) from operations
adjustments
14,051
—
14,100
—
Adjusted income from operations
$
13,177
$
20,486
$
28,988
$
44,994
Adjusted operating income margin
9.1
%
13.9
%
9.8
%
15.0
%
_______________
(1) See Table Four Restaurant-level and
Adjusted Restaurant-Level Operating Income and Margins Non-GAAP
Reconciliations for details regarding restaurant-level operating
income adjustments.
(2) Includes asset impairment, closure
costs and severance primarily in connection with the Q2 2024
decision to close nine restaurants in Hong Kong and the Q4 2023
decision to close 36 older, predominately underperforming U.S.
restaurants.
(3) Represents fees incurred in connection
with a project-based strategic initiative. The costs incurred
represent third-party consulting fees related to a strategic
initiative to develop revenue growth management capabilities for
Outback Steakhouse and are included in General and administrative
expense. We expect to incur additional fees for this project for
the remainder of 2024. Given the expected magnitude and scope of
this initiative and that it is not expected to recur in the
foreseeable future after 2024, we consider these incremental
expenses to be distinct from other consulting fees that we incur in
the ordinary course of business and not reflective of the ongoing
costs to operate our business or operating performance in the
period.
(4) Includes asset impairment, closure
costs and severance in connection with the Q4 2023 decision to
close 36 older, predominately underperforming restaurants.
(5) Includes asset impairment and closure
costs primarily in connection with the decision to close nine
restaurants in Hong Kong.
TABLE SEVEN
BLOOMIN’ BRANDS, INC.
ADJUSTED NET INCOME AND
ADJUSTED DILUTED EARNINGS PER SHARE NON-GAAP
RECONCILIATIONS
(UNAUDITED)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(in thousands, except per share
data)
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Net income (loss) attributable to Bloomin’
Brands
$
28,403
$
68,277
$
(55,469
)
$
159,588
Adjustments:
Income from operations adjustments (1)
17,225
—
30,180
—
Loss on extinguishment of debt (2)
—
—
135,797
—
Total adjustments, before income taxes
17,225
—
165,977
—
Adjustment to provision for income taxes
(3)
(602
)
—
(1,968
)
—
Net adjustments
16,623
—
164,009
—
Adjusted net income
$
45,026
$
68,277
$
108,540
$
159,588
Diluted earnings (loss) per share
$
0.32
$
0.70
$
(0.64
)
$
1.63
Adjusted diluted earnings per share
(4)(5)
$
0.51
$
0.70
$
1.18
$
1.63
Diluted weighted average common shares
outstanding (5)
88,632
97,401
86,856
97,706
Adjusted diluted weighted average common
shares outstanding (4)(5)
88,632
97,401
92,004
97,706
_______________
(1) See Table Six Adjusted Income from
Operations and Margin Non-GAAP Reconciliations above for details
regarding Income from operations adjustments.
(2) Includes losses in connection with the
partial repurchase of the 2025 Notes.
(3) Includes the tax effects of non-GAAP
adjustments determined based on the nature of the underlying
non-GAAP adjustments and their relevant jurisdictional tax rates
for all periods presented. The difference between GAAP and adjusted
effective income tax rates during the thirteen weeks ended June 30,
2024 primarily relates to asset impairment and closure costs in
Hong Kong with no corresponding tax benefit as a result of a full
valuation allowance against deferred tax assets in that
jurisdiction. The difference between GAAP and adjusted effective
income tax rates for the twenty-six weeks ended June 30, 2024
primarily relates to nondeductible losses and other tax costs
associated with the partial repurchase of the 2025 Notes.
(4) Adjusted diluted weighted average
common shares outstanding for the thirteen weeks ended June 30,
2024 and June 25, 2023 and the twenty-six weeks ended June 30, 2024
and June 25, 2023 were calculated including the effect of 1.0
million, 5.0 million, 2.7 million and 4.9 million dilutive
securities, respectively, for outstanding 2025 Notes and the effect
of 0.6 million, 3.3 million, 1.9 million and 3.2 million dilutive
securities, respectively, for the Warrant Transactions, as defined
below. In connection with the offering of the 2025 Notes, we
entered into convertible note hedge transactions (the “Convertible
Note Hedge Transactions”) and concurrently entered into warrant
transactions relating to the same number of shares of our common
stock (the “Warrant Transactions”). If our stock price is in excess
of the conversion price of the 2025 Notes ($10.94 and $11.37 as of
June 30, 2024 and June 25, 2023, respectively), the Convertible
Note Hedge Transactions deliver shares to offset dilution from the
2025 Notes, which, in combination with the warrant transactions,
effectively offset dilution from the 2025 Notes up to the strike
price of the Warrant Transactions ($15.32 and $15.92 as of June 30,
2024 and June 25, 2023, respectively). Adjusted diluted earnings
per share and adjusted diluted weighted average common shares
outstanding for the thirteen and twenty-six weeks ended June 25,
2023 have been recast to remove the 5.0 million and 4.9 million
share benefit, respectively, of the Convertible Note Hedge
Transactions which was previously included as a non-GAAP share
adjustment.
(5) Due to a GAAP net loss, antidilutive
securities are excluded from diluted weighted average common shares
outstanding for the twenty-six weeks ended June 30, 2024. However,
considering the adjusted net income position, adjusted diluted
weighted average common shares outstanding incorporates securities
that would have been dilutive for GAAP.
Following is a summary of the financial statement line item
classification of the net income (loss) adjustments:
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 30, 2024
JUNE 25, 2023
JUNE 30, 2024
JUNE 25, 2023
Labor and other related
$
—
$
—
$
434
$
—
General and administrative
1,547
—
3,974
—
Provision for impaired assets and
restaurant closings
15,678
—
25,772
—
Loss on extinguishment of debt
—
—
135,797
—
Provision for income taxes
(602
)
—
(1,968
)
—
Net adjustments
$
16,623
$
—
$
164,009
$
—
TABLE EIGHT
BLOOMIN’ BRANDS, INC.
COMPARATIVE RESTAURANT
INFORMATION
(UNAUDITED)
Number of restaurants:
MARCH 31, 2024
OPENINGS
CLOSURES
JUNE 30, 2024
U.S.
Outback Steakhouse
Company-owned
544
5
—
549
Franchised
125
—
—
125
Total
669
5
—
674
Carrabba’s Italian Grill
Company-owned
192
—
—
192
Franchised
18
—
—
18
Total
210
—
—
210
Bonefish Grill
Company-owned
162
—
—
162
Franchised
4
—
—
4
Total
166
—
—
166
Fleming’s Prime Steakhouse & Wine
Bar
Company-owned
64
—
(1
)
63
Aussie Grill
Company-owned
4
—
—
4
Franchised
2
—
—
2
Total
6
—
—
6
U.S. total (1)
1,115
5
(1
)
1,119
International
Company-owned
Outback Steakhouse - Brazil (2)
159
6
—
165
Other (2)(3)
37
1
—
38
Franchised
Outback Steakhouse - South Korea (1)
92
2
(1
)
93
Other (3)
48
2
—
50
International total
336
11
(1
)
346
System-wide total
1,451
16
(2
)
1,465
System-wide total - Company-owned
1,162
12
(1
)
1,173
System-wide total - Franchised
289
4
(1
)
292
_______________
(1) Excludes three off-premises only
kitchens as of June 30, 2024. One location was Company-owned in the
U.S. and all others were franchised in South Korea as of June 30,
2024.
(2) The restaurant counts for Brazil,
including Abbraccio and Aussie Grill restaurants within
International Company-owned Other, are reported as of February 29,
2024 and May 31, 2024, respectively, to correspond with the balance
sheet dates of this subsidiary.
(3) International Company-owned Other and
International Franchised Other included two and six Aussie Grill
locations, respectively, as of June 30, 2024.
TABLE NINE
BLOOMIN’ BRANDS, INC.
COMPARABLE RESTAURANT SALES
INFORMATION
(UNAUDITED)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
JUNE 30, 2024 (1)
JUNE 25, 2023
JUNE 30, 2024 (1)
JUNE 25, 2023
Year over year percentage change:
Comparable restaurant sales (restaurants
open 18 months or more):
U.S. (2)
Outback Steakhouse
(0.1
)%
0.6
%
(0.7
)%
2.8
%
Carrabba’s Italian Grill
2.0
%
3.5
%
1.2
%
5.1
%
Bonefish Grill
(2.0
)%
0.5
%
(3.5
)%
3.4
%
Fleming’s Prime Steakhouse & Wine
Bar
(1.1
)%
(2.5
)%
(1.5
)%
0.4
%
Combined U.S.
(0.1
)%
0.8
%
(0.9
)%
3.1
%
International
Outback Steakhouse - Brazil (3)(4)
(1.1
)%
4.1
%
(1.0
)%
9.1
%
Traffic:
U.S.
Outback Steakhouse
(4.1
)%
(5.4
)%
(4.1
)%
(3.5
)%
Carrabba’s Italian Grill
(1.8
)%
(0.8
)%
(2.3
)%
0.5
%
Bonefish Grill
(4.8
)%
(4.4
)%
(6.0
)%
(2.0
)%
Fleming’s Prime Steakhouse & Wine
Bar
(8.2
)%
(2.3
)%
(6.5
)%
(1.1
)%
Combined U.S.
(3.8
)%
(4.2
)%
(4.1
)%
(2.4
)%
International
Outback Steakhouse - Brazil (3)
(2.7
)%
(4.0
)%
(3.3
)%
(0.9
)%
Average check per person (5):
U.S.
Outback Steakhouse
4.0
%
6.0
%
3.4
%
6.3
%
Carrabba’s Italian Grill
3.8
%
4.3
%
3.5
%
4.6
%
Bonefish Grill
2.8
%
4.9
%
2.5
%
5.4
%
Fleming’s Prime Steakhouse & Wine
Bar
7.1
%
(0.2
)%
5.0
%
1.5
%
Combined U.S.
3.7
%
5.0
%
3.2
%
5.5
%
International
Outback Steakhouse - Brazil (3)
1.0
%
8.5
%
1.8
%
10.0
%
_______________
(1) For Q2 2024, comparable restaurant
sales, traffic and average check per person compare the thirteen
weeks from April 1, 2024 through June 30, 2024 to the thirteen
weeks from April 3, 2023 through July 2, 2023, and for the
twenty-six weeks from January 1, 2024 through June 30, 2024 to the
twenty-six weeks from January 2, 2023 through July 2, 2023. See
Table Ten for details regarding our fiscal and comparable basis
calendars.
(2) Relocated restaurants closed more than
60 days are excluded from comparable restaurant sales until at
least 18 months after reopening.
(3) Excludes the effect of fluctuations in
foreign currency rates and the benefit of the Brazil value added
tax exemptions.
(4) Includes trading day impact from
calendar period reporting.
(5) Includes the impact of menu pricing
changes, product mix and discounts.
TABLE TEN
BLOOMIN’ BRANDS, INC.
FISCAL AND COMPARABLE CALENDAR
CALCULATION DATES
(UNAUDITED)
Fiscal Calendar Basis
Comparable Calendar
Basis
Q1
January 1, 2024 - March 31,
2024
January 1, 2024 - March 31,
2024
vs.
vs.
December 26, 2022 - March 26,
2023
January 2, 2023 - April 2,
2023
Q2
April 1, 2024 - June 30, 2024
April 1, 2024 - June 30, 2024
vs.
vs.
March 27, 2023 - June 25,
2023
April 3, 2023 - July 2, 2023
Q3
July 1, 2024 - September 29,
2024
July 1, 2024 - September 29,
2024
vs.
vs.
June 26, 2023 - September 24,
2023
July 3, 2023 - October 1,
2023
Q4
September 30, 2024 - December 29,
2024
September 30, 2024 - December 29,
2024
vs.
vs.
September 25, 2023 - December 31,
2023
October 2, 2023 - December 31,
2023
Total Year
January 1, 2024 - December 29,
2024
January 1, 2024 - December 29,
2024
vs.
vs.
December 26, 2022 - December 31,
2023
January 2, 2023 - December 31,
2023
_______________
Note: Financial statements for 2024 are
reported on a Fiscal Calendar Basis. Due to the 53rd week in Fiscal
Year 2023, our financial statement comparisons are one week
different year over year. Comparable restaurant sales are reported
on a Comparable Calendar Basis. We believe this provides the most
accurate assessment of comparable sales.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240802403354/en/
Tara Kurian VP, Corporate Finance and Investor Relations (813)
830-5311
Bloomin Brands (NASDAQ:BLMN)
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