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Bloomin’ Brands Announces Q2 2023 Financial Results

Q2 Diluted EPS of $0.70 and Adjusted Diluted EPS of $0.74

Reaffirms 2023 Guidance for U.S. Comparable Restaurant Sales and EPS

Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2023 (“Q2 2023”) compared to the second quarter 2022 (“Q2 2022”).

CEO Comments

“We delivered another strong quarter of results that continues to highlight the benefits of our portfolio,” said David Deno, CEO. “Earnings for the quarter were above expectations and revenues were in line. Our results reflect the investments we are making to elevate the customer experience as well as the ongoing execution of our growth strategy. We remain well positioned to deliver on our long-term goals of growing sustainable sales and profits while maximizing total shareholder return.”

Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted earnings (loss) per share to Adjusted diluted earnings per share for the periods indicated (unaudited):

 

Q2

 

 

 

2023

 

2022

 

CHANGE

Diluted earnings (loss) per share

$

0.70

 

 

$

(0.72

)

 

$

1.42

 

Adjustments (1)

 

0.04

 

 

 

1.40

 

 

 

(1.36

)

Adjusted diluted earnings per share (1)

$

0.74

 

 

$

0.68

 

 

$

0.06

 

 

 

 

 

 

 

 

___________________

   

(1) Adjustments for Q2 2022 include losses in connection with the repurchase of the $125 million of our outstanding convertible notes (the “2025 Notes”) as well as the settlements of the related convertible senior note hedges and warrants (the “2025 Notes Partial Repurchase”). See Non-GAAP Measures later in this release.

Second Quarter Financial Results

(dollars in millions, unaudited)

Q2 2023

 

Q2 2022

 

CHANGE

Total revenues

$

1,152.7

 

 

$

1,125.2

 

 

2.4

%

Operating income margin

 

7.8

%

 

 

7.8

%

 

%

Restaurant-level operating margin (1)

 

16.4

%

 

 

15.5

%

 

0.9

%

___________________

 
(1) See Non-GAAP Measures later in this release.
  • The increase in Total revenues was primarily due to: (i) higher comparable restaurant sales, (ii) the net impact of restaurant openings and closures and (iii) the benefit of Brazil value added tax exemptions.
  • Operating income margin was flat compared to Q2 2022 primarily due to an increase in restaurant-level operating margin as described below offset primarily by higher depreciation expense.
  • Restaurant level operating margin improved from Q2 2022 primarily due to: (i) leveraging increased comparable restaurant sales, (ii) the impact of certain cost saving initiatives and (iii) the benefit of Brazil value added tax exemptions. These increases were partially offset by: (i) labor, operating expenses and commodity inflation and (ii) higher advertising expense.

Second Quarter Comparable Restaurant Sales

THIRTEEN WEEKS ENDED JUNE 25, 2023

 

COMPANY-OWNED

Comparable restaurant sales (stores open 18 months or more):

 

 

U.S.

 

 

Outback Steakhouse

 

0.6

%

Carrabba’s Italian Grill

 

3.5

%

Bonefish Grill

 

0.5

%

Fleming’s Prime Steakhouse & Wine Bar

 

(2.5

)%

Combined U.S.

 

0.8

%

 

 

 

International

 

 

Outback Steakhouse - Brazil (1)

 

4.1

%

___________________

 
(1) 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 18, 2023, our Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on August 25, 2023 to stockholders of record at the close of business on August 14, 2023.

During 2023, we repurchased 1.8 million shares for a total of $43 million through the date of this release. On February 7, 2023, our Board of Directors approved a $125 million authorization (the “2023 Share Repurchase Program”) that will expire on August 7, 2024. We have $97 million of share repurchase authorization remaining under the 2023 Share Repurchase Program.

Brazil Tax Legislation

In our second fiscal quarter, Brazil enacted tax legislation that prospectively limits our ability to benefit from the 100% exemption from income tax and federal value added taxes (PIS and COFINS) for the full five-year period. As a result of this legislation, we expect to be subject to PIS and COFINS and a portion of income tax beginning in the fourth quarter of 2023 and the remainder of income tax beginning in 2024. Despite this new legislation, we expect to realize an approximate $0.25 EPS benefit in 2023 as discussed in our February 16, 2023 earnings release. This is included within our Fiscal 2023 guidance described below.

Fiscal 2023 Financial Outlook

The table below presents our updated expectations for the 2023 effective income tax rate. We are reaffirming all other aspects of our full-year financial guidance as previously communicated in our February 16, 2023 earnings release.

Financial Results:

 

Prior Outlook

 

Current Outlook

Effective income tax rate

 

13% to 15%

 

12% to 13%

Q3 2023 Financial Outlook

The table below presents our expectations for selected fiscal Q3 2023 operating results:

Financial Results:

 

Q3 2023 Outlook

U.S. comparable restaurant sales

 

0.5% to 1.5%

 

 

 

GAAP diluted earnings per share (1)

 

$0.39 to $0.44

 

 

 

Adjusted diluted earnings per share (2)

 

$0.41 to $0.46

___________________

 
(1) For GAAP purposes assumes weighted average diluted shares of approximately 98 million.
(2) Assumes weighted average adjusted diluted shares of approximately 93 million, which includes the benefit of the convertible note hedge entered into in May 2020.

Conference Call

The Company will host a conference call today, August 1, 2023 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 47 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 and the corresponding margin, (ii) Adjusted net income and (iii) 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 and six 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 2023 Financial Outlook” and “Q3 2023 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; the effects of a health pandemic and uncertainties about its depth and duration, as well as the impacts to economic conditions, the responses of domestic and foreign federal, state and local governments to a pandemic and consumer behavior; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; our ability to address environmental, social and governance matters; 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; 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 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Revenues

 

 

 

 

 

 

 

Restaurant sales

$

1,137,330

 

 

$

1,108,918

 

 

$

2,365,564

 

 

$

2,232,493

 

Franchise and other revenues

 

15,364

 

 

 

16,244

 

 

 

31,876

 

 

 

33,204

 

Total revenues

 

1,152,694

 

 

 

1,125,162

 

 

 

2,397,440

 

 

 

2,265,697

 

Costs and expenses

 

 

 

 

 

 

 

Food and beverage

 

351,226

 

 

 

364,459

 

 

 

735,440

 

 

 

723,829

 

Labor and other related

 

325,934

 

 

 

308,759

 

 

 

667,476

 

 

 

621,270

 

Other restaurant operating

 

273,338

 

 

 

263,529

 

 

 

556,265

 

 

 

522,639

 

Depreciation and amortization

 

47,565

 

 

 

41,257

 

 

 

93,867

 

 

 

83,032

 

General and administrative

 

63,358

 

 

 

59,246

 

 

 

129,162

 

 

 

117,920

 

Provision for impaired assets and restaurant closings

 

1,827

 

 

 

193

 

 

 

5,151

 

 

 

2,032

 

Total costs and expenses

 

1,063,248

 

 

 

1,037,443

 

 

 

2,187,361

 

 

 

2,070,722

 

Income from operations

 

89,446

 

 

 

87,719

 

 

 

210,079

 

 

 

194,975

 

Loss on extinguishment and modification of debt

 

 

 

 

(107,630

)

 

 

 

 

 

(107,630

)

Loss on fair value adjustment of derivatives, net

 

 

 

 

(17,685

)

 

 

 

 

 

(17,685

)

Interest expense, net

 

(12,961

)

 

 

(12,548

)

 

 

(25,405

)

 

 

(26,181

)

Income (loss) before provision for income taxes

 

76,485

 

 

 

(50,144

)

 

 

184,674

 

 

 

43,479

 

Provision for income taxes

 

6,483

 

 

 

11,536

 

 

 

21,244

 

 

 

27,465

 

Net income (loss)

 

70,002

 

 

 

(61,680

)

 

 

163,430

 

 

 

16,014

 

Less: net income attributable to noncontrolling interests

 

1,725

 

 

 

1,955

 

 

 

3,842

 

 

 

4,138

 

Net income (loss) attributable to Bloomin’ Brands

$

68,277

 

 

$

(63,635

)

 

$

159,588

 

 

$

11,876

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.77

 

 

$

(0.72

)

 

$

1.80

 

 

$

0.13

 

Diluted

$

0.70

 

 

$

(0.72

)

 

$

1.63

 

 

$

0.12

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

88,559

 

 

 

88,898

 

 

 

88,838

 

 

 

89,127

 

Diluted

 

97,401

 

 

 

88,898

 

 

 

97,706

 

 

 

102,045

 

TABLE TWO

BLOOMIN’ BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

 

TWENTY-SIX WEEKS ENDED

U.S. Segment

JUNE 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Revenues

 

 

 

 

 

 

 

Restaurant sales

$

993,438

 

 

$

985,927

 

 

$

2,074,007

 

 

$

2,009,562

 

Franchise and other revenues

 

11,791

 

 

 

12,700

 

 

 

24,218

 

 

 

25,472

 

Total revenues

$

1,005,229

 

 

$

998,627

 

 

$

2,098,225

 

 

$

2,035,034

 

International Segment

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

Restaurant sales (1)

$

143,892

 

 

$

122,991

 

 

$

291,557

 

 

$

222,931

 

Franchise and other revenues

 

3,573

 

 

 

3,544

 

 

 

7,658

 

 

 

7,732

 

Total revenues

$

147,465

 

 

$

126,535

 

 

$

299,215

 

 

$

230,663

 

Reconciliation of Segment Income from Operations to Consolidated Income from Operations

 

 

 

 

 

 

 

Segment income from operations

 

 

 

 

 

 

 

U.S.

$

103,008

 

 

$

104,620

 

 

$

236,251

 

 

$

236,846

 

International

 

20,486

 

 

 

14,126

 

 

 

44,994

 

 

 

23,010

 

Total segment income from operations

 

123,494

 

 

 

118,746

 

 

 

281,245

 

 

 

259,856

 

Unallocated corporate operating expense

 

(34,048

)

 

 

(31,027

)

 

 

(71,166

)

 

 

(64,881

)

Total income from operations

$

89,446

 

 

$

87,719

 

 

$

210,079

 

 

$

194,975

 

________________

(1) Restaurant sales in Brazil increased $9.6 million and $19.2 million during the thirteen and twenty-six weeks ended June 25, 2023, respectively, in connection with value added tax exemptions resulting from tax legislation.

TABLE THREE

BLOOMIN’ BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

 

JUNE 25, 2023

 

DECEMBER 25, 2022

(dollars in thousands)

(UNAUDITED)

 

 

Cash and cash equivalents

$

88,794

 

 

$

84,735

 

Net working capital (deficit) (1)

$

(663,715

)

 

$

(632,290

)

Total assets

$

3,273,132

 

 

$

3,320,425

 

Total debt, net

$

763,998

 

 

$

828,507

 

Total stockholders’ equity

$

371,868

 

 

$

273,909

 

_________________

(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 OPERATING INCOME AND MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

Consolidated

THIRTEEN WEEKS ENDED

 

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Income from operations

$

89,446

 

 

$

87,719

 

 

$

210,079

 

 

$

194,975

 

Operating income margin

 

7.8

%

 

 

7.8

%

 

 

8.8

%

 

 

8.6

%

Less:

 

 

 

 

 

 

 

Franchise and other revenues

 

15,364

 

 

 

16,244

 

 

 

31,876

 

 

 

33,204

 

Plus:

 

 

 

 

 

 

 

Depreciation and amortization

 

47,565

 

 

 

41,257

 

 

 

93,867

 

 

 

83,032

 

General and administrative

 

63,358

 

 

 

59,246

 

 

 

129,162

 

 

 

117,920

 

Provision for impaired assets and restaurant closings

 

1,827

 

 

 

193

 

 

 

5,151

 

 

 

2,032

 

Restaurant-level operating income (1)

$

186,832

 

 

$

172,171

 

 

$

406,383

 

 

$

364,755

 

Restaurant-level operating margin

 

16.4

%

 

 

15.5

%

 

 

17.2

%

 

 

16.3

%

_________________

(1) The following categories of revenue and operating expenses are not included in restaurant-level operating 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 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Income from operations

$

103,008

 

 

$

104,620

 

 

$

236,251

 

 

$

236,846

 

Operating income margin

 

10.2

%

 

 

10.5

%

 

 

11.3

%

 

 

11.6

%

Less:

 

 

 

 

 

 

 

Franchise and other revenues

 

11,791

 

 

 

12,700

 

 

 

24,218

 

 

 

25,472

 

Plus:

 

 

 

 

 

 

 

Depreciation and amortization

 

39,376

 

 

 

33,545

 

 

 

77,539

 

 

 

68,303

 

General and administrative

 

22,436

 

 

 

23,648

 

 

 

47,941

 

 

 

47,093

 

Provision for impaired assets and restaurant closings

 

1,827

 

 

 

191

 

 

 

5,151

 

 

 

249

 

Restaurant-level operating income

$

154,856

 

 

$

149,304

 

 

$

342,664

 

 

$

327,019

 

Restaurant-level operating margin

 

15.6

%

 

 

15.1

%

 

 

16.5

%

 

 

16.3

%

International

THIRTEEN WEEKS ENDED

 

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Income from operations

$

20,486

 

 

$

14,126

 

 

$

44,994

 

 

$

23,010

 

Operating income margin

 

13.9

%

 

 

11.2

%

 

 

15.0

%

 

 

10.0

%

Less:

 

 

 

 

 

 

 

Franchise and other revenues

 

3,573

 

 

 

3,544

 

 

 

7,658

 

 

 

7,732

 

Plus:

 

 

 

 

 

 

 

Depreciation and amortization

 

6,125

 

 

 

6,020

 

 

 

12,044

 

 

 

11,556

 

General and administrative

 

6,635

 

 

 

5,331

 

 

 

14,308

 

 

 

10,259

 

Provision for impaired assets and restaurant closings

 

 

 

 

 

 

 

 

 

 

1,775

 

Restaurant-level operating income

$

29,673

 

 

$

21,933

 

 

$

63,688

 

 

$

38,868

 

Restaurant-level operating margin

 

20.6

%

 

 

17.8

%

 

 

21.8

%

 

 

17.4

%

TABLE FIVE

BLOOMIN’ BRANDS, INC.

CONSOLIDATED RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

 

THIRTEEN WEEKS ENDED

 

FAVORABLE

(UNFAVORABLE) CHANGE QUARTER TO DATE

 

JUNE 25, 2023

 

JUNE 26, 2022

 

Restaurant sales

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

Food and beverage

30.9

%

 

32.9

%

 

2.0

%

Labor and other related

28.7

%

 

27.8

%

 

(0.9

)%

Other restaurant operating

24.0

%

 

23.8

%

 

(0.2

)%

 

 

 

 

 

 

Restaurant-level operating margin

16.4

%

 

15.5

%

 

0.9

%

 

 

 

 

 

 

 

TWENTY-SIX WEEKS ENDED

 

FAVORABLE (UNFAVORABLE) CHANGE YEAR TO DATE

 

JUNE 25, 2023

 

JUNE 26, 2022

 

Restaurant sales

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

Food and beverage

31.1

%

 

32.4

%

 

1.3

%

Labor and other related

28.2

%

 

27.8

%

 

(0.4

)%

Other restaurant operating

23.5

%

 

23.4

%

 

(0.1

)%

 

 

 

 

 

 

Restaurant-level operating margin

17.2

%

 

16.3

%

 

0.9

%

 

TABLE SIX

 

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 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Net income (loss) attributable to Bloomin’ Brands

$

68,277

 

 

$

(63,635

)

 

$

159,588

 

 

$

11,876

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment and modification of debt (1)

 

 

 

 

107,630

 

 

 

 

 

 

107,630

 

Loss on fair value adjustment of derivatives, net (1)

 

 

 

 

17,685

 

 

 

 

 

 

17,685

 

Total adjustments, before income taxes

 

 

 

 

125,315

 

 

 

 

 

 

125,315

 

Adjustment to provision for income taxes (2)

 

 

 

 

1,322

 

 

 

 

 

 

1,322

 

Net adjustments

 

 

 

 

126,637

 

 

 

 

 

 

126,637

 

Adjusted net income

$

68,277

 

 

$

63,002

 

 

$

159,588

 

 

$

138,513

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share (3)

$

0.70

 

 

$

(0.72

)

 

$

1.63

 

 

$

0.12

 

Adjusted diluted earnings per share (4)

$

0.74

 

 

$

0.68

 

 

$

1.72

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding (3)

 

97,401

 

 

 

88,898

 

 

 

97,706

 

 

 

102,045

 

Adjusted diluted weighted average common shares outstanding (4)

 

92,399

 

 

 

92,863

 

 

 

92,789

 

 

 

93,792

 

_________________

 
(1) For 2022, includes losses primarily in connection with the 2025 Notes Partial Repurchase, including the settlements of the related convertible senior note hedges and warrants.  
(2) The tax effects of non-GAAP adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. For 2022, the primary difference between GAAP and adjusted effective income tax rates relates to certain non-deductible losses and other tax costs associated with the 2025 Notes Partial Repurchase.  
(3) Due to the GAAP net loss, the effect of dilutive securities was excluded from the calculation of GAAP diluted loss per share for the thirteen weeks ended June 26, 2022 as their effect would be antidilutive.  
(4) Adjusted diluted weighted average common shares outstanding was calculated excluding the dilutive effect of 5,002 and 7,774 shares for the thirteen weeks ended June 25, 2023 and June 26, 2022, respectively, and 4,917 and 8,253 shares for the twenty-six weeks ended June 25, 2023 and June 26, 2022, respectively, to be issued upon conversion of the 2025 Notes to satisfy the amount in excess of the principal since our convertible note hedge offsets the dilutive impact of the shares underlying the 2025 Notes. For adjusted diluted earnings per share, the calculation includes 3,965 dilutive shares for the thirteen weeks ended June 26, 2022, primarily related to outstanding warrants. These shares were excluded from the calculation of GAAP diluted loss per share during the period as their effect would be antidilutive.  

Following is a summary of the financial statement line item classification of the net income adjustments:

 

 

THIRTEEN WEEKS ENDED

 

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

 

JUNE 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Loss on extinguishment and modification of debt

 

$

 

$

107,630

 

$

 

$

107,630

Loss on fair value adjustment of derivatives, net

 

 

 

 

17,685

 

 

 

 

17,685

Provision for income taxes

 

 

 

 

1,322

 

 

 

 

1,322

Net adjustments

 

$

 

$

126,637

 

$

 

$

126,637

TABLE SEVEN

BLOOMIN’ BRANDS, INC.

COMPARATIVE RESTAURANT AND OFF-PREMISES ONLY KITCHEN INFORMATION

(UNAUDITED)

Number of restaurants:

MARCH 26, 2023

 

OPENINGS

 

CLOSURES

 

JUNE 25, 2023

U.S.

 

 

 

 

 

 

 

 

 

 

Outback Steakhouse

 

 

 

 

 

 

 

 

 

 

Company-owned

564

 

 

 

 

(2

)

 

562

 

Franchised

127

 

 

 

 

 

 

127

 

Total

691

 

 

 

 

(2

)

 

689

 

Carrabba’s Italian Grill

 

 

 

 

 

 

 

 

 

 

Company-owned

199

 

 

 

 

 

 

199

 

Franchised

19

 

 

 

 

 

 

19

 

Total

218

 

 

 

 

 

 

218

 

Bonefish Grill

 

 

 

 

 

 

 

 

 

 

Company-owned

172

 

 

 

 

(2

)

 

170

 

Franchised

5

 

 

 

 

 

 

5

 

Total

177

 

 

 

 

(2

)

 

175

 

Fleming’s Prime Steakhouse & Wine Bar

 

 

 

 

 

 

 

 

 

 

Company-owned

65

 

 

 

 

(1

)

 

64

 

Aussie Grill

 

 

 

 

 

 

 

 

 

 

Company-owned

7

 

 

 

 

 

 

7

 

U.S. total

1,158

 

 

 

 

(5

)

 

1,153

 

International

 

 

 

 

 

 

 

 

 

 

Company-owned

 

 

 

 

 

 

 

 

 

 

Outback Steakhouse - Brazil (1)

140

 

 

8

 

 

 

 

148

 

Other (1)(2)

36

 

 

 

 

 

 

36

 

Franchised

 

 

 

 

 

 

 

 

 

 

Outback Steakhouse - South Korea

90

 

 

5

 

 

(3

)

 

92

 

Other (2)

47

 

 

1

 

 

(2

)

 

46

 

International total

313

 

 

14

 

 

(5

)

 

322

 

System-wide total

1,471

 

 

14

 

 

(10

)

 

1,475

 

System-wide total - Company-owned

1,183

 

 

8

 

 

(5

)

 

1,186

 

System-wide total - Franchised

288

 

 

6

 

 

(5

)

 

289

 

____________________

 
(1) The restaurant counts for Brazil, including Abbraccio and Aussie Grill restaurants within International Company-owned Other, are reported as of February 28, 2023 and May 31, 2023, respectively, to correspond with the balance sheet dates of this subsidiary.  
(2) International Company-owned Other and International Franchised Other included four and three Aussie Grill locations, respectively, as of June 25, 2023.  

Number of kitchens (1):

MARCH 26, 2023

 

OPENINGS

 

CLOSURES

 

JUNE 25, 2023

U.S.

 

   

 

   

 

 

 

 

Company-owned

1

   

   

 

 

1

 

International

 

   

 

   

 

 

 

 

Franchised - South Korea

25

   

   

(16

)

 

9

 

System-wide total

26

   

   

(16

)

 

10

 

____________________

 
(1) Excludes virtual concepts that operate out of existing restaurants and sports venue locations.  

TABLE EIGHT

BLOOMIN’ BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

 

THIRTEEN WEEKS ENDED

 

TWENTY-SIX WEEKS ENDED

 

JUNE 25, 2023

 

JUNE 26, 2022

 

JUNE 25, 2023

 

JUNE 26, 2022

Year over year percentage change:

 

 

 

 

 

 

 

Comparable restaurant sales (restaurants open 18 months or more):

 

 

 

 

 

 

 

U.S. (1)

 

 

 

 

 

 

 

Outback Steakhouse

0.6

%

 

(1.1

)%

 

2.8

%

 

3.9

%

Carrabba’s Italian Grill

3.5

%

 

(1.0

)%

 

5.1

%

 

5.0

%

Bonefish Grill

0.5

%

 

(1.1

)%

 

3.4

%

 

9.2

%

Fleming’s Prime Steakhouse & Wine Bar

(2.5

)%

 

6.0

%

 

0.4

%

 

23.1

%

Combined U.S.

0.8

%

 

(0.4

)%

 

3.1

%

 

6.4

%

International

 

 

 

 

 

 

 

Outback Steakhouse - Brazil (2)

4.1

%

 

95.7

%

 

9.1

%

 

61.1

%

 

 

 

 

 

 

 

 

Traffic:

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

Outback Steakhouse

(5.4

)%

 

(8.7

)%

 

(3.5

)%

 

(5.0

)%

Carrabba’s Italian Grill

(0.8

)%

 

(7.5

)%

 

0.5

%

 

(2.5

)%

Bonefish Grill

(4.4

)%

 

(8.6

)%

 

(2.0

)%

 

(1.0

)%

Fleming’s Prime Steakhouse & Wine Bar

(2.3

)%

 

(2.9

)%

 

(1.1

)%

 

11.1

%

Combined U.S.

(4.2

)%

 

(8.3

)%

 

(2.4

)%

 

(3.5

)%

International

 

 

 

 

 

 

 

Outback Steakhouse - Brazil

(4.0

)%

 

57.8

%

 

(0.9

)%

 

42.0

%

 

 

 

 

 

 

 

 

Average check per person (3):

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

Outback Steakhouse

6.0

%

 

7.6

%

 

6.3

%

 

8.9

%

Carrabba’s Italian Grill

4.3

%

 

6.5

%

 

4.6

%

 

7.5

%

Bonefish Grill

4.9

%

 

7.5

%

 

5.4

%

 

10.2

%

Fleming’s Prime Steakhouse & Wine Bar

(0.2

)%

 

8.9

%

 

1.5

%

 

12.0

%

Combined U.S.

5.0

%

 

7.9

%

 

5.5

%

 

9.9

%

International

 

 

 

 

 

 

 

Outback Steakhouse - Brazil

8.5

%

 

37.3

%

 

10.0

%

 

19.2

%

____________________

(1) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(2) Includes trading day impact from calendar period reporting. Excludes the effect of fluctuations in foreign currency rates and the benefit of the Brazil value added tax exemptions.
(3) Includes the impact of menu pricing changes, product mix and discounts.

 

Contacts

Tara Kurian

VP, Corporate Finance and Investor Relations

(813) 830-5311

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