Bloomin' Brands, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Bloomin' Brands, Inc. filed its Q1 2024 10-Q report on May 8, 2024.</b>

AI Summary

Bloomin' Brands, Inc. (BLMN) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Bloomin' Brands, Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 29th. The filing was made on May 8, 2024. The company's principal executive offices are located in Tampa, Florida.

Why It Matters

For investors and stakeholders tracking Bloomin' Brands, Inc., this filing contains several important signals. This 10-Q filing provides the latest financial performance and operational details for Bloomin' Brands in the first quarter of 2024. Investors and analysts can use this report to assess the company's financial health, identify trends, and make informed investment decisions.

Risk Assessment

Risk Level: medium — Bloomin' Brands, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information and does not indicate any immediate, significant positive or negative developments beyond normal business operations.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Bloomin' Brands' Q1 2024 performance and outlook.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-08 — Filing Date (Date the report was filed)
• 12/29 — Fiscal Year End (Company's fiscal year end date)
• 2024 — Fiscal Year (Current fiscal year)

Key Players & Entities

• Bloomin' Brands, Inc. (company) — Filer name
• 20240331 (date) — Period of report
• 20240508 (date) — Filed as of date
• 0001546417 (company) — Central Index Key
• 5812 (industry_code) — Standard Industrial Classification
• FL (location) — State of Incorporation
• TAMPA (location) — City
• 813-282-1225 (phone) — Business phone

FAQ

Industry Context

Bloomin' Brands operates in the restaurant industry, a sector characterized by consumer discretionary spending and competitive market dynamics.

Regulatory Implications

As a publicly traded company, Bloomin' Brands is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key metrics.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and future outlook.
3. Compare Q1 2024 results with previous periods and industry benchmarks.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q.
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing for the first quarter of 2024, providing a baseline for comparison with subsequent filings in the fiscal year.

Filing Documents

• blmn-20240331.htm (10-Q) — 1578KB
• blmn-033124_ex102.htm (EX-10) — 334KB
• blmn-033124_ex103.htm (EX-10) — 139KB
• blmn-033124_ex104.htm (EX-10) — 37KB
• blmn-033124_ex311.htm (EX-31) — 11KB
• blmn-033124_ex312.htm (EX-31) — 11KB
• blmn-033124_ex321.htm (EX-32) — 5KB
• blmn-033124_ex322.htm (EX-32) — 5KB
• blmn-20240331_g1.jpg (GRAPHIC) — 37KB
• blmnlogov3.jpg (GRAPHIC) — 37KB
• 0001546417-24-000113.txt (&nbsp;) — 9446KB
• blmn-20240331.xsd (EX-101.SCH) — 62KB
• blmn-20240331_cal.xml (EX-101.CAL) — 76KB
• blmn-20240331_def.xml (EX-101.DEF) — 357KB
• blmn-20240331_lab.xml (EX-101.LAB) — 716KB
• blmn-20240331_pre.xml (EX-101.PRE) — 553KB
• blmn-20240331_htm.xml (XML) — 1347KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Page No.

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Financial Statements: Consolidated Balance Sheets — March 31 , 202 4 and December 31 , 2 023 3 Consolidated Statements of Operations and Comprehensive (Loss) Income — For the Thirteen Weeks Ended March 31, 2024 and March 26, 2023 4 Consolidated Statements of Changes in Stockholders' Equity — For the Thirteen Weeks Ended March 31 , 202 4 and March 26, 2023 5 Condensed Consolidated Statements of Cash Flows — For the Thirteen Weeks Ended Ma rch 31, 2024 and March 26, 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 38

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Other Information

Item 5. Other Information 40

Exhibits

Item 6. Exhibits 40 Signature 41 2 Table of Contents BLOOMIN' BRANDS, INC.

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) MARCH 31, 2024 DECEMBER 31, 2023 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $ 131,664 $ 111,519 Restricted cash and cash equivalents — 2,854 Inventories 65,211 75,939 Other current assets, net 101,297 153,002 Total current assets 298,172 343,314 Property, fixtures and equipment, net 1,045,637 1,031,922 Operating lease right-of-use assets 1,087,286 1,084,951 Goodwill 275,680 276,317 Intangible assets, net 441,439 442,985 Deferred income tax assets, net 158,167 159,405 Other assets, net 87,858 85,187 Total assets $ 3,394,239 $ 3,424,081 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 177,713 $ 189,202 Current operating lease liabilities 171,175 175,442 Accrued and other current liabilities 225,166 255,814 Unearned revenue 320,003 381,877 Total current liabilities 894,057 1,002,335 Non-current operating lease liabilities 1,138,653 1,131,639 Long-term debt, net 951,778 780,719 Other long-term liabilities, net 104,316 97,385 Total liabilities 3,088,804 3,012,078 Commitments and contingencies (Note 15) Stockholders' equity Bloomin' Brands stockholders' equity Preferred stock, $ 0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value, 475,000,000 shares authorized; 87,811,312 and 86,968,536 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 878 870 Additional paid-in capital 1,290,765 1,115,387 Accumulated deficit ( 809,880 ) ( 528,831 ) Accumulated other comprehensive loss ( 179,078 ) ( 178,304 ) Total Bloomin' Brands stockholders' equity 302,685 409,122 Noncontrolling interests 2,750 2,881 Total stockholders' equity 305,435 412,003 Total liabilities and stockholders' equity $ 3,394,239 $ 3,424,081 The accompanying notes are an integral

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Description of the Business and Basis of Presentation Description of the Business - Bloomin' Brands ("Bloomin' Brands" or the "Company") owns and operates casual, upscale casual and fine dining restaurants. OSI Restaurant Partners, LLC ("OSI") is the Company's primary operating entity. The Company's restaurant portfolio has four concepts: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba's Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements. Basis of Presentation - The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States ("U.S. GAAP") for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Recently Issued Financial Accounting Standards Not Yet Adopted - In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," ("ASU No. 2023-07") which requires disclosure of significant segment expenses regularly provided to the Company's c

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 2. Revenue Recognition The following table includes the disaggregation of Restaurant sales and franchise revenues by restaurant concept and major international market for the periods indicated: THIRTEEN WEEKS ENDED MARCH 31, 2024 MARCH 26, 2023 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 603,613 $ 8,320 $ 628,183 $ 8,544 Carrabba's Italian Grill 184,429 736 188,042 795 Bonefish Grill 144,503 160 157,689 171 Fleming's Prime Steakhouse & Wine Bar 96,162 — 102,773 — Other 2,189 38 3,882 15 U.S. total 1,030,896 9,254 1,080,569 9,525 International Outback Steakhouse - Brazil (1) 124,837 — 122,016 — Other (1)(2) 23,754 3,556 25,649 3,998 International total 148,591 3,556 147,665 3,998 Total $ 1,179,487 $ 12,810 $ 1,228,234 $ 13,523 ________________ (1) Includes $ 9.6 million of Restaurant sales during the thirteen weeks ended March 26, 2023 in connection with value added tax exemptions resulting from Brazil tax legislation. See Note 14 - Income Taxes for details regarding the Brazil tax legislation. (2) Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily include revenues from franchised Outback Steakhouse restaurants. 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) MARCH 31, 2024 DECEMBER 31, 2023 Other current assets, net Deferred gift card sales commissions $ 13,520 $ 18,081 Unearned revenue Deferred gift card revenue $ 312,283 $ 374,274 Deferred loyalty revenue 5,506 5,664 Deferred franchise fees - current 453 473 Other 1,761 1,466 Total Unearned revenue $ 320,003 $ 381,877 Other long-term liabilities, net Deferred franchise fees - n

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 31, 2024 MARCH 26, 2023 Balance, beginning of the period $ 18,081 $ 17,755 Deferred gift card sales commissions amortization ( 7,498 ) ( 7,797 ) Deferred gift card sales commissions capitalization 3,914 4,403 Other ( 977 ) ( 958 ) Balance, end of the period $ 13,520 $ 13,403 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 31, 2024 MARCH 26, 2023 Balance, beginning of the period $ 374,274 $ 386,495 Gift card sales 46,609 53,005 Gift card redemptions ( 102,470 ) ( 118,283 ) Gift card breakage ( 6,130 ) ( 7,121 ) Balance, end of the period $ 312,283 $ 314,096 3. Impairments and Exit Costs The components of Provision for impaired assets and restaurant closings are as follows for the period indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 31, 2024 Impairment losses U.S. $ 1,852 Restaurant closure charges (benefits) U.S. 9,084 International ( 63 ) Total restaurant closure charges 9,021 Provision for impaired assets and restaurant closings $ 10,873 2023 Closure Initiative - During 2023, the Company closed three U.S. and two international Aussie Grill restaurants and made the decision to close 36 predominantly older, underperforming U.S. restaurants (the "2023 Closure Initiative"). The Company has completed all restaurant closures under the 2023 Closure Initiative. Following is a summary of expenses related to the 2023 Closure Initiative charges recognized in the Consolidated Statements of Operations and Comprehensive (Loss) Income for the period indicated (dollars in thousands): DESCRIPTION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME CLASSIFICATION THIRTEEN WEEKS ENDED MARCH 31, 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 4. (Loss) Earnings Per Share The following table presents the computation of basic and diluted (loss) earnings per share for the periods indicated: THIRTEEN WEEKS ENDED (in thousands, except per share data) MARCH 31, 2024 MARCH 26, 2023 Net (loss) income attributable to Bloomin' Brands $ ( 83,872 ) $ 91,311 Basic weighted average common shares outstanding 87,024 89,116 Effect of dilutive securities: Stock options — 401 Nonvested restricted stock units — 269 Nonvested performance-based share units — 286 Convertible senior notes — 4,831 Warrants — 3,108 Diluted weighted average common shares outstanding 87,024 98,011 Basic (loss) earnings per share $ ( 0.96 ) $ 1.02 Diluted (loss) earnings per share $ ( 0.96 ) $ 0.93 Share-based compensation-related weighted average securities outstanding not included in the computation of (loss) earnings per share because their effect was antidilutive were as follows for the periods indicated: THIRTEEN WEEKS ENDED (shares in thousands) MARCH 31, 2024 MARCH 26, 2023 Stock options 373 725 Nonvested restricted stock units 255 120 Nonvested performance-based share units 467 344 5. Stock-based Compensation Plans The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 31, 2024 MARCH 26, 2023 Performance-based share units $ 493 $ 923 Restricted stock units 1,937 1,963 Total stock-based compensation expense, net of capitalized expense $ 2,430 $ 2,886 10 Table of Contents BLOOMIN' BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table presents a summary of the Company's performance-based share units ("PSUs") activity: (in thousands, except per unit data) PERFORMANCE-BASED SHARE UNITS WEIGHTED AVERAGE GRANT DATE FAIR VALUE PER UNIT AGGREGATE INTRINSIC VALUE (1) Outstanding as of December 31, 2023 818 $ 26.92 $ 23,026 Granted 290 $ 27.26 Performance adjustment (2) 237 $ 25.40 Vested ( 473 ) $ 25.40 Forfeited ( 46 ) $ 27.54 Outstanding as of March 31, 2024 826 $ 27.44 $ 23,697 Expected to vest as of March 31, 2024 (3) 489 $ 14,017 ________________ (1) Based on the $ 28.15 and $ 28.68 share price of the Company's common stock on December 29, 2023 and March 28, 2024, the last trading day of the year ended December 31, 2023 and thirteen weeks ended March 31, 2024, respectively. (2) Represents adjustment to 200 % payout for PSUs granted during 2021. (3) Estimated number of units to be issued upon the vesting of outstanding PSUs based on Company performance projections of performance criteria set forth in the 2022, 2023 and 2024 PSU award agreements. Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated: THIRTEEN WEEKS ENDED MARCH 31, 2024 MARCH 26, 2023 Assumptions: Risk-free interest rate (1) 4.37 % 4.26 % Dividend yield (2) 3.49 % 3.47 % Volatility (3) 51.41 % 51.02 % Grant date fair value per unit (4) $ 27.26 $ 29.01 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit. (2) Dividend yield is the level of dividends expected to be paid on the Company's common stock over the expected term. (3) Based on the historical volatility of the Company's stock over the last seven years. (4) Represents a discount below and a premium above the grant date per share value of the Company's common stock for the relative

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 6. Other Current Assets, Net Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) MARCH 31, 2024 DECEMBER 31, 2023 Prepaid expenses $ 30,626 $ 26,674 Accounts receivable - gift cards, net 9,049 67,424 Accounts receivable - vendors, net 18,568 13,648 Accounts receivable - franchisees, net 3,371 3,671 Accounts receivable - other, net 19,901 18,100 Deferred gift card sales commissions 13,520 18,081 Other current assets, net 6,262 5,404 $ 101,297 $ 153,002 7. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) MARCH 31, 2024 DECEMBER 31, 2023 Accrued payroll and other compensation (1) $ 73,614 $ 98,903 Accrued insurance 22,064 19,310 Other current liabilities 129,488 137,601 $ 225,166 $ 255,814 ________________ (1) During the thirteen weeks ended March 31, 2024, accrued payroll and other compensation decreased primarily due to timing of bonus payments and salary accruals. 8. Long-term Debt, Net Following is a summary of outstanding Long-term debt, net, as of the periods indicated: MARCH 31, 2024 DECEMBER 31, 2023 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior secured credit facility - revolving credit facility (1) $ 635,000 6.94 % $ 381,000 6.96 % 2025 Notes (2) 20,724 5.00 % 104,786 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Less: unamortized debt discount and issuance costs (2) ( 3,946 ) ( 5,067 ) Long-term debt, net $ 951,778 $ 780,719 ________________ (1) Interest rate represents the weighted average interest rate as of the respective periods. (2) During the thirteen weeks ended March 31, 2024, the Company repurchased $ 83.6 million of the 2025 Notes and as a result, wrote off $ 0.8 million of debt issuance costs. See Note 9 - Convertible Senior

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued accrued interest, in exchange for $ 83.6 million in aggregate principal amount of the Company's outstanding 2025 Notes (the "2025 Notes Partial Repurchase"). In connection with the 2025 Notes Partial Repurchase, the Company recognized a loss on extinguishment of debt of $ 135.8 million and recorded a $ 216.1 million increase to Additional paid-in capital during the thirteen weeks ended March 31, 2024. In connection with dividends paid during the thirteen weeks ended March 31, 2024, the conversion rate for the Company's remaining 2025 Notes decreased to approximately $ 11.05 per share, which represents 90.494 shares of common stock per $ 1,000 principal amount of the 2025 Notes, or a total of approximately 1.875 million shares. The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated: (dollars in thousands) MARCH 31, 2024 DECEMBER 31, 2023 Principal $ 20,724 $ 104,786 Less: unamortized debt issuance costs (1) ( 178 ) ( 1,138 ) Net carrying amount $ 20,546 $ 103,648 ________________ (1) During the thirte