Q4 Diluted EPS of $0.45 and Q4 Adjusted
Diluted EPS of $0.75
Announces $350 Million Share Repurchase
Authorization
Provides Full Year 2024 Financial
Outlook
Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for
the fourth quarter 2023 (“Q4 2023”) and fiscal year ended December
31, 2023 (“Fiscal Year 2023”) compared to the fourth quarter 2022
(“Q4 2022”) and the fiscal year ended December 25, 2022 (“Fiscal
Year 2022”). In 2023, the fourth quarter and fiscal year included
an additional operating week (“53rd week”) compared to Fiscal Year
2022.
CEO Comments “The fourth
quarter was a good finish to 2023, especially the holiday season,”
said David Deno, CEO. “As we head into 2024, we remain focused on
elevating the guest experience that in turn will drive sales and
profit growth at Outback Steakhouse and all of our brands.”
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):
Q4
FISCAL YEAR
2023
2022
CHANGE
2023
2022
CHANGE
Diluted earnings per share
$
0.45
$
0.61
$
(0.16
)
$
2.56
$
1.03
$
1.53
Adjustments (1)
0.30
0.07
0.23
0.37
1.49
(1.12
)
Adjusted diluted earnings per share
(1)
$
0.75
$
0.68
$
0.07
$
2.93
$
2.52
$
0.41
____________________
(1) 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.
Fourth Quarter Financial
Results
(dollars in millions,
unaudited)
Q4 2023
Q4 2022
CHANGE
Total revenues (1)
$
1,194.2
$
1,095.0
9.1
%
GAAP operating income margin
4.8
%
7.7
%
(2.9
)%
Adjusted operating income margin (2)
7.5
%
8.2
%
(0.7
)%
Restaurant-level operating margin (2)
16.4
%
16.3
%
0.1
%
Adjusted restaurant-level operating margin
(2)
15.9
%
16.8
%
(0.9
)%
____________________
(1) Includes $83.5 million from the 53rd
week.
(2) See non-GAAP Measures later in
this release. Also see Tables Four and Six for details regarding
the nature of restaurant-level operating income margin adjustments
and operating income margin adjustments, respectively.
- The increase in Total revenues was primarily due to: (i)
restaurant sales during the 53rd week of 2023, (ii) the effect of
foreign currency translation and (iii) the net impact of restaurant
openings and closures. This increase in Total revenues was
partially offset by the benefit of Brazil value added tax
exemptions during Q4 2022.
- GAAP operating income margin decreased from Q4 2022 primarily
due to impacts of the 2023 Closure Initiative, as detailed
below.
- Restaurant-level operating margin improved slightly from Q4
2022 primarily due to: (i) an increase in average check per person,
(ii) the impact of certain cost saving and productivity
initiatives, (iii) the favorable settlement of certain collective
action wage and hour lawsuits and (iv) lease remeasurement gains in
connection with the 2023 Closure Initiative. These increases were
partially offset by: (i) commodity and labor inflation and (ii)
higher advertising expense.
- Adjusted income from operations excludes: (i) impairment and
closure costs in connection with the 2023 Closure Initiative, net
of lease remeasurement gains, (ii) the benefit of the favorable
settlement of certain collective action wage and hour lawsuits and
(iii) other costs not correlated to our core operating performance.
Adjusted restaurant-level operating margin excludes the benefits of
the lawsuit settlements and lease remeasurement gains.
Fourth Quarter Comparable Restaurant
Sales(1)
FOURTEEN WEEKS ENDED DECEMBER 31,
2023
COMPANY-OWNED (1)
Comparable restaurant sales (stores open
18 months or more):
U.S.
Outback Steakhouse
(0.3
)%
Carrabba’s Italian Grill
2.5
%
Bonefish Grill
(3.0
)%
Fleming’s Prime Steakhouse & Wine
Bar
(0.3
)%
Combined U.S.
(0.2
)%
International
Outback Steakhouse - Brazil (2)
0.6
%
____________________
(1) Comparable restaurant sales compare
the 14 weeks from September 25, 2023 through December 31, 2023 to
the 14 weeks from September 26, 2022 through January 1, 2023.
(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 February 13, 2024, our Board of Directors
declared a quarterly cash dividend of $0.24 per share, payable on
March 20, 2024 to stockholders of record at the close of business
on March 6, 2024.
On February 13, 2024, our Board of Directors canceled $57.5
million of remaining authorization under our existing share
repurchase program and approved a new $350.0 million authorization.
The 2024 Share Repurchase Program includes capacity above our
normal share repurchases activity to provide flexibility in
retiring our convertible senior notes at or prior to their May 2025
maturity. The 2024 Share Repurchase Program will expire on August
13, 2025.
2023 Closure Initiative In
Q4 2023, we made the decision to close 36 predominantly older,
underperforming restaurants and three U.S. and two international
Aussie Grill restaurants. In connection with these closures, we
recognized asset impairments and net closure charges of $32.3
million during Q4 2023. We expect to complete these closures during
Q1 2024 and incur charges of between $8 million and $11
million.
In 2024, we plan to open 40 to 45 system-wide restaurants.
Fiscal 2024 Financial
Outlook Please note, fiscal 2024 adjusted diluted
earnings per share will exclude the Brazil tax legislation benefit
and the 53rd week that were included in the 2023 financial
results.
The tables below present our expectations for selected 2024
financial and operating results.
Financial Results:
2024 Guidance
U.S. comparable restaurant sales
Flat to +2%
GAAP diluted earnings per share (1)
$2.27 to $2.46
Adjusted diluted earnings per share
(2)
$2.51 to $2.66
Effective income tax rate
14% to 16%
Other Selected Financial Data:
2024 Guidance
Commodity inflation
3% to 4%
Capital expenditures
$270M to $290M
Number of new system-wide restaurants
40 to 45
____________________
(1) For GAAP purposes assumes diluted
weighted average shares of approximately 95 to 96 million.
(2) Includes adjustments related to the
2023 Closure Initiative and assumes adjusted diluted weighted
average shares of approximately 90 to 91 million, which includes
the benefit of the convertible note hedge entered into in May
2020.
The following table is a comparable view of our 2023 adjusted
diluted earnings per share to our 2024 adjusted diluted earnings
per share outlook.
Comparable Adjusted Diluted Earnings
Per Share
2023 Adjusted diluted earnings per
share
$2.93
Less: Impact of the Brazil tax
legislation
Approx. (0.26)
Less: Impact of the 53rd week
Approx. (0.16)
2023 Adjusted diluted earnings per share
on a comparable 52-week basis
$2.51
2024 Adjusted diluted earnings per share
outlook
$2.51 to $2.66
Q1 2024 Financial Outlook
The table below presents our expectations for selected fiscal Q1
2024 operating results.
Please note, Q1 2024 results will be impacted by the following
factors:
- Due to the 53rd week in Fiscal Year 2023, our financial
statement comparisons will be one week different year over year. Q1
2024 does not include the December holiday week, including New
Year’s Eve. We estimate this shift in weeks to be worth
approximately $0.06.
- The first three weeks of the quarter were negatively impacted
by weather. We estimate this impact to be approximately 1.3% to our
U.S. comparable sales for the quarter, and $0.05 to our adjusted
earnings per share.
- We will be lapping the Brazil tax legislation benefit, which is
a $0.08 headwind.
Financial Results:
Q1 2024 Outlook
U.S. comparable restaurant sales
Down 0.5% to Down 2%
GAAP diluted earnings per share (1)
$0.56 to $0.62
Adjusted diluted earnings per share
(2)
$0.70 to $0.75
____________________
(1) For GAAP purposes assumes diluted
weighted average shares of approximately 96 to 97 million.
(2) Includes adjustments related to the
2023 Closure Initiative and assumes adjusted diluted weighted
average shares of approximately 90 to 91 million, which includes
the benefit of the convertible note hedge entered into in May
2020.
We will report our financial statements for 2024 on a Fiscal
Calendar Basis. Due to the 53rd week in Fiscal Year 2023, our
financial statement comparisons will be one week different year
over year. We expect the largest impacts from this shift to occur
in Q1 2024 as well as Q4 2024.
We will report our comparable restaurant sales on a Comparable
Calendar Basis. The following table provides a comparison of the
calendar days included in both our 2024 fiscal and comparable
restaurant sales calendars. We believe this will provide the most
accurate assessment of comparable sales.
Fiscal and Comparable Calendar
Calculation Dates
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
Conference Call The Company
will host a conference call today, February 23, 2024 at 8:00 AM
EST. 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, 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
“Q1 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; 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
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
(in thousands, except per share
data)
(UNAUDITED)
(UNAUDITED)
(UNAUDITED)
Revenues
Restaurant sales
$
1,177,431
$
1,079,827
$
4,607,408
$
4,352,695
Franchise and other revenues
16,766
15,221
64,062
63,813
Total revenues
1,194,197
1,095,048
4,671,470
4,416,508
Costs and expenses
Food and beverage
352,344
326,864
1,409,649
1,383,632
Labor and other related
343,431
301,946
1,325,339
1,226,460
Other restaurant operating
288,774
275,079
1,126,123
1,065,662
Depreciation and amortization
49,306
44,414
191,171
169,617
General and administrative
69,062
60,743
260,470
234,752
Provision for impaired assets and
restaurant closings
34,431
1,865
33,574
5,964
Total costs and expenses
1,137,348
1,010,911
4,346,326
4,086,087
Income from operations
56,849
84,137
325,144
330,421
Loss on extinguishment and modification of
debt
—
—
—
(107,630
)
Loss on fair value adjustment of
derivatives, net
—
—
—
(17,685
)
Interest expense, net
(13,921
)
(14,322
)
(52,169
)
(53,199
)
Income before (benefit) provision for
income taxes
42,928
69,815
272,975
151,907
(Benefit) provision for income taxes
(2,625
)
9,676
18,561
42,704
Net income
45,553
60,139
254,414
109,203
Less: net income attributable to
noncontrolling interests
2,283
2,094
7,028
7,296
Net income attributable to Bloomin’
Brands
$
43,270
$
58,045
$
247,386
$
101,907
Earnings per share:
Basic
$
0.50
$
0.66
$
2.84
$
1.15
Diluted
$
0.45
$
0.61
$
2.56
$
1.03
Weighted average common shares
outstanding:
Basic
86,918
87,937
87,230
88,846
Diluted
96,226
95,221
96,453
98,512
TABLE TWO
BLOOMIN’ BRANDS, INC.
SEGMENT RESULTS
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
(dollars in
thousands)
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
U.S. Segment
(UNAUDITED)
(UNAUDITED)
(UNAUDITED)
Revenues
Restaurant sales
$
1,029,908
$
942,775
$
4,005,053
$
3,863,016
Franchise and other revenues
12,494
11,540
48,546
48,854
Total revenues
$
1,042,402
$
954,315
$
4,053,599
$
3,911,870
International Segment
Revenues
Restaurant sales (1)
$
147,523
$
137,052
$
602,355
$
489,679
Franchise and other revenues
4,272
3,681
15,516
14,959
Total revenues
$
151,795
$
140,733
$
617,871
$
504,638
Reconciliation of Segment Income from
Operations to Consolidated Income from Operations
Segment income from operations
U.S.
$
73,269
$
102,513
$
377,534
$
407,860
International
16,920
18,474
83,948
57,333
Total segment income from operations
90,189
120,987
461,482
465,193
Unallocated corporate operating
expense
(33,340
)
(36,850
)
(136,338
)
(134,772
)
Total income from operations
$
56,849
$
84,137
$
325,144
$
330,421
____________________
(1) Restaurant sales in Brazil
includes $30.2 million during fiscal year 2023 and $7.7 million
during the thirteen weeks and fiscal year ended December 25, 2022,
of value added tax exemptions resulting from tax legislation.
TABLE THREE
BLOOMIN’ BRANDS, INC.
SUPPLEMENTAL BALANCE SHEET
INFORMATION
DECEMBER 31, 2023
DECEMBER 25, 2022
(dollars in thousands)
(UNAUDITED)
Cash and cash equivalents
$
111,519
$
84,735
Net working capital (deficit) (1)
$
(659,021
)
$
(632,290
)
Total assets
$
3,424,081
$
3,320,425
Total debt, net
$
780,719
$
828,507
Total stockholders’ equity
$
412,003
$
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 AND ADJUSTED
RESTAURANT-LEVEL OPERATING INCOME AND MARGINS NON-GAAP
RECONCILIATIONS
(UNAUDITED)
Consolidated
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
(dollars in thousands)
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
Income from operations
$
56,849
$
84,137
$
325,144
$
330,421
Operating income margin
4.8
%
7.7
%
7.0
%
7.5
%
Less:
Franchise and other revenues
16,766
15,221
64,062
63,813
Plus:
Depreciation and amortization
49,306
44,414
191,171
169,617
General and administrative
69,062
60,743
260,470
234,752
Provision for impaired assets and
restaurant closings
34,431
1,865
33,574
5,964
Restaurant-level operating income (1)
$
192,882
$
175,938
$
746,297
$
676,941
Restaurant-level operating margin
16.4
%
16.3
%
16.2
%
15.6
%
Adjustments:
Legal and other matters (2)
(3,650
)
5,900
(3,650
)
5,900
Asset impairments and closing costs
(3)
(2,450
)
—
(2,450
)
—
Partner compensation (4)
—
—
1,894
—
Total restaurant-level operating income
adjustments
(6,100
)
5,900
(4,206
)
5,900
Adjusted restaurant-level operating
income
$
186,782
$
181,838
$
742,091
$
682,841
Adjusted restaurant-level operating
margin
15.9
%
16.8
%
16.1
%
15.7
%
____________________
(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.
(2) Reflects changes in legal reserves in
connection with certain collective action wage and hour
lawsuits.
(3) Lease remeasurement gains in
connection with the 2023 Closure Initiative.
(4) Costs incurred in connection with the
transition to a new partner compensation program.
U.S.
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
(dollars in thousands)
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
Income from operations
$
73,269
$
102,513
$
377,534
$
407,860
Operating income margin
7.0
%
10.7
%
9.3
%
10.4
%
Less:
Franchise and other revenues
12,494
11,540
48,546
48,854
Plus:
Depreciation and amortization
40,510
36,435
157,878
139,170
General and administrative
26,090
23,969
98,899
93,401
Provision for impaired assets and
restaurant closings
33,526
2,103
32,669
4,420
Restaurant-level operating income
$
160,901
$
153,480
$
618,434
$
595,997
Restaurant-level operating margin
15.6
%
16.3
%
15.4
%
15.4
%
Adjustments:
Asset impairments and closing costs
(1)
(2,450
)
(2,450
)
—
Partner compensation (2)
—
—
1,894
—
Total restaurant-level operating income
adjustments
(2,450
)
—
(556
)
—
Adjusted restaurant-level operating
income
$
158,451
$
153,480
$
617,878
$
595,997
Adjusted restaurant-level operating
margin
15.4
%
16.3
%
15.4
%
15.4
%
____________________
(1) Lease remeasurement gains in
connection with the 2023 Closure Initiative.
(2) Costs incurred in connection with the
transition to a new partner compensation program.
International
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
(dollars in thousands)
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
Income from operations
$
16,920
$
18,474
$
83,948
$
57,333
Operating income margin
11.1
%
13.1
%
13.6
%
11.4
%
Less:
Franchise and other revenues
4,272
3,681
15,516
14,959
Plus:
Depreciation and amortization
7,155
5,959
25,430
23,397
General and administrative
6,783
7,268
28,816
23,355
Provision for impaired assets and
restaurant closings
905
(238
)
905
1,537
Restaurant-level operating income
$
27,491
$
27,782
$
123,583
$
90,663
Restaurant-level operating margin
18.6
%
20.3
%
20.5
%
18.5
%
Total restaurant-level operating income
adjustments
—
—
—
—
Adjusted restaurant-level operating
income
$
27,491
$
27,782
$
123,583
$
90,663
Adjusted restaurant-level operating
margin
18.6
%
20.3
%
20.5
%
18.5
%
TABLE FIVE
BLOOMIN’ BRANDS, INC.
CONSOLIDATED RESTAURANT-LEVEL
OPERATING MARGIN NON-GAAP RECONCILIATIONS
(UNAUDITED)
FOURTEEN WEEKS ENDED DECEMBER
31, 2023
THIRTEEN WEEKS ENDED DECEMBER
25, 2022
FAVORABLE (UNFAVORABLE) CHANGE
IN ADJUSTED QUARTER TO DATE
REPORTED
ADJUSTED (1)
REPORTED
ADJUSTED (1)
Restaurant sales
100.0
%
100.0
%
100.0
%
100.0
%
Food and beverage
29.9
%
29.9
%
30.3
%
30.3
%
0.4
%
Labor and other related
29.2
%
29.2
%
28.0
%
28.0
%
(1.2
)%
Other restaurant operating
24.5
%
25.0
%
25.5
%
24.9
%
(0.1
)%
Restaurant-level operating margin
16.4
%
15.9
%
16.3
%
16.8
%
(0.9
)%
FISCAL YEAR
FAVORABLE (UNFAVORABLE) CHANGE
IN ADJUSTED YEAR TO DATE
2023
2022
REPORTED
ADJUSTED (1)
REPORTED
ADJUSTED (1)
Restaurant sales
100.0
%
100.0
%
100.0
%
100.0
%
Food and beverage
30.6
%
30.6
%
31.8
%
31.8
%
1.2
%
Labor and other related
28.8
%
28.7
%
28.2
%
28.2
%
(0.5
)%
Other restaurant operating
24.4
%
24.6
%
24.5
%
24.3
%
(0.3
)%
Restaurant-level operating margin
16.2
%
16.1
%
15.6
%
15.7
%
0.4
%
____________________
(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. Operating margin adjustments of $1.9 million
for fiscal year 2023 were recorded within Labor and other related
expenses. Operating margin adjustments of ($6.1) million for the
fourteen weeks and fiscal year ended December 31, 2023 and all
operating margin adjustments for the thirteen weeks and fiscal year
ended December 25, 2022, were recorded within Other restaurant
operating expense.
TABLE SIX
BLOOMIN’ BRANDS, INC.
ADJUSTED INCOME FROM
OPERATIONS NON-GAAP RECONCILIATIONS
(UNAUDITED)
(dollars in thousands)
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
Consolidated
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
Income from operations
$
56,849
$
84,137
$
325,144
$
330,421
Operating income margin
4.8
%
7.7
%
7.0
%
7.5
%
Adjustments:
Total restaurant-level operating income
adjustments (1)
(6,100
)
5,900
(4,206
)
5,900
Asset impairments and closing costs
(2)
34,822
—
28,236
—
Other (3)
4,110
—
7,546
—
Total income from operations
adjustments
32,832
5,900
31,576
5,900
Adjusted income from operations
$
89,681
$
90,037
$
356,720
$
336,321
Adjusted operating income margin
7.5
%
8.2
%
7.6
%
7.6
%
U.S. Segment
Income from operations
$
73,269
$
102,513
$
377,534
$
407,860
Operating income margin
7.0
%
10.7
%
9.3
%
10.4
%
Adjustments:
Total restaurant-level operating income
adjustments (1)
(2,450
)
—
(556
)
—
Asset impairments and closing costs
(2)
33,360
—
26,774
—
Other (3)
—
—
1,147
—
Total income from operations
adjustments
30,910
—
27,365
—
Adjusted income from operations
$
104,179
$
102,513
$
404,899
$
407,860
Adjusted operating income margin
10.0
%
10.7
%
10.0
%
10.4
%
International Segment
Income from operations
$
16,920
$
18,474
$
83,948
$
57,333
Operating income margin
11.1
%
13.1
%
13.6
%
11.4
%
Adjustments:
Asset impairments and closing costs
(2)
905
—
905
—
Adjusted income from operations
$
17,825
$
18,474
$
84,853
$
57,333
Adjusted operating income margin
11.7
%
13.1
%
13.7
%
11.4
%
____________________
(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 in connection with the 2023 Closure Initiative.
Fiscal year 2023 also includes a lease termination gain, net of
related asset impairments, of $6.7 million.
(3) Primarily includes professional
fees, severance and other costs not correlated to our core
operating performance during the period.
TABLE SEVEN
BLOOMIN’ BRANDS, INC.
ADJUSTED NET INCOME AND
ADJUSTED DILUTED EARNINGS PER SHARE NON-GAAP
RECONCILIATIONS
(UNAUDITED)
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
(in thousands, except per share
data)
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
Net income attributable to Bloomin’
Brands
$
43,270
$
58,045
$
247,386
$
101,907
Adjustments:
Income from operations adjustments (1)
32,832
5,900
31,576
5,900
Loss on extinguishment and modification of
debt (2)
—
—
—
107,630
Loss on fair value adjustment of
derivatives, net (2)
—
—
—
17,685
Total adjustments, before income taxes
32,832
5,900
31,576
131,215
Adjustment to provision for income taxes
(3)
(8,151
)
(1,585
)
(10,801
)
(263
)
Net adjustments
24,681
4,315
20,775
130,952
Adjusted net income
$
67,951
$
62,360
$
268,161
$
232,859
Diluted earnings per share
$
0.45
$
0.61
$
2.56
$
1.03
Adjusted diluted earnings per share
(4)
$
0.75
$
0.68
$
2.93
$
2.52
Diluted weighted average common shares
outstanding
96,226
95,221
96,453
98,512
Adjusted diluted weighted average common
shares outstanding (4)
91,160
91,059
91,386
92,423
____________________
(1) See Table Six Adjusted Income
from Operations Non-GAAP Reconciliations above for details
regarding Income from operations adjustments.
(2) Includes losses primarily in
connection with the repurchase of $125 million of our outstanding
2025 Notes, as well as the settlements of the related convertible
senior note hedges and warrants (the “2025 Notes Partial
Repurchase”).
(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. For 2023, also includes a $2.9
million adjustment related to a Brazil federal income tax exemption
on certain state value added tax benefits. 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.
(4) Adjusted diluted weighted average
common shares outstanding was calculated excluding the dilutive
effect of 5,066 and 4,162 shares for the fourteen weeks ended
December 31, 2023 and the thirteen weeks ended December 25, 2022,
respectively, and 5,067 and 6,089 shares for fiscal years 2023 and
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.
Following is a summary of the financial statement line item
classification of the net income adjustments:
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
(dollars in thousands)
DECEMBER 31, 2023
DECEMBER 25, 2022
2023
2022
Labor and other related
$
—
$
—
$
1,894
$
—
Other restaurant operating
(6,100
)
5,900
(6,100
)
5,900
General and administrative
4,732
—
8,266
—
Provision for impaired assets and
restaurant closings
34,200
—
27,516
—
Loss on extinguishment and modification of
debt
—
—
—
107,630
Loss on fair value adjustment of
derivatives, net
—
—
—
17,685
Provision for income taxes
(8,151
)
(1,585
)
(10,801
)
(263
)
Net adjustments
$
24,681
$
4,315
$
20,775
$
130,952
TABLE EIGHT
BLOOMIN’ BRANDS, INC.
COMPARATIVE RESTAURANT
INFORMATION
(UNAUDITED)
Number of restaurants:
SEPTEMBER 24, 2023
OPENINGS
CLOSURES
DECEMBER 31, 2023
U.S.
Outback Steakhouse
Company-owned
557
5
—
562
Franchised
127
—
(1
)
126
Total
684
5
(1
)
688
Carrabba’s Italian Grill
Company-owned
199
—
(1
)
198
Franchised
19
—
—
19
Total
218
—
(1
)
217
Bonefish Grill
Company-owned
170
—
—
170
Franchised
5
1
—
6
Total
175
1
—
176
Fleming’s Prime Steakhouse & Wine
Bar
Company-owned
64
—
—
64
Aussie Grill
Company-owned
7
—
(3
)
4
Franchised
—
1
—
1
Total
7
1
(3
)
5
U.S. total (1)
1,148
7
(5
)
1,150
International
Company-owned
Outback Steakhouse - Brazil (2)
153
2
—
155
Other (2)(3)
37
1
(2
)
36
Franchised
Outback Steakhouse - South Korea (1)
92
2
(2
)
92
Other (3)
47
1
(1
)
47
International total
329
6
(5
)
330
System-wide total
1,477
13
(10
)
1,480
System-wide total - Company-owned
1,187
8
(6
)
1,189
System-wide total - Franchised
290
5
(4
)
291
____________________
(1) Excludes five off-premises only
kitchens as of December 31, 2023. One location was Company-owned in
the U.S and all others were franchised in South Korea as of
December 31, 2023.
(2) The restaurant counts for Brazil,
including Abbraccio and Aussie Grill restaurants within
International Company-owned Other, are reported as of August 31,
2023 and November 30, 2023, respectively, to correspond with the
balance sheet dates of this subsidiary.
(3) International Company-owned Other and
International Franchised Other included two and four Aussie Grill
locations, respectively, as of December 31, 2023.
TABLE NINE
BLOOMIN’ BRANDS, INC.
COMPARABLE RESTAURANT SALES
INFORMATION
(UNAUDITED)
FOURTEEN WEEKS ENDED
THIRTEEN WEEKS ENDED
FISCAL YEAR
DECEMBER 31, 2023 (1)
DECEMBER 25, 2022
2023 (1)
2022
Year over year percentage change:
Comparable restaurant sales (restaurants
open 18 months or more):
U.S. (2)
Outback Steakhouse
(0.3
)%
0.9
%
1.1
%
2.8
%
Carrabba’s Italian Grill
2.5
%
2.8
%
3.9
%
3.4
%
Bonefish Grill
(3.0
)%
0.5
%
0.8
%
4.5
%
Fleming’s Prime Steakhouse & Wine
Bar
(0.3
)%
3.1
%
(0.7
)%
12.0
%
Combined U.S.
(0.2
)%
1.4
%
1.4
%
4.0
%
International
Outback Steakhouse - Brazil (3)
0.6
%
15.3
%
5.5
%
38.3
%
Traffic:
U.S.
Outback Steakhouse
(4.3
)%
(8.7
)%
(4.3
)%
(6.3
)%
Carrabba’s Italian Grill
0.4
%
(3.8
)%
0.3
%
(4.3
)%
Bonefish Grill
(4.0
)%
(7.2
)%
(3.3
)%
(4.2
)%
Fleming’s Prime Steakhouse & Wine
Bar
(1.9
)%
(4.0
)%
(2.0
)%
3.0
%
Combined U.S.
(3.1
)%
(7.3
)%
(3.1
)%
(5.3
)%
International
Outback Steakhouse - Brazil (3)
(0.9
)%
3.3
%
(1.1
) %
23.6
%
Average check per person (4):
U.S.
Outback Steakhouse
4.0
%
9.6
%
5.4
%
9.1
%
Carrabba’s Italian Grill
2.1
%
6.6
%
3.6
%
7.7
%
Bonefish Grill
1.0
%
7.7
%
4.1
%
8.7
%
Fleming’s Prime Steakhouse & Wine
Bar
1.6
%
7.1
%
1.3
%
9.0
%
Combined U.S.
2.9
%
8.7
%
4.5
%
9.3
%
International
Outback Steakhouse - Brazil (3)
1.2
%
11.7
%
6.5
%
14.6
%
____________________
(1) For Q4 2023, comparable
restaurant sales, traffic and average check per person compare the
14 weeks from September 25, 2023 through December 31, 2023 to the
14 weeks from September 26, 2022 through January 1, 2023. For 2023,
comparable restaurant sales, traffic and average check per person
compare the 53 weeks from December 26, 2022 through December 31,
2023 to the 53 weeks from December 27, 2021 through January 1,
2023.
(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. Includes trading day impact from
calendar period reporting.
(4) Includes the impact of menu
pricing changes, product mix and discounts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221496504/en/
Tara Kurian VP, Corporate Finance and Investor Relations (813)
830-5311
Bloomin Brands (NASDAQ:BLMN)
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