Core Insights - Bloomin' Brands, Inc. has experienced a significant decline in its share price, dropping from $16.76 a year ago to $6.94 as of September 22, representing a 58 percent decrease [1] Company Performance - The company's stock price has fallen sharply over the past year, indicating potential challenges in its business operations or market conditions [1] Investment Perspective - The article suggests a focus on long-term investment opportunities within the restaurant and food manufacturing sectors, highlighting the importance of evaluating both growth opportunities and valuation metrics [1]

Core Viewpoint - The previous investment stance on Bloomin' Brands, Inc. (NASDAQ: BLMN) was a hold rating, pending evidence of traffic growth and improved margins [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The analysis is based on a bottom-up approach, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - Bloomin' Brands (NASDAQ: BLMN) has experienced a significant decline in its stock price, nearing its pandemic lows from 2020 after the Q2'25 earnings report [1] - The company has managed to recover approximately 20% from its lowest point, but it remains significantly below its pre-pandemic levels [1]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Bloomin' Brands, Inc. for the periods ended June 29, 2025, including balance sheets, statements of operations and comprehensive income (loss), statements of changes in stockholders' equity, and condensed statements of cash flows, along with detailed notes explaining the company's business, accounting policies, and specific financial items [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) | ASSETS (in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :---------------------- | :------------ | :---------------- | | Cash and cash equivalents | $50,308 | $70,056 | | Total current assets | $331,964 | $320,519 | | Total assets | $3,307,548 | $3,384,805 | | LIABILITIES (in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :----------------------- | :------------ | :---------------- | | Total current liabilities | $777,198 | $952,336 | | Long-term debt, net | $917,073 | $1,027,398 | | Total liabilities | $2,906,254 | $3,245,359 | | Total stockholders' equity | $401,294 | $139,446 | - Total assets decreased from **$3,384,805 thousand** at December 29, 2024, to **$3,307,548 thousand** at June 29, 2025. Total liabilities also decreased from **$3,245,359 thousand** to **$2,906,254 thousand**, while total stockholders' equity significantly increased from **$139,446 thousand** to **$401,294 thousand**[12](index=12&type=chunk) [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) | (in thousands, except per share data) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :------------------------------------ | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Total revenues | $1,002,366 | $999,369 | $2,051,960 | $2,068,442 | | Income from operations | $29,650 | $44,052 | $86,881 | $114,969 | | Net income (loss) attributable to Bloomin' Brands | $25,419 | $28,403 | $67,571 | $(55,469) | | Net diluted earnings (loss) per share | $0.30 | $0.32 | $0.79 | $(0.64) | - For the thirteen weeks ended June 29, 2025, total revenues increased slightly to **$1,002,366 thousand** from **$999,369 thousand** in the prior year, but income from operations decreased to **$29,650 thousand** from **$44,052 thousand**. Net income attributable to Bloomin' Brands also decreased to **$25,419 thousand** from **$28,403 thousand**, resulting in a diluted EPS of **$0.30**, down from **$0.32**[14](index=14&type=chunk) - For the twenty-six weeks ended June 29, 2025, the company reported a significant turnaround in net income, moving from a loss of **$(55,469) thousand** in the prior year to a net income of **$67,571 thousand**, with diluted EPS improving from **$(0.64)** to **$0.79**, despite a slight decrease in total revenues[14](index=14&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) | (in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :------------- | :------------ | :---------------- | | Total Bloomin' Brands stockholders' equity | $397,237 | $135,510 | | Noncontrolling interests | $4,057 | $3,936 | | Total stockholders' equity | $401,294 | $139,446 | - Total stockholders' equity increased significantly from **$139,446 thousand** at December 29, 2024, to **$401,294 thousand** at June 29, 2025. This increase was primarily driven by net income of **$67,571 thousand** and other comprehensive income of **$217,039 thousand** for the twenty-six weeks ended June 29, 2025, partially offset by cash dividends declared[16](index=16&type=chunk)[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (in thousands) | TWENTY-SIX WEEKS ENDED | | :------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | | Net cash provided by operating activities | $123,128 | $116,192 | | Net cash used in investing activities | $(1,203) | $(131,218) | | Net cash (used in) provided by financing activities | $(141,328) | $22,288 | | Net (decrease) increase in cash and cash equivalents | $(19,748) | $3,546 | | Cash and cash equivalents as of the end of the period | $50,308 | $117,919 | - Net cash provided by operating activities increased to **$123,128 thousand** for the twenty-six weeks ended June 29, 2025, from **$116,192 thousand** in the prior year. Investing activities shifted from a net use of **$131,218 thousand** to a net use of **$1,203 thousand**, largely due to proceeds from the Brazil sale. Financing activities, however, resulted in a net cash outflow of **$141,328 thousand**, compared to an inflow of **$22,288 thousand** in the prior year, primarily due to net payments on the revolving credit facility and maturity settlement of 2025 Notes[22](index=22&type=chunk)[25](index=25&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Description of the Business and Basis of Presentation](index=10&type=section&id=1.%20Description%20of%20the%20Business%20and%20Basis%20of%20Presentation) Bloomin' Brands operates casual, upscale casual, and fine dining restaurants, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. The interim financial statements are unaudited and prepared in accordance with SEC rules, not including all GAAP footnotes. The company is evaluating the impact of new FASB ASUs on income tax disclosures (ASU No. 2023-09, effective 2025) and disaggregation of income statement expenses (ASU No. 2024-03, effective 2027) - Bloomin' Brands owns and operates a portfolio of casual, upscale casual, and fine dining restaurants, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar[28](index=28&type=chunk) - The company is evaluating the impact of ASU No. 2023-09 (Income Tax Disclosures, effective 2025) and ASU No. 2024-03 (Disaggregation of Income Statement Expenses, effective 2027) on its financial disclosures[30](index=30&type=chunk)[31](index=31&type=chunk) [2. Discontinued Operations](index=10&type=section&id=2.%20Discontinued%20Operations) Bloomin' Brands completed the sale of 67% of its Brazil business on December 30, 2024, transitioning to a primarily franchised international model. The transaction generated $103.9 million in initial cash proceeds, with a second installment due December 30, 2025. The company recognized a gain on sale and continues to report net income from discontinued operations, which includes foreign currency translation gains on contingent consideration assets - On December 30, 2024, Bloomin' Brands sold **67%** of its Brazil business, shifting to a primarily franchised international model[33](index=33&type=chunk)[36](index=36&type=chunk) - The company received **$103.9 million** in initial cash proceeds from the Brazil sale, applied to its revolving credit facility, with a second installment due December 30, 2025[35](index=35&type=chunk)[192](index=192&type=chunk) | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Net income from discontinued operations, net of tax | $779 | $3,655 | $525 | $6,563 | | Gain on sale of Brazil business | $1,672 | — | $4,575 | — | [3. Equity Method Investment](index=12&type=section&id=3.%20Equity%20Method%20Investment) Following the Brazil sale, Bloomin' Brands retained a 33% equity interest in the franchisee, accounted for using the equity method with a one-month lag. The carrying value of this investment was $61.7 million as of June 29, 2025, and the company recognized a proportionate share of net loss from this investment - Bloomin' Brands holds a **33%** equity interest in its Brazil operations, accounted for using the equity method with a one-month reporting lag[42](index=42&type=chunk) | (in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Loss from equity method investment, net of tax | $(1,806) | — | $(3,097) | — | | Carrying value of equity method investment (June 29, 2025) | $61,702 | N/A | N/A | N/A | [4. Revenue Recognition](index=12&type=section&id=4.%20Revenue%20Recognition) Total revenues for the thirteen weeks ended June 29, 2025, were $1,002,366 thousand, with U.S. restaurant sales contributing $975,295 thousand. International franchise revenues decreased due to the Brazil sale. Deferred gift card revenue remains a significant liability, totaling $299.6 million as of June 29, 2025 | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Total revenues | $1,002,366 | $999,369 | $2,051,960 | $2,068,442 | | U.S. Restaurant sales | $975,295 | $962,088 | $1,995,425 | $1,992,984 | | International Franchise revenues | $7,051 | $9,444 | $16,334 | $19,556 | | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Deferred gift card revenue | $299,636 | $366,059 | | Deferred loyalty revenue | $6,892 | $6,073 | - Gift card sales for the twenty-six weeks ended June 29, 2025, were **$104,561 thousand**, with redemptions of **$160,666 thousand** and breakage of **$10,318 thousand**, leading to a decrease in deferred gift card revenue[47](index=47&type=chunk) [5. Impairments and Exit Costs](index=14&type=section&id=5.%20Impairments%20and%20Exit%20Costs) Provision for impaired assets and restaurant closings significantly decreased to $1,540 thousand for the thirteen weeks ended June 29, 2025, from $14,684 thousand in the prior year. This reduction is primarily due to the absence of large impairment and closure charges related to Hong Kong restaurants and 2023 U.S. restaurant closures that occurred in the comparative prior period | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Total impairment losses | $5,680 | $12,471 | $6,266 | $14,323 | | Total restaurant closure (benefits) charges | $(4,140) | $2,213 | $(4,376) | $11,234 | | Provision for impaired assets and restaurant closings | $1,540 | $14,684 | $1,890 | $25,557 | - The decrease in provision for impaired assets and restaurant closings is primarily due to lapping impairment and closure charges from Q2 2024 related to nine Hong Kong restaurants and 36 older, underperforming U.S. restaurants[49](index=49&type=chunk)[153](index=153&type=chunk)[159](index=159&type=chunk) [6. Earnings (Loss) Per Share](index=15&type=section&id=6.%20Earnings%20(Loss)%20Per%20Share) Diluted earnings per share from continuing operations remained stable at $0.29 for the thirteen weeks ended June 29, 2025, compared to $0.28 in the prior year. For the twenty-six weeks, diluted EPS from continuing operations significantly improved to $0.79 from a loss of $(0.71) in the prior year, reflecting a strong recovery in profitability | (in thousands, except per share data) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :------------------------------------ | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Net income (loss) attributable to Bloomin' Brands from continuing operations | $24,640 | $24,748 | $67,046 | $(62,032) | | Diluted earnings (loss) per share: | | | | | | Continuing operations | $0.29 | $0.28 | $0.79 | $(0.71) | | Discontinued operations | $0.01 | $0.04 | $0.01 | $0.08 | | Net diluted earnings (loss) per share | $0.30 | $0.32 | $0.79 | $(0.64) | - The 2025 Notes matured and were settled in cash during the thirteen weeks ended June 29, 2025, and related warrants were terminated, impacting dilutive securities calculations[52](index=52&type=chunk) [7. Stock-based Compensation Plans](index=16&type=section&id=7.%20Stock-based%20Compensation%20Plans) As of June 29, 2025, the company had 629 thousand Performance-based Share Units (PSUs) and 1,546 thousand Restricted Stock Units (RSUs) outstanding. Unrecognized stock-based compensation expense totals $2,132 thousand for PSUs (2.7 years remaining recognition) and $13,842 thousand for RSUs (2.0 years remaining recognition) | (in thousands) | PSUs | RSUs | | :------------- | :--- | :--- | | Outstanding as of December 29, 2024 | 722 | 1,044 | | Granted | 312 | 922 | | Forfeited | (176) | (154) | | Outstanding as of June 29, 2025 | 629 | 1,546 | | (dollars in thousands) | UNRECOGNIZED COMPENSATION EXPENSE | REMAINING WEIGHTED AVERAGE RECOGNITION PERIOD (in years) | | :--------------------- | :-------------------------------- | :------------------------------------------------------- | | Performance-based share units | $2,132 | 2.7 | | Restricted stock units | $13,842 | 2.0 | - A new performance structure for PSUs was implemented in 2025, with separate annual performance goals and cliff vesting after three years[57](index=57&type=chunk) [8. Supplemental Balance Sheet Information](index=16&type=section&id=8.%20Supplemental%20Balance%20Sheet%20Information) Current assets increased, notably due to a new installment receivable from the Brazil sale. Goodwill and intangible assets were assessed for impairment, with Outback Steakhouse and Bonefish Grill reporting units, and the Outback Steakhouse trade name, showing fair values closer to carrying values due to lower cash flow estimates, increased discount rates, and lower market multiples, indicating a higher risk of future impairment | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Other current assets, net | $224,503 | $158,775 | | Installment receivable from sale of business | $131,228 | — | | Total assets | $3,307,548 | $3,384,805 | - Goodwill and indefinite-lived intangible assets were assessed for impairment in Q2 2025 due to a decline in market capitalization. While no impairment charges were recorded, Outback Steakhouse and Bonefish Grill reporting units, and the Outback Steakhouse trade name, have fair values approximately **10-15%** above their carrying values, indicating a higher risk of future impairment[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[215](index=215&type=chunk)[219](index=219&type=chunk) | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Long-term debt, net | $917,073 | $1,027,398 | | Senior secured credit facility - revolving credit facility | $620,000 | $710,000 | | 2025 Notes | — | $20,724 | | 2029 Notes | $300,000 | $300,000 | [9. Convertible Senior Notes](index=19&type=section&id=9.%20Convertible%20Senior%20Notes) The company's 5.00% convertible senior notes due in 2025 (2025 Notes) matured on May 1, 2025, and were settled in cash for $20.7 million. The related convertible note hedges expired, and remaining proportional warrants were terminated for $0.4 million. Interest expense for the 2025 Notes decreased significantly as a result - The 2025 Notes matured on May 1, 2025, and were settled in cash for **$20.7 million**, leading to the expiration of related convertible note hedges and termination of warrants[74](index=74&type=chunk) | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Total interest expense (2025 Notes) | $100 | $299 | $401 | $1,463 | [10. Stockholders' Equity](index=19&type=section&id=10.%20Stockholders'%20Equity) The Board declared quarterly cash dividends of $0.15 per share for Q1 and Q2 2025, totaling $25.5 million. A similar dividend was declared for Q3 2025. Accumulated Other Comprehensive Income (Loss) significantly improved, primarily due to a reclassification of foreign currency translation adjustments into earnings from the Brazil sale | (dollars in thousands, except per share data) | DIVIDENDS PER SHARE | AMOUNT | | :-------------------------------------------- | :------------------ | :----- | | First fiscal quarter 2025 | $0.15 | $12,747 | | Second fiscal quarter 2025 | $0.15 | $12,759 | | Total cash dividends declared and paid | $0.30 | $25,506 | - The company's Board declared a quarterly cash dividend of **$0.15** per share, payable on September 3, 2025[76](index=76&type=chunk)[195](index=195&type=chunk) | (dollars in thousands) | JUNE 29, 2025 | JUNE 30, 2024 | | :--------------------- | :------------ | :------------ | | Accumulated other comprehensive income (loss) | $4,246 | $(188,606) | | Reclassification of foreign currency translation adjustments into earnings due to sale of business (26 weeks) | $217,548 | — | [11. Derivative Instruments and Hedging Activities](index=20&type=section&id=11.%20Derivative%20Instruments%20and%20Hedging%20Activities) Bloomin' Brands uses interest rate swaps to manage variable interest rate exposure, effectively converting $275.0 million of debt to fixed rates. These swaps are designated as cash flow hedges. The company also uses non-designated foreign currency forward contracts to partially offset foreign currency exchange risk from the Brazil Sale Transaction installment payments, resulting in a loss of $18.7 million for the twenty-six weeks ended June 29, 2025, largely offset by gains on the installment receivable - The company has **$275.0 million** in interest rate swap agreements, effectively converting variable interest rates (SOFR) to fixed rates (weighted average **4.38%**) to manage interest rate risk[80](index=80&type=chunk)[81](index=81&type=chunk) - Foreign currency forward contracts are used to partially offset foreign currency exchange risk related to the Brazil Sale Transaction installment payments, with outstanding notional amounts of approximately **$130.6 million** U.S. Dollars as of June 29, 2025[88](index=88&type=chunk) | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 29, 2025 | | Loss on foreign currency forward contracts | $8,461 | $18,711 | [12. Leases](index=22&type=section&id=12.%20Leases) As of June 29, 2025, total lease assets, net, were $1,028,951 thousand, and total lease liabilities were $1,255,749 thousand. Operating lease costs were $84,928 thousand for the twenty-six weeks ended June 29, 2025, with cash paid for operating lease liabilities amounting to $91,977 thousand | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Operating lease right-of-use assets | $1,015,518 | $1,012,857 | | Total lease assets, net | $1,028,951 | $1,022,915 | | Total lease liabilities | $1,255,749 | $1,258,301 | | (dollars in thousands) | TWENTY-SIX WEEKS ENDED | | :--------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | | Operating lease cost | $84,928 | $85,296 | | Cash paid for amounts included in the measurement of operating lease liabilities | $91,977 | $93,842 | [13. Fair Value Measurements](index=23&type=section&id=13.%20Fair%20Value%20Measurements) The company measures certain financial assets and liabilities at fair value on a recurring basis, including short-term investments and derivative instruments (interest rate swaps and foreign currency forward contracts). Long-term debt is carried at amortized cost, but its fair value is disclosed, with the 2029 Notes having a fair value of $277.8 million compared to a carrying value of $300.0 million as of June 29, 2025 | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Short-term investments | $5,026 | $11,868 | | Foreign currency forward contracts | $282 | $304 | | Interest rate swaps - liability | $683 | $834 | | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | | CARRYING VALUE | FAIR VALUE LEVEL 2 | CARRYING VALUE | FAIR VALUE LEVEL 2 | | Senior secured credit facility - revolving credit facility | $620,000 | $620,000 | $710,000 | $710,000 | | 2029 Notes | $300,000 | $277,776 | $300,000 | $270,132 | [14. Income Taxes](index=24&type=section&id=14.%20Income%20Taxes) The effective income tax rate for the thirteen weeks ended June 29, 2025, was negative (NM) due to changes in forecasted annual pre-tax book income and FICA tax credits on tipped wages. For the twenty-six weeks, the rate was (12.1)%, primarily benefiting from FICA tax credits. The One Big Beautiful Bill Act (OBBBA) was signed into law in July 2025, but the company does not anticipate a material impact on its financial statements | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Income (loss) before (benefit) provision for income taxes | $18,951 | $28,756 | $64,995 | $(49,800) | | (Benefit) provision for income taxes | $(8,748) | $2,780 | $(7,845) | $9,422 | | Effective income tax rate | (NM) | 9.7 % | (12.1)% | (18.9)% | - The effective income tax rates for the thirteen and twenty-six weeks ended June 29, 2025, were lower than the blended federal and state statutory rate of approximately **26%**, primarily due to the benefit of FICA tax credits on certain tipped wages[104](index=104&type=chunk)[105](index=105&type=chunk) - The company is evaluating the potential impact of the recently signed One Big Beautiful Bill Act (OBBBA) but does not anticipate a material impact on its financial statements[107](index=107&type=chunk) [15. Commitments and Contingencies](index=25&type=section&id=15.%20Commitments%20and%20Contingencies) Bloomin' Brands has recorded reserves of $2.1 million for legal proceedings as of June 29, 2025. The company is also contingently liable under certain real estate leases, with undiscounted potential payments of $11.3 million and a recorded contingent lease liability of $1.7 million as of June 29, 2025 - The company recorded reserves of **$2.1 million** for outstanding legal proceedings as of June 29, 2025[108](index=108&type=chunk) - Bloomin' Brands is contingently liable under certain real estate leases, with undiscounted potential payments of **$11.3 million** and a recorded contingent lease liability of **$1.7 million** as of June 29, 2025[109](index=109&type=chunk) [16. Segment Reporting](index=25&type=section&id=16.%20Segment%20Reporting) The company operates in two reportable segments: U.S. (Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar) and International Franchise. U.S. segment revenues for the thirteen weeks ended June 29, 2025, were $985.8 million, with income from operations of $68.5 million. International Franchise revenues were $7.1 million, with income from operations of $6.8 million. Total segment assets were $2,736.1 million as of June 29, 2025 | REPORTABLE SEGMENT | CONCEPT | | :----------------- | :------ | | U.S. | Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar | | International Franchise | Outback Steakhouse, Carrabba's Italian Grill (Abbraccio) | | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | U.S. Total revenues | $985,828 | $974,173 | $2,016,731 | $2,017,277 | | U.S. Income from operations | $68,461 | $79,677 | $156,131 | $177,161 | | International Franchise Total revenues | $7,051 | $9,444 | $16,334 | $19,556 | | International Franchise Income from operations | $6,838 | $9,050 | $15,842 | $18,739 | | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | U.S. Total assets | $2,630,373 | $2,735,251 | | International Franchise Total assets | $105,776 | $103,242 | | Total segment assets | $2,736,149 | $2,838,493 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, highlighting key financial indicators, operational results, and liquidity. It discusses revenue trends, cost changes, segment performance, and non-GAAP financial measures, along with critical accounting estimates and future outlook [Overview](index=30&type=section&id=Overview) Bloomin' Brands is a global casual dining restaurant company with 985 owned and 494 franchised restaurants. Key financial performance for the thirteen weeks ended June 29, 2025, included a slight increase in total revenues, but a decrease in operating income and restaurant-level operating margins compared to the prior year. The company uses various GAAP and non-GAAP measures to evaluate performance - Bloomin' Brands operates **985** owned and **494** franchised restaurants across 46 states, Guam, and 12 countries[127](index=127&type=chunk) | Key Financial Performance Indicators (Thirteen Weeks Ended June 29, 2025) | | :---------------------------------------------------------------------- | | U.S. combined comparable restaurant sales: (0.1)% | | Outback Steakhouse comparable restaurant sales: (0.6)% | | Total revenues increase: 0.3% (vs. Q2 2024) | | Operating income: $29.7 million (vs. $44.1 million in Q2 2024) | | Operating income margin: 3.0% (vs. 4.4% in Q2 2024) | | Restaurant-level operating margin: 12.0% (vs. 14.0% in Q2 2024) | | Diluted earnings per share: $0.29 (vs. $0.28 in Q2 2024) | [Selected Operating Data](index=32&type=section&id=Selected%20Operating%20Data) As of June 29, 2025, Bloomin' Brands operated 985 company-owned and 494 franchised restaurants globally, totaling 1,479 system-wide. The number of international franchised Outback Steakhouse restaurants in Brazil significantly increased to 185 from zero in the prior year due to the Brazil Sale Transaction | Number of restaurants (at end of the period) | JUNE 29, 2025 | JUNE 30, 2024 | | :------------------------------------------- | :------------ | :------------ | | System-wide total | 1,479 | 1,465 | | System-wide total - Company-owned | 985 | 1,173 | | System-wide total - Franchised | 494 | 292 | | Outback Steakhouse - Brazil (International Franchise) | 185 | — | - The increase in international franchised restaurants, particularly in Brazil, is a direct result of the Brazil Sale Transaction, where former company-owned restaurants now operate as unconsolidated franchisees[135](index=135&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenues for the thirteen weeks ended June 29, 2025, increased by 0.3% to $1,002.4 million, primarily driven by new restaurant openings. However, comparable restaurant sales for combined U.S. remained flat at (0.1)%. Costs and expenses, particularly food and beverage, labor, and other restaurant operating expenses, increased as a percentage of restaurant sales due to inflation, partially offset by menu pricing and cost-saving initiatives | (dollars in millions) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :-------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Restaurant sales | $984.8 | $977.8 | $2,014.3 | $2,024.5 | | Total revenues | $1,002.4 | $999.4 | $2,052.0 | $2,068.4 | | Comparable restaurant sales (Combined U.S.) | (0.1)% | (0.1)% | (0.3)% | (0.9)% | | Traffic (Combined U.S.) | (2.0)% | (3.8)% | (3.0)% | (4.1)% | | Average check per person (Combined U.S.) | 1.9% | 3.7% | 2.7% | 3.2% | | Costs and Expenses (as % of Restaurant sales) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :-------------------------------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Food and beverage | 30.3% | 30.1% | 30.4% | 30.1% | | Labor and other related | 32.0% | 30.7% | 31.3% | 30.4% | | Other restaurant operating | 25.7% | 25.2% | 25.4% | 24.7% | - Increases in food and beverage costs were driven by commodity inflation (**1.1%**) and unfavorable product mix (**0.2%**), partially offset by menu pricing (**0.9%**) and cost-saving initiatives (**0.3%**) for the thirteen weeks ended June 29, 2025[148](index=148&type=chunk) - Labor and other related expenses increased primarily due to higher hourly and field management labor costs, mainly from wage rate inflation and health insurance (**1.7%**) for the thirteen weeks ended June 29, 2025[149](index=149&type=chunk) [Segment Performance](index=37&type=section&id=Segment%20Performance) U.S. segment income from operations decreased for both the thirteen and twenty-six weeks ended June 29, 2025, primarily due to higher labor, operating, and commodity costs, despite higher restaurant sales and menu pricing. International Franchise income from operations also decreased, partly due to lower royalty rates from new franchise agreements in Brazil | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | U.S. Income from operations | $68,461 | $79,677 | $156,131 | $177,161 | | International Franchise Income from operations | $6,838 | $9,050 | $15,842 | $18,739 | - The decrease in U.S. Income from operations was primarily due to higher labor, operating, and commodity costs, mainly due to inflation and unfavorable product cost mix, partially offset by higher restaurant sales and increased average check per person[168](index=168&type=chunk)[171](index=171&type=chunk) - International Franchise revenues were impacted by new franchise agreements in connection with the Brazil Sale Transaction, which include lower royalty rates compared to historical intercompany rates[167](index=167&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP reconciliations for restaurant-level operating income, adjusted income from operations, adjusted net income, and adjusted diluted earnings per share. For the thirteen weeks ended June 29, 2025, adjusted diluted EPS was $0.33, compared to $0.51 in the prior year. System-wide sales, a non-GAAP measure, indicate the overall health of the brands, with total franchise sales at $359 million for the thirteen weeks ended June 29, 2025 | (dollars in thousands) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :--------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Restaurant-level operating income | $117,720 | $136,731 | $260,548 | $298,314 | | Restaurant-level operating margin | 12.0% | 14.0% | 12.9% | 14.7% | | Adjusted income from operations | $35,425 | $59,812 | $99,113 | $143,683 | | Adjusted operating income margin | 3.5% | 6.0% | 4.8% | 6.9% | | (in thousands, except per share data) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :------------------------------------ | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Adjusted net income | $28,069 | $45,026 | $77,808 | $108,540 | | Adjusted diluted earnings per share | $0.33 | $0.51 | $0.91 | $1.18 | | (dollars in millions) | THIRTEEN WEEKS ENDED | TWENTY-SIX WEEKS ENDED | | :-------------------- | :------------------- | :--------------------- | | | JUNE 29, 2025 | JUNE 30, 2024 | JUNE 29, 2025 | JUNE 30, 2024 | | Total franchise sales | $359 | $362 | $719 | $747 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to $50.3 million as of June 29, 2025. The company has $563.7 million in available unused borrowing capacity under its revolving credit facility and remains in compliance with debt covenants. Operating activities provided $123.1 million in cash for the twenty-six weeks ended June 29, 2025. Capital expenditures are estimated at $190 million for 2025, and $96.8 million remains available under the $350 million share repurchase authorization | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Cash and cash equivalents | $50,308 | $70,056 | | Available unused borrowing capacity (revolving credit facility) | $563,700 | N/A | - The company expects to apply the second installment payment from the Brazil Sale Transaction (due December 30, 2025) towards its revolving credit facility[192](index=192&type=chunk) - Estimated capital expenditures for 2025 are approximately **$190 million**. As of June 29, 2025, **$96.8 million** remained available under the **$350 million** share repurchase authorization[193](index=193&type=chunk)[196](index=196&type=chunk) | (dollars in thousands) | JUNE 29, 2025 | DECEMBER 29, 2024 | | :--------------------- | :------------ | :---------------- | | Current assets | $331,964 | $320,519 | | Current liabilities | $777,198 | $952,336 | | Working capital (deficit) | $(445,234) | $(631,817) | [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting estimates include goodwill and indefinite-lived intangible assets. A quantitative impairment analysis was performed in Q2 2025 due to a decline in market capitalization. While no impairment was recorded, the fair values of Outback Steakhouse and Bonefish Grill reporting units, and the Outback Steakhouse trade name, are now closer to their carrying values, increasing the risk of future impairment - Goodwill and indefinite-lived intangible assets are tested for impairment annually in the second fiscal quarter or when circumstances indicate impairment[209](index=209&type=chunk) - In Q2 2025, a quantitative impairment analysis was performed due to a decline in market capitalization. The Outback Steakhouse and Bonefish Grill reporting units, and the Outback Steakhouse trade name, have fair values approximately **10-15%** above their carrying values, making them at a higher risk of future impairment[64](index=64&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[219](index=219&type=chunk) - Fair value determinations are sensitive to changes in key assumptions such as cash flow estimates, long-term growth rates, discount rates, royalty rates, and market multiples[64](index=64&type=chunk)[214](index=214&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Bloomin' Brands is exposed to market risks from changes in commodity prices, labor inflation, foreign currency exchange rates, and interest rates. The company states there have been no material changes in its market risk since December 29, 2024 - The company is exposed to market risks from changes in commodity prices, labor inflation, foreign currency exchange rates, and interest rates[224](index=224&type=chunk) - No material changes in market risk have occurred since December 29, 2024[224](index=224&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were evaluated and deemed effective as of June 29, 2025. During the thirteen weeks ended June 29, 2025, the company implemented Workday, a cloud-based HR and payroll system, leading to certain changes in processes and internal controls, which will continue to be evaluated - Disclosure controls and procedures were evaluated and concluded to be effective as of June 29, 2025[225](index=225&type=chunk) - The company implemented Workday, a cloud-based human resources and payroll system, during the thirteen weeks ended June 29, 2025, resulting in changes to processes and internal controls that are subject to ongoing evaluation[226](index=226&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 15 – Commitments and Contingencies in the Notes to Consolidated Financial Statements - Details on legal proceedings are provided in Note 15 - Commitments and Contingencies[230](index=230&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) The company refers to the risk factors described in its 2024 Form 10-K, stating that there have been no material changes to these risks. Additional unknown or immaterial risks may also affect the business - No material changes to the risk factors described in the 2024 Form 10-K have occurred[231](index=231&type=chunk) - The company advises considering factors from its 2024 Form 10-K, as well as potential additional unknown or immaterial risks[231](index=231&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the thirteen weeks ended June 29, 2025. The company did not repurchase any common stock during this period, with $96.8 million remaining available under the 2024 Share Repurchase Program - No unregistered sales of equity securities occurred during the thirteen weeks ended June 29, 2025[232](index=232&type=chunk) - The company did not repurchase any common stock during the thirteen weeks ended June 29, 2025[234](index=234&type=chunk) - As of June 29, 2025, **$96.8 million** remained available under the **$350.0 million** 2024 Share Repurchase Program, which expires on August 13, 2025[196](index=196&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) The Compensation Committee approved a special cash bonus of $80,000 and a grant of restricted stock units valued at $100,000 for Kelly Lefferts, Executive Vice President, Chief Legal Officer and Secretary, in recognition of additional responsibilities. No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the quarter - Kelly Lefferts, EVP, Chief Legal Officer and Secretary, received an **$80,000** cash bonus and **$100,000** in restricted stock units for assuming additional interim responsibilities[235](index=235&type=chunk) - No Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or executive officers during the thirteen weeks ended June 29, 2025[236](index=236&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various compensation plans, employment agreements, certifications (CEO/CFO), and XBRL-related documents - Exhibits include the 2025 Omnibus Incentive Compensation Plan, forms of Restricted Stock Unit Award Agreements, Performance Award Agreements, Restricted Cash Award Agreements, an Employment Offer Letter Agreement, CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL documents[237](index=237&type=chunk)

Core Insights - Bloomin' Brands reported $1 billion in revenue for Q2 2025, a year-over-year decline of 10.4% with an EPS of $0.33 compared to $0.51 a year ago, exceeding the Zacks Consensus Estimate of $987.19 million by 1.54% and delivering an EPS surprise of 17.86% [1] Financial Performance - Comparable restaurant sales for Outback Steakhouse in the U.S. were down 0.6%, slightly better than the estimated decline of 0.8% [4] - The total number of restaurants increased to 1,479, surpassing the estimated 1,474 [4] - Combined U.S. comparable restaurant sales were down 0.1%, compared to an average estimate of -0.9% [4] - Carrabba's Italian Grill saw a 3.9% increase in comparable restaurant sales, significantly above the estimated 0.6% [4] - Fleming's Prime Steakhouse and Wine Bar reported a 3.8% increase in comparable restaurant sales, exceeding the estimated 2.1% [4] Revenue Breakdown - Total U.S. revenue was $985.83 million, surpassing the average estimate of $961.77 million [4] - Franchise and other revenues in the U.S. were $10.53 million, exceeding the estimate of $9.57 million [4] - Restaurant sales in the U.S. reached $975.3 million, compared to the average estimate of $952.2 million [4] - International franchise revenues were $7.05 million, above the estimated $5.75 million [4] - Overall restaurant sales revenue was $984.77 million, representing a 10.8% decline compared to the year-ago quarter, while franchise and other revenues increased by 15% to $17.6 million [4] Stock Performance - Bloomin' Brands' shares have returned -9.4% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change, and the stock currently holds a Zacks Rank 3 (Hold) [3]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $1 billion, slightly up from $999 million in the previous year [34] - U.S. comparable restaurant sales decreased by 10 basis points, while traffic declined by 200 basis points [35] - Adjusted diluted earnings per share for Q2 was $0.32, down from $0.45 in the previous year [36][37] - Adjusted operating margins were 3.5%, compared to 6% last year, primarily due to a decline in restaurant level margin and inflationary pressures [37] Business Line Data and Key Metrics Changes - Outback's off-premise sales accounted for 26% of total sales, while Carrabba's reached 35% [36] - Traffic performance at Outback improved throughout the quarter, driven by the introduction of the Aussie three-course offering [20][19] - Carrabba's experienced positive comparable sales growth, attributed to strong off-premise sales and experiential events [20][78] Market Data and Key Metrics Changes - U.S. traffic was down 2% in Q2, showing a sequential improvement from Q1 [19] - The company is still losing market share in the industry, as defined by Black Box, indicating ongoing challenges in the casual dining sector [20] Company Strategy and Development Direction - The primary focus is on turning around Outback, with a strategy centered on improving service quality, value, and menu simplification [5][6][25] - The company is implementing a new organizational structure to enhance operational efficiency and support the turnaround efforts [6][10] - Investments of approximately $3 million in 2025 are planned for expanding tests related to service quality and value [30][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for time to reverse market share trends and emphasizes the importance of consistent execution in operations [20][32] - The company is committed to reducing debt leverage and returning capital to shareholders while maintaining healthy cash flow [32][40] - Future guidance for adjusted diluted earnings per share is set between $1 and $1.1, reflecting various operational challenges and investments [41] Other Important Information - The company has completed a repair and maintenance survey to prioritize remodels and improve asset conditions [88] - A quarterly dividend of $0.15 per share has been declared, payable on September 3, 2025 [40] Q&A Session Summary Question: Inquiry about Outback general managers' compensation structure - Management is assessing the compensation structure to ensure it aligns with market averages and drives growth in sales and profits [50][51] Question: Prioritization of Outback turnaround initiatives - Management believes they are in the early stages of the turnaround and emphasizes the importance of service model, steak quality, and value components [54][56] Question: Details on the Aussie three-course offering - The offering has led to increased traffic and value satisfaction, with many guests trading up to higher price points [59][60] Question: Insights from the initial Outback test restaurants - Management noted the brand's potential and the importance of consistency in service, quality, and ambiance [64][66] Question: Performance of Outback in various regions - Performance was consistent across all geographies in Q2, with no significant outliers [94][95]

Core Insights - Bloomin' Brands (BLMN) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, but down from $0.51 per share a year ago [1] - The company achieved a revenue of $1 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.54%, although this is a decrease from $1.12 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +17.86%, and the company has surpassed consensus EPS estimates three times over the last four quarters [2] - In the previous quarter, Bloomin' Brands reported earnings of $0.59 per share against an expectation of $0.57, resulting in a surprise of +3.51% [2] Revenue Insights - The company has topped consensus revenue estimates two times over the last four quarters [3] - Current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $906.47 million, while for the current fiscal year, it is $1.20 on revenues of $3.93 billion [8] Stock Performance and Outlook - Bloomin' Brands shares have declined approximately 26.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [4] - The Zacks Rank for Bloomin' Brands is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Retail - Restaurants industry, to which Bloomin' Brands belongs, is currently in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Bloomin' Brands' stock performance [6]

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 and our ability to attract, train and retain employees; increases ...

[Q2 2025 Earnings Highlights](index=1&type=section&id=Q2%202025%20Earnings%20Highlights) [Overview of Q2 2025 Performance](index=1&type=section&id=Overview%20of%20Q2%202025%20Performance) Bloomin' Brands reported Q2 2025 financial results with diluted EPS of $0.29 and adjusted diluted EPS of $0.32, focusing on team building, customer-centricity, and operational execution to turn around Outback for sustainable growth | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.29 | $0.28 | $0.01 | | Adjustments (1) | $0.03 | $0.17 | ($0.14) | | Adjusted Diluted EPS (1) | $0.32 | $0.45 | ($0.13) | | (in millions USD, unaudited) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,002.4 | $999.4 | 0.3 % | | GAAP Operating Margin | 3.0 % | 4.4 % | (1.4)% | | Adjusted Operating Margin (1) | 3.5 % | 6.0 % | (2.5)% | | Restaurant-Level Operating Margin (1) | 12.0 % | 14.0 % | (2.0)% | | Adjusted Restaurant-Level Operating Margin (1) | 12.0 % | 14.0 % | (2.0)% | - CEO Mike Spanos stated the company is building a highly capable, customer-centric, operationally-minded team, focusing on consistent execution and committing to turn around the Outback business for sustainable profitable growth[4](index=4&type=chunk) [Q2 2025 Financial Results from Continuing Operations](index=1&type=section&id=Q2%202025%20Financial%20Results%20from%20Continuing%20Operations) Total revenues increased by 0.3% year-over-year in Q2, driven by net restaurant openings and closures, partially offset by lower franchise revenue, while GAAP and restaurant-level operating margins declined due to rising labor, commodity, and operating costs, and increased insurance expenses - Total revenues increased by **0.3%**, primarily due to the net impact of restaurant openings and closures, partially offset by a decrease in franchise revenues[6](index=6&type=chunk) - GAAP operating margin declined due to lower restaurant-level operating margin, costs from transformation and restructuring activities, and expenses related to foreign exchange forward contracts[6](index=6&type=chunk) - Restaurant-level operating margin decreased primarily due to higher labor, commodity, and operating costs (driven by inflation), increased insurance expenses, and an unfavorable product cost mix, partially offset by increased revenues, a higher average check (primarily due to pricing), and lower advertising expenses[12](index=12&type=chunk) U.S. Comparable Restaurant Sales (restaurants open 18+ months): | Brand | 13 Weeks Ended June 29, 2025 | | :--- | :--- | | Outback Steakhouse | (0.6)% | | Carrabba's Italian Grill | 3.9 % | | Bonefish Grill | (5.8)% | | Fleming's Prime Steakhouse & Wine Bar | 3.8 % | | U.S. Total | (0.1)% | [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) [Balance Sheet Summary](index=6&type=section&id=Balance%20Sheet%20Summary) As of June 29, 2025, the company reported cash and cash equivalents of $50.308 million and a net working capital deficit of $445.234 million, with total assets slightly decreasing while total debt and stockholders' equity improved Supplemental Balance Sheet Information (in thousands USD): | Metric | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $50,308 | $70,056 | | Net Working Capital (Deficit) (1) | ($445,234) | ($631,817) | | Total Assets | $3,307,548 | $3,384,805 | | Total Debt | $917,073 | $1,027,398 | | Total Stockholders' Equity | $401,294 | $139,446 | - The company typically operates with negative working capital, common among many restaurant companies, and successfully manages operations through cash flows from restaurant sales and gift card sales to fund debt repayment and capital expenditures[29](index=29&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) The Board declared a quarterly cash dividend of $0.15 per share on July 23, 2025, with no share repurchases year-to-date in 2025 and $96.8 million remaining under the 2024 repurchase program - The Board of Directors declared a quarterly cash dividend of **$0.15 per share** on July 23, 2025, payable on September 3, 2025[8](index=8&type=chunk) - No share repurchases have been made year-to-date in 2025, with **$96.8 million** remaining under the 2024 share repurchase program, which expires on August 13, 2025[8](index=8&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) The company reaffirmed other aspects of its FY2025 full-year financial guidance and updated expectations for key metrics including diluted and adjusted diluted EPS, effective income tax rate, and commodity and labor inflation Fiscal Year 2025 Financial Performance Outlook: | Financial Performance | Current Outlook | | :--- | :--- | | Diluted EPS (1) | $0.80 至 $0.90 | | Adjusted Diluted EPS (1) | $1.00 至 $1.10 | | Effective Income Tax Rate | 负值 | | **Other Selected Financial Data:** | **Current Outlook** | | Commodity Inflation | 3% 至 3.5% | | Labor Inflation | Approx. 4% | | Capital Expenditures | Approx. $190M | - The outlook for diluted and adjusted diluted EPS assumes diluted weighted average shares outstanding of **85 million to 86 million**[10](index=10&type=chunk) [Q3 2025 Outlook](index=3&type=section&id=Q3%202025%20Outlook) The company provided Q3 2025 financial outlook for continuing operations, anticipating flat to slightly negative U.S. comparable restaurant sales and diluted and adjusted diluted loss per share Q3 2025 Financial Performance Outlook: | Financial Performance | Q3 2025 Outlook | | :--- | :--- | | U.S. Comparable Restaurant Sales | (1%) 至 持平 | | Diluted Loss Per Share (1) | ($0.22) 至 ($0.17) | | Adjusted Diluted Loss Per Share (1) | ($0.15) 至 ($0.10) | - The Q3 2025 outlook assumes diluted weighted average shares outstanding of approximately **85 million**[14](index=14&type=chunk) [Company and Non-GAAP Information](index=3&type=section&id=Company%20and%20Non-GAAP%20Information) [About Bloomin' Brands, Inc.](index=3&type=section&id=About%20Bloomin'%20Brands,%20Inc.) Bloomin' Brands, Inc. is one of the largest casual dining companies globally, owning and operating or franchising over 1,450 restaurants across 46 states, Guam, and 12 countries, under leading brands like Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar - Bloomin' Brands, Inc. is one of the largest casual dining companies globally, with brands including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar[16](index=16&type=chunk) - The company owns, operates, and franchises over **1,450 restaurants** across **46 states, Guam, and 12 countries**[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This release includes several non-GAAP financial measures to supplement GAAP results, aiding investors in evaluating core operating performance by isolating items unrelated to core operations or varying significantly among similar companies, such as restaurant-level operating income, adjusted operating income, adjusted net income, and adjusted diluted EPS - Non-GAAP measures include restaurant-level operating income and margin, adjusted operating income and margin, adjusted segment operating income and margin, adjusted net income, and adjusted diluted EPS[17](index=17&type=chunk) - The company believes non-GAAP measures help investors assess business operating performance by isolating the impact of certain items that may not be indicative of core operating performance or that may vary significantly among similar companies[19](index=19&type=chunk) - Non-GAAP financial measures are not intended to replace GAAP financial measures and are not standardized or comparable to similarly titled measures used by other companies[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) Certain statements in this report are forward-looking, involving risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to the ability to execute turnaround plans, consumer response, labor costs, competition, system disruptions, data loss, commodity price fluctuations, and macroeconomic conditions - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the company's expectations[22](index=22&type=chunk) - Key risks include the ability to execute turnaround plans, consumer response to public health and food safety issues, increased labor costs, fluctuations in employee availability, competition, system disruptions or data loss, commodity price and inflation impacts, reliance on a few suppliers, and political, social, and legal conditions in international markets[22](index=22&type=chunk) [Supplementary Financial Data](index=5&type=section&id=Supplementary%20Financial%20Data) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents Bloomin' Brands, Inc.'s unaudited consolidated statements of operations, detailing financial data for the thirteen and twenty-six weeks ended June 29, 2025, and June 30, 2024, including revenues, costs and expenses, operating income, net income, and earnings per share Consolidated Statements of Operations (unaudited): | (in thousands USD, except per share data) | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | 26 Weeks Ended June 29, 2025 | 26 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Restaurant Sales | $984,771 | $977,779 | $2,014,288 | $2,024,469 | | Franchise and Other Revenues | $17,595 | $21,590 | $37,672 | $43,973 | | **Total Revenues** | **$1,002,366** | **$999,369** | **$2,051,960** | **$2,068,442** | | Income from Operations | $29,650 | $44,052 | $86,881 | $114,969 | | Net Income (Loss) from Continuing Operations | $25,893 | $25,976 | $69,743 | ($59,222) | | Diluted EPS (Continuing Operations) | $0.29 | $0.28 | $0.79 | ($0.71) | [Segment Results](index=6&type=section&id=Segment%20Results) This section provides the company's unaudited segment results, broken down by U.S. and International Franchise segments, detailing revenues and operating income for each, with reconciliations to total revenues and consolidated income from operations Segment Results (in thousands USD): | Segment | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | 26 Weeks Ended June 29, 2025 | 26 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **U.S. Segment Revenues:** | | | | | | Restaurant Sales | $975,295 | $962,088 | $1,995,425 | $1,992,984 | | Franchise and Other Revenues | $10,533 | $12,085 | $21,306 | $24,293 | | **Total U.S. Segment Revenues** | **$985,828** | **$974,173** | **$2,016,731** | **$2,017,277** | | **International Franchise Segment Revenues:** | | | | | | Franchise Revenues | $7,051 | $9,444 | $16,334 | $19,556 | | **Segment Income from Operations:** | | | | | | U.S. | $68,461 | $79,677 | $156,131 | $177,161 | | International Franchise | $6,838 | $9,050 | $15,842 | $18,739 | | **Total Segment Income from Operations** | **$75,299** | **$88,727** | **$171,973** | **$195,900** | [Supplemental Balance Sheet Information](index=6&type=section&id=Supplemental%20Balance%20Sheet%20Information) This section provides unaudited supplemental balance sheet information as of June 29, 2025, and December 29, 2024, including cash and cash equivalents, net working capital, total assets, total debt, and total stockholders' equity Supplemental Balance Sheet Information (in thousands USD): | Metric | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $50,308 | $70,056 | | Net Working Capital (Deficit) (1) | ($445,234) | ($631,817) | | Total Assets | $3,307,548 | $3,384,805 | | Total Debt | $917,073 | $1,027,398 | | Total Stockholders' Equity | $401,294 | $139,446 | [Restaurant-Level and Adjusted Operating Income Reconciliations](index=7&type=section&id=Restaurant-Level%20and%20Adjusted%20Operating%20Income%20Reconciliations) This section provides non-GAAP reconciliations of GAAP operating income to restaurant-level and adjusted restaurant-level operating income and their respective margins, explaining revenue and operating expense categories not included in restaurant-level operating income Restaurant-Level and Adjusted Restaurant-Level Operating Income and Margin Non-GAAP Reconciliations (in thousands USD): | Metric | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | 26 Weeks Ended June 29, 2025 | 26 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Income from Operations | $29,650 | $44,052 | $86,881 | $114,969 | | Operating Income Margin | 3.0 % | 4.4 % | 4.2 % | 5.6 % | | Restaurant-Level Operating Income (1) | $117,720 | $136,731 | $260,548 | $298,314 | | Restaurant-Level Operating Margin | 12.0 % | 14.0 % | 12.9 % | 14.7 % | | Adjusted Restaurant-Level Operating Income | $117,720 | $136,731 | $260,548 | $298,748 | | Adjusted Restaurant-Level Operating Margin | 12.0 % | 14.0 % | 12.9 % | 14.8 % | - Restaurant-level operating income excludes franchise and other revenues, depreciation and amortization, general and administrative expenses, and asset impairment and restaurant closure costs, as these do not reflect restaurant-level operating performance[32](index=32&type=chunk) [Adjusted Income from Operations Reconciliations](index=8&type=section&id=Adjusted%20Income%20from%20Operations%20Reconciliations) This section provides non-GAAP reconciliations of GAAP income from operations to adjusted income from operations and its margin, detailing adjustments for consolidated, U.S., and International Franchise segments, including severance, transformation costs, foreign exchange forward contract costs, and asset impairment and closure-related expenses Adjusted Income from Operations and Margin Non-GAAP Reconciliations (in thousands USD): | Metric | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | 26 Weeks Ended June 29, 2025 | 26 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Income from Operations | $29,650 | $44,052 | $86,881 | $114,969 | | Operating Income Margin | 3.0 % | 4.4 % | 4.2 % | 5.6 % | | Total Adjustments | $5,775 | $15,760 | $12,232 | $28,714 | | Adjusted Income from Operations | $35,425 | $59,812 | $99,113 | $143,683 | | Adjusted Income from Operations Margin | 3.5 % | 6.0 % | 4.8 % | 6.9 % | - Adjustments primarily include severance and other transformation costs, foreign exchange forward contract costs, and asset impairment and closure-related expenses[35](index=35&type=chunk)[36](index=36&type=chunk) [Adjusted Net Income and Diluted EPS Reconciliations](index=9&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20EPS%20Reconciliations) This section provides non-GAAP reconciliations of GAAP net income and diluted EPS to adjusted net income and adjusted diluted EPS, detailing adjustments and their impact on continuing and discontinued operations Adjusted Net Income and Adjusted Diluted EPS Non-GAAP Reconciliations (in thousands USD, except per share data): | Metric | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | 26 Weeks Ended June 29, 2025 | 26 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) Attributable to Bloomin' Brands | $25,419 | $28,403 | $67,571 | ($55,469) | | Net Income (Loss) Attributable to Bloomin' Brands from Continuing Operations (1) | $24,640 | $24,748 | $67,046 | ($62,032) | | Adjusted Net Income (Continuing Operations) | $27,290 | $39,754 | $77,283 | $100,684 | | Adjusted Diluted EPS (Continuing Operations) | $0.32 | $0.45 | $0.91 | $1.09 | | Adjusted Diluted EPS (6)(7) | $0.33 | $0.51 | $0.91 | $1.18 | Summary of Financial Statement Line Item Classification of Net Income (Loss) from Continuing Operations Adjustments (in thousands USD): | Metric | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | 26 Weeks Ended June 29, 2025 | 26 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | General and Administrative | $5,775 | $1,547 | $14,243 | $3,974 | | Asset Impairment and Restaurant Closure | — | $14,213 | ($2,011) | $24,306 | | Loss on Extinguishment of Debt | — | — | — | $135,797 | | Income Tax Provision | ($3,125) | ($754) | ($1,995) | ($1,795) | | **Net Adjustments** | **$2,650** | **$15,006** | **$10,237** | **$162,716** | - Adjustments include operating income adjustments, loss on extinguishment of debt, and income tax provision adjustments[39](index=39&type=chunk) [Comparative Restaurant Information](index=10&type=section&id=Comparative%20Restaurant%20Information) This section provides restaurant count information as of June 29, 2025, detailed by brand, ownership type (company-owned or franchised), and U.S. and international markets, including new openings and closures for the quarter Restaurant Count: | Brand | March 30, 2025 | Opened | Closed | June 29, 2025 | | :--- | :--- | :--- | :--- | :--- | | **U.S.:** | | | | | | Outback Steakhouse (Company-Owned) | 552 | 7 | (2) | 557 | | Carrabba's Italian Grill (Company-Owned) | 191 | — | — | 191 | | Bonefish Grill (Company-Owned) | 162 | — | — | 162 | | Fleming's Prime Steakhouse & Wine Bar (Company-Owned) | 65 | — | — | 65 | | **U.S. Total** | **1,113** | **7** | **(2)** | **1,118** | | **International Franchise Total** | **343** | **12** | **(4)** | **351** | | **System Total** | **1,466** | **19** | **(6)** | **1,479** | [Comparable Restaurant Sales Information](index=11&type=section&id=Comparable%20Restaurant%20Sales%20Information) This section provides year-over-year percentage changes in U.S. comparable restaurant sales, traffic, and average check for the thirteen and twenty-six weeks ended June 29, 2025, and June 30, 2024, broken down by brand Comparable Restaurant Sales (restaurants open 18+ months) Year-over-Year % Change: | Brand | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | | Outback Steakhouse | (0.6)% | (0.1)% | | Carrabba's Italian Grill | 3.9 % | 2.0 % | | Bonefish Grill | (5.8)% | (2.0)% | | Fleming's Prime Steakhouse & Wine Bar | 3.8 % | (1.1)% | | **U.S. Total** | **(0.1)%** | **(0.1)%** | Traffic Year-over-Year % Change: | Brand | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | | Outback Steakhouse | (1.0)% | (4.1)% | | Carrabba's Italian Grill | 0.7 % | (1.8)% | | Bonefish Grill | (11.4)% | (4.8)% | | Fleming's Prime Steakhouse & Wine Bar | (0.6)% | (8.2)% | | **U.S. Total** | **(2.0)%** | **(3.8)%** | Average Check (2) Year-over-Year % Change: | Brand | 13 Weeks Ended June 29, 2025 | 13 Weeks Ended June 30, 2024 | | :--- | :--- | :--- | | Outback Steakhouse | 0.4 % | 4.0 % | | Carrabba's Italian Grill | 3.2 % | 3.8 % | | Bonefish Grill | 5.6 % | 2.8 % | | Fleming's Prime Steakhouse & Wine Bar | 4.4 % | 7.1 % | | **U.S. Total** | **1.9 %** | **3.7 %** |

Market Overview - Volatility in the U.S. stock market is expected to continue due to uncertainty regarding interest rate cuts, new tariffs, and geopolitical tensions, complicating portfolio management for individual investors [1] Investment Strategy - Selecting inappropriate stocks can negatively affect returns, undermining investment goals; adhering to broker advice is suggested as brokers possess extensive knowledge of stocks and the broader economy [2] Recommended Stocks - Broker-friendly stocks identified for potential healthy returns include BrightSpring Health Services (BTSG), GXO Logistics (GXO), BrightView Holdings (BV), Bloomin' Brands (BLMN), and Archer Daniels Midland Company (ADM) [3][9] Screening Methodology - A screening strategy was developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a valuation metric [4] Screening Criteria - The screening criteria include: - Top 75 companies with net upgrades in broker ratings over the last four weeks [5] - Top 10 stocks with positive earnings estimate revisions for the upcoming quarter [5] - Bottom 10% of stocks based on price/sales ratio [5] - Stocks priced above $5 to attract investor interest [5] - Average daily volume exceeding 100,000 shares over the last 20 trading days [6] - Top 3000 stocks by market capitalization [6] Company Highlights - **BrightSpring Health Services (BTSG)**: Expected earnings growth rate of 55.4% for 2025, with a projected revenue increase of 9.1% over 2024; currently holds a Zacks Rank 2 (Buy) [7][9] - **GXO Logistics (GXO)**: Benefits from increased e-commerce and cost-cutting efforts; projected revenue growth of 9.9% for 2025; currently holds a Zacks Rank 3 (Hold) [10][11] - **BrightView Holdings (BV)**: Largest commercial landscaper in the U.S., with expected earnings growth of 10.5% for 2025; currently holds a Zacks Rank 3 [12][13] - **Bloomin' Brands (BLMN)**: Performance driven by off-premise channels and technology upgrades; Zacks Consensus Estimate for 2025 earnings revised upward by 1.7% [14][15] - **Archer Daniels Midland Company (ADM)**: Focus on flexitarian diets and sustainable materials; currently holds a Zacks Rank 3 [16][17]