[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]

Group 1: Bloomin' Brands - Bloomin' Brands is facing challenges such as weak comparable store growth and rising costs, exacerbated by the divestiture of its Brazilian holding as part of a long-term repositioning strategy [3][4] - The company is focusing on core operations, simplifying the menu, improving efficiencies through technology investments, and implementing a value-oriented marketing campaign [4] - Despite business contraction, the dividend yield stands at 6.27% with a recent annual dividend of $0.60, and the payout ratio is notably high at -2,000% [3][4] Group 2: Flowers Foods - Flowers Foods is transitioning from traditional baked goods to healthier options, supported by strategic acquisitions to enhance its good-for-you portfolio [8][9] - The company has a dividend yield of 6.34% with an annual dividend of $0.99 and a payout ratio of 91.67%, indicating sustainability due to strong cash flow and a healthy balance sheet [8][9] - Institutional ownership is significant, with approximately 75% of shares held by institutions, and they have been actively buying in recent quarters [10] Group 3: Haverty Furniture Company - Haverty Furniture Company is experiencing sluggish home sales and consumer pullback, leading to eight consecutive quarters of revenue contraction, although growth is expected to resume in the latter half of 2025 [13][14] - The dividend yield is 6.16% with an annual dividend of $1.28, but the payout ratio is concerning at 101.59%, indicating higher risk [12][13] - The company maintains a strong balance sheet with no debt and a total liability of slightly more than one times equity, providing a robust financial position [15]

Core Insights - The article emphasizes the expertise of the company in analyzing restaurant stocks across various segments in the U.S. market, including QSR, fast casual, casual dining, fine dining, and family dining [1] Group 1: Company Overview - The company is led by a founder with a strong background in Business Administration and Accounting, holding an MBA in Forensic Accounting and Controllership [1] - The company employs advanced analytical models and specialized valuation techniques to provide detailed insights and actionable strategies for investors [1] Group 2: Industry Engagement - The company actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include discussions on monetary policy, financial education, and financial modeling, aimed at making these subjects accessible to a broader audience [1]

Core Insights - Bloomin' Brands has shown strong stock performance with a 17% increase leading up to its first-quarter earnings, but weak guidance led to a 4.4% decline post-earnings [1][3] - The company operates popular chains like Outback Steakhouse and Carrabba's, allowing it to engage in various dining segments [2] - Despite beating quarterly revenue and earnings expectations, year-over-year figures were lower, and the company is losing market share [3][6] Financial Performance - The CEO acknowledged that the company is experiencing softness in demand, particularly among households earning under $100,000, contributing to lower guidance [6][8] - Comparable sales are forecasted to decline between 1.5% to 2.5% in the current quarter, with EPS expected between 22 to 27 cents, nearly 50% lower year-over-year at the high end [7][8] - The company maintains its full-year guidance for now, despite the challenges [8] Strategic Initiatives - The CEO highlighted issues with ingredient quality and customer experience consistency, leading to plans for a menu reduction across its chains [4][5] - The menu changes will focus on removing low-performing items and reducing seasonal promotions that require additional training [5] Valuation Metrics - The stock has a price-to-earnings (P/E) ratio of approximately 4.3x and a dividend yield over 7%, which may attract value-oriented investors [9] - However, other financial metrics indicate weakness, such as a price-to-sales (P/S) ratio of 0.17, which is 39.4% lower than its trailing-twelve-month average, and a debt-to-equity ratio of 7.66, which is 83.7% higher than its TTM average [14] Analyst Sentiment - Analysts have a consensus "Reduce" rating on the stock, with a price target of $13.85, suggesting an 84% potential increase [10] - Short interest in the stock has increased to over 10% of the float, indicating bearish sentiment [12] - Despite the challenges, the stock may become more appealing if economic conditions improve, such as interest rate cuts or lower inflation [12]

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Q1 2025, including balance sheets, income statements, cash flows, and notes on significant events [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$3.31 billion**, liabilities to **$2.92 billion**, while stockholders' equity significantly increased to **$384.9 million** due to the Brazil sale reclassification Balance Sheet Items (In thousands) | Balance Sheet Items (In thousands) | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,305,370** | **$3,384,805** | | Total Current Assets | $318,881 | $320,519 | | Property, fixtures and equipment, net | $951,544 | $948,521 | | Total Liabilities | $2,920,520 | $3,245,359 | | Total Current Liabilities | $778,465 | $952,336 | | Long-term debt, net | $917,610 | $1,027,398 | | **Total Stockholders' Equity** | **$384,850** | **$139,446** | - Assets and liabilities of discontinued operations, which were **$223.5 million** and **$137.8 million** respectively at year-end 2024, were removed from the balance sheet in Q1 2025 following the completion of the Brazil Sale Transaction[13](index=13&type=chunk)[34](index=34&type=chunk) [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The company reported **$43.6 million** net income for Q1 2025, a turnaround from a **$82.3 million** net loss in Q1 2024, despite a slight revenue decrease Income Statement (In thousands) | Income Statement (In thousands) | Q1 2025 (Thirteen Weeks Ended Mar 30) | Q1 2024 (Thirteen Weeks Ended Mar 31) | | :--- | :--- | :--- | | Total Revenues | $1,049,594 | $1,069,073 | | Income from Operations | $57,231 | $70,917 | | Loss on extinguishment of debt | $0 | ($135,797) | | Net Income (Loss) | $43,596 | ($82,290) | | Net Income (Loss) Attributable to Bloomin' Brands | $42,152 | ($83,872) | | Diluted Earnings (Loss) Per Share | $0.50 | ($0.96) | - Comprehensive income was **$258.6 million**, boosted by a **$217.5 million** reclassification of foreign currency translation adjustments into earnings due to the sale of the Brazil business[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable at **$73.5 million**, while investing activities provided **$39.7 million** due to the Brazil sale, and financing activities used **$125.2 million** Cash Flow Summary (In thousands) | Cash Flow Summary (In thousands) | Q1 2025 (Thirteen Weeks Ended Mar 30) | Q1 2024 (Thirteen Weeks Ended Mar 31) | | :--- | :--- | :--- | | Net cash provided by operating activities | $73,465 | $73,786 | | Net cash provided by (used in) investing activities | $39,733 | ($64,585) | | Net cash (used in) provided by financing activities | ($125,240) | $8,758 | | **Net (decrease) increase in cash** | **($12,365)** | **$17,291** | | **Cash and cash equivalents at end of period** | **$57,691** | **$131,664** | - The primary driver for the positive cash flow from investing activities was the **$95.9 million** received from the sale of the Brazil business[20](index=20&type=chunk) - Financing activities in Q1 2025 were dominated by net repayments on the revolving credit facility (**$110 million**), whereas Q1 2024 included significant share repurchases (**$232.9 million**) and proceeds from debt-related transactions[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the financial statements, covering the Brazil business sale, equity method investment, revenue disaggregation, debt, stock-based compensation, and segment performance - The company completed the sale of **67%** of its ownership interest in its Brazil business on December 30, 2024, resulting in its treatment as a discontinued operation and a retained **33%** equity method interest[31](index=31&type=chunk)[39](index=39&type=chunk) - The company declared and paid a cash dividend of **$0.15** per common share during the first fiscal quarter of 2025, totaling **$12.7 million**[67](index=67&type=chunk) - As of March 30, 2025, the company was in compliance with all debt covenants[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, including revenue decrease, comparable sales decline, cost inflation, Brazil sale impact, liquidity, and capital expenditure plans [Results of Operations](index=30&type=section&id=MD%26A_Results_of_Operations) Total revenues decreased by **1.8%** in Q1 2025, with U.S. comparable restaurant sales down **0.5%** due to traffic declines and increased food and labor costs U.S. Comparable Restaurant Sales (Year-over-Year % Change) | U.S. Comparable Restaurant Sales (YoY % Change) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Outback Steakhouse | (1.3)% | (1.2)% | | Carrabba's Italian Grill | 1.4% | 0.4% | | Bonefish Grill | (4.0)% | (4.9)% | | Fleming's Prime Steakhouse & Wine Bar | 5.1% | (2.0)% | | **Combined U.S.** | **(0.5)%** | **(1.6)%** | - Combined U.S. traffic declined by **3.9%** in Q1 2025, following a **4.3%** decline in Q1 2024[132](index=132&type=chunk) - Cost pressures were evident, with food and beverage costs rising due to **0.7%** commodity inflation and **0.9%** unfavorable product mix, while labor costs increased by **1.1%** as a percentage of sales due to wage rate inflation[140](index=140&type=chunk)[141](index=141&type=chunk) [Segment Performance](index=33&type=section&id=MD%26A_Segment_Performance) U.S. segment income from operations decreased to **$87.7 million** due to lower sales and cost inflation, while International Franchise income slightly declined to **$9.0 million** Segment Performance (In thousands) | Segment Performance (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **U.S. Segment** | | | | Total Revenues | $1,030,903 | $1,043,104 | | Income from Operations | $87,670 | $97,484 | | **International Franchise Segment** | | | | Franchise Revenues | $9,283 | $10,112 | | Income from Operations | $9,004 | $9,689 | [Liquidity and Capital Resources](index=37&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company holds **$57.7 million** in cash with **$583.7 million** available on its credit facility, planning **$190-210 million** in 2025 capital expenditures and continuing shareholder returns - The company received **$103.9 million** in net cash proceeds from the Brazil Sale Transaction, which was used to pay down its revolving credit facility[173](index=173&type=chunk) - Estimated capital expenditures for 2025 are projected to be between **$190 million** and **$210 million**[174](index=174&type=chunk) - The company declared a quarterly cash dividend of **$0.15** per share in April 2025, with **$96.8 million** remaining available under the share repurchase program as of March 30, 2025[176](index=176&type=chunk)[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes have occurred in the company's market risk exposures, including commodity prices, labor inflation, foreign currency, and interest rates, since year-end 2024 - There have been no material changes in the company's market risk profile concerning commodity prices, labor inflation, foreign currency, and interest rates since December 29, 2024[190](index=190&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls were effective as of March 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period, March 30, 2025[191](index=191&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[192](index=192&type=chunk) [PART II — OTHER INFORMATION](index=42&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section refers readers to Note 15 of the financial statements for details on the company's legal proceedings - For details on legal proceedings, the report refers to Note 15 - Commitments and Contingencies in the financial statements[195](index=195&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors described in the company's 2024 Form 10-K[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred in Q1 2025, and no common stock was repurchased under the 2024 Share Repurchase Program, which has **$96.8 million** remaining authorization - No shares of common stock were repurchased during the thirteen weeks ended March 30, 2025[199](index=199&type=chunk) - As of March 30, 2025, **$96.8 million** remained available for repurchase under the 2024 Share Repurchase Program, which expires on August 13, 2025[198](index=198&type=chunk)[199](index=199&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No company directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during Q1 2025 - During Q1 2025, no company directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading plan[200](index=200&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the 2025 Omnibus Incentive Compensation Plan and CEO/CFO certifications - Filed exhibits include the Bloomin' Brands, Inc. 2025 Omnibus Incentive Compensation Plan and related award agreements[201](index=201&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[201](index=201&type=chunk)

Financial Performance - Bloomin' Brands reported revenue of $1.05 billion for the quarter ended March 2025, a year-over-year decline of 12.2% [1] - The EPS for the same period was $0.59, down from $0.70 a year ago, with a surprise of +3.51% compared to the consensus estimate of $0.57 [1][3] - The reported revenue exceeded the Zacks Consensus Estimate of $1.04 billion, resulting in a surprise of +1.32% [1] Comparable Restaurant Sales - Comparable restaurant sales for Bonefish Grill decreased by 4%, compared to an estimated decline of 1.1% [4] - Combined U.S. comparable restaurant sales were down 0.5%, better than the average estimate of -1.2% [4] - Carrabba's Italian Grill saw an increase in comparable restaurant sales of 1.4%, surpassing the estimated decline of 0.5% [4] - Fleming's Prime Steakhouse and Wine Bar reported a 5.1% increase in comparable restaurant sales, compared to an average estimate of 1.6% [4] - Outback Steakhouse experienced a decline of 1.3%, better than the estimated decline of 2.1% [4] Restaurant Count and Revenue Breakdown - The total number of system-wide restaurants was 1,466, exceeding the average estimate of 1,430 [4] - Franchise and other revenues were reported at $20.08 million, slightly below the average estimate of $20.10 million, but representing a year-over-year increase of 26.8% [4] - Restaurant sales amounted to $1.03 billion, slightly above the average estimate of $1.02 billion, but reflecting a year-over-year decline of 12.7% [4] Stock Performance - Bloomin' Brands shares returned +26.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total revenues in Q1 2025 were $1,050 million, down 1.8% from 2024, primarily due to restaurant closures and a decrease in comparable restaurant sales [22][24] - U.S. comparable restaurant sales were negative 50 basis points, with traffic down 390 basis points, which was below the casual dining industry [22][23] - Q1 GAAP diluted earnings per share were $0.50 compared to negative $1 in 2024, while adjusted diluted earnings per share were $0.59 versus $0.64 in 2024 [24][25] - Adjusted operating margins were 6.1%, down from 7.8% last year, driven by a decline in restaurant level margin and inflationary pressures [25][26] Business Line Data and Key Metrics Changes - Positive comparable sales were noted at Carrabba's and Fleming's, but overall performance was below industry standards [8][10] - Off-premises sales accounted for 23% of total U.S. sales, with third-party delivery making up 11% [23] - Menu simplification efforts included reducing menu items by approximately 10% at Outback and 20% at Bonefish, aimed at improving execution and guest satisfaction [12][13][66] Market Data and Key Metrics Changes - The company experienced a disappointing February, including a weaker Valentine's Day week, and noted a consumer pullback during the Easter holiday [9][10] - Households earning under $100,000 were identified as the most pressured demographic, impacting overall sales [44][78] Company Strategy and Development Direction - The company is focused on three operating priorities: simplifying the agenda, delivering a great guest experience, and turning around Outback Steakhouse [10][17] - A third-party consulting firm has been hired to assist with strategy and cost-saving initiatives, with a commitment to reducing debt leverage post-Brazil transaction [20][27] - The company aims to reinvest in restaurants, reduce debt leverage to below 3.0 times, and return capital to shareholders [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with financial and market share results, acknowledging the need for improvement in the current choppy macro environment [9][10] - The outlook for the remainder of the year assumes continued challenges, particularly in consumer spending and holiday performance [38][39] - Management is committed to transparency regarding results and business progress throughout the year [10][19] Other Important Information - The Board declared a quarterly dividend of $0.15 per share, payable on June 4, 2025, with $97 million remaining under the share authorization program [28] - The company expects to be at the low end of its full-year adjusted diluted earnings per share range of $1.20 to $1.40, influenced by the extinguished Brazil tax benefit and cautious consumer behavior [29][30] Q&A Session Summary Question: Outlook for the remainder of the year - Management acknowledged underperformance compared to industry benchmarks and emphasized the need for improvement in value perception and operational execution [36][37] Question: Softer holiday trends - Management noted that while some brands performed well, overall results were below expectations, particularly among households earning under $100,000 [43][44] Question: Same store sales and traffic performance - Management indicated that the entire value proposition needs to be addressed, focusing on food quality, value, and consistency of execution [46][47] Question: Price and mix component of same store sales - Mix was relatively flat in Q1, with expectations for a slight decline in Q2 due to the impact of value offers [50][51] Question: Employee feedback on execution - Employees expressed a desire for simpler execution processes and less complexity in operations [60][61] Question: Test stores performance - Management reported positive feedback from test stores regarding food quality and guest experience, with plans for a deliberate rollout based on learnings [87][88] Question: Current value construct effectiveness - Management acknowledged the need to improve the value proposition, particularly at Outback, and emphasized the iterative nature of their approach [92][93]

Financial Data and Key Metrics Changes - Total revenues in Q1 2025 were $1,050 million, down 1.8% from 2024, primarily due to restaurant closures and a decrease in comparable restaurant sales [22][24] - U.S. comparable restaurant sales were negative 50 basis points, with traffic down 390 basis points [22] - Q1 GAAP diluted earnings per share were $0.50 compared to negative $1 in 2024, while adjusted diluted earnings per share were $0.59 versus $0.64 in 2024 [24][25] - Adjusted operating margins were 6.1%, down from 7.8% last year, driven by a decline in restaurant level margin and inflationary pressures [25][26] Business Line Data and Key Metrics Changes - Positive comparable sales were noted at Carrabba's and Fleming's, but overall performance was below industry standards [8][10] - Off-premises sales accounted for 23% of total U.S. sales, with third-party delivery making up 11% [23] - Menu simplification efforts included reducing menu items by approximately 10% at Outback and Carrabba's, with further reductions planned [12][13] Market Data and Key Metrics Changes - The company experienced a disappointing February, including a weaker Valentine's Day week, and noted a consumer pullback during the Easter holiday [9][10] - Households earning under $100,000 were identified as the most pressured demographic affecting sales [43][79] Company Strategy and Development Direction - The company is focused on three operating priorities: simplifying the agenda, delivering a consistent guest experience, and turning around Outback [10][18] - A third-party consulting firm has been hired to assist with strategy and cost-saving initiatives [20] - The company aims to reduce debt leverage below 3.0 times lease-adjusted net leverage and reinvest in restaurants [21][20] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with financial and market share results, acknowledging the need for improvement [9][10] - The outlook for the remainder of the year assumes a continuation of a choppy macro environment and cautious consumer behavior [38][30] - Management is committed to transparency regarding results and business progress throughout the year [10][19] Other Important Information - The Board declared a quarterly dividend of $0.15 per share, payable on June 4, 2025 [28] - The company expects to be at the low end of its full-year adjusted diluted earnings per share range of $1.20 to $1.40 [28][29] Q&A Session Summary Question: Outlook for the remainder of the year and learnings from recent weeks - Management acknowledged underperformance compared to industry benchmarks and emphasized progress on operational priorities [37][38] Question: Value mix at Outback and profitability of value offers - Management noted that Outback is currently priced higher than competitors and is working on improving the value proposition [40] Question: Softer holiday special occasion trends - Management indicated that while some brands performed well, results were below expectations, particularly among households under $100,000 [43][44] Question: Same store sales and traffic performance - Management stated that share trends are cumulative and require improvements in food quality, value, and execution consistency [46] Question: Price and mix component of same store sales - Management reported that mix was relatively flat in Q1 but expects a slight decline in Q2 due to promotional impacts [50] Question: Employee feedback on execution and complexity - Employees expressed a desire for simpler execution processes and less complexity in operations [61] Question: Test stores performance and rollout timing - Management is encouraged by results from test stores and is focused on learning before a full rollout [88] Question: Current value construct effectiveness - Management confirmed that the current value proposition needs to be addressed, especially at Outback, and will continue to iterate based on customer feedback [93]

Core Insights - Bloomin' Brands (BLMN) reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but down from $0.70 per share a year ago, indicating a 15.71% year-over-year decline [1] - The company achieved revenues of $1.05 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.32%, but down from $1.2 billion year-over-year, reflecting a 12.5% decrease [2] - Bloomin' Brands has underperformed the market, with shares down approximately 35.1% year-to-date compared to the S&P 500's decline of 4.7% [3] Earnings Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - The earnings surprise for the latest quarter was 3.51%, with no surprise in the previous quarter where actual earnings matched expectations [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $985.29 million, and for the current fiscal year, it is $1.28 on revenues of $3.91 billion [7] - The estimate revisions trend for Bloomin' Brands is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which Bloomin' Brands belongs, is currently in the bottom 20% of the Zacks industry rankings, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Bloomin' Brands' stock performance [5]