Bloomin’ Brands(BLMN) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 diluted EPS was $(0.93), while adjusted diluted EPS was$ 0.38, a decrease of $0.33 from Q4 2023[6] - Total revenues for Q4 2024 were$ 972.0 million, down 9.3% from $1,071.7 million in Q4 2023[9] - The company reported a GAAP operating income margin of 1.7% for Q4 2024, a decrease of 2.9% compared to Q4 2023[9] - Net loss attributable to Bloomin' Brands for the fiscal year 2024 was$ 128.0 million, compared to net income of $247.4 million in 2023[31] - The company reported a basic loss per share of$ 0.94 for the thirteen weeks ended December 29, 2024, compared to earnings of $0.50 for the fourteen weeks ended December 31, 2023[31] - Adjusted net income for the fiscal year 2024 was$ 159,342,000, down from $268,161,000 in 2023, indicating a decline of 40.6%[47] - The adjusted diluted earnings per share for continuing operations was$ 0.22 for the thirteen weeks ended December 29, 2024, compared to $0.63 for the fourteen weeks ended December 31, 2023, a decrease of 65.1%[47] - The adjusted operating income margin for the fiscal year 2024 was 5.2%, down from 7.6% in 2023[47] Sales and Revenue Trends - U.S. comparable restaurant sales for Q4 2024 decreased by 1.1%, with Outback Steakhouse down 1.8% and Carrabba's Italian Grill down 0.9%[11] - For fiscal 2025, the company expects U.S. comparable restaurant sales to range from (2.0%) to flat[14] - Restaurant sales decreased to$ 952.1 million for the thirteen weeks ended December 29, 2024, down 9.2% from $1,048.6 million for the fourteen weeks ended December 31, 2023[31] - The U.S. segment revenues for the thirteen weeks ended December 29, 2024, were$ 952.5 million, a decrease of 8.6% from $1,042.4 million for the fourteen weeks ended December 31, 2023[32] - Comparable restaurant sales in the U.S. decreased by 1.1% year-over-year for the thirteen weeks ended December 29, 2024, with Outback Steakhouse specifically declining by 1.8%[54] Operational Changes - The company completed the sale of 67% of its Brazil operations on December 30, 2024, retaining a 33% interest[5] - The company plans to open 18 to 20 new company-owned restaurants and approximately 30 new franchised restaurants in 2025[15] - The company opened 3 new restaurants in the U.S. and closed 5, resulting in a total of 1,116 U.S. restaurants as of December 29, 2024[52] - The company’s international franchise total increased to 145 restaurants, with 2 new openings in South Korea[52] Cost and Inflation - Commodity inflation is expected to be between 2.5% and 3.5%, while labor inflation is projected at 4% to 5% for 2025[15] - The company anticipates ongoing challenges due to inflation and labor costs impacting future performance[27] - The total costs and expenses for the thirteen weeks ended December 29, 2024, were$ 955.8 million, a decrease of 6.5% compared to $1,022.1 million for the fourteen weeks ended December 31, 2023[31] Debt and Cash Position - The company reported a total debt of$ 1,027.4 million as of December 29, 2024, an increase from $780.7 million as of December 31, 2023[35] - Cash and cash equivalents decreased to$ 70.1 million as of December 29, 2024, down from $111.5 million as of December 31, 2023[35] Asset Impairments and Adjustments - The company incurred asset impairments and closure-related charges of$ 30,602,000 for the thirteen weeks ended December 29, 2024, compared to $34,822,000 for the fourteen weeks ended December 31, 2023[41] - The company’s provision for impaired assets and restaurant closings amounted to$ 57.2 million for the fiscal year 2024[50] - For the fiscal year 2024, the company reported a net adjustment of $181.1 million from continuing operations, primarily due to provisions for impaired assets and restaurant closings[50] Traffic and Customer Spending - The company’s traffic in U.S. continuing operations decreased by 5.1% year-over-year for the thirteen weeks ended December 29, 2024[54] - The average check per person for U.S. continuing operations increased by 4.0% during the same period, indicating a positive trend in customer spending[54]