Bloomin’ Brands(US:BLMN)2024-11-08 21:06Financial Performance - Total revenues decreased by 3.8% compared to Q3 2023[117] - Operating income was $17.2 million, down from $58.2 million in Q3 2023, with restaurant-level operating margins at 12.5% compared to 13.8% in the prior year[117] - Diluted earnings per share decreased to $0.08 from $0.45 in Q3 2023[117] - For the thirteen weeks ended September 29, 2024, Bloomin' Brands reported a net income of $6.9 million, compared to $44.5 million for the same period in 2023, reflecting a significant decrease[174] - Adjusted net income for the thirty-nine weeks ended September 29, 2024, was $126.7 million, down from $200.2 million in the prior year, indicating a decline of approximately 36.6%[174] Restaurant Operations - U.S. combined and Outback Steakhouse comparable restaurant sales decreased by 1.5% and 1.3%, respectively[117] - Comparable restaurant sales in the U.S. for the thirteen weeks ended September 29, 2024, decreased by 1.5% compared to a decrease of 0.5% in the same period of 2023[133] - Restaurant sales for the thirteen weeks ended September 29, 2024, were $1,025.1 million, a decrease from $1,064.4 million for the same period in 2023, reflecting a decline of 3.7%[131] - The company closed 58 restaurants since June 25, 2023, impacting restaurant sales negatively by $31.6 million for the thirteen weeks ended September 29, 2024[131] - The company opened 56 new restaurants in the thirteen weeks ended September 29, 2024, contributing $26.5 million to restaurant sales[131] Cost and Expenses - Food and beverage costs as a percentage of restaurant sales decreased to 29.7% for the thirteen weeks ended September 29, 2024, from 30.2% in the same period of 2023[135] - Labor and other related expenses increased to 30.5% of restaurant sales for the thirteen weeks ended September 29, 2024, compared to 29.5% in the same period of 2023, primarily due to wage rate inflation[137] - Other restaurant operating expenses increased to 27.3% of restaurant sales for the thirteen weeks ended September 29, 2024, from 26.4% in the same period of 2023, driven by inflation[138] - Labor and related expenses increased by 1.8% as a percentage of restaurant sales due to higher hourly and field management labor costs, primarily from wage rate inflation[144] - Other restaurant operating expenses rose by 1.0% due to higher operating and supply expenses, 0.4% from increased advertising expenses, and 0.2% from higher pre-opening expenses[145] International Operations - An agreement was announced to sell 67% of Brazil operations for an enterprise valuation of R$2.06 billion, approximately $243 million[118] - The total number of international restaurants increased from 329 to 345 year-over-year[129] - International restaurant sales decreased to $148.0 million for the thirteen weeks ended September 29, 2024, compared to $163.3 million for the same period in 2023[157] - International income from operations for the thirteen weeks ended September 29, 2024, was $15,608,000, a decrease of 29.5% from $22,034,000 in the same period last year[167] Cash and Capital Management - As of September 29, 2024, Bloomin' Brands had $83.6 million in cash and cash equivalents, with $18.9 million held by foreign affiliates[178] - The company had aggregate undistributed foreign earnings of approximately $35.7 million that may be repatriated to the U.S. without additional material federal income tax[179] - Total credit facilities as of September 29, 2024, amounted to $1.1 billion, with an available unused borrowing capacity of $407.2 million[181] - Bloomin' Brands estimates capital expenditures for 2024 to be between $260 million and $270 million, subject to various economic factors[188] - A judicial deposit of $42.9 million was made in July 2024 related to a tax exemption appeal in Brazil, which is expected to yield interest income until resolution[190] Shareholder Returns - The Board declared a quarterly cash dividend of $0.24 per share, payable on December 11, 2024, contingent on the company's financial condition and compliance with debt covenants[191] - A new share repurchase authorization of $350 million was approved in February 2024, aimed at providing flexibility for retiring 2025 Notes[192] - The company entered into an ASR Agreement to repurchase $220.0 million of common stock, acquiring 7.9 million shares during the thirty-nine weeks ended September 29, 2024[193] - As of September 29, 2024, $96.8 million remained available for repurchase under the 2024 Share Repurchase Program[194] - Total dividends paid and share repurchases from fiscal year 2023 through September 29, 2024 amounted to $481.649 million, with $145.954 million in dividends and $335.695 million in share repurchases[195] Working Capital and Financial Position - Current assets as of September 29, 2024, were $261.058 million, down from $343.314 million as of December 31, 2023[200] - Current liabilities decreased to $848.970 million from $1,002.335 million, resulting in a working capital deficit of $587.912 million[200] - The company operates successfully with negative working capital, as cash from restaurant sales is typically received before liabilities are due[201] - There have been no material changes in market risk related to commodity prices, labor inflation, foreign currency exchange rates, and interest rates since December 31, 2023[204]