Bloomin’ Brands(BLMN) - 2025 Q1 - Quarterly Results

Financial Performance Overview Bloomin' Brands reported a decline in Q1 2025 revenues and comparable sales, while reaffirming full-year guidance and maintaining capital returns Q1 2025 Key Financial Results Bloomin' Brands reported Q1 2025 revenues of $1.05 billion, down 1.8%, with diluted EPS at $0.50, up from ($1.00) in Q1 2024 - CEO Mike Spanos stated the company is making progress on operating priorities to simplify the business and is navigating a choppy macro environment by emphasizing everyday value offerings[4] Q1 2025 vs Q1 2024 Earnings Per Share | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.50 | $(1.00) | $1.50 | | Adjusted Diluted EPS | $0.59 | $0.64 | $(0.05) | Q1 2025 Financial Highlights from Continuing Operations (dollars in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total revenues | $1,049.6 | $1,069.1 | (1.8)% | | GAAP operating income margin | 5.5% | 6.6% | (1.1)% | | Adjusted operating income margin | 6.1% | 7.8% | (1.7)% | | Restaurant-level operating margin | 13.9% | 15.4% | (1.5)% | - The decrease in total revenues was primarily driven by the net impact of restaurant closures and openings, along with a decrease in comparable restaurant sales[6] - The decline in restaurant-level operating margin was attributed to lower revenues, higher operating, labor, and commodity costs due to inflation, and unfavorable product mix, partially offset by higher average checks from pricing and cost-saving initiatives[14] Q1 2025 Comparable Restaurant Sales Combined U.S. comparable restaurant sales decreased by 0.5% in Q1 2025, with varied brand performance Q1 2025 U.S. Company-Owned Comparable Restaurant Sales | Brand | Comparable Sales Growth | | :--- | :--- | | Outback Steakhouse | (1.3)% | | Carrabba's Italian Grill | 1.4% | | Bonefish Grill | (4.0)% | | Fleming's Prime Steakhouse & Wine Bar | 5.1% | | Combined U.S. | (0.5)% | Capital Allocation The company declared a $0.15 per share quarterly dividend and has $96.8 million remaining for share repurchases - A quarterly cash dividend of $0.15 per share was declared on April 23, 2025, payable on June 4, 2025[9] - No share repurchases were made in 2025, with $96.8 million remaining under the 2024 Share Repurchase Program[9] Financial Outlook Bloomin' Brands reaffirmed full-year 2025 guidance, projecting Q2 U.S. comparable sales decline and adjusted diluted EPS of $0.22-$0.27 - The company reaffirmed its full-year financial guidance for fiscal 2025[10] Q2 2025 Financial Outlook | Metric | Q2 2025 Outlook | | :--- | :--- | | U.S. comparable restaurant sales | (2.5%) to (1.5%) | | Diluted earnings per share | $0.20 to $0.25 | | Adjusted diluted earnings per share | $0.22 to $0.27 | Detailed Financial Statements Detailed financial statements show Q1 2025 revenue and operating income declines, improved net income, and reduced debt Consolidated Statements of Operations (Table One) Q1 2025 total revenues decreased to $1.05 billion, with net income of $42.2 million, a recovery from a prior-year loss Q1 2025 Consolidated Statement of Operations Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $1,049,594 | $1,069,073 | | Income from operations | $57,231 | $70,917 | | Loss on extinguishment of debt | $— | $(135,797) | | Net income (loss) from continuing operations | $43,850 | $(85,198) | | Net income (loss) attributable to Bloomin' Brands | $42,152 | $(83,872) | | Diluted EPS from continuing operations | $0.50 | $(1.00) | Segment Results (Table Two) The U.S. segment reported $1.03 billion in revenues and $87.7 million in operating income, while International Franchise contributed $9.0 million Q1 2025 Segment Performance (in thousands) | Segment | Total Revenues | Income from Operations | | :--- | :--- | :--- | | Q1 2025 | | | | U.S. Segment | $1,030,903 | $87,670 | | International Franchise | $9,283 | $9,004 | | Q1 2024 | | | | U.S. Segment | $1,043,104 | $97,484 | | International Franchise | $10,112 | $9,689 | Supplemental Balance Sheet Information (Table Three) As of March 30, 2025, cash was $57.7 million, total debt reduced to $917.6 million, and stockholders' equity increased to $384.9 million Balance Sheet Highlights (in thousands) | Metric | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $57,691 | $70,056 | | Total assets | $3,305,370 | $3,384,805 | | Total debt | $917,610 | $1,027,398 | | Total stockholders' equity | $384,850 | $139,446 | Non-GAAP Reconciliations Non-GAAP reconciliations provide adjusted operating income, net income, and EPS, highlighting operational profitability and non-recurring impacts Restaurant-Level Operating Income Reconciliation (Table Four) Q1 2025 restaurant-level operating income was $142.8 million (13.9% margin), a decline from $161.6 million (15.4% margin) in Q1 2024 Reconciliation to Restaurant-Level Operating Income (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from continuing operations | $57,231 | $70,917 | | Restaurant-level operating income | $142,828 | $161,583 | | Restaurant-level operating margin | 13.9% | 15.4% | | Adjusted restaurant-level operating income | $142,828 | $162,017 | | Adjusted restaurant-level operating margin | 13.9% | 15.5% | Adjusted Income from Operations Reconciliation (Table Five) Q1 2025 adjusted income from operations was $63.7 million (6.1% margin), down from $83.9 million (7.8% margin) in Q1 2024 Reconciliation to Adjusted Income from Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from continuing operations | $57,231 | $70,917 | | Total adjustments | $6,457 | $12,955 | | Adjusted income from operations | $63,688 | $83,872 | | Adjusted operating income margin | 6.1% | 7.8% | - Key adjustments in Q1 2025 included $6.1 million in severance and restructuring costs and $2.3 million in costs related to foreign currency forward contracts from the Brazil sale[34][35] Adjusted Net Income and EPS Reconciliation (Table Six) Q1 2025 adjusted net income was $50.0 million ($0.59/share), lower than Q1 2024's $60.9 million ($0.64/share) after adjustments Reconciliation to Adjusted Net Income and EPS (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to Bloomin' Brands from continuing operations | $42,406 | $(86,780) | | Net adjustments, continuing operations | $7,587 | $147,709 | | Adjusted net income, continuing operations | $49,993 | $60,929 | | Diluted EPS, continuing operations | $0.50 | $(1.00) | | Adjusted diluted EPS, continuing operations | $0.59 | $0.64 | - The largest adjustment in Q1 2024 was a $135.8 million loss on the extinguishment of debt related to the repurchase of convertible notes[38][39] Operational Metrics Operational metrics detail restaurant portfolio changes, including Brazil reclassification, and analyze comparable sales drivers by brand Restaurant Portfolio Changes (Table Seven) System-wide restaurant count increased by 3 units to 1,466 in Q1 2025, including reclassification of 193 Brazil restaurants to franchised Q1 2025 Restaurant Count Changes | Category | Dec 29, 2024 | Openings | Closures | Other (Reclass) | Mar 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | U.S. total | 1,116 | 4 | (7) | — | 1,113 | | International Franchise total | 145 | 7 | (2) | 193 | 343 | | System-wide total | 1,463 | 12 | (9) | — | 1,466 | - Following the sale of Brazil operations, all restaurants in that market (193 units) now operate as unconsolidated franchisees and were reclassified from company-owned[42][43] Detailed Comparable Restaurant Sales Analysis (Table Eight) Combined U.S. comparable sales declined 0.5% due to lower traffic offset by higher average checks, with varied brand performance Q1 2025 U.S. Comparable Sales Breakdown (YoY % Change) | Brand | Comp Sales | Traffic | Avg. Check | | :--- | :--- | :--- | :--- | | Outback Steakhouse | (1.3)% | (4.1)% | 2.8% | | Carrabba's Italian Grill | 1.4% | (0.3)% | 1.7% | | Bonefish Grill | (4.0)% | (9.4)% | 5.4% | | Fleming's Prime Steakhouse | 5.1% | (0.5)% | 5.6% | | Combined U.S. | (0.5)% | (3.9)% | 3.4% |