Bloomin’ Brands(US:BLMN)2025-05-08 20:05PART I — FINANCIAL INFORMATION Financial Statements (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 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 Transaction1334 Consolidated Statements of Operations and Comprehensive Income (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 business15 Condensed Consolidated Statements of Cash Flows 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 business20 - 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 transactions23 Notes to Consolidated Financial Statements 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 interest3139 - The company declared and paid a cash dividend of $0.15 per common share during the first fiscal quarter of 2025, totaling $12.7 million67 - As of March 30, 2025, the company was in compliance with all debt covenants60 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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 2024132 - 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 inflation140141 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 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 facility173 - Estimated capital expenditures for 2025 are projected to be between $190 million and $210 million174 - 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, 2025176177 Quantitative and Qualitative Disclosures About Market Risk 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, 2024190 Controls and Procedures 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, 2025191 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls192 PART II — OTHER INFORMATION Legal Proceedings 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 statements195 Risk Factors 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-K196 Unregistered Sales of Equity Securities and Use of Proceeds 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, 2025199 - As of March 30, 2025, $96.8 million remained available for repurchase under the 2024 Share Repurchase Program, which expires on August 13, 2025198199 Other Information 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 plan200 Exhibits 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 agreements201 - 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 exhibits201