Bloomin’ Brands(BLMN) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Highlights Overview of Q2 2025 Performance 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] Q2 2025 Financial Results from Continuing Operations 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] - 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] - 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] 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 Balance Sheet Summary 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] Shareholder Returns 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] - 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] Financial Outlook Fiscal Year 2025 Outlook 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] Q3 2025 Outlook 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] Company and Non-GAAP Information About Bloomin' Brands, Inc. 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] - The company owns, operates, and franchises over 1,450 restaurants across 46 states, Guam, and 12 countries[16] Non-GAAP Financial Measures 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] - 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] - 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] Forward-Looking Statements 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] - 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] Supplementary Financial Data Consolidated Statements of Operations 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 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 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 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] Adjusted Income from Operations Reconciliations 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][36] Adjusted Net Income and Diluted EPS Reconciliations 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] Comparative Restaurant Information 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 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 % |