Bloomin’ Brands(US:BLMN)2026-02-25 21:06Restaurant Operations - As of December 28, 2025, Bloomin' Brands owned and operated 967 restaurants and franchised 493 restaurants across 46 states, Guam, and 12 countries[21]. - The U.S. segment includes 957 owned and 138 franchised restaurants, totaling 1,095 locations[24]. - In 2025, Bloomin' Brands opened 15 Outback Steakhouse restaurants and plans to open approximately 6 additional locations in 2026[34]. - The international franchise segment includes 355 franchised restaurants across 11 countries and Guam[30]. - In 2025, Bloomin' Brands' system-wide total was 1,460 restaurants, with 967 being company-owned and 493 franchised[38]. - The company plans to remodel nearly all Outback Steakhouse restaurants by the end of 2028[124]. - The company closed 86 restaurants since December 31, 2023, impacting overall sales performance[209]. Financial Performance - The company reported a 0.1% increase in total revenues compared to 2024, with operating income of $37.2 million, down from $139.8 million in 2024[198]. - The diluted earnings per share improved to $0.10 compared to a diluted loss per share of $(0.61) in 2024[198]. - Restaurant sales for fiscal year 2025 increased to $3,884.2 million, up from $3,866.3 million in fiscal year 2024, reflecting a change of $17.9 million[208]. - U.S. comparable restaurant sales showed a slight increase of 0.2% for fiscal year 2025, compared to a decrease of 1.1% in fiscal year 2024[211]. - Average check per person increased by 1.6% across the combined U.S. restaurants in fiscal year 2025, compared to a 3.3% increase in fiscal year 2024[211]. - Net income attributable to Bloomin' Brands for fiscal year 2025 was 0.2%, a recovery from a loss of 3.2% in fiscal year 2024[214]. Cost and Expenses - Food and beverage costs as a percentage of restaurant sales rose to 30.3% in fiscal year 2025, up from 29.7% in fiscal year 2024, primarily due to commodity inflation[214]. - Labor and other related expenses increased to 31.9% of restaurant sales in fiscal year 2025, compared to 31.1% in fiscal year 2024, driven by wage rate inflation[214]. - Other restaurant operating expenses increased to 26.1% of restaurant sales in fiscal year 2025, up from 25.9% in fiscal year 2024, mainly due to inflation[214]. Strategic Initiatives - The company has invested in technology for digital marketing, customer engagement, and operational efficiency, including online ordering and loyalty programs[56][57]. - The company continues to invest in digital marketing and social media strategies to enhance brand engagement and loyalty[100]. - The company aims to enhance operational excellence and guest experience to drive in-restaurant traffic growth[199]. - The company is focused on cost savings in non-guest facing areas and has slowed down new unit development to refresh existing restaurants[203]. Employment and Workforce - As of December 28, 2025, the company employed approximately 64,000 Team Members, with 61% of Restaurant Support Center employees being women and 23% being people of color[71]. - In 2025, the turnover rates for U.S. hourly restaurant Team Members and U.S. restaurant management were 81% and 20%, respectively[77]. - High turnover rates in restaurant staff could lead to increased labor costs and affect service quality[95]. Market and Competition - The restaurant industry faces intense competition, with challenges from quick service and fast-casual restaurants, impacting market share[92]. - Economic, political, and social conditions may negatively affect consumer spending and sales in the casual dining sector[130]. Compliance and Regulations - The company is subject to various employment and labor laws, which could increase operational costs if regulations change[101]. - The company faces potential increased compliance costs and operational challenges due to evolving laws and regulations, including those related to corporate citizenship and sustainability[110]. - The company is subject to various governmental regulations that could impact operations and financial performance[129]. Risks and Challenges - The company relies on four major beef suppliers for over 80% of its beef raw materials, exposing it to supply chain risks[97]. - The company is affected by food safety concerns, which can reduce demand and increase costs due to negative publicity[91]. - Changes in consumer preferences towards healthier options may adversely affect sales of traditional menu items[96]. - Supply chain disruptions from climate-related issues have led to ingredient price volatility, impacting operational costs[98]. - The company anticipates continued increases in labor costs due to ongoing minimum wage hikes in various states, which could materially impact overall expenses[103]. - The company faces significant risks associated with international operations, including economic and political conditions that could impact profitability[126]. - The company may face challenges in generating sufficient cash flow to meet debt obligations and operating lease commitments[144]. - The company has a substantial amount of outstanding indebtedness, which could limit its ability to raise additional capital and react to economic changes[147]. Cybersecurity - The company maintains a risk-based cybersecurity program aligned with industry standards to protect sensitive information and systems[168]. - Cybersecurity threats associated with third-party service providers are managed through security risk assessments and compliance requirements[169]. - Employees are required to participate in ongoing cybersecurity awareness activities to reinforce secure behaviors and improve the company's cybersecurity posture[170].