Bloomin’ Brands(US:BLMN)2021-02-24 21:07Financial Performance - Total revenues decreased by 23.4% to $3.2 billion in 2020 compared to 2019, primarily due to lower comparable restaurant sales and franchise revenues related to the COVID-19 pandemic [221]. - Loss from operations was $175.0 million in 2020, a significant decline from income of $191.1 million in 2019, driven by reduced sales and costs associated with the pandemic [222]. - Net loss attributable to common stockholders was $162.2 million in 2020, compared to net income of $130.6 million in 2019 [221]. - Total revenues for fiscal year 2020 were $3,144.6 million, a decrease from $4,075.0 million in 2019, primarily due to lower comparable restaurant sales attributed to the COVID-19 pandemic [238]. - Comparable restaurant sales in the U.S. decreased by 19.9% in fiscal year 2020, with Outback Steakhouse experiencing a decline of 16.9% [241]. - The net loss attributable to Bloomin' Brands for fiscal year 2020 was 5.0%, compared to a net income of 3.2% in 2019 [236]. - The operating loss margin for the consolidated results was (5.5)% in 2020, compared to a margin of 4.6% in 2019 [284]. - For fiscal year 2020, Bloomin' Brands reported a net loss attributable to common stockholders of $162.2 million, compared to a net income of $130.6 million in 2019 [286]. - Adjusted net loss income for 2020 was $60.8 million, a significant decrease from the adjusted net income of $138.6 million in 2019 [286]. Operational Changes - As of December 27, 2020, 85% of restaurant dining rooms were open, albeit with limited seating capacity due to COVID-19 restrictions [227]. - The company plans to enhance the customer experience and drive sustainable sales growth through investments in digital marketing, restaurant remodeling, and loyalty programs [223]. - Bloomin' Brands opened 40 new restaurants in fiscal year 2020, partially offsetting the decline in sales from restaurant closures [238]. - The company anticipates franchise revenues from Out West to remain consistent with 2020 levels, depending on COVID-19-related restrictions [245]. - The company reported COVID-19-related costs of $14.3 million in fiscal year 2020, impacting overall financial performance [284]. Asset and Liability Management - Total assets decreased to $3.36 billion in 2020 from $3.59 billion in 2019, reflecting the impact of the pandemic [221]. - Total current assets decreased to $323,854 thousand in 2020 from $340,468 thousand in 2019, a decline of 4.2% [407]. - Total liabilities decreased to $3,351,150 thousand in 2020 from $3,415,202 thousand in 2019, a reduction of 1.9% [407]. - As of December 27, 2020, Bloomin' Brands had $1.1 billion in outstanding borrowings under its Senior Secured Credit Facility and 2025 Notes [298]. - The company has $533.7 million in available unused borrowing capacity under its revolving credit facility as of December 27, 2020 [299]. Cost Management - Food and beverage costs as a percentage of restaurant sales decreased to 31.3% in 2020 from 31.4% in 2019, attributed to cost-saving initiatives [246]. - Labor and related expenses decreased to $1,005.3 million in 2020 from $1,207.3 million in 2019, representing 32.0% of restaurant sales compared to 29.6% in 2019, an increase of 2.4% [249]. - Other restaurant operating expenses were $846.6 million in 2020, up from $982.1 million in 2019, accounting for 26.9% of restaurant sales, an increase of 2.8% [251]. - Depreciation and amortization expenses decreased to $180.3 million in 2020 from $196.8 million in 2019 [252]. - Labor cost inflation is anticipated to be approximately 3.0% to 3.5% in 2021 [250]. Shareholder Returns - Cash dividends declared per common share were reduced to $0.20 in 2020 from $0.40 in 2019 [221]. - The company suspended its quarterly cash dividend and stock repurchases in response to the COVID-19 pandemic [289]. - The company declared and paid dividends of $0.20 per share in Q1 2020, down from $0.10 per share in 2019, with total dividends paid in 2020 amounting to $17.5 million [325][327]. Market and Economic Conditions - The company expects commodity costs to remain flat in 2021 [248]. - The company expects to pass increased commodity prices to customers through menu price increases, although competitive circumstances may limit this flexibility [370]. - The company is exposed to foreign currency exchange risk primarily related to fluctuations in the Brazilian Real against the U.S. dollar, which could negatively impact operating results if exchange rates depreciate [367]. - In 2020, 9.0% of the company's revenue was generated in foreign currencies, with a 10% change in average foreign currency rates potentially impacting total revenues by $30.6 million and net income by $1.7 million [368].