Bloomin' Brands (BLMN) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Tara Kurian - Vice President of Corporate Financial & Investor RelationsMichael Spanos - CEOMichael Healy - CFO & Executive VP of Global Business DevelopmentPratik Patel - Vice President - Equity ResearchJohn Ivankoe - MD - Equity ResearchBrian Vaccaro - Managing Director - Equity ResearchJared Hludzinski - Equity Research Senior Associate Conference Call Participants Alexander Slagle - Stock AnalystBrian Harbour - An ...

Financial Data and Key Metrics Changes - Total revenues in Q1 2025 were $1,050 million, down 1.8% from 2024, primarily due to restaurant closures and a decrease in comparable restaurant sales [22][24] - U.S. comparable restaurant sales were negative 50 basis points, with traffic down 390 basis points [22] - Q1 GAAP diluted earnings per share were $0.50 compared to negative $1 in 2024, while adjusted diluted earnings per share were $0.59 versus $0.64 in 2024 [24][25] - Adjusted operating margins were 6.1%, down from 7.8% last year, driven by a decline in restaurant level margin and inflationary pressures [25][26] Business Line Data and Key Metrics Changes - Positive comparable sales were noted at Carrabba's and Fleming's, but overall performance was below industry standards [8][10] - Off-premises sales accounted for 23% of total U.S. sales, with third-party delivery making up 11% [23] - Menu simplification efforts included reducing menu items by approximately 10% at Outback and Carrabba's, with further reductions planned [12][13] Market Data and Key Metrics Changes - The company experienced a disappointing February, including a weaker Valentine's Day week, and noted a consumer pullback during the Easter holiday [9][10] - Households earning under $100,000 were identified as the most pressured demographic affecting sales [43][79] Company Strategy and Development Direction - The company is focused on three operating priorities: simplifying the agenda, delivering a consistent guest experience, and turning around Outback [10][18] - A third-party consulting firm has been hired to assist with strategy and cost-saving initiatives [20] - The company aims to reduce debt leverage below 3.0 times lease-adjusted net leverage and reinvest in restaurants [21][20] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with financial and market share results, acknowledging the need for improvement [9][10] - The outlook for the remainder of the year assumes a continuation of a choppy macro environment and cautious consumer behavior [38][30] - Management is committed to transparency regarding results and business progress throughout the year [10][19] Other Important Information - The Board declared a quarterly dividend of $0.15 per share, payable on June 4, 2025 [28] - The company expects to be at the low end of its full-year adjusted diluted earnings per share range of $1.20 to $1.40 [28][29] Q&A Session Summary Question: Outlook for the remainder of the year and learnings from recent weeks - Management acknowledged underperformance compared to industry benchmarks and emphasized progress on operational priorities [37][38] Question: Value mix at Outback and profitability of value offers - Management noted that Outback is currently priced higher than competitors and is working on improving the value proposition [40] Question: Softer holiday special occasion trends - Management indicated that while some brands performed well, results were below expectations, particularly among households under $100,000 [43][44] Question: Same store sales and traffic performance - Management stated that share trends are cumulative and require improvements in food quality, value, and execution consistency [46] Question: Price and mix component of same store sales - Management reported that mix was relatively flat in Q1 but expects a slight decline in Q2 due to promotional impacts [50] Question: Employee feedback on execution and complexity - Employees expressed a desire for simpler execution processes and less complexity in operations [61] Question: Test stores performance and rollout timing - Management is encouraged by results from test stores and is focused on learning before a full rollout [88] Question: Current value construct effectiveness - Management confirmed that the current value proposition needs to be addressed, especially at Outback, and will continue to iterate based on customer feedback [93]

Bloomin' Brands (BLMN) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Speaker0 Greetings and welcome to the Blooming Brands' fixed cost first quarter twenty twenty five earnings conference call. At this time, all participants are in listen only mode. A brief question and answer session will follow management's prepared remarks. Please note this event is being recorded. It is now my pleasure to introduce your host Tara Curran, Vice President Corporate Finance and Investor Relations. Thank you. Mrs Curran, yo ...