Bloomin’ Brands(US:BLMN)2020-10-23 17:41Financial Data and Key Metrics Changes - Total revenues decreased by 20% to $771 million in Q3 2020 compared to the previous year [39] - GAAP diluted loss per share was $0.20, compared to diluted earnings per share of $0.11 in 2019 [39] - Adjusted diluted loss per share was $0.12, versus $0.10 of adjusted diluted earnings per share last year [39] - U.S. comp sales were down 12.8%, improving from a decline of 24.3% in June [35] - U.S. restaurant margins were positive at 11.4% in Q3, only 10 basis points below last year despite significantly lower sales volumes [44] Business Line Data and Key Metrics Changes - Comparable restaurant sales at Outback were down 10.4% in Q3, with sequential sales improvement every month [36] - Carrabba's saw 42% of its locations posting positive comps in September [62] - The off-premises business retained approximately 50% of the incremental volume achieved while dining rooms were closed [12] Market Data and Key Metrics Changes - Brazil's Outback comp sales were down 23% in September, improving to a decline of 5% to 10% in recent weeks [20] - The Brazil business generated positive cash flow for the quarter, indicating strong brand resilience [22] Company Strategy and Development Direction - The company is focused on enhancing the customer experience and pursuing off-premises business opportunities [13][17] - New menu launches at Outback aim to reinforce steak leadership and improve customer satisfaction [23] - The company is testing new growth channels, including the fast-casual brand Aussie Grill and the virtual brand Tender Shack, both showing promising initial results [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving sales trends and maintaining strong off-premises business as dining rooms reopen [38] - The company is well-positioned to capitalize on market share opportunities due to the struggles of independent restaurants during the pandemic [56] - Management highlighted the importance of maintaining safety protocols and adapting to changing consumer preferences [38] Other Important Information - The company has improved its total domestic liquidity position to $551 million, providing financial flexibility [48] - The pandemic has prompted a holistic review of the operating model, identifying efficiencies to optimize restaurant operations [14] Q&A Session Summary Question: Recent trends and sales outlook - Management sees opportunities to improve sales in Q4, with revenues building each week and a strong off-premises business [51] Question: Independent closures and market share - Management acknowledged struggles among independents and expressed readiness to gain market share, although significant real estate opportunities have not yet materialized [56] Question: Variances by states and capacity - Management noted strong performance in states like Georgia and Texas, with ongoing improvements in off-premises business [60] Question: Margin expectations and cost savings - Management discussed the potential for margin improvement based on cost savings identified pre-pandemic and efficiencies learned during the pandemic [77][80] Question: Brazil's performance and sales improvement - Management highlighted the strength of the Outback brand in Brazil, with positive cash flow generated in Q3 and expectations for continued improvement [95]