Bloomin’ Brands(US:BLMN)2020-07-24 18:57Financial Data and Key Metrics Changes - Total revenues decreased by 43% to $578 million, with combined U.S. comparable sales down 39.4% [30] - GAAP diluted loss per share for the quarter was $1.05 compared to $0.32 of diluted earnings per share in 2019, while adjusted diluted loss per share was $0.74 versus $0.36 last year [30] - Positive cash flow was generated in June, indicating stabilization of the business [13] Business Line Data and Key Metrics Changes - At Outback, comparable restaurant sales were down 10.7% for the week ending July 19, 2020, in locations that reopened with limited dining capacity [11] - In Brazil, comparable restaurant sales at Outback locations with in-restaurant dining were down 44% [19] - The off-premises sales mix remained significant, with 55% in-restaurant and 45% off-premises sales reported recently [70] Market Data and Key Metrics Changes - As of July 19, 2020, almost all U.S. company-operated restaurants had reopened with limited capacity [9] - In Florida and Texas, sales trends remained stable despite rising COVID-19 cases, while California experienced more significant impacts due to restrictions [27][28] Company Strategy and Development Direction - The company aims to emerge stronger post-pandemic by upgrading food, menu, and service across all brands, focusing on delivery and carry-out opportunities, and enhancing digital marketing efforts [20][21][22] - Liquidity position improved to $502 million, providing financial flexibility for future opportunities [36][23] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety measures and maintaining a clean environment to attract customers back to restaurants [10][50] - The company is optimistic about retaining off-premises sales growth and improving profitability as dining rooms reopen [26][30] Other Important Information - The company permanently closed 30 restaurants during the quarter, including 25 company-owned and 5 franchise locations [35] - The adjusted tax rate for the quarter was 31.2%, influenced by negative pre-tax income and additional tax credits [34] Q&A Session Summary Question: Restaurant margin resilience despite comp sales decline - Management noted that efficiencies gained during the pandemic, particularly from menu simplification, helped maintain a low-single-digit positive margin [40][41] Question: Trends in dine-in versus off-premise sales - Management indicated that dine-in sales remained stable, with minimal migration to off-premise sales [86] Question: Off-premise sales mix breakdown - The off-premise sales mix was reported as 55% to-go, 13% in-house delivery, and 30% third-party delivery [94] Question: Sales recovery prospects in Brazil - Management expressed confidence in Brazil's recovery, noting that the team has not required additional cash infusions and is seeing a gradual increase in sales [101][100]