Bloomin’ Brands(BLMN) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 diluted EPS was $0.08, down from$0.45 in Q3 2023, while adjusted diluted EPS was $0.21 compared to$0.41 in the prior year, reflecting a decrease of 0.20[3]. - Total revenues for Q3 2024 were $1,038.8 million, a decline of 3.8$1,079.8 million in Q3 2023[4]. - GAAP operating income margin decreased to 5.4% in Q3 2024 from 9.1% in Q3 2023, while adjusted operating income margin fell to 5.3% from 7.6%[4][6]. - Net income attributable to Bloomin' Brands for the thirteen weeks ended September 29, 2024, was $6,912, a significant decrease from$44,528 in the same period last year, reflecting a decline of 84.5%[26]. - The company reported a total debt of $1,092,189 as of September 29, 2024, an increase from$780,719 at the end of December 31, 2023[29]. - The operating income margin for the U.S. segment was 4.4% for the thirteen weeks ended September 29, 2024, compared to 7.4% in the prior year[32]. - Income from operations for the thirteen weeks ended September 29, 2024, was $15,608,000, a decrease from$22,034,000 for the same period in 2023[33]. - The adjusted income from operations for the thirteen weeks ended September 29, 2024, was $30,948,000, compared to$56,960,000 in the prior year[36]. - The total income from operations adjustments for the thirty-nine weeks ended September 29, 2024, amounted to $43,918,000[36]. - The loss on extinguishment of debt for the thirty-nine weeks ended September 29, 2024, was$135,797,000[41]. Restaurant Operations - Comparable restaurant sales in the U.S. decreased by 1.5% in Q3 2024, with Outback Steakhouse down 1.3% and Carrabba's Italian Grill down 1.5%[9]. - Restaurant sales for the U.S. segment decreased to $877,052 for the thirteen weeks ended September 29, 2024, down from$901,138 in the prior year, representing a decline of 2.7%[28]. - Restaurant-level operating income for the thirteen weeks ended September 29, 2024, was $100,315, down from$114,869 in the same period last year, indicating a decrease of 12.7%[32]. - The restaurant-level operating margin for the thirteen weeks ended September 29, 2024, was 12.5%, down from 13.8% in the previous year[34]. - The total number of restaurants as of September 29, 2024, was 1,463, a net decrease of 11 locations from the previous quarter[42]. - The company-owned restaurant count in the U.S. was 1,173, with 10 closures during the quarter[42]. - Internationally, the company had a total of 345 restaurants, with a net decrease of 10 locations[42]. Strategic Initiatives - The company announced a strategic re-franchise of its Brazil operations, selling 67% for R$1.4 billion (approximately$243 million), reflecting a total enterprise value of R$2.06 billion[14]. - The company plans to continue expanding its restaurant footprint while managing operational costs effectively[39]. - The company is committed to improving performance through a consistent guest experience, particularly focusing on Outback Steakhouse[2]. Guidance and Projections - The updated fiscal 2024 guidance includes U.S. comparable restaurant sales expected to decline between 1.0$1.72 to $1.82[12]. - The effective tax rate guidance for fiscal 2024 has been updated to approximately 6$265.7 million, with $96.8 million remaining under the share repurchase authorization[10]. - Cash and cash equivalents decreased to$83,632 as of September 29, 2024, from $111,519 at the end of December 31, 2023[29]. - The company experienced a net working capital deficit of$587,912 as of September 29, 2024, an improvement from a deficit of $659,021 at the end of December 31, 2023[29]. Sales Performance by Segment - Comparable restaurant sales for Outback Steakhouse in the U.S. decreased by 1.3% for the 13 weeks ended September 29, 2024, compared to a decrease of 1.1% for the same period last year[43]. - The average check per person for Outback Steakhouse in the U.S. increased by 2.6% for the 13 weeks ended September 29, 2024, compared to an increase of 5.0% for the same period last year[43]. - Traffic for Outback Steakhouse in the U.S. decreased by 3.9% for the 13 weeks ended September 29, 2024, compared to a decrease of 6.1% for the same period last year[43]. - Comparable restaurant sales for Carrabba's Italian Grill in the U.S. decreased by 1.5% for the 13 weeks ended September 29, 2024, compared to an increase of 3.0% for the same period last year[43]. - The average check per person for Bonefish Grill in the U.S. increased by 4.4% for the 13 weeks ended September 29, 2024, compared to an increase of 5.2% for the same period last year[43]. - Traffic for Bonefish Grill in the U.S. decreased by 8.5% for the 13 weeks ended September 29, 2024, compared to a decrease of 5.7% for the same period last year[43]. - Comparable restaurant sales for Outback Steakhouse in Brazil decreased by 3.6% for the 13 weeks ended September 29, 2024, compared to an increase of 4.1% for the same period last year[43]. - The combined U.S. comparable restaurant sales decreased by 1.5% for the 13 weeks ended September 29, 2024, compared to a decrease of 0.5% for the same period last year[43]. - The average check per person for Carrabba's Italian Grill in the U.S. increased by 1.9% for the 13 weeks ended September 29, 2024, compared to an increase of 3.1% for the same period last year[43]. - Traffic for the combined U.S. restaurants decreased by 4.4% for the 13 weeks ended September 29, 2024, compared to a decrease of 4.7% for the same period last year[43].