Bloomin’ Brands(US:BLMN)2024-02-27 16:00Financial Performance - In 2023, total restaurant sales increased to $4,005.1 million from $3,863.0 million in 2022, representing a growth of approximately 3.7%[462] - Restaurant-level operating income was $618.4 million in 2023, compared to $596.0 million in 2022, maintaining a restaurant-level operating margin of 15.4%[462] - Adjusted net income for fiscal year 2023 was $268.2 million, compared to $232.9 million in 2022[497] - The company reported a net income attributable to Bloomin' Brands of $247.4 million for fiscal year 2023, compared to $101.9 million in 2022[497] - The company's international income from operations increased to $83.9 million in 2023, up from $57.3 million in 2022, with an operating income margin of 13.6%[494] Operational Efficiency - The operating income margin decreased to 9.3% in 2023 from 10.4% in 2022, indicating a decline in operational efficiency[462] - Food and beverage costs decreased as a percentage of restaurant sales by 2.0% due to higher average check per person and cost-saving initiatives[452] - The restaurant-level operating margin for fiscal year 2023 was 20.5%, an increase from 18.5% in 2022[494] Expansion and Growth Strategy - The company opened 66 new restaurants in 2023, contributing to the overall increase in restaurant sales, despite the closure of 35 restaurants since December 26, 2021[394] - The company plans to focus on market expansion in the U.S. and Brazil, targeting key southern states and pursuing global franchise opportunities[387] Financial Position and Cash Flow - Net cash provided by operating activities for fiscal year 2023 was $532.4 million, an increase from $390.9 million in 2022[486] - As of December 31, 2023, the company had $599.2 million in available unused borrowing capacity under its revolving credit facility, net of letters of credit of $19.8 million[476] - The company had $111.5 million in cash and cash equivalents as of December 31, 2023, with $36.3 million held by foreign affiliates[500] Debt and Capital Management - The company incurred new debt of $1,079 million in 2023, while making payments totaling $1,128,214 million, resulting in a net decrease in debt[501] - The interest rate for the revolving credit facility was 6.96% as of December 31, 2023, with the 2025 notes at 5.00% and 2029 notes at 5.13%[501] - The company expects to remain in compliance with its debt covenants during the next 12 months and beyond[478] Shareholder Returns - The company declared and paid quarterly cash dividends of $0.24 per share in 2023, compared to $0.14 per share in 2022[483] - A quarterly cash dividend of $0.24 per share was declared in February 2024, with future dividends dependent on earnings and financial conditions[509] - The company approved a new $350 million share repurchase program in February 2024, aimed at providing flexibility for retiring 2025 notes[510] Legal and Regulatory Matters - The effective income tax rate in 2023 was lower than the statutory rate of approximately 26%, primarily due to benefits from Brazil tax legislation[458] - The company anticipates making a judicial deposit of approximately $45.0 million to $50.0 million in connection with ongoing litigation regarding tax exemptions in Brazil[482] Other Financial Metrics - Franchise and other revenues were $48.5 million in 2023, slightly down from $48.9 million in 2022[462] - General and administrative expenses increased due to higher legal, professional, and compensation-related costs[455] - The company reported unearned revenue from unredeemed gift cards of $381.9 million as of December 31, 2023[516] - The liability for insurance claims was recorded at $45.9 million as of December 31, 2023, down from $49.1 million the previous year[525] - The transition to the Secured Overnight Financing Rate (SOFR) did not materially impact the interest rate applied to borrowings under the Amended Credit Agreement[502] - Capital expenditures are estimated to be between $270 million and $290 million for 2024, influenced by various economic factors[506]