Business Wire | Oct 23, 2020 07:00AM EDT

Bloomin' Brands Reports Strengthening Sales Trends

Oct. 23, 2020

TAMPA, Fla.--(BUSINESS WIRE)--Oct. 23, 2020--Bloomin' Brands, Inc. (Nasdaq: BLMN) today reported results for the third quarter 2020 ("Q3 2020") compared to the third quarter 2019 ("Q3 2019").

Statement from David Deno, Chief Executive Officer

Our priorities remain unchanged as we are focused on taking care of our people and serving food in an environment that protects both team members and customers. Maintaining a motivated, well trained, and engaged employee base that is committed to providing a safe dining experience is critical to our long-term success. The decision not to furlough any employees during the pandemic reinforced this principle. This decision is paying off and has been a big part of our success in driving results throughout the pandemic.

It is clear that customers want to come back to restaurants and they are confident in our ability to provide a safe and welcoming dining experience. Our dining rooms across the country continue to maintain elevated safety measures, including additional sanitation and disinfecting practices, as well as contactless payment options for consumers. Across the U.S. portfolio, we experienced consistent weekly sales momentum throughout the third quarter as we adapted to this evolving environment. In-restaurant sales continue to improve and our off-premises business remains robust as we are retaining approximately 50% of the incremental volume achieved while our dining rooms were closed. Off-premises remains a priority and we will leverage our strong capabilities to capitalize on this important and growing channel.

We are dedicated to growing sales while improving value. In September, we launched a new menu at Outback Steakhouse designed to reinforce our steak leadership through more accessible premium cuts and larger portions while also lowering menu prices. This efficient menu design reduces complexity, which improves execution and consistency that results in an improved customer experience.

This past year we have learned even more about the business and rethought how we manage expenses. These learned efficiencies provide optimism about the ability to grow margins, once we exit the pandemic. Our third quarter sales and profits were above expectations with U.S. comp sales exceeding Knapp trends by over 850 basis points. In addition, our improved sales recovery, coupled with disciplined cost management, enabled us to generate positive cash flow in the quarter while paying down debt.

We are becoming a better, stronger, operations-focused company. Even though a challenging environment remains, I am more convinced than ever of the important role that full-service restaurants will continue to play in the lives of our customers and communities.

Third Quarter Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted (loss) earnings per share attributable to common stockholders to Adjusted diluted (loss) earnings per share for the third quarter 2020 ("Q3 2020") compared to the third quarter 2019 ("Q3 2019").

Q3

2020 2019 CHANGE

Diluted (loss) earnings per share $ (0.20) $ 0.11 $ (0.31) attributable to common stockholders

Adjustments 0.08 (0.01) 0.09

Adjusted diluted (loss) earnings per share $ (0.12) $ 0.10 $ (0.22)



______________

See Non-GAAP Measures later in this release.

Third Quarter Financial Results

(dollars in millions) Q3 2020 Q3 2019 CHANGE

Total revenues $ 771.3 $ 967.1 (20.3) %



GAAP restaurant-level operating margin 10.7 % 12.9 % (2.2) %

Adjusted restaurant-level operating margin (1) 10.7 % 12.5 % (1.8) %



GAAP operating (loss) income margin (1.8) % 2.3 % (4.1) %

Adjusted operating (loss) income margin (1) (1.3) % 2.3 % (3.6) %

___________________(1)

See Non-GAAP Measures later in this release.

* The decrease in total revenues was primarily due to: (i) significantly lower comparable restaurant sales and franchise revenues principally attributable to the COVID-19 pandemic, (ii) the net impact of restaurant closures and openings and (iii) the effect of foreign currency translation of the Brazil Real relative to the U.S. dollar.

* GAAP and Adjusted restaurant-level operating margin decreased due to: (i) significantly lower comparable restaurant sales and costs incurred in connection with the COVID-19 pandemic, including incremental delivery related costs, and (ii) higher labor costs. These decreases are partially offset by: (i) reduced advertising, utilities and operating expenses, (ii) a reduction in prep labor hours and (iii) cost savings from waste reduction initiatives.

* GAAP operating income margin decreased due to: (i) a decline in restaurant-level operating margin discussed above, (ii) sales deleveraging in connection with the COVID-19 pandemic across depreciation and amortization and general and administrative expense and (iii) certain costs in connection with our transformation initiatives. These costs in connection with transformation initiatives were excluded from our adjusted operating income margin.

Third Quarter Comparable Restaurant Sales

___________________(1) See Non-GAAP Measures later in this release.

* The decrease in total revenues was primarily due to: (i) significantly lower comparable restaurant sales and franchise revenues principally attributable to the COVID-19 pandemic, (ii) the net impact of restaurant closures and openings and (iii) the effect of foreign currency translation of the Brazil Real relative to the U.S. dollar.

* GAAP and Adjusted restaurant-level operating margin decreased due to: (i) significantly lower comparable restaurant sales and costs incurred in connection with the COVID-19 pandemic, including incremental delivery related costs, and (ii) higher labor costs. These decreases are partially offset by: (i) reduced advertising, utilities and operating expenses, (ii) a reduction in prep labor hours and (iii) cost savings from waste reduction initiatives.

* GAAP operating income margin decreased due to: (i) a decline in restaurant-level operating margin discussed above, (ii) sales deleveraging in connection with the COVID-19 pandemic across depreciation and amortization and general and administrative expense and (iii) certain costs in connection with our transformation initiatives. These costs in connection with transformation initiatives were excluded from our adjusted operating income margin.

Third Quarter Comparable Restaurant Sales

THIRTEEN WEEKS ENDED SEPTEMBER 27, 2020 COMPANY-OWNED

Comparable restaurant sales (stores open 18 months or more):

U.S.

Outback Steakhouse (10.4) %

Carrabba's Italian Grill (9.0) %

Bonefish Grill (22.5) %

Fleming's Prime Steakhouse & Wine Bar (20.3) %

Combined U.S. (12.8) %

International

Outback Steakhouse - Brazil (1) (54.8) %

______________(1)

Brazil comparable restaurant sales are on a one-month lag and are presented on a calendar basis. Represents results through August 31, 2020. In September, Brazil comparable restaurant sales were down (22.9%).

2020 Financial Outlook

As announced on March 20, 2020, the Company withdrew its 2020 financial guidance for the fiscal year ending December 27, 2020. Due to the current global market and economic conditions as a result of COVID-19, the Company will not provide guidance for the remainder of the year.

Conference Call

The Company will host a conference call today, October 23, 2020 at 8:30 AM EDT. The conference call will be webcast live from the Company's website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company's website after the call.

Non-GAAP Measures

In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include the following: (i) Adjusted restaurant-level operating margin, (ii) Adjusted (loss) income from operations and the corresponding margin, (iii) Adjusted net (loss) income, (iv) Adjusted diluted (loss) earnings per share, (v) Adjusted segment restaurant-level operating margin and (vi) Adjusted segment income (loss) from operations and the corresponding margin.

We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans.

These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should refer to the reconciliations of non-GAAP measures in tables four, six and seven included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period.

About Bloomin' Brands, Inc.

Bloomin' Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has four founder-inspired brands: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. The Company operates more than 1,450 restaurants in 47 states, Puerto Rico, Guam and 20 countries, some of which are franchise locations. For more information, please visit www.bloominbrands.com.

Forward-Looking Statements

Certain statements contained herein, including statements under the heading "Statement from David Deno, Chief Executive Officer" are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as "guidance," "believes," "estimates," "anticipates," "expects," "on track," "feels," "forecasts," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company's forward-looking statements. These risks and uncertainties include, but are not limited to: the effects of the COVID-19 pandemic and uncertainties about its depth and duration, as well as the impacts to economic conditions and consumer behavior, including, among others: the inability of workers, including delivery drivers, to work due to illness, quarantine, or government mandates, temporary restaurant closures and capacity restrictions due to reduced workforces or government mandates, the unemployment rate, the extent, availability and effectiveness of any COVID-19 stimulus packages or loan programs, the ability of our franchisees to operate their restaurants during the pandemic and pay royalties, and trends in consumer behavior and spending during and after the end of the pandemic; consumer reaction to public health and food safety issues; competition; increases in labor costs; government actions and policies; increases in unemployment rates and taxes; local, regional, national and international economic conditions; consumer confidence and spending patterns; price and availability of commodities; the effects of changes in tax laws; challenges associated with our remodeling, relocation and expansion plans; interruption or breach of our systems or loss of consumer or employee information; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; our ability to preserve the value of and grow our brands; the seasonality of the Company's business; weather, acts of God and other disasters; changes in patterns of consumer traffic, consumer tastes and dietary habits; the cost and availability of credit; interest rate changes; and compliance with debt covenants and the Company's ability to make debt payments and planned investments. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Note: Numerical figures included in this release have been subject to rounding adjustments.

______________ Brazil comparable restaurant sales are on a one-month lag and are(1) presented on a calendar basis. Represents results through August 31, 2020. In September, Brazil comparable restaurant sales were down (22.9%).

2020 Financial Outlook

As announced on March 20, 2020, the Company withdrew its 2020 financial guidance for the fiscal year ending December 27, 2020. Due to the current global market and economic conditions as a result of COVID-19, the Company will not provide guidance for the remainder of the year.

Conference Call

The Company will host a conference call today, October 23, 2020 at 8:30 AM EDT. The conference call will be webcast live from the Company's website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company's website after the call.

Non-GAAP Measures

In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include the following: (i) Adjusted restaurant-level operating margin, (ii) Adjusted (loss) income from operations and the corresponding margin, (iii) Adjusted net (loss) income, (iv) Adjusted diluted (loss) earnings per share, (v) Adjusted segment restaurant-level operating margin and (vi) Adjusted segment income (loss) from operations and the corresponding margin.

We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans.

These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should refer to the reconciliations of non-GAAP measures in tables four, six and seven included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period.

About Bloomin' Brands, Inc.

Bloomin' Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has four founder-inspired brands: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. The Company operates more than 1,450 restaurants in 47 states, Puerto Rico, Guam and 20 countries, some of which are franchise locations. For more information, please visit www.bloominbrands.com.

Forward-Looking Statements

Certain statements contained herein, including statements under the heading "Statement from David Deno, Chief Executive Officer" are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as "guidance," "believes," "estimates," "anticipates," "expects," "on track," "feels," "forecasts," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company's forward-looking statements. These risks and uncertainties include, but are not limited to: the effects of the COVID-19 pandemic and uncertainties about its depth and duration, as well as the impacts to economic conditions and consumer behavior, including, among others: the inability of workers, including delivery drivers, to work due to illness, quarantine, or government mandates, temporary restaurant closures and capacity restrictions due to reduced workforces or government mandates, the unemployment rate, the extent, availability and effectiveness of any COVID-19 stimulus packages or loan programs, the ability of our franchisees to operate their restaurants during the pandemic and pay royalties, and trends in consumer behavior and spending during and after the end of the pandemic; consumer reaction to public health and food safety issues; competition; increases in labor costs; government actions and policies; increases in unemployment rates and taxes; local, regional, national and international economic conditions; consumer confidence and spending patterns; price and availability of commodities; the effects of changes in tax laws; challenges associated with our remodeling, relocation and expansion plans; interruption or breach of our systems or loss of consumer or employee information; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; our ability to preserve the value of and grow our brands; the seasonality of the Company's business; weather, acts of God and other disasters; changes in patterns of consumer traffic, consumer tastes and dietary habits; the cost and availability of credit; interest rate changes; and compliance with debt covenants and the Company's ability to make debt payments and planned investments. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Note: Numerical figures included in this release have been subject to rounding adjustments.

TABLE ONE

BLOOMIN' BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(in thousands, SEPTEMBER SEPTEMBER SEPTEMBER 27, SEPTEMBER 29,except per share 27, 29, 2020 2019data) 2020 2019

Revenues

Restaurant sales $ 766,487 $ 951,816 $ 2,338,985 $ 3,069,145

Franchise and other 4,773 15,328 19,071 48,060 revenues

Total revenues 771,260 967,144 2,358,056 3,117,205

Costs and expenses

Food and beverage 230,547 300,375 730,998 965,165 costs

Labor and other 246,861 288,552 761,667 908,780 related

Other restaurant 207,301 240,372 631,702 732,121 operating

Depreciation and 43,417 47,926 137,469 147,196 amortization

General and 57,443 66,570 197,732 209,114 administrative

Provision forimpaired assets and (54) 1,391 66,223 6,917 restaurant closings

Total costs and 785,515 945,186 2,525,791 2,969,293 expenses

(Loss) income from (14,255) 21,958 (167,735) 147,912 operations

Loss on modification - - (237) - of debt

Other income 1 11 (211) (145) (expense), net

Interest expense, (18,300) (13,256) (46,647) (36,885) net

(Loss) income before(benefit) provision (32,554) 8,713 (214,830) 110,882 for income taxes

(Benefit) provision (14,776) (660) (70,210) 6,051 for income taxes

Net (loss) income (17,778) 9,373 (144,620) 104,831

Less: net (loss)income attributable (141) 125 (116) 2,262 to noncontrollinginterests

Net (loss) incomeattributable to (17,637) 9,248 (144,504) 102,569 Bloomin' Brands

Redemption ofpreferred stock in - - (3,496) - excess of carryingvalue

Net (loss) incomeattributable to $ (17,637) $ 9,248 $ (148,000) $ 102,569 common stockholders



(Loss) earnings pershare attributable to commonstockholders:

Basic $ (0.20) $ 0.11 $ (1.69) $ 1.15

Diluted $ (0.20) $ 0.11 $ (1.69) $ 1.14



Weighted averagecommon shares outstanding:

Basic 87,558 86,843 87,394 89,484

Diluted 87,558 87,305 87,394 90,306

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

U.S. Segment

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

Revenues

Restaurant sales

$

719,406

$

835,753

$

2,141,062

$

2,737,182

Franchise and other revenues

2,332

12,691

12,253

39,988

Total revenues

$

721,738

$

848,444

$

2,153,315

$

2,777,170

Restaurant-level operating margin

11.4

%

12.0

%

9.4

%

14.5

%

Income (loss) from operations

$

29,574

$

50,318

$

(21,968)

$

242,167

Operating income (loss) margin

4.1

%

5.9

%

(1.0)

%

8.7

%

International Segment

Revenues

Restaurant sales

$

47,081

$

116,063

$

197,923

$

331,963

Franchise and other revenues

2,441

2,637

6,818

8,072

Total revenues

$

49,522

$

118,700

$

204,741

$

340,035

Restaurant-level operating margin

(1.5)

%

18.7

%

5.7

%

19.8

%

(Loss) income from operations

$

(7,926)

$

10,550

$

(18,209)

$

31,179

Operating (loss) income margin

(16.0)

%

8.9

%

(8.9)

%

9.2

%

Reconciliation of Segment Income (Loss) from Operations to Consolidated (Loss) Income from Operations

Segment income (loss) from operations

U.S.

$

29,574

$

50,318

$

(21,968)

$

242,167

International

(7,926)

10,550

(18,209)

31,179

Total segment income (loss) from operations

21,648

60,868

(40,177)

273,346

Unallocated corporate operating expense

(35,903)

(38,910)

(127,558)

(125,434)

Total (loss) income from operations

$

(14,255)

$

21,958

$

(167,735)

$

147,912

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDEDthousands)

SEPTEMBER SEPTEMBER SEPTEMBER 27, SEPTEMBER 29,U.S. Segment 27, 29, 2020 2019 2020 2019

Revenues

Restaurant sales $ 719,406 $ 835,753 $ 2,141,062 $ 2,737,182

Franchise and other 2,332 12,691 12,253 39,988 revenues

Total revenues $ 721,738 $ 848,444 $ 2,153,315 $ 2,777,170

Restaurant-level 11.4 % 12.0 % 9.4 % 14.5 %operating margin

Income (loss) from $ 29,574 $ 50,318 $ (21,968) $ 242,167 operations

Operating income 4.1 % 5.9 % (1.0) % 8.7 %(loss) margin

International Segment

Revenues

Restaurant sales $ 47,081 $ 116,063 $ 197,923 $ 331,963

Franchise and other 2,441 2,637 6,818 8,072 revenues

Total revenues $ 49,522 $ 118,700 $ 204,741 $ 340,035

Restaurant-level (1.5) % 18.7 % 5.7 % 19.8 %operating margin

(Loss) income from $ (7,926) $ 10,550 $ (18,209) $ 31,179 operations

Operating (loss) (16.0) % 8.9 % (8.9) % 9.2 %income margin

Reconciliation ofSegment Income(Loss) fromOperations to Consolidated (Loss)Income fromOperations

Segment income(loss) from operations

U.S. $ 29,574 $ 50,318 $ (21,968) $ 242,167

International (7,926) 10,550 (18,209) 31,179

Total segment income(loss) from 21,648 60,868 (40,177) 273,346 operations

Unallocatedcorporate operating (35,903) (38,910) (127,558) (125,434) expense

Total (loss) income $ (14,255) $ 21,958 $ (167,735) $ 147,912 from operations

TABLE THREE

BLOOMIN' BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(in thousands)SEPTEMBER 27, 2020

DECEMBER 29, 2019

Cash and cash equivalents (1)$

160,032

$

67,145

Net working capital (deficit) (2)$

(540,778)

$

(621,553)

Total assets$

3,367,598

$

3,592,683

Total debt, net (1)$

1,147,890

$

1,048,704

Total stockholders' equity$

12,555

$

177,481

Common stock outstanding87,573

86,946

TABLE THREE

BLOOMIN' BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(in thousands) SEPTEMBER 27, 2020 DECEMBER 29, 2019

Cash and cash equivalents (1) $ 160,032 $ 67,145

Net working capital (deficit) (2) $ (540,778) $ (621,553)

Total assets $ 3,367,598 $ 3,592,683

Total debt, net (1) $ 1,147,890 $ 1,048,704

Total stockholders' equity $ 12,555 $ 177,481

Common stock outstanding 87,573 86,946

_________________(1)

In May 2020, we issued $230 million of senior convertible notes which yielded net proceeds of approximately $202 million after issuance costs and related hedge and warrant transactions.

(2)

We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on Restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.

_________________ In May 2020, we issued $230 million of senior convertible notes which(1) yielded net proceeds of approximately $202 million after issuance costs and related hedge and warrant transactions.

We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on(2) Restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.

TABLE FOUR

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

FAVORABLE (UNFAVORABLE) CHANGE IN ADJUSTEDQUARTER TO DATE

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

Consolidated:GAAP

ADJUSTED

GAAP

ADJUSTED (1)

Restaurant sales100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs30.1

%

30.1

%

31.6

%

31.6

%

1.5

%

Labor and other related32.2

%

32.2

%

30.3

%

30.3

%

(1.9)

%

Other restaurant operating27.0

%

27.0

%

25.3

%

25.6

%

(1.4)

%

Restaurant-level operating margin (2)10.7

%

10.7

%

12.9

%

12.5

%

(1.8)

%

Segments - Restaurant-level operating margin:U.S. (2)11.4

%

11.4

%

12.0

%

11.5

%

(0.1)

%

International (2)(1.5)

%

(1.5)

%

18.7

%

18.7

%

(20.2)

%

THIRTY-NINE WEEKS ENDED

FAVORABLE (UNFAVORABLE) CHANGE IN ADJUSTEDYEAR TO DATE

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

Consolidated:GAAP

ADJUSTED (1)

GAAP

ADJUSTED (1)

Restaurant sales100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs31.3

%

30.9

%

31.4

%

31.4

%

0.5

%

Labor and other related32.6

%

32.6

%

29.6

%

29.6

%

(3.0)

%

Other restaurant operating27.0

%

27.0

%

23.9

%

24.0

%

(3.0)

%

Restaurant-level operating margin (2)9.2

%

9.5

%

15.1

%

15.0

%

(5.5)

%

Segments - Restaurant-level operating margin:U.S. (2)9.4

%

9.6

%

14.5

%

14.4

%

(4.8)

%

International (2)5.7

%

6.7

%

19.8

%

19.8

%

(13.1)

%

TABLE FOUR

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED FAVORABLE (UNFAVORABLE) SEPTEMBER 27, 2020 SEPTEMBER 29, 2019 CHANGE IN ADJUSTED GAAP ADJUSTED GAAP ADJUSTED QUARTER TOConsolidated: (1) DATE

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Food and beverage costs 30.1 % 30.1 % 31.6 % 31.6 % 1.5 %

Labor and other related 32.2 % 32.2 % 30.3 % 30.3 % (1.9) %

Other restaurant 27.0 % 27.0 % 25.3 % 25.6 % (1.4) %operating

Restaurant-level 10.7 % 10.7 % 12.9 % 12.5 % (1.8) %operating margin (2)

Segments - Restaurant-leveloperating margin:U.S. (2) 11.4 % 11.4 % 12.0 % 11.5 % (0.1) %

International (2) (1.5) % (1.5) % 18.7 % 18.7 % (20.2) %



THIRTY-NINE WEEKS ENDED FAVORABLE (UNFAVORABLE) SEPTEMBER 27, 2020 SEPTEMBER 29, 2019 CHANGE IN ADJUSTED GAAP ADJUSTED GAAP ADJUSTED YEAR TO DATEConsolidated: (1) (1)

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Food and beverage costs 31.3 % 30.9 % 31.4 % 31.4 % 0.5 %

Labor and other related 32.6 % 32.6 % 29.6 % 29.6 % (3.0) %

Other restaurant 27.0 % 27.0 % 23.9 % 24.0 % (3.0) %operating

Restaurant-level 9.2 % 9.5 % 15.1 % 15.0 % (5.5) %operating margin (2)

Segments - Restaurant-leveloperating margin:U.S. (2) 9.4 % 9.6 % 14.5 % 14.4 % (4.8) %

International (2) 5.7 % 6.7 % 19.8 % 19.8 % (13.1) %

_________________(1)

The table set forth below titled "Restaurant-level Operating Margin Adjustments" provides additional information regarding the adjustments for each period presented.

(2)

The following categories of our revenue and operating expenses are not included in restaurant-level operating margin because we do not consider them reflective of operating performance at the restaurant-level within a period:

(a)

Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income.

(b)

Depreciation and amortization which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.

(c)

General and administrative expense which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.

(d)

Asset impairment charges and restaurant closing costs which are not reflective of ongoing restaurant performance in a period.

Restaurant-level Operating Margin Adjustments - Following is a summary of unfavorable (favorable) adjusted restaurant-level operating margin adjustments recorded in Other restaurant operating expense (unless otherwise noted below) for the following activities, as described in table six of this release:

_________________ The table set forth below titled "Restaurant-level Operating Margin(1) Adjustments" provides additional information regarding the adjustments for each period presented.

The following categories of our revenue and operating expenses are not(2) included in restaurant-level operating margin because we do not consider them reflective of operating performance at the restaurant-level within a period:

Franchise and other revenues, which are earned primarily from (a) franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income.

Depreciation and amortization which, although substantially all of (b) which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.

General and administrative expense which includes primarily (c) non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.

(d) Asset impairment charges and restaurant closing costs which are not reflective of ongoing restaurant performance in a period.



Restaurant-level Operating Margin Adjustments - Following is a summary of unfavorable (favorable) adjusted restaurant-level operating margin adjustments recorded in Other restaurant operating expense (unless otherwise noted below) for the following activities, as described in table six of this release:

THIRTY-NINE WEEKS THIRTEEN WEEKS ENDED ENDED SEPTEMBER 29, SEPTEMBER SEPTEMBER(dollars in millions) 2019 27, 29, 2020 2019

Restaurant and asset impairments and $ 3.8 $ 2.8 $ 4.0 closing costsRestaurant relocations and related (0.1) (0.1) (0.4) costsCOVID-19 related costs (1) - (9.9) -

$ 3.7 $ (7.2) $ 3.6

_________________(1)

Includes $7.3 million of adjustments recorded in Food and beverage costs, including $2.0 million of adjustments recorded in the international segment. All other adjustments were recorded within the U.S. segment.

_________________ Includes $7.3 million of adjustments recorded in Food and beverage costs,(1) including $2.0 million of adjustments recorded in the international segment. All other adjustments were recorded within the U.S. segment.

TABLE FIVE

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS

(UNAUDITED)

Consolidated

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

(Loss) income from operations

$

(14,255)

$

21,958

$

(167,735)

$

147,912

Operating (loss) income margin

(1.8)

%

2.3

%

(7.1)

%

4.7

%

Less:

Franchise and other revenues

4,773

15,328

19,071

48,060

Plus:

Depreciation and amortization

43,417

47,926

137,469

147,196

General and administrative

57,443

66,570

197,732

209,114

Provision for impaired assets and restaurant closings

(54)

1,391

66,223

6,917

Restaurant-level operating income

$

81,778

$

122,517

$

214,618

$

463,079

Restaurant-level operating margin

10.7

%

12.9

%

9.2

%

15.1

%

U.S.

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

Income (loss) from operations

$

29,574

$

50,318

$

(21,968)

$

242,167

Operating income (loss) margin

4.1

%

5.9

%

(1.0)

%

8.7

%

Less:

Franchise and other revenues

2,332

12,691

12,253

39,988

Plus:

Depreciation and amortization

35,057

36,670

110,005

114,372

General and administrative

19,732

24,405

68,955

77,078

Provision for impaired assets and restaurant closings

(86)

1,351

56,389

3,503

Restaurant-level operating income

$

81,945

$

100,053

$

201,128

$

397,132

Restaurant-level operating margin

11.4

%

12.0

%

9.4

%

14.5

%

International

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

(Loss) income from operations

$

(7,926)

$

10,550

$

(18,209)

$

31,179

Operating (loss) income margin

(16.0)

%

8.9

%

(8.9)

%

9.2

%

Less:

Franchise and other revenues

2,441

2,637

6,818

8,072

Plus:

Depreciation and amortization

5,672

7,201

18,314

20,406

General and administrative

4,011

6,542

14,413

20,311

Provision for impaired assets and restaurant closings

-

39

3,640

1,840

Restaurant-level operating (loss) income

$

(684)

$

21,695

$

11,340

$

65,664

Restaurant-level operating margin

(1.5)

%

18.7

%

5.7

%

19.8

%

TABLE FIVE

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS

(UNAUDITED)

Consolidated THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER 27, SEPTEMBER(dollars in thousands) 27, 29, 2020 29, 2020 2019 2019

(Loss) income from $ (14,255) $ 21,958 $ (167,735) $ 147,912 operations

Operating (loss) (1.8) % 2.3 % (7.1) % 4.7 %income margin

Less:

Franchise and other 4,773 15,328 19,071 48,060 revenues

Plus:

Depreciation and 43,417 47,926 137,469 147,196 amortization

General and 57,443 66,570 197,732 209,114 administrative

Provision for impairedassets and restaurant (54) 1,391 66,223 6,917 closings

Restaurant-level $ 81,778 $ 122,517 $ 214,618 $ 463,079 operating income

Restaurant-level 10.7 % 12.9 % 9.2 % 15.1 %operating margin



U.S. THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER 27, SEPTEMBER(dollars in thousands) 27, 29, 2020 29, 2020 2019 2019

Income (loss) from $ 29,574 $ 50,318 $ (21,968) $ 242,167 operations

Operating income 4.1 % 5.9 % (1.0) % 8.7 %(loss) margin

Less:

Franchise and other 2,332 12,691 12,253 39,988 revenues

Plus:

Depreciation and 35,057 36,670 110,005 114,372 amortization

General and 19,732 24,405 68,955 77,078 administrative

Provision for impairedassets and restaurant (86) 1,351 56,389 3,503 closings

Restaurant-level $ 81,945 $ 100,053 $ 201,128 $ 397,132 operating income

Restaurant-level 11.4 % 12.0 % 9.4 % 14.5 %operating margin



International THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER 27, SEPTEMBER(dollars in thousands) 27, 29, 2020 29, 2020 2019 2019

(Loss) income from $ (7,926) $ 10,550 $ (18,209) $ 31,179 operations

Operating (loss) (16.0) % 8.9 % (8.9) % 9.2 %income margin

Less:

Franchise and other 2,441 2,637 6,818 8,072 revenues

Plus:

Depreciation and 5,672 7,201 18,314 20,406 amortization

General and 4,011 6,542 14,413 20,311 administrative

Provision for impairedassets and restaurant - 39 3,640 1,840 closings

Restaurant-leveloperating (loss) $ (684) $ 21,695 $ 11,340 $ 65,664 income

Restaurant-level (1.5) % 18.7 % 5.7 % 19.8 %operating margin

TABLE SIX

BLOOMIN' BRANDS, INC.

(LOSS) INCOME FROM OPERATIONS, NET (LOSS) INCOME AND DILUTED (LOSS) EARNINGS PER SHARE NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(in thousands, except per share data)SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

(Loss) income from operations$

(14,255)

$

21,958

$

(167,735)

$

147,912

Operating (loss) income margin(1.8)

%

2.3

%

(7.1)

%

4.7

%

Adjustments:Severance and other transformational costs (1)4,200

1,908

28,847

5,511

COVID-19 related costs (2)-

-

79,218

-

Restaurant relocations and related costs (3)-

477

592

2,461

Legal and other matters-

815

178

815

Restaurant and asset impairments and closing costs (4)-

(3,072)

(2,797)

1,098

Total (loss) income from operations adjustments$

4,200

$

128

$

106,038

$

9,885

Adjusted (loss) income from operations$

(10,055)

$

22,086

$

(61,697)

$

157,797

Adjusted operating (loss) income margin(1.3)

%

2.3

%

(2.6)

%

5.1

%

Net (loss) income attributable to common stockholders$

(17,637)

$

9,248

$

(148,000)

$

102,569

Adjustments:(Loss) income from operations adjustments4,200

128

106,038

9,885

Amortization of debt discount (5)2,407

-

3,786

-

Total adjustments, before income taxes6,607

128

109,824

9,885

Adjustment to provision for income taxes (6)440

(471)

(28,029)

(1,703)

Redemption of preferred stock in excess of carrying value (7)-

-

3,496

-

Net adjustments7,047

(343)

85,291

8,182

Adjusted net (loss) income$

(10,590)

$

8,905

$

(62,709)

$

110,751

Diluted (loss) earnings per share attributable to common stockholders (8)$

(0.20)

$

0.11

$

(1.69)

$

1.14

Adjusted diluted (loss) earnings per share (8)$

(0.12)

$

0.10

$

(0.72)

$

1.23

Diluted weighted average common shares outstanding (8)87,558

87,305

87,394

90,306

TABLE SIX

BLOOMIN' BRANDS, INC.

(LOSS) INCOME FROM OPERATIONS, NET (LOSS) INCOME AND DILUTED (LOSS) EARNINGSPER SHARE NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER 27, SEPTEMBER(in thousands, except 27, 29, 2020 29,per share data) 2020 2019 2019

(Loss) income from $ (14,255) $ 21,958 $ (167,735) $ 147,912 operationsOperating (loss) income (1.8) % 2.3 % (7.1) % 4.7 %marginAdjustments:

Severance and other 4,200 1,908 28,847 5,511 transformational costs(1)COVID-19 related costs - - 79,218 - (2)Restaurant relocations - 477 592 2,461 and related costs (3)Legal and other matters - 815 178 815

Restaurant and asset - (3,072) (2,797) 1,098 impairments and closingcosts (4)Total (loss) income $ 4,200 $ 128 $ 106,038 $ 9,885 from operationsadjustmentsAdjusted (loss) income $ (10,055) $ 22,086 $ (61,697) $ 157,797 from operationsAdjusted operating (1.3) % 2.3 % (2.6) % 5.1 %(loss) income margin

Net (loss) income $ (17,637) $ 9,248 $ (148,000) $ 102,569 attributable to commonstockholdersAdjustments:

(Loss) income from 4,200 128 106,038 9,885 operations adjustmentsAmortization of debt 2,407 - 3,786 - discount (5)Total adjustments, 6,607 128 109,824 9,885 before income taxesAdjustment to provision 440 (471) (28,029) (1,703) for income taxes (6)Redemption of preferred - - 3,496 - stock in excess ofcarrying value (7)Net adjustments 7,047 (343) 85,291 8,182

Adjusted net (loss) $ (10,590) $ 8,905 $ (62,709) $ 110,751 income

Diluted (loss) earningsper share attributable $ (0.20) $ 0.11 $ (1.69) $ 1.14 to common stockholders(8)Adjusted diluted (loss) $ (0.12) $ 0.10 $ (0.72) $ 1.23 earnings per share (8)

Diluted weighted 87,558 87,305 87,394 90,306 average common sharesoutstanding (8)_________________(1)

Severance and other costs incurred as a result of transformational and restructuring activities.

(2)

Costs incurred in connection with the economic impact of the COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.

(3)

Asset impairment charges and accelerated depreciation incurred in connection with our relocation program.

(4)

Includes a lease termination gain of $2.8 million during the thirty-nine weeks ended September 27, 2020 and asset impairment charges and related costs primarily related to approved closure and restructuring initiatives during 2019. Amount also includes gains on the sale of certain surplus properties of $3.8 million during 2019.

(5)

Amortization of the debt discount related to the issuance of senior convertible notes.

(6)

Income tax effect of the adjustments for the periods presented.

(7)

Consideration paid in excess of the carrying value for the redemption of preferred stock of our Abbraccio subsidiary.

(8)

Due to the net loss, the effect of dilutive securities was excluded from the calculation of diluted and adjusted diluted loss per share for the thirteen and thirty-nine weeks ended September 27, 2020.

Following is a summary of the financial statement line item classification of the net (loss) income adjustments:

_________________(1) Severance and other costs incurred as a result of transformational and restructuring activities.

Costs incurred in connection with the economic impact of the COVID-19(2) pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.

(3) Asset impairment charges and accelerated depreciation incurred in connection with our relocation program.

Includes a lease termination gain of $2.8 million during the thirty-nine weeks ended September 27, 2020 and asset impairment charges and related(4) costs primarily related to approved closure and restructuring initiatives during 2019. Amount also includes gains on the sale of certain surplus properties of $3.8 million during 2019.

(5) Amortization of the debt discount related to the issuance of senior convertible notes.

(6) Income tax effect of the adjustments for the periods presented.

(7) Consideration paid in excess of the carrying value for the redemption of preferred stock of our Abbraccio subsidiary.

Due to the net loss, the effect of dilutive securities was excluded from(8) the calculation of diluted and adjusted diluted loss per share for the thirteen and thirty-nine weeks ended September 27, 2020.

Following is a summary of the financial statement line item classification of the net (loss) income adjustments:

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER(dollars in thousands) 27, 29, 27, 29, 2020 2019 2020 2019

Food and beverage costs $ - $ - $ 7,345 $ -

Other restaurant operating - (3,685) (176) (3,642)

Depreciation and amortization - 611 407 1,783

General and administrative 4,200 2,776 32,056 7,106

Provision for impaired assets - 426 66,406 4,638 and restaurant closings

Interest expense, net 2,407 - 3,786 -

(Benefit) provision for income 440 (471) (28,029) (1,703) taxes

Redemption of preferred stock in - - 3,496 - excess of carrying value

Net adjustments $ 7,047 $ (343) $ 85,291 $ 8,182

TABLE SEVEN

BLOOMIN' BRANDS, INC.

SEGMENT INCOME (LOSS) FROM OPERATIONS NON-GAAP RECONCILIATION

(UNAUDITED)

(dollars in thousands)THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

U.S. SegmentSEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

Income (loss) from operations$

29,574

$

50,318

$

(21,968)

$

242,167

Operating income (loss) margin4.1

%

5.9

%

(1.0)

%

8.7

%

Adjustments:COVID-19 related costs (1)-

-

72,784

-

Restaurant relocations and related costs (2)-

477

592

2,461

Severance (3)-

59

-

759

Restaurant and asset impairments and closing costs (4)-

(3,164)

(2,797)

(1,083)

Adjusted income from operations$

29,574

$

47,690

$

48,611

$

244,304

Adjusted operating income margin4.1

%

5.6

%

2.3

%

8.8

%

International Segment(Loss) income from operations$

(7,926)

$

10,550

$

(18,209)

$

31,179

Operating (loss) income margin(16.0)

%

8.9

%

(8.9)

%

9.2

%

Adjustments:COVID-19 related costs (1)-

-

5,651

-

Restaurant and asset impairments and closing costs (4)-

91

-

2,180

Adjusted (loss) income from operations$

(7,926)

$

10,641

$

(12,558)

$

33,359

Adjusted operating (loss) income margin(16.0)

%

9.0

%

(6.1)

%

9.8

%

TABLE SEVEN

BLOOMIN' BRANDS, INC.

SEGMENT INCOME (LOSS) FROM OPERATIONS NON-GAAP RECONCILIATION

(UNAUDITED)

(dollars in thousands) THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBERU.S. Segment 27, 29, 27, 29, 2020 2019 2020 2019

Income (loss) from $ 29,574 $ 50,318 $ (21,968) $ 242,167 operationsOperating income (loss) 4.1 % 5.9 % (1.0) % 8.7 %marginAdjustments:

COVID-19 related costs - - 72,784 - (1)Restaurant relocations - 477 592 2,461 and related costs (2)Severance (3) - 59 - 759

Restaurant and asset - (3,164) (2,797) (1,083) impairments and closingcosts (4)Adjusted income from $ 29,574 $ 47,690 $ 48,611 $ 244,304 operationsAdjusted operating income 4.1 % 5.6 % 2.3 % 8.8 %margin

International Segment

(Loss) income from $ (7,926) $ 10,550 $ (18,209) $ 31,179 operationsOperating (loss) income (16.0) % 8.9 % (8.9) % 9.2 %marginAdjustments:

COVID-19 related costs - - 5,651 - (1)Restaurant and asset - 91 - 2,180 impairments and closingcosts (4)Adjusted (loss) income $ (7,926) $ 10,641 $ (12,558) $ 33,359 from operationsAdjusted operating (loss) (16.0) % 9.0 % (6.1) % 9.8 %income margin_________________(1)

Costs incurred in connection with the economic impact of the COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.

(2)

Asset impairment charges and accelerated depreciation incurred in connection with our relocation program.

(3)

Severance costs incurred as a result of restructuring activities.

(4)

Includes a lease termination gain of $2.8 million within the U.S. segment during the thirty-nine weeks ended September 27, 2020 and asset impairment charges and related costs primarily related to approved closure and restructuring initiatives during 2019. Amount also includes gains on the sale of certain surplus properties of $3.8 million within the U.S. segment during 2019.

_________________ Costs incurred in connection with the economic impact of the COVID-19(1) pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.

(2) Asset impairment charges and accelerated depreciation incurred in connection with our relocation program.

(3) Severance costs incurred as a result of restructuring activities.

Includes a lease termination gain of $2.8 million within the U.S. segment during the thirty-nine weeks ended September 27, 2020 and asset(4) impairment charges and related costs primarily related to approved closure and restructuring initiatives during 2019. Amount also includes gains on the sale of certain surplus properties of $3.8 million within the U.S. segment during 2019.

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of the period):JUNE 28, 2020

OPENINGS

CLOSURES

SEPTEMBER 27, 2020

U.S.:Outback SteakhouseOutback Steakhouse-Company-owned567

1

(1)

567

Franchised141

-

(1)

140

Total708

1

(2)

707

Carrabba's Italian GrillCompany-owned199

-

-

199

Franchised21

-

-

21

Total220

-

-

220

Bonefish GrillCompany-owned182

-

(1)

181

Franchised7

-

-

7

Total189

-

(1)

188

Fleming's Prime Steakhouse and Wine BarCompany-owned65

-

-

65

OtherCompany-owned5

-

-

5

U.S. total1,187

1

(3)

1,185

International:Company-ownedOutback Steakhouse - Brazil (1)103

1

-

104

Other (2)30

1

-

31

FranchisedOutback Steakhouse - South Korea (2)85

3

-

88

Other (3)55

1

-

56

International total273

6

-

279

System-wide total1,460

7

(3)

1,464

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of JUNE 28, OPENINGS CLOSURES SEPTEMBERthe period): 2020 27, 2020

U.S.:

Outback Steakhouse

Outback Steakhouse-Company-owned 567 1 (1) 567

Franchised 141 - (1) 140

Total 708 1 (2) 707

Carrabba's Italian Grill

Company-owned 199 - - 199

Franchised 21 - - 21

Total 220 - - 220

Bonefish Grill

Company-owned 182 - (1) 181

Franchised 7 - - 7

Total 189 - (1) 188

Fleming's Prime Steakhouse and Wine BarCompany-owned 65 - - 65

Other

Company-owned 5 - - 5

U.S. total 1,187 1 (3) 1,185

International:

Company-owned

Outback Steakhouse - Brazil (1) 103 1 - 104

Other (2) 30 1 - 31

Franchised

Outback Steakhouse - South Korea 85 3 - 88 (2)Other (3) 55 1 - 56

International total 273 6 - 279

System-wide total 1,460 7 (3) 1,464

____________________(1)

The restaurant counts for Brazil are reported as of May 31, 2020 and August 31, 2020 to correspond with the balance sheet dates of this subsidiary.

(2)

As of September 27, 2020, the Company had 14 international "dark kitchen" locations that offer delivery and carry-out only. One of these locations was included within Company-owned Other and the remaining 13 were included in Franchised Outback Steakhouse - South Korea.

(3)

Includes three fast-casual Aussie Grill locations as of September 27, 2020.

____________________ The restaurant counts for Brazil are reported as of May 31, 2020 and(1) August 31, 2020 to correspond with the balance sheet dates of this subsidiary.

As of September 27, 2020, the Company had 14 international "dark kitchen"(2) locations that offer delivery and carry-out only. One of these locations was included within Company-owned Other and the remaining 13 were included in Franchised Outback Steakhouse - South Korea.

(3) Includes three fast-casual Aussie Grill locations as of September 27, 2020.

TABLE NINE

BLOOMIN' BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

SEPTEMBER 27, 2020

SEPTEMBER 29, 2019

Year over year percentage change:Comparable restaurant sales (stores open 18 months or more):U.S. (1)Outback Steakhouse(10.4)

%

0.2

%

(17.4)

%

1.7

%

Carrabba's Italian Grill(9.0)

%

0.1

%

(18.1)

%

(0.4)

%

Bonefish Grill(22.5)

%

(2.2)

%

(31.0)

%

-

%

Fleming's Prime Steakhouse & Wine Bar(20.3)

%

0.4

%

(29.7)

%

0.8

%

Combined U.S.(12.8)

%

(0.2)

%

(20.7)

%

1.0

%

InternationalOutback Steakhouse - Brazil (2)(54.8)

%

11.2

%

(36.9)

%

6.1

%

Traffic:U.S.Outback Steakhouse(13.6)

%

(1.1)

%

(18.1)

%

(1.1)

%

Carrabba's Italian Grill(11.7)

%

0.5

%

(15.1)

%

(0.8)

%

Bonefish Grill (3)(14.7)

%

(2.9)

%

(19.4)

%

(2.1)

%

Fleming's Prime Steakhouse & Wine Bar(23.3)

%

(0.3)

%

(26.6)

%

0.6

%

Combined U.S. (3)(13.6)

%

(1.0)

%

(17.9)

%

(1.1)

%

InternationalOutback Steakhouse - Brazil(37.6)

%

10.0

%

(25.9)

%

2.8

%

Average check per person (4):U.S.Outback Steakhouse3.2

%

1.3

%

0.7

%

2.8

%

Carrabba's Italian Grill2.7

%

(0.4)

%

(3.0)

%

0.4

%

Bonefish Grill(7.8)

%

0.7

%

(11.6)

%

2.1

%

Fleming's Prime Steakhouse & Wine Bar3.0

%

0.7

%

(3.1)

%

0.2

%

Combined U.S.0.8

%

0.8

%

(2.8)

%

2.1

%

InternationalOutback Steakhouse - Brazil(16.2)

%

0.8

%

(11.0)

%

3.3

%

TABLE NINE

BLOOMIN' BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 27, 29, 27, 29, 2020 2019 2020 2019

Year over year percentage change:

Comparable restaurant sales (stores open 18 months or more):U.S. (1)

Outback Steakhouse (10.4) % 0.2 % (17.4) % 1.7 %

Carrabba's Italian Grill (9.0) % 0.1 % (18.1) % (0.4) %

Bonefish Grill (22.5) % (2.2) % (31.0) % - %

Fleming's Prime Steakhouse & Wine (20.3) % 0.4 % (29.7) % 0.8 %BarCombined U.S. (12.8) % (0.2) % (20.7) % 1.0 %

International

Outback Steakhouse - Brazil (2) (54.8) % 11.2 % (36.9) % 6.1 %



Traffic:

U.S.

Outback Steakhouse (13.6) % (1.1) % (18.1) % (1.1) %

Carrabba's Italian Grill (11.7) % 0.5 % (15.1) % (0.8) %

Bonefish Grill (3) (14.7) % (2.9) % (19.4) % (2.1) %

Fleming's Prime Steakhouse & Wine (23.3) % (0.3) % (26.6) % 0.6 %BarCombined U.S. (3) (13.6) % (1.0) % (17.9) % (1.1) %

International

Outback Steakhouse - Brazil (37.6) % 10.0 % (25.9) % 2.8 %



Average check per person (4):

U.S.

Outback Steakhouse 3.2 % 1.3 % 0.7 % 2.8 %

Carrabba's Italian Grill 2.7 % (0.4) % (3.0) % 0.4 %

Bonefish Grill (7.8) % 0.7 % (11.6) % 2.1 %

Fleming's Prime Steakhouse & Wine 3.0 % 0.7 % (3.1) % 0.2 %BarCombined U.S. 0.8 % 0.8 % (2.8) % 2.1 %

International

Outback Steakhouse - Brazil (16.2) % 0.8 % (11.0) % 3.3 %

____________________(1)

Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.

(2)

Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.

(3)

In Q2 2020, Bonefish Grill replaced guest count with entr?e count to measure restaurant traffic. Bonefish Grill and Combined U.S. traffic for the thirty-nine weeks ended September 27, 2020 were calculated using the entr?e count methodology for Bonefish Grill as if the new methodology was in effect at the start of the fiscal year, which would have increased traffic for Bonefish Grill and Combined U.S. for the thirteen weekend ended March 29, 2020 by 3.1% and 0.5%, respectively.

(4)

Average check per person includes the impact of menu pricing changes, product mix and discounts.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201023005217/en/

CONTACT: Mark Graff Group Vice President, IR & Finance (813) 830-5311