Business Wire | Apr 29, 2021 07:00AM EDT

Bloomin' Brands Announces 2021 Q1 Financial Results and Strong Operating Margin Expansion

Apr. 29, 2021

TAMPA, Fla.--(BUSINESS WIRE)--Apr. 29, 2021--Bloomin' Brands, Inc. (Nasdaq: BLMN) today reported results for the first quarter 2021 ("Q1 2021") compared to the first quarter 2020 ("Q1 2020").

CEO Comments

"The first quarter was a strong start to the year. We are well positioned to grow sales, and capture additional market share as the economic recovery continues," said David Deno, Chief Executive Officer. "As a result of investments made over the last few years we are making great progress in growing off-premises sales, improving margins, and increasing cash flow as dining rooms reopen. Our sales momentum has continued through the first four weeks of the second quarter with U.S. comp sales up 12.6% on a two-year basis versus 2019."

Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted earnings (loss) per share attributable to common stockholders to Adjusted diluted earnings per share for the periods indicated:

Q1

2021 2020 CHANGE Q1 2019 (1)

Diluted earnings (loss) per share $ 0.63 $ (0.44) $ 1.07 $ 0.69 attributable to common stockholders

Adjustments (2) 0.09 0.58 (0.49) 0.06

Adjusted diluted earnings per share $ 0.72 $ 0.14 $ 0.58 $ 0.75 (2)



___________________

(1) Presented for improved comparability.

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

First Quarter Financial Results

(dollars in millions) Q1 2021 Q1 2020 CHANGE Q1 2019 (1)

Total revenues (2) $ 987.5 $ 1,008.3 (2.1) % $ 1,128.1



Restaurant-level operating margin 18.8 % 12.1 % 6.7 % 17.1 %

Adjusted restaurant-level operating 18.8 % 12.5 % 6.3 % 17.1 %margin (3)



GAAP operating income (loss) margin 9.2 % (4.1) % 13.3 % 7.3 %

Adjusted operating income margin (3) 9.2 % 2.7 % 6.5 % 7.8 %

___________________

(1) Presented for improved comparability.

(2) Outback Steakhouse Brazil results are reported on a one-month lag and arepresented on a calendar basis. Restaurant sales for Brazil during the firstquarter of 2020 (through February 29, 2020) were not materially impacted by theCOVID-19 pandemic.

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

* The decrease in Total revenues was primarily due to: (i) lower international comparable restaurant sales, (ii) the effect of foreign currency translation of the Brazil Real relative to the U.S. dollar and (iii) the net impact of restaurant closures and openings. The decrease in Total revenue was partially offset by higher U.S. comparable restaurant sales.

* Restaurant-level operating margin increased due to: (i) the impact of the COVID-19 pandemic during 2020, including relief pay, (ii) lower advertising expense, (iii) a reduction in prep labor hours, (iv) cost savings from our waste reduction initiatives and (v) reduced operating and utilities expenses. These increases were partially offset by incremental delivery related costs.

* GAAP operating income margin increased due to: (i) an increase in restaurant-level operating margin as described above, (ii) 2020 asset impairment charges and general and administrative expense related to the COVID-19 pandemic and (iii) the impact of restructuring and transformational initiatives during 2020, including severance and impairment charges. Charges related to the COVID-19 pandemic and restructuring and transformational initiatives were excluded from our 2020 Adjusted operating income margin.

First Quarter Comparable Restaurant Sales

The following table includes company-owned comparable restaurant sales for the first quarter ended March 28, 2021 as well as performance relative to fiscal year 2019 for improved comparability due to the impact of COVID-19:

THIRTEEN WEEKS ENDED

MARCH 28, 2021

Comparable Comparable to to 2019 (1) 2020

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

U.S.

Outback Steakhouse (5.8) % 4.1 %

Carrabba's Italian Grill (0.6) % 8.9 %

Bonefish Grill (16.3) % (2.9) %

Fleming's Prime Steakhouse & Wine Bar (15.0) % (2.3) %

Combined U.S. (7.3) % 3.3 %

International

Outback Steakhouse - Brazil (2)(3) (16.8) % (21.4) %

_________________

(1) Represents comparable restaurant sales (decreases) increases relative tofiscal year 2019 for improved comparability due to the impact of COVID-19 onfiscal year 2020 restaurant sales.

(2) Excludes the effect of fluctuations in foreign currency rates. Includestrading day impact from calendar period reporting.

(3) Outback Steakhouse Brazil results are reported on a one-month lag and arepresented on a calendar basis. Restaurant sales for Brazil during the firstquarter of 2020 (through February 29, 2020) were not materially impacted by theCOVID-19 pandemic.

Recent Sales Results - U.S.

Second quarter-to-date U.S. comparable restaurant sales results have continued to strengthen due to our sales building initiatives, easing of in-restaurant capacity restrictions, pent up consumer demand and additional stimulus.

The following tables include quarter-to-date U.S. company-owned comparable restaurant sales for the four-week period ended April 25, 2021 and weekly U.S. comparable average unit volumes for the periods indicated:

Company Owned

FOUR WEEKS ENDED APRIL 25, 2021 Comparable to Comparable to 2019 (1) 2020 (1)

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

U.S.

Outback Steakhouse 13.3% 120.4%

Carrabba's Italian Grill 18.6% 166.4%

Bonefish Grill 2.4% 289.3%

Fleming's Prime Steakhouse & Wine Bar 16.5% 360.5%

Combined U.S. 12.6% 155.8%





FOUR WEEKS ENDED APRIL 25, 2021 APRIL 28, 2019 (1) (2)

Comparable restaurant average unit volumes (weekly):

U.S.

Outback Steakhouse $ 79,150 $ 69,845

Carrabba's Italian Grill $ 66,498 $ 56,066

Bonefish Grill $ 62,688 $ 61,205

Fleming's Prime Steakhouse & Wine Bar $ 98,465 $ 84,548

Combined U.S. $ 74,903 $ 66,490

_________________

(1) For the four-week period March 29, 2021 through April 25, 2021.

(2) For the four-week period April 1, 2019 through April 28, 2019.

Recent Sales Trends - Brazil

Brazil sales have been impacted by a rise in COVID-19 cases that resulted in significantly reduced or closed in-restaurant dining capacity for a majority of the country. During this period, our restaurants primarily operated in an off-premises only model. In recent weeks, we have seen in-restaurant dining capacity begin to increase which has resulted in improving weekly sales volumes. In addition, Sao Paulo, which represents our largest market with 46% of stores, recently reopened in-restaurant dining at 25% capacity on April 24, 2021 providing optimism about the continued recovery.

The following table includes second quarter-to-date Brazil company-owned restaurant sales for the full weekly periods ended as indicated, comparable to fiscal year 2020:

WEEK ENDED

MARCH 7, MARCH MARCH MARCH APRIL 4, APRIL APRIL APRIL 14, 21, 28, 11, 18, 25, 2021 2021 2021 2021 2021 2021 2021 2021

Comparablerestaurantsales (stores open 18months ormore):

International

Outback (42.2) (49.0)Steakhouse - % % 128.7% 209.1% 122.4% 126.3% 136.9% 159.0%Brazil (1)



Averagerestaurant unit volumes(weekly):

International

OutbackSteakhouse - $ 31,613 $ 23,488 $ 23,157 $ 21,181 $ 20,951 $ 25,466 $ 29,793 $ 35,182Brazil (2)

_________________

(1) Excludes the effect of fluctuations in foreign currency rates.

(2) Translated at an average exchange rate of 5.63.

Refinancing of Credit Facility and Issuance of New Senior Notes

On April 16, 2021, we entered into two separate agreements that provide diversified funding sources and increased maturity to our capital structure.

* Entered into a five-year restated credit agreement with our lenders for a $1 billion credit facility consisting of a $200 million Term loan A and an $800 million revolving credit facility * Issued $300 million of unsecured 5.125% senior notes due 2029

Q2 2021 Financial Outlook

The table below presents our expectations for selected fiscal Q2 2021 financial operating results. Our Outlook contemplates the following considerations:

* Continuing momentum in U.S. sales trends; * Achieving ongoing operating efficiencies including labor benefits from simplification efforts, waste reduction and lower advertising; and * Impact of restrictions on in-restaurant dining room capacity on Brazil sales and profits.

Selected Financial Data: Q2 2021 Outlook

Total revenues At least $1.030B



EBITDA (1) At least $130M



GAAP diluted earnings per share (1)(2) At least $0.54



Adjusted diluted earnings per share (1)(3) At least $0.60

_________________

(1) Excludes charges related to the refinancing of our credit facility andissuance of senior notes. We anticipate excluding these charges from ouradjusted results. See EBITDA outlook reconciliation later in this release.

(2) Assumes weighted average diluted shares of approximately 110 million, whichincludes the dilutive impact of shares issuable in excess of the convertiblenote principal and excludes the benefit of the convertible notes hedge.

(3) Assumes weighted average adjusted diluted shares of approximately 99million, which includes the benefit of the convertible notes hedge.

Fiscal 2021 Financial Outlook

The Company remains focused on emerging from the pandemic a better, stronger, operations-focused company. We are reaffirming all aspects of our full-year guidance measures that were previously communicated in our February 18, 2021 earnings release. However, we are not providing any additional sales or profit guidance for the full-year due to the ongoing uncertainties related to the COVID-19 pandemic.

Conference Call

The Company will host a conference call today, April 29, 2021 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 income from operations and the corresponding margin, (iii) Adjusted net income, (iv) Adjusted diluted earnings per share, (v) Adjusted segment restaurant-level operating margin, (vi) Adjusted segment income from operations and the corresponding margin and (vii) Earnings before interest, taxes, depreciation and amortization ("EBITDA").

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 five, six, seven and ten 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, 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 headings "CEO Comments", "Q2 2021 Financial Outlook" and "Fiscal 2021 Financial Outlook" 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: consumer reaction to public health and food safety issues; 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; 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

(in thousands, except per share data) MARCH 28, MARCH 29, 2021 2020

Revenues

Restaurant sales $ 979,451 $ 996,237

Franchise and other revenues 8,022 12,100

Total revenues 987,473 1,008,337

Costs and expenses

Food and beverage costs 291,870 319,693

Labor and other related 274,638 309,269

Other restaurant operating 229,293 246,555

Depreciation and amortization 41,226 48,268

General and administrative 57,248 84,802

Provision for impaired assets and restaurant closings 2,200 41,318

Total costs and expenses 896,475 1,049,905

Income (loss) from operations 90,998 (41,568)

Other income (expense), net 21 (793)

Interest expense, net (14,628) (11,708)

Income (loss) before provision (benefit) for income 76,391 (54,069) taxes

Provision (benefit) for income taxes 6,593 (19,655)

Net income (loss) 69,798 (34,414)

Less: net income attributable to noncontrolling 936 197 interests

Net income (loss) attributable to Bloomin' Brands 68,862 (34,611)

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

Net income (loss) attributable to common stockholders 68,862 (38,107)

Convertible senior notes if-converted method interest 1,381 - adjustment, net of tax

Diluted net income (loss) attributable to common $ 70,243 $ (38,107) stockholders



Earnings (loss) per share attributable to common stockholders:

Basic $ 0.78 $ (0.44)

Diluted $ 0.63 $ (0.44)



Weighted average common shares outstanding:

Basic 88,367 87,129

Diluted 110,641 87,129

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

U.S. Segment

MARCH 28, 2021

MARCH 29, 2020

Revenues

Restaurant sales

$

900,059

$

884,889

Franchise and other revenues

4,859

9,608

Total revenues

$

904,918

$

894,497

Restaurant-level operating margin

19.2

%

11.5

%

Income from operations

$

121,735

$

11,379

Operating income margin

13.5

%

1.3

%

International Segment

Revenues

Restaurant sales

$

79,392

$

111,348

Franchise and other revenues

3,163

2,492

Total revenues

$

82,555

$

113,840

Restaurant-level operating margin

14.4

%

18.5

%

Income from operations

$

3,537

$

6,787

Operating income margin

4.3

%

6.0

%

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

Segment income from operations

U.S.

$

121,735

$

11,379

International

3,537

6,787

Total segment income from operations

125,272

18,166

Unallocated corporate operating expense (1)

(34,274)

(59,734)

Total income (loss) from operations

$

90,998

$

(41,568)

____________________

(1) The thirteen weeks ended March 29, 2020 includes $22.2 million of charges that were not allocated to our segments related to our transformational initiatives.

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands) THIRTEEN WEEKS ENDED

U.S. Segment MARCH 28, MARCH 29, 2021 2020

Revenues

Restaurant sales $ 900,059 $ 884,889

Franchise and other revenues 4,859 9,608

Total revenues $ 904,918 $ 894,497

Restaurant-level operating margin 19.2 % 11.5 %

Income from operations $ 121,735 $ 11,379

Operating income margin 13.5 % 1.3 %

International Segment

Revenues

Restaurant sales $ 79,392 $ 111,348

Franchise and other revenues 3,163 2,492

Total revenues $ 82,555 $ 113,840

Restaurant-level operating margin 14.4 % 18.5 %

Income from operations $ 3,537 $ 6,787

Operating income margin 4.3 % 6.0 %

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

Segment income from operations

U.S. $ 121,735 $ 11,379

International 3,537 6,787

Total segment income from operations 125,272 18,166

Unallocated corporate operating expense (1) (34,274) (59,734)

Total income (loss) from operations $ 90,998 $ (41,568)

____________________

(1) The thirteen weeks ended March 29, 2020 includes $22.2 million of chargesthat were not allocated to our segments related to our transformationalinitiatives.

TABLE THREE

BLOOMIN' BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(dollars in thousands)

MARCH 28, 2021

DECEMBER 27, 2020

Cash and cash equivalents

$

136,658

$

109,980

Net working capital (deficit) (1)

$

(658,994)

$

(626,250)

Total assets

$

3,285,324

$

3,362,107

Total debt, net

$

993,363

$

1,036,480

Total stockholders' equity

$

45,405

$

10,957

_________________

(1) 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.

TABLE THREE

BLOOMIN' BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(dollars in thousands) MARCH 28, 2021 DECEMBER 27, 2020

Cash and cash equivalents $ 136,658 $ 109,980

Net working capital (deficit) (1) $ (658,994) $ (626,250)

Total assets $ 3,285,324 $ 3,362,107

Total debt, net $ 993,363 $ 1,036,480

Total stockholders' equity $ 45,405 $ 10,957

_________________

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

TABLE FOUR

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS

(UNAUDITED)

Consolidated

THIRTEEN WEEKS ENDED

(dollars in thousands)

MARCH 28, 2021

MARCH 29, 2020

Income (loss) from operations

$

90,998

$

(41,568)

Operating income (loss) margin

9.2

%

(4.1)

%

Less:

Franchise and other revenues

8,022

12,100

Plus:

Depreciation and amortization

41,226

48,268

General and administrative

57,248

84,802

Provision for impaired assets and restaurant closings

2,200

41,318

Restaurant-level operating income

$

183,650

$

120,720

Restaurant-level operating margin

18.8

%

12.1

%

U.S.

THIRTEEN WEEKS ENDED

(dollars in thousands)

MARCH 28, 2021

MARCH 29, 2020

Income from operations

$

121,735

$

11,379

Operating income margin

13.5

%

1.3

%

Less:

Franchise and other revenues

4,859

9,608

Plus:

Depreciation and amortization

33,645

37,640

General and administrative

21,092

30,880

Provision for impaired assets and restaurant closings

1,463

31,694

Restaurant-level operating income

$

173,076

$

101,985

Restaurant-level operating margin

19.2

%

11.5

%

International

THIRTEEN WEEKS ENDED

(dollars in thousands)

MARCH 28, 2021

MARCH 29, 2020

Income from operations

$

3,537

$

6,787

Operating income margin

4.3

%

6.0

%

Less:

Franchise and other revenues

3,163

2,492

Plus:

Depreciation and amortization

5,720

6,758

General and administrative

4,605

6,256

Provision for impaired assets and restaurant closings

707

3,344

Restaurant-level operating income

$

11,406

$

20,653

Restaurant-level operating margin

14.4

%

18.5

%

TABLE FOUR

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS

(UNAUDITED)

Consolidated THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 28, MARCH 29, 2021 2020

Income (loss) from operations $ 90,998 $ (41,568)

Operating income (loss) margin 9.2 % (4.1) %

Less:

Franchise and other revenues 8,022 12,100

Plus:

Depreciation and amortization 41,226 48,268

General and administrative 57,248 84,802

Provision for impaired assets and restaurant 2,200 41,318 closings

Restaurant-level operating income $ 183,650 $ 120,720

Restaurant-level operating margin 18.8 % 12.1 %



U.S. THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 28, MARCH 29, 2021 2020

Income from operations $ 121,735 $ 11,379

Operating income margin 13.5 % 1.3 %

Less:

Franchise and other revenues 4,859 9,608

Plus:

Depreciation and amortization 33,645 37,640

General and administrative 21,092 30,880

Provision for impaired assets and restaurant 1,463 31,694 closings

Restaurant-level operating income $ 173,076 $ 101,985

Restaurant-level operating margin 19.2 % 11.5 %



International THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 28, MARCH 29, 2021 2020

Income from operations $ 3,537 $ 6,787

Operating income margin 4.3 % 6.0 %

Less:

Franchise and other revenues 3,163 2,492

Plus:

Depreciation and amortization 5,720 6,758

General and administrative 4,605 6,256

Provision for impaired assets and restaurant 707 3,344 closings

Restaurant-level operating income $ 11,406 $ 20,653

Restaurant-level operating margin 14.4 % 18.5 %

TABLE FIVE

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

FAVORABLE (UNFAVORABLE) CHANGE IN ADJUSTED

YEAR TO DATE

MARCH 28, 2021

MARCH 29, 2020

Consolidated:

REPORTED

ADJUSTED

REPORTED

ADJUSTED (1)

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

29.8

%

29.8

%

32.1

%

31.5

%

1.7

%

Labor and other related

28.0

%

28.0

%

31.0

%

31.0

%

3.0

%

Other restaurant operating

23.4

%

23.4

%

24.7

%

25.0

%

1.6

%

Restaurant-level operating margin (2)

18.8

%

18.8

%

12.1

%

12.5

%

6.3

%

Segments - Restaurant-level operating margin:

U.S. (2)

19.2

%

19.2

%

11.5

%

11.7

%

7.5

%

International (2)

14.4

%

14.4

%

18.5

%

20.2

%

(5.8)

%

_________________

(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 (favorable) unfavorable 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:

TABLE FIVE

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED FAVORABLE (UNFAVORABLE) MARCH 28, 2021 MARCH 29, 2020 CHANGE IN ADJUSTEDConsolidated: REPORTED ADJUSTED REPORTED ADJUSTED (1) YEAR TO DATE

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Food and beverage 29.8 % 29.8 % 32.1 % 31.5 % 1.7 %costs

Labor and other 28.0 % 28.0 % 31.0 % 31.0 % 3.0 %related

Other restaurant 23.4 % 23.4 % 24.7 % 25.0 % 1.6 %operating



Restaurant-level 18.8 % 18.8 % 12.1 % 12.5 % 6.3 %operating margin (2)



Segments -Restaurant-level operating margin:

U.S. (2) 19.2 % 19.2 % 11.5 % 11.7 % 7.5 %

International (2) 14.4 % 14.4 % 18.5 % 20.2 % (5.8) %

_________________

(1) The table set forth below titled "Restaurant-level Operating MarginAdjustments" provides additional information regarding the adjustments for eachperiod presented.

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

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

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

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

(d) Asset impairment charges and restaurant closing costs which are notreflective of ongoing restaurant performance in a period.

Restaurant-level Operating Margin Adjustments - Following is a summary of (favorable) unfavorable 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:

THIRTEEN WEEKS ENDED

(dollars in millions) MARCH 29, 2020

COVID-19 related costs (1) $ (6.2)

Restaurant and asset impairments and closing costs 2.8

Restaurant relocations and related costs (0.1)

$ (3.5)

_________________

(1) Adjustments recorded in Food and beverage costs. Includes $1.8 million ofadjustments recorded in the international segment. All other adjustments wererecorded within the U.S. segment.

TABLE SIX

BLOOMIN' BRANDS, INC.

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

(UNAUDITED)

THIRTEEN WEEKS ENDED

(in thousands, except per share data)

MARCH 28, 2021

MARCH 29, 2020

Income (loss) from operations

$

90,998

$

(41,568)

Operating income (loss) margin

9.2

%

(4.1)

%

Adjustments:

COVID-19-related costs (1)

-

48,876

Severance and other transformational costs (2)

-

22,232

Restaurant relocations and related costs (3)

-

592

Legal and other matters

-

178

Restaurant and asset impairments and closing costs (4)

-

(2,797)

Total income (loss) from operations adjustments

$

-

$

69,081

Adjusted income from operations

$

90,998

$

27,513

Adjusted operating income margin

9.2

%

2.7

%

Net income (loss) attributable to common stockholders

$

68,862

$

(38,107)

Adjustments:

Income (loss) from operations adjustments

-

69,081

Total adjustments, before income taxes

-

69,081

Adjustment to provision for income taxes (5)

-

(21,995)

Redemption of preferred stock in excess of carrying value (6)

-

3,496

Net adjustments

-

50,582

Adjusted net income

68,862

12,475

Convertible senior notes if-converted method interest adjustment, net of tax (7)

1,381

-

Diluted net income (loss) attributable to common stockholders

$

70,243

$

12,475

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

$

0.63

$

(0.44)

Adjusted diluted earnings per share (8)(9)

$

0.72

$

0.14

Basic weighted average common shares outstanding

88,367

87,129

Diluted weighted average common shares outstanding (8)

110,641

87,963

Adjusted diluted weighted average common shares outstanding (8)(9)

95,448

87,963

_________________

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

(2) Severance, professional fees and other costs incurred as a result of transformational and restructuring activities.

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

(4) Includes a lease termination gain of $2.8 million.

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

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

(7) Adjustment relates to the 2025 Notes weighted for the portion of the period prior to the Company's election under the 2025 Notes indenture to settle the principal portion of its 2025 Notes in cash.

(8) Due to the GAAP net loss, the effect of dilutive securities was excluded from the calculation of GAAP diluted loss per share for the thirteen weeks ended March 29, 2020. For adjusted diluted earnings per share, the calculation includes 834 dilutive shares for the thirteen weeks ended March 29, 2020.

(9) For the thirteen weeks ended March 28, 2021, adjusted diluted weighted average common shares outstanding was calculated: (i) assuming our February 2021 election to settle the principal portion of the 2025 Notes in cash was in effect for the entire period and (ii) excluding the dilutive effect of 9,653 shares to be issued upon conversion of the notes to satisfy the amount in excess of the principal since our hedge offsets the dilutive impact of the shares underlying the 2025 Notes. The calculation of adjusted diluted earnings per share excludes the convertible senior notes interest adjustment.

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

TABLE SIX

BLOOMIN' BRANDS, INC.

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

(UNAUDITED)

THIRTEEN WEEKS ENDED

(in thousands, except per share data) MARCH 28, MARCH 29, 2020 2021

Income (loss) from operations $ 90,998 $ (41,568)

Operating income (loss) margin 9.2 % (4.1) %

Adjustments:

COVID-19-related costs (1) - 48,876

Severance and other transformational costs (2) - 22,232

Restaurant relocations and related costs (3) - 592

Legal and other matters - 178

Restaurant and asset impairments and closing - (2,797) costs (4)

Total income (loss) from operations adjustments $ - $ 69,081

Adjusted income from operations $ 90,998 $ 27,513

Adjusted operating income margin 9.2 % 2.7 %



Net income (loss) attributable to common $ 68,862 $ (38,107) stockholders

Adjustments:

Income (loss) from operations adjustments - 69,081

Total adjustments, before income taxes - 69,081

Adjustment to provision for income taxes (5) - (21,995)

Redemption of preferred stock in excess of - 3,496 carrying value (6)

Net adjustments - 50,582

Adjusted net income 68,862 12,475

Convertible senior notes if-converted method 1,381 - interest adjustment, net of tax (7)

Diluted net income (loss) attributable to common $ 70,243 $ 12,475 stockholders



Diluted earnings (loss) per share attributable $ 0.63 $ (0.44) to common stockholders (8)

Adjusted diluted earnings per share (8)(9) $ 0.72 $ 0.14



Basic weighted average common shares outstanding 88,367 87,129

Diluted weighted average common shares 110,641 87,963 outstanding (8)

Adjusted diluted weighted average common shares 95,448 87,963 outstanding (8)(9)

_________________

(1) Costs incurred in connection with the COVID-19 pandemic, primarilyconsisting of fixed asset and right-of-use asset impairments, inventoryobsolescence and spoilage, contingent lease liabilities and current expectedcredit losses.

(2) Severance, professional fees and other costs incurred as a result oftransformational and restructuring activities.

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

(4) Includes a lease termination gain of $2.8 million.

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

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

(7) Adjustment relates to the 2025 Notes weighted for the portion of theperiod prior to the Company's election under the 2025 Notes indenture tosettle the principal portion of its 2025 Notes in cash.

(8) Due to the GAAP net loss, the effect of dilutive securities was excludedfrom the calculation of GAAP diluted loss per share for the thirteen weeksended March 29, 2020. For adjusted diluted earnings per share, the calculationincludes 834 dilutive shares for the thirteen weeks ended March 29, 2020.

(9) For the thirteen weeks ended March 28, 2021, adjusted diluted weightedaverage common shares outstanding was calculated: (i) assuming our February2021 election to settle the principal portion of the 2025 Notes in cash was ineffect for the entire period and (ii) excluding the dilutive effect of 9,653shares to be issued upon conversion of the notes to satisfy the amount inexcess of the principal since our hedge offsets the dilutive impact of theshares underlying the 2025 Notes. The calculation of adjusted diluted earningsper share excludes the convertible senior notes interest adjustment.

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

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 29, 2020

Food and beverage costs $ 6,182

Other restaurant operating (2,643)

Depreciation and amortization 407

General and administrative 24,224

Provision for impaired assets and restaurant closings 40,911

Provision (benefit) for income taxes (21,995)

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

Net adjustments $ 50,582

TABLE SEVEN

BLOOMIN' BRANDS, INC.

SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATION

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

U.S. Segment

MARCH 28, 2021

MARCH 29, 2020

Income from operations

$

121,735

$

11,379

Operating income margin

13.5

%

1.3

%

Adjustments:

COVID-19-related costs (1)

-

42,979

Restaurant relocations and related costs (2)

-

592

Restaurant and asset impairments and closing costs (3)

-

(2,797)

Adjusted income from operations

$

121,735

$

52,153

Adjusted operating income margin

13.5

%

5.8

%

International Segment

Income from operations

$

3,537

$

6,787

Operating income margin

4.3

%

6.0

%

Adjustments:

COVID-19 related costs (1)

-

5,192

Adjusted income from operations

$

3,537

$

11,979

Adjusted operating income margin

4.3

%

10.5

%

_________________

(1) Costs incurred in connection with the COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, 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) Includes a lease termination gain of $2.8 million.

TABLE SEVEN

BLOOMIN' BRANDS, INC.

SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATION

(UNAUDITED)

(dollars in thousands) THIRTEEN WEEKS ENDED

U.S. Segment MARCH 28, MARCH 29, 2021 2020

Income from operations $ 121,735 $ 11,379

Operating income margin 13.5 % 1.3 %

Adjustments:

COVID-19-related costs (1) - 42,979

Restaurant relocations and related costs (2) - 592

Restaurant and asset impairments and closing costs - (2,797) (3)

Adjusted income from operations $ 121,735 $ 52,153

Adjusted operating income margin 13.5 % 5.8 %



International Segment

Income from operations $ 3,537 $ 6,787

Operating income margin 4.3 % 6.0 %

Adjustments:

COVID-19 related costs (1) - 5,192

Adjusted income from operations $ 3,537 $ 11,979

Adjusted operating income margin 4.3 % 10.5 %

_________________

(1) Costs incurred in connection with the COVID-19 pandemic, primarilyconsisting of fixed asset and right-of-use asset impairments, inventoryobsolescence and spoilage, contingent lease liabilities and current expectedcredit losses.

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

(3) Includes a lease termination gain of $2.8 million.

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of the period):

DECEMBER 27, 2020

OPENINGS

CLOSURES

MARCH 28, 2021

U.S.:

Outback Steakhouse

Company-owned

568

-

(1)

567

Franchised

138

-

(7)

131

Total

706

-

(8)

698

Carrabba's Italian Grill

Company-owned

199

-

-

199

Franchised

21

-

-

21

Total

220

-

-

220

Bonefish Grill

Company-owned

180

-

-

180

Franchised

7

-

-

7

Total

187

-

-

187

Fleming's Prime Steakhouse & Wine Bar

Company-owned

63

1

-

64

Other

Company-owned (1)

5

1

-

6

U.S. total

1,181

2

(8)

1,175

International:

Company-owned

Outback Steakhouse - Brazil (2)

109

1

-

110

Other (1)(3)

33

1

-

34

Franchised

Outback Steakhouse-South Korea (3)

95

6

(1)

100

Other (1)

56

1

-

57

International total

293

9

(1)

301

System-wide total

1,474

11

(9)

1,476

____________________

(1) U.S. Company-owned and International Franchised Other each includes three fast-casual Aussie Grill locations as of March 28, 2021. International Company-owned Other includes two fast-casual Aussie Grill locations as of March 28, 2021.

(2) The restaurant counts for Brazil are reported as of November 30, 2020 and February 28, 2021, respectively, to correspond with the balance sheet dates of this subsidiary.

(3) As of March 28, 2021, we had 25 international dark kitchens that offer delivery only included in Franchised Outback Steakhouse - South Korea. In addition, we had one international dark kitchen location included within Company-owned Other as of March 28, 2021.

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of the DECEMBER MARCHperiod): 27, 2020 OPENINGS CLOSURES 28, 2021

U.S.:

Outback Steakhouse

Company-owned 568 - (1) 567

Franchised 138 - (7) 131

Total 706 - (8) 698

Carrabba's Italian Grill

Company-owned 199 - - 199

Franchised 21 - - 21

Total 220 - - 220

Bonefish Grill

Company-owned 180 - - 180

Franchised 7 - - 7

Total 187 - - 187

Fleming's Prime Steakhouse & Wine Bar

Company-owned 63 1 - 64

Other

Company-owned (1) 5 1 - 6

U.S. total 1,181 2 (8) 1,175

International:

Company-owned

Outback Steakhouse - Brazil (2) 109 1 - 110

Other (1)(3) 33 1 - 34

Franchised

Outback Steakhouse-South Korea (3) 95 6 (1) 100

Other (1) 56 1 - 57

International total 293 9 (1) 301

System-wide total 1,474 11 (9) 1,476

____________________

(1) U.S. Company-owned and International Franchised Other each includes threefast-casual Aussie Grill locations as of March 28, 2021. InternationalCompany-owned Other includes two fast-casual Aussie Grill locations as of March28, 2021.

(2) The restaurant counts for Brazil are reported as of November 30, 2020 andFebruary 28, 2021, respectively, to correspond with the balance sheet dates ofthis subsidiary.

(3) As of March 28, 2021, we had 25 international dark kitchens that offerdelivery only included in Franchised Outback Steakhouse - South Korea. Inaddition, we had one international dark kitchen location included withinCompany-owned Other as of March 28, 2021.

TABLE NINE

BLOOMIN' BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

MARCH 28, 2021

MARCH 29, 2020

Comparable to 2019 (1)

Comparable to 2020

Comparable to 2019

Year over year percentage change:

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

U.S. (2)

Outback Steakhouse

(5.8)

%

4.1

%

(9.5)

%

Carrabba's Italian Grill

(0.6)

%

8.9

%

(8.7)

%

Bonefish Grill

(16.3)

%

(2.9)

%

(13.9)

%

Fleming's Prime Steakhouse & Wine Bar

(15.0)

%

(2.3)

%

(13.2)

%

Combined U.S.

(7.3)

%

3.3

%

(10.4)

%

International

Outback Steakhouse - Brazil (3)(4)

(16.8)

%

(21.4)

%

6.8

%

Traffic:

U.S.

Outback Steakhouse

(9.5)

%

0.9

%

(10.4)

%

Carrabba's Italian Grill

(1.1)

%

5.2

%

(6.2)

%

Bonefish Grill

(10.8)

%

2.1

%

(12.0)

%

Fleming's Prime Steakhouse & Wine Bar

(17.9)

%

(5.3)

%

(13.6)

%

Combined U.S.

(8.3)

%

1.7

%

(9.9)

%

International

Outback Steakhouse - Brazil (4)

(7.2)

%

(14.2)

%

8.4

%

Average check per person (5):

U.S.

Outback Steakhouse

3.7

%

3.2

%

0.9

%

Carrabba's Italian Grill

0.5

%

3.7

%

(2.5)

%

Bonefish Grill

(5.5)

%

(5.0)

%

(1.9)

%

Fleming's Prime Steakhouse & Wine Bar

2.9

%

3.0

%

0.4

%

Combined U.S.

1.0

%

1.6

%

(0.5)

%

International

Outback Steakhouse - Brazil (4)

(9.5)

%

(6.4)

%

(2.7)

%

____________________

(1) Represents comparable restaurant sales, traffic and average check per person (decreases) increases relative to fiscal year 2019 for improved comparability due to the impact of COVID-19 on fiscal year 2020 restaurant sales.

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

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

(4) Outback Steakhouse Brazil results are reported on a one-month lag and are presented on a calendar basis. Restaurant sales for Brazil during the first quarter of 2020 (through February 29, 2020) were not materially impacted by the COVID-19 pandemic.

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

TABLE NINE

BLOOMIN' BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

MARCH 28, 2021 MARCH 29, 2020

Comparable Comparable Comparable to 2019 to 2020 to 2019 (1)

Year over year percentage change:

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

U.S. (2)

Outback Steakhouse (5.8) % 4.1 % (9.5) %

Carrabba's Italian Grill (0.6) % 8.9 % (8.7) %

Bonefish Grill (16.3) % (2.9) % (13.9) %

Fleming's Prime Steakhouse & Wine Bar (15.0) % (2.3) % (13.2) %

Combined U.S. (7.3) % 3.3 % (10.4) %

International

Outback Steakhouse - Brazil (3)(4) (16.8) % (21.4) % 6.8 %



Traffic:

U.S.

Outback Steakhouse (9.5) % 0.9 % (10.4) %

Carrabba's Italian Grill (1.1) % 5.2 % (6.2) %

Bonefish Grill (10.8) % 2.1 % (12.0) %

Fleming's Prime Steakhouse & Wine Bar (17.9) % (5.3) % (13.6) %

Combined U.S. (8.3) % 1.7 % (9.9) %

International

Outback Steakhouse - Brazil (4) (7.2) % (14.2) % 8.4 %



Average check per person (5):

U.S.

Outback Steakhouse 3.7 % 3.2 % 0.9 %

Carrabba's Italian Grill 0.5 % 3.7 % (2.5) %

Bonefish Grill (5.5) % (5.0) % (1.9) %

Fleming's Prime Steakhouse & Wine Bar 2.9 % 3.0 % 0.4 %

Combined U.S. 1.0 % 1.6 % (0.5) %

International

Outback Steakhouse - Brazil (4) (9.5) % (6.4) % (2.7) %

____________________

(1) Represents comparable restaurant sales, traffic and average check perperson (decreases) increases relative to fiscal year 2019 for improvedcomparability due to the impact of COVID-19 on fiscal year 2020 restaurantsales.

(2) Relocated restaurants closed more than 60 days are excluded from comparablerestaurant sales until at least 18 months after reopening.

(3) Excludes the effect of fluctuations in foreign currency rates. Includestrading day impact from calendar period reporting.

(4) Outback Steakhouse Brazil results are reported on a one-month lag and arepresented on a calendar basis. Restaurant sales for Brazil during the firstquarter of 2020 (through February 29, 2020) were not materially impacted by theCOVID-19 pandemic.

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

TABLE TEN

BLOOMIN' BRANDS, INC.

EBITDA RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

(dollars in thousands)

MARCH 28, 2021

Net income attributable to common stockholders

$

68,862

Provision for income taxes

6,593

Interest expense, net

14,628

Depreciation and amortization

41,226

EBITDA

$

131,309

TABLE TEN

BLOOMIN' BRANDS, INC.

EBITDA RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 28, 2021

Net income attributable to common stockholders $ 68,862

Provision for income taxes 6,593

Interest expense, net 14,628

Depreciation and amortization 41,226

EBITDA $ 131,309

TABLE ELEVEN

BLOOMIN' BRANDS, INC.

FISCAL 2021 SECOND QUARTER EBITDA OUTLOOK RECONCILIATION

(UNAUDITED)

(dollars in millions)

Net income attributable to common stockholders

At least $59M

Provision for income taxes

At least $12M

Interest expense, net

At least $17M

Depreciation and amortization

At least $42M

EBITDA

At least $130M

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005221/en/

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