Business Wire | Nov 2, 2021 07:00AM EDT

Bloomin' Brands Announces 2021 Q3 Financial Results and Strong Operating Margin Expansion

Nov. 02, 2021

TAMPA, Fla.--(BUSINESS WIRE)--Nov. 02, 2021--Bloomin' Brands, Inc. (Nasdaq: BLMN) today reported results for the third quarter 2021 ("Q3 2021") compared to the third quarter 2020 ("Q3 2020").

CEO Comments

"Q3 represented another quarter of strong results with significant sales, margin and earnings growth," said David Deno, Chief Executive Officer. "This performance is a result of the great work by our employees in the restaurants and the restaurant support center. Recently, we have seen inflationary pressures in our business and have levers available to combat these headwinds and achieve our margin targets. We remain confident in our strategy and are well positioned to deliver our long-term goals of growing healthy sales, optimizing margins, and increasing cash flow."

Diluted EPS and Adjusted Diluted EPS

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

Q3

2021 2020 CHANGE Q3 2019 (1)

Diluted earnings (loss) per share $ 0.03 $ (0.20 ) $ 0.23 $ 0.11 attributable to common stockholdersAdjustments (2) 0.54 0.08 0.46 (0.01 )

Adjusted diluted earnings (loss) per $ 0.57 $ (0.12 ) $ 0.69 $ 0.10 share (2)

___________________(1) Presented for improved comparability.

(2) Includes a $61.9 million payment made to the founders of our Carrabba'sItalian Grill concept in the third quarter of 2021 in connection with anagreement to terminate future royalty payments. See Non-GAAP Measures later inthis release.

Third Quarter Financial Results

(dollars in millions) Q3 2021 Q3 2020 CHANGE Q3 2019 (1)

Total revenues $ 1,010.5 $ 771.3 31.0 % $ 967.1



Restaurant-level operating margin 10.3 % 10.7 % (0.4 ) 12.9 % %

Adjusted restaurant-level 16.8 % 10.7 % 6.1 % 12.5 %operating margin (2)



GAAP operating income (loss) 1.5 % (1.8 ) 3.3 % 2.3 %margin %

Adjusted operating income (loss) 8.2 % (1.3 ) 9.5 % 2.3 %margin (2) %

___________________

(1) Presented for improved comparability.

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

* The increase in Total revenues was primarily due to: (i) higher comparable restaurant sales from in-restaurant dining and strong retention of off-premises sales, (ii) the net impact of restaurant openings and closures and (iii) higher franchise revenues.

* GAAP restaurant-level operating margin decreased primarily due to: (i) the Carrabba's Italian Grill royalty termination, (ii) higher labor costs and commodity inflation and (iii) higher utilities, rent and operating expense. These decreases were partially offset by higher comparable restaurant sales and lower advertising expense.

* GAAP operating income margin increased primarily due to higher comparable restaurant sales from in-restaurant dining and strong retention of off-premises sales, and higher franchise revenues.

* Adjusted restaurant-level operating margin and adjusted operating income margin exclude the impact of the Carrabba's Italian Grill royalty termination and are up significantly on a two-year basis to 2019.

Third Quarter Comparable Restaurant Sales

Third quarter U.S. comparable restaurant sales results were positive on a two-year basis given strong retention of off-premises sales. In August 2021, sales began decelerating due to traditional seasonality and concerns over the Delta variant. In addition, there was significant promotional activity during 2019 at Outback Steakhouse that we chose not to replicate in 2021 given the evolving consumer environment, including offers tied to the launch of our third party delivery channel. Despite these headwinds in Q3, U.S. comparable restaurant sales increased 9.5% when compared to Q3 2019.

The following table includes Company-owned comparable restaurant sales for the third quarter ended September 26, 2021 relative to 2019 and 2020:

THIRTEEN WEEKS ENDED

SEPTEMBER 26, 2021

COMPARABLE COMPARABLEComparable restaurant sales (stores open 18 months or TO 2019 TO 2020more): (1)

U.S.

Outback Steakhouse 6.0 % 18.3 %

Carrabba's Italian Grill 17.1 % 28.8 %

Bonefish Grill 5.7 % 36.6 %

Fleming's Prime Steakhouse & Wine Bar 28.0 % 59.6 %

Combined U.S. 9.5 % 25.5 %

International

Outback Steakhouse - Brazil (2) (5.1 )% 109.8 %

_________________(1) Represents comparable restaurant sales increases (decreases) relative to2019 for improved comparability due to the impact of COVID-19 on fiscal year2020 restaurant sales.

(2) Outback Steakhouse Brazil results are reported on a one-month lag and arepresented on a calendar basis. Represents results through August 31, 2021.Excludes the effect of fluctuations in foreign currency rates. Includes tradingday impact from calendar period reporting.

Recent Sales Results - U.S.

The following tables include quarter-to-date U.S. Company-owned comparable restaurant sales for the four-week period ended October 24, 2021 and weekly U.S. comparable average unit volumes for the periods indicated. During this period the Company chose not to replicate 2019 marketing activities and promotions at Outback Steakhouse given the evolving consumer environment. This had a significant impact on 2021 comparable restaurant sales as compared to 2019.

FOUR WEEKS ENDED

OCTOBER 24, 2021

Comparable restaurant sales (stores open 18 months COMPARABLE COMPARABLEor more): TO 2019 (1) TO 2020 (2)

U.S.

Outback Steakhouse 0.3 % 11.0 %

Carrabba's Italian Grill 13.1 % 17.3 %

Bonefish Grill 1.7 % 22.8 %

Fleming's Prime Steakhouse & Wine Bar 30.2 % 39.5 %

Combined U.S. 5.0 % 16.1 %



FOUR WEEKS ENDED

Comparable restaurant average unit volumes OCTOBER 24, OCTOBER 27,(weekly): 2021 (3) 2019 (3)

U.S.

Outback Steakhouse $ 70,275 $ 70,065

Carrabba's Italian Grill $ 61,246 $ 54,159

Bonefish Grill $ 57,069 $ 56,191

Fleming's Prime Steakhouse & Wine Bar $ 103,994 $ 79,859

Combined U.S. $ 68,248 $ 65,036

_________________

(1) For the four-week period September 27, 2021 through October 24, 2021 ascompared to September 30, 2019 through October 27, 2019.

(2) For the four-week period September 27, 2021 through October 24, 2021 ascompared to September 28, 2020 through October 25, 2020.

(3) For the four-week periods September 27, 2021 through October 24, 2021 andSeptember 30, 2019 through October 27, 2019, respectively.

Recent Sales Results - Brazil

Brazil's fourth quarter-to-date comparable restaurant sales have continued to strengthen due to an increase in in-restaurant dining capacity for a majority of the country as COVID-19 case counts decline and vaccination rates increase. In Sao Paulo, which represents our largest market with 46% of stores, in-restaurant dining capacity increased to 80% on August 1, 2021, providing optimism about the continued recovery. The following tables include Brazil fourth quarter-to-date Company-owned comparable restaurant sales for the eight-week period ended October 24, 2021 and weekly comparable average unit volumes for the periods indicated:

EIGHT WEEKS ENDED

OCTOBER 24, 2021

Comparable restaurant sales (stores open 18 months COMPARABLE COMPARABLEor more): TO 2019 (1) TO 2020 (2)

International

Outback Steakhouse - Brazil (3) 7.0 % 28.6 %



EIGHT WEEKS ENDED

Comparable restaurant average unit volumes OCTOBER 24, OCTOBER 27,(weekly): 2021 (4) 2019 (4)

International

Outback Steakhouse - Brazil (5) $ 61,198 $ 58,088

________________(1) For the eight-week period August 30, 2021 through October 24, 2021 ascompared to September 2, 2019 through October 27, 2019.(2) For the eight-week period August 30, 2021 through October 24, 2021 ascompared to August 31, 2020 through October 25, 2020.(3) Excludes the effect of fluctuations in foreign currency rates.(4) For the eight-week periods August 30, 2021 through October 24, 2021 andSeptember 2, 2019 through October 27, 2019, respectively.(5) Translated at an average exchange rate of 5.36. Q4 2021 Financial Outlook

The table below presents our expectations for selected fiscal Q4 2021 operating results. Our outlook assumes no significant business interruptions related to COVID-19 and contemplates the following:

* Continuing U.S. sales trends and includes a level of traditional Q4 seasonality; * Achieving ongoing operating efficiencies from simplification efforts, waste reduction and lower advertising; * Impact from Florida minimum wage increases due to legislative changes that went into effect in September, higher wage pressures and retention efforts, as well as increased commodity inflation; and * Q4 Adjusted diluted earnings per share guidance of at least $0.50 represents growth of 56% versus Q4 2019.

Selected Financial Data: Q4 2021 Outlook

Total revenues At least $1.02B



EBITDA (1) At least $115M



GAAP diluted earnings per share (2) At least $0.45



Adjusted diluted earnings per share (3) At least $0.50

_________________(1) See EBITDA outlook reconciliation later in this release.(2) Assumes weighted average diluted shares of approximately 109 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 98million, which excludes common shares to be issued upon conversion of the 2025Notes for the amount in excess of the principal since our convertible notehedge offsets the dilutive impact of the shares underlying the 2025 Notes. Fiscal 2021 Financial Outlook

We are updating our 2021 financial outlook for the following items:

* Increased commodity inflation reflecting increases in protein costs, primarily chicken and seafood, as we acquired additional supply outside of our contracted terms due to higher sales volumes and strategic contract pricing to secure next year's supply; and * Higher labor inflation from increased wage pressures, training costs, and retention efforts.

All other aspects of our previously provided financial outlook remain unchanged. See the table below for more details.

Selected Financial Data: Prior Outlook Current Outlook

Commodity inflation Approx. 1.0% Approx. 1.5%



Labor inflation 3.0% - 3.5% Approx. 4.5%



We will discuss current inflationary trends and preliminary thoughts on 2022 on our third quarter conference call.

Conference Call

The Company will host a conference call today, November 2, 2021 at 8:15 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 (loss) from operations and the corresponding margin, (iii) Adjusted net income (loss), (iv) Adjusted diluted earnings (loss) per share, (v) Adjusted segment restaurant-level operating margin, (vi) Adjusted segment income (loss) 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 19 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", "Q4 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 and fluctuations in the availability of employees; price and availability of commodities; government actions and policies; increases in unemployment rates and taxes; local, regional, national and international economic conditions; consumer confidence and spending patterns; 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 26, SEPTEMBER SEPTEMBER 26, SEPTEMBER 27,except per share 2021 27, 2020 2021 2020data)

Revenues

Restaurant sales $ 996,718 $ 766,487 $ 3,031,396 $ 2,338,985

Franchise and 13,745 4,773 43,906 19,071 other revenues

Total revenues 1,010,463 771,260 3,075,302 2,358,056

Costs and expenses

Food and beverage 304,300 230,547 908,272 730,998 costs

Labor and other 290,246 246,861 859,883 761,667 related

Other restaurant 299,788 207,301 762,531 631,702 operating

Depreciation and 40,827 43,417 122,592 137,469 amortization

General and 58,880 57,443 182,590 197,732 administrative

Provision forimpaired assets 1,585 (54 ) 8,962 66,223 and restaurantclosings

Total costs and 995,626 785,515 2,844,830 2,525,791 expenses

Income (loss) from 14,837 (14,255 ) 230,472 (167,735 )operations

Loss onextinguishment and - - (2,073 ) (237 )modification ofdebt

Other income 5 1 26 (211 )(expense), net

Interest expense, (14,245 ) (18,300 ) (43,863 ) (46,647 )net

Income (loss)before (benefit) 597 (32,554 ) 184,562 (214,830 )provision forincome taxes

(Benefit)provision for (4,454 ) (14,776 ) 24,827 (70,210 )income taxes

Net income (loss) 5,051 (17,778 ) 159,735 (144,620 )

Less: net income(loss)attributable to 1,602 (141 ) 4,879 (116 )noncontrollinginterests

Net income (loss)attributable to 3,449 (17,637 ) 154,856 (144,504 )Bloomin' Brands

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

Net income (loss)attributable to 3,449 (17,637 ) 154,856 (148,000 )commonstockholders

Convertible seniornotes if-convertedmethod interest - - 460 - adjustment, net oftax

Diluted net income(loss)attributable to $ 3,449 $ (17,637 ) $ 155,316 $ (148,000 )commonstockholders



Earnings (loss)per shareattributable to commonstockholders:

Basic $ 0.04 $ (0.20 ) $ 1.74 $ (1.69 )

Diluted $ 0.03 $ (0.20 ) $ 1.42 $ (1.69 )



Weighted averagecommon shares outstanding:

Basic 89,229 87,558 88,890 87,394

Diluted 107,783 87,558 109,410 87,394

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

U.S. Segment

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Revenues

Restaurant sales

$

898,790

$

719,406

$

2,789,142

$

2,141,062

Franchise and other revenues

13,943

2,332

31,567

12,253

Total revenues

$

912,733

$

721,738

$

2,820,709

$

2,153,315

Restaurant-level operating margin

10.0

%

11.4

%

17.1

%

9.4

%

Income (loss) from operations

$

47,294

$

29,574

$

334,326

$

(21,968

)

Operating income (loss) margin

5.2

%

4.1

%

11.9

%

(1.0

)%

International Segment

Revenues

Restaurant sales

$

97,928

$

47,081

$

242,254

$

197,923

Franchise and other revenues (1)

(198

)

2,441

12,339

6,818

Total revenues

$

97,730

$

49,522

$

254,593

$

204,741

Restaurant-level operating margin

12.8

%

(1.5

)%

10.7

%

5.7

%

Income (loss) from operations

$

1,412

$

(7,926

)

$

7,419

$

(18,209

)

Operating income (loss) margin

1.4

%

(16.0

)%

2.9

%

(8.9

)%

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

Segment income (loss) from operations

U.S.

$

47,294

$

29,574

$

334,326

$

(21,968

)

International

1,412

(7,926

)

7,419

(18,209

)

Total segment income (loss) from operations

48,706

21,648

341,745

(40,177

)

Unallocated corporate operating expense (2)

(33,869

)

(35,903

)

(111,273

)

(127,558

)

Total income (loss) from operations

$

14,837

$

(14,255

)

$

230,472

$

(167,735

)

____________________

(1) The thirteen and thirty-nine weeks ended September 26, 2021 includes an adjustment of $(3.2) million to reduce our initial recorded estimate and net $3.1 million benefit from the recognition of recoverable Program of Social Integration ("PIS") and Contribution for the Financing of Social Security ("COFINS") taxes, including accrued interest, respectively, within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base.

(2) The thirteen and thirty-nine weeks ended September 27, 2020 include $4.2 million and $28.8 million, respectively, of charges that were not allocated to our segments related to our transformational initiatives.

TABLE TWO

BLOOMIN' BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

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

U.S. Segment SEPTEMBER SEPTEMBER SEPTEMBER 26, SEPTEMBER 27, 26, 2021 27, 2020 2021 2020

Revenues

Restaurant sales $ 898,790 $ 719,406 $ 2,789,142 $ 2,141,062

Franchise and other 13,943 2,332 31,567 12,253 revenues

Total revenues $ 912,733 $ 721,738 $ 2,820,709 $ 2,153,315

Restaurant-level 10.0 % 11.4 % 17.1 % 9.4 %operating margin

Income (loss) from $ 47,294 $ 29,574 $ 334,326 $ (21,968 )operations

Operating income 5.2 % 4.1 % 11.9 % (1.0 )(loss) margin %

International Segment

Revenues

Restaurant sales $ 97,928 $ 47,081 $ 242,254 $ 197,923

Franchise and other (198 ) 2,441 12,339 6,818 revenues (1)

Total revenues $ 97,730 $ 49,522 $ 254,593 $ 204,741

Restaurant-level 12.8 % (1.5 ) 10.7 % 5.7 %operating margin %

Income (loss) from $ 1,412 $ (7,926 ) $ 7,419 $ (18,209 )operations

Operating income 1.4 % (16.0 ) 2.9 % (8.9 )(loss) margin % %

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

Segment income(loss) from operations

U.S. $ 47,294 $ 29,574 $ 334,326 $ (21,968 )

International 1,412 (7,926 ) 7,419 (18,209 )

Total segment income(loss) from 48,706 21,648 341,745 (40,177 )operations

Unallocatedcorporate operating (33,869 ) (35,903 ) (111,273 ) (127,558 )expense (2)

Total income (loss) $ 14,837 $ (14,255 ) $ 230,472 $ (167,735 )from operations

____________________

(1) The thirteen and thirty-nine weeks ended September 26, 2021 includes anadjustment of $(3.2) million to reduce our initial recorded estimate and net$3.1 million benefit from the recognition of recoverable Program of SocialIntegration ("PIS") and Contribution for the Financing of Social Security("COFINS") taxes, including accrued interest, respectively, within otherrevenues in connection with favorable court rulings in Brazil regarding thecalculation methodology and taxable base.

(2) The thirteen and thirty-nine weeks ended September 27, 2020 include $4.2million and $28.8 million, respectively, of charges that were not allocated toour segments related to our transformational initiatives.

TABLE THREE

BLOOMIN' BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(dollars in thousands)

SEPTEMBER 26, 2021

DECEMBER 27, 2020

Cash and cash equivalents

$

76,337

$

109,980

Net working capital (deficit) (1)

$

(656,556

)

$

(626,250

)

Total assets

$

3,218,602

$

3,362,107

Total debt, net

$

839,151

$

1,036,480

Total stockholders' equity

$

166,336

$

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) SEPTEMBER 26, 2021 DECEMBER 27, 2020

Cash and cash equivalents $ 76,337 $ 109,980

Net working capital (deficit) (1) $ (656,556 ) $ (626,250 )

Total assets $ 3,218,602 $ 3,362,107

Total debt, net $ 839,151 $ 1,036,480

Total stockholders' equity $ 166,336 $ 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

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Income (loss) from operations

$

14,837

$

(14,255

)

$

230,472

$

(167,735

)

Operating income (loss) margin

1.5

%

(1.8

)%

7.5

%

(7.1

)%

Less:

Franchise and other revenues

13,745

4,773

43,906

19,071

Plus:

Depreciation and amortization

40,827

43,417

122,592

137,469

General and administrative

58,880

57,443

182,590

197,732

Provision for impaired assets and restaurant closings

1,585

(54

)

8,962

66,223

Restaurant-level operating income

$

102,384

$

81,778

$

500,710

$

214,618

Restaurant-level operating margin

10.3

%

10.7

%

16.5

%

9.2

%

U.S.

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Income (loss) from operations

$

47,294

$

29,574

$

334,326

$

(21,968

)

Operating income (loss) margin

5.2

%

4.1

%

11.9

%

(1.0

)%

Less:

Franchise and other revenues

13,943

2,332

31,567

12,253

Plus:

Depreciation and amortization

33,421

35,057

100,645

110,005

General and administrative

21,998

19,732

66,043

68,955

Provision for impaired assets and restaurant closings

1,539

(86

)

8,678

56,389

Restaurant-level operating income

$

90,309

$

81,945

$

478,125

$

201,128

Restaurant-level operating margin

10.0

%

11.4

%

17.1

%

9.4

%

International

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Income (loss) from operations

$

1,412

$

(7,926

)

$

7,419

$

(18,209

)

Operating income (loss) margin

1.4

%

(16.0

)%

2.9

%

(8.9

)%

Less:

Franchise and other revenues

(198

)

2,441

12,339

6,818

Plus:

Depreciation and amortization

5,843

5,672

17,128

18,314

General and administrative

5,060

4,011

13,781

14,413

Provision for impaired assets and restaurant closings

28

-

27

3,640

Restaurant-level operating income (loss)

$

12,541

$

(684

)

$

26,016

$

11,340

Restaurant-level operating margin

12.8

%

(1.5

)%

10.7

%

5.7

%

TABLE FOUR

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS

(UNAUDITED)

Consolidated THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 26, 2021 27, 2020 26, 2021 27, 2020

Income (loss) from $ 14,837 $ (14,255 ) $ 230,472 $ (167,735 )operations

Operating income (loss) 1.5 % (1.8 ) 7.5 % (7.1 )margin % %

Less:

Franchise and other 13,745 4,773 43,906 19,071 revenues

Plus:

Depreciation and 40,827 43,417 122,592 137,469 amortization

General and 58,880 57,443 182,590 197,732 administrative

Provision for impairedassets and restaurant 1,585 (54 ) 8,962 66,223 closings

Restaurant-level $ 102,384 $ 81,778 $ 500,710 $ 214,618 operating income

Restaurant-level 10.3 % 10.7 % 16.5 % 9.2 %operating margin



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

(dollars in thousands) SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 26, 2021 27, 2020 26, 2021 27, 2020

Income (loss) from $ 47,294 $ 29,574 $ 334,326 $ (21,968 )operations

Operating income (loss) 5.2 % 4.1 % 11.9 % (1.0 )margin %

Less:

Franchise and other 13,943 2,332 31,567 12,253 revenues

Plus:

Depreciation and 33,421 35,057 100,645 110,005 amortization

General and 21,998 19,732 66,043 68,955 administrative

Provision for impairedassets and restaurant 1,539 (86 ) 8,678 56,389 closings

Restaurant-level $ 90,309 $ 81,945 $ 478,125 $ 201,128 operating income

Restaurant-level 10.0 % 11.4 % 17.1 % 9.4 %operating margin



International THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 26, 2021 27, 2020 26, 2021 27, 2020

Income (loss) from $ 1,412 $ (7,926 ) $ 7,419 $ (18,209 )operations

Operating income (loss) 1.4 % (16.0 ) 2.9 % (8.9 )margin % %

Less:

Franchise and other (198 ) 2,441 12,339 6,818 revenues

Plus:

Depreciation and 5,843 5,672 17,128 18,314 amortization

General and 5,060 4,011 13,781 14,413 administrative

Provision for impairedassets and restaurant 28 - 27 3,640 closings

Restaurant-level $ 12,541 $ (684 ) $ 26,016 $ 11,340 operating income (loss)

Restaurant-level 12.8 % (1.5 ) 10.7 % 5.7 %operating margin %

TABLE FIVE

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

(UNFAVORABLE)

FAVORABLE

CHANGE IN

ADJUSTED

QUARTER TO

DATE

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Consolidated:

REPORTED

ADJUSTED (1)

REPORTED

ADJUSTED

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

30.5

%

30.5

%

30.1

%

30.1

%

(0.4

)%

Labor and other related

29.1

%

29.1

%

32.2

%

32.2

%

3.1

%

Other restaurant operating

30.1

%

23.6

%

27.0

%

27.0

%

3.4

%

Restaurant-level operating margin (2)

10.3

%

16.8

%

10.7

%

10.7

%

6.1

%

Segments - Restaurant-level operating margin:

U.S. (2)

10.0

%

16.9

%

11.4

%

11.4

%

5.5

%

International (2)

12.8

%

15.6

%

(1.5

)%

(1.5

)%

17.1

%

THIRTY-NINE WEEKS ENDED

FAVORABLE

(UNFAVORABLE)

CHANGE IN

ADJUSTED

YEAR TO DATE

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Consolidated:

REPORTED

ADJUSTED (1)

REPORTED

ADJUSTED (1)

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

30.0

%

30.0

%

31.3

%

30.9

%

0.9

%

Labor and other related

28.4

%

28.4

%

32.6

%

32.6

%

4.2

%

Other restaurant operating

25.2

%

23.0

%

27.0

%

27.0

%

4.0

%

Restaurant-level operating margin (2)

16.5

%

18.6

%

9.2

%

9.5

%

9.1

%

Segments - Restaurant-level operating margin:

U.S. (2)

17.1

%

19.4

%

9.4

%

9.6

%

9.8

%

International (2)

10.7

%

11.9

%

5.7

%

6.7

%

5.2

%

_________________

(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 for the periods indicated:

TABLE FIVE

BLOOMIN' BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

(UNFAVORABLE) THIRTEEN WEEKS ENDED FAVORABLE

CHANGE IN SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 ADJUSTED

QUARTER TOConsolidated: REPORTED ADJUSTED REPORTED ADJUSTED (1) DATE

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Food and beverage 30.5 % 30.5 % 30.1 % 30.1 % (0.4 )%costs

Labor and other 29.1 % 29.1 % 32.2 % 32.2 % 3.1 %related

Other restaurant 30.1 % 23.6 % 27.0 % 27.0 % 3.4 %operating



Restaurant-level 10.3 % 16.8 % 10.7 % 10.7 % 6.1 %operating margin (2)



Segments -Restaurant-level operating margin:

U.S. (2) 10.0 % 16.9 % 11.4 % 11.4 % 5.5 %

International (2) 12.8 % 15.6 % (1.5 )% (1.5 )% 17.1 %



THIRTY-NINE WEEKS ENDED FAVORABLE

(UNFAVORABLE) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 CHANGE IN

ADJUSTED ADJUSTED ADJUSTEDConsolidated: REPORTED (1) REPORTED (1) YEAR TO DATE

Restaurant sales 100.0 % 100.0 % 100.0 % 100.0 %



Food and beverage 30.0 % 30.0 % 31.3 % 30.9 % 0.9 %costs

Labor and other 28.4 % 28.4 % 32.6 % 32.6 % 4.2 %related

Other restaurant 25.2 % 23.0 % 27.0 % 27.0 % 4.0 %operating



Restaurant-level 16.5 % 18.6 % 9.2 % 9.5 % 9.1 %operating margin (2)



Segments -Restaurant-level operating margin:

U.S. (2) 17.1 % 19.4 % 9.4 % 9.6 % 9.8 %

International (2) 10.7 % 11.9 % 5.7 % 6.7 % 5.2 %

_________________

(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 for the periods indicated:

THIRTEEN THIRTY-NINE WEEKS ENDED WEEKS ENDED

(dollars in millions) SEPTEMBER 26, SEPTEMBER 26, SEPTEMBER 2021 2021 27, 2020

Royalty termination expense $ (61.9 ) $ (61.9 ) $ -

Legal and other matters (i) (2.7 ) (2.7 ) -

COVID-19 related costs (ii) - - (9.9 )

Asset impairments and closing costs - - 2.7

$ (64.6 ) $ (64.6 ) $ (7.2 )

_________________

(i) Adjustment recorded within the international segment.

(ii) 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.

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

THIRTY-NINE WEEKS ENDED

(in thousands, except per share data)

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Income (loss) from operations

$

14,837

$

(14,255

)

$

230,472

$

(167,735

)

Operating income (loss) margin

1.5

%

(1.8

)%

7.5

%

(7.1

)%

Adjustments:

Royalty termination expense (1)

61,880

-

61,880

-

Legal and other matters (2)

5,965

-

(372

)

178

COVID-19-related costs (3)

-

-

-

79,218

Severance and other transformational costs (4)

-

4,200

-

28,847

Asset impairments and closure costs (5)

-

-

-

(2,205

)

Total income (loss) from operations adjustments

67,845

4,200

61,508

106,038

Adjusted income (loss) from operations

$

82,682

$

(10,055

)

$

291,980

$

(61,697

)

Adjusted operating income (loss) margin

8.2

%

(1.3

)%

9.5

%

(2.6

)%

Diluted net income (loss) attributable to common stockholders

$

3,449

$

(17,637

)

$

155,316

$

(148,000

)

Convertible senior notes if-converted method interest adjustment, net of tax (6)

-

-

460

-

Net income (loss) attributable to common stockholders

3,449

(17,637

)

154,856

(148,000

)

Adjustments:

Income (loss) from operations adjustments

67,845

4,200

61,508

106,038

Loss on extinguishment and modification of debt

-

-

2,073

-

Amortization of debt discount (7)

-

2,407

-

3,786

Total adjustments, before income taxes

67,845

6,607

63,581

109,824

Adjustment to provision for income taxes (8)

(15,878

)

440

(14,635

)

(28,029

)

Redemption of preferred stock in excess of carrying value (9)

-

-

-

3,496

Net adjustments

51,967

7,047

48,946

85,291

Adjusted net income (loss)

$

55,416

$

(10,590

)

$

203,802

$

(62,709

)

Diluted earnings (loss) per share attributable to common stockholders (10)

$

0.03

$

(0.20

)

$

1.42

$

(1.69

)

Adjusted diluted earnings (loss) per share (11)

$

0.57

$

(0.12

)

$

2.10

$

(0.72

)

Diluted weighted average common shares outstanding (10)

107,783

87,558

109,410

87,394

Adjusted diluted weighted average common shares outstanding (11)

97,307

87,558

97,110

87,394

_________________

(1) Payment made to the founders of our Carrabba's Italian Grill concept in connection with an agreement to terminate future royalty payments.

(2) The thirteen and thirty-nine weeks ended September 26, 2021 includes: (i) an adjustment of $(3.2) million to reduce our initial recorded estimate and net $3.1 million benefit from the recognition of recoverable PIS and COFINS taxes, including accrued interest, respectively, within other revenues as a result of favorable court rulings and (ii) an accrual of $2.7 million for ISS, a Brazilian municipal service tax, in connection with royalties from our Brazilian subsidiary over the past five years, including related penalties and interest, recorded within Other restaurant operating expense as a result of an unfavorable Brazilian Supreme Court ruling.

(3) Costs incurred in connection with 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.

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

(5) Primarily includes a lease termination gain of $2.8 million.

(6) Adjustment for interest expense related to our convertible senior notes (the "2025 Notes") weighted for the portion of the period prior to our election under the 2025 Notes indenture to settle the principal portion of our 2025 Notes in cash. The calculation of adjusted diluted earnings per share excludes the 2025 Notes interest adjustment.

(7) Amortization of debt discount related to the issuance of the 2025 Notes.

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

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

(10) 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 and thirty-nine weeks ended September 27, 2020.

(11) For the thirty-nine weeks ended September 26, 2021, adjusted diluted weighted average common shares outstanding was calculated assuming our February 2021 election to settle the principal portion of the 2025 Notes in cash was in effect for the entire period. For the thirteen and thirty-nine weeks ended September 26, 2021, adjusted diluted weighted average common shares outstanding was calculated excluding the dilutive effect of 10,476 and 10,453 shares, respectively, to be issued upon conversion of the 2025 Notes to satisfy the amount in excess of the principal since our convertible note hedge offsets the dilutive impact of the shares underlying the 2025 Notes.

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 THIRTY-NINE WEEKS ENDED

(in thousands, except SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBERper share data) 26, 2021 27, 2020 26, 2021 27, 2020

Income (loss) from $ 14,837 $ (14,255 ) $ 230,472 $ (167,735 )operations

Operating income (loss) 1.5 % (1.8 ) 7.5 % (7.1 )margin % %

Adjustments:

Royalty termination 61,880 - 61,880 - expense (1)

Legal and other matters 5,965 - (372 ) 178 (2)

COVID-19-related costs - - - 79,218 (3)

Severance and othertransformational costs - 4,200 - 28,847 (4)

Asset impairments and - - - (2,205 )closure costs (5)

Total income (loss)from operations 67,845 4,200 61,508 106,038 adjustments

Adjusted income (loss) $ 82,682 $ (10,055 ) $ 291,980 $ (61,697 )from operations

Adjusted operating 8.2 % (1.3 ) 9.5 % (2.6 )income (loss) margin % %



Diluted net income(loss) attributable to $ 3,449 $ (17,637 ) $ 155,316 $ (148,000 )common stockholders

Convertible seniornotes if-convertedmethod interest - - 460 - adjustment, net of tax(6)

Net income (loss)attributable to common 3,449 (17,637 ) 154,856 (148,000 )stockholders

Adjustments:

Income (loss) from 67,845 4,200 61,508 106,038 operations adjustments

Loss on extinguishmentand modification of - - 2,073 - debt

Amortization of debt - 2,407 - 3,786 discount (7)

Total adjustments, 67,845 6,607 63,581 109,824 before income taxes

Adjustment to provision (15,878 ) 440 (14,635 ) (28,029 )for income taxes (8)

Redemption of preferredstock in excess of - - - 3,496 carrying value (9)

Net adjustments 51,967 7,047 48,946 85,291

Adjusted net income $ 55,416 $ (10,590 ) $ 203,802 $ (62,709 )(loss)



Diluted earnings (loss)per share attributable $ 0.03 $ (0.20 ) $ 1.42 $ (1.69 )to common stockholders(10)

Adjusted dilutedearnings (loss) per $ 0.57 $ (0.12 ) $ 2.10 $ (0.72 )share (11)



Diluted weightedaverage common shares 107,783 87,558 109,410 87,394 outstanding (10)

Adjusted dilutedweighted average common 97,307 87,558 97,110 87,394 shares outstanding (11)

_________________

(1) Payment made to the founders of our Carrabba's Italian Grill concept inconnection with an agreement to terminate future royalty payments.

(2) The thirteen and thirty-nine weeks ended September 26, 2021 includes: (i)an adjustment of $(3.2) million to reduce our initial recorded estimate and net$3.1 million benefit from the recognition of recoverable PIS and COFINS taxes,including accrued interest, respectively, within other revenues as a result offavorable court rulings and (ii) an accrual of $2.7 million for ISS, aBrazilian municipal service tax, in connection with royalties from ourBrazilian subsidiary over the past five years, including related penalties andinterest, recorded within Other restaurant operating expense as a result of anunfavorable Brazilian Supreme Court ruling.

(3) Costs incurred in connection with the COVID-19 pandemic, primarilyconsisting of fixed asset and right-of-use asset impairments, restructuringcharges, inventory obsolescence and spoilage, contingent lease liabilities andcurrent expected credit losses.

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

(5) Primarily includes a lease termination gain of $2.8 million.

(6) Adjustment for interest expense related to our convertible senior notes(the "2025 Notes") weighted for the portion of the period prior to our electionunder the 2025 Notes indenture to settle the principal portion of our 2025Notes in cash. The calculation of adjusted diluted earnings per share excludesthe 2025 Notes interest adjustment.

(7) Amortization of debt discount related to the issuance of the 2025 Notes.

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

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

(10) Due to the GAAP net loss, the effect of dilutive securities was excludedfrom the calculation of GAAP diluted loss per share for the thirteen andthirty-nine weeks ended September 27, 2020.

(11) For the thirty-nine weeks ended September 26, 2021, adjusted dilutedweighted average common shares outstanding was calculated assuming our February2021 election to settle the principal portion of the 2025 Notes in cash was ineffect for the entire period. For the thirteen and thirty-nine weeks endedSeptember 26, 2021, adjusted diluted weighted average common shares outstandingwas calculated excluding the dilutive effect of 10,476 and 10,453 shares,respectively, to be issued upon conversion of the 2025 Notes to satisfy theamount in excess of the principal since our convertible note hedge offsets thedilutive impact of the shares underlying the 2025 Notes.

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

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 26, 2021 27, 2020 26, 2021 27, 2020

Franchise and other revenues $ 3,204 $ - $ (3,133 ) $ -

Food and beverage costs - - - 7,345

Other restaurant operating 64,641 - 64,641 (176 )

Depreciation and amortization - - - 407

General and administrative - 4,200 - 32,056

Provision for impaired assets - - - 66,406 and restaurant closings

Loss on extinguishment and - - 2,073 - modification of debt

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

(Benefit) provision for (15,878 ) 440 (14,635 ) (28,029 )income taxes

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

Net adjustments $ 51,967 $ 7,047 $ 48,946 $ 85,291

TABLE SEVEN

BLOOMIN' BRANDS, INC.

SEGMENT INCOME (LOSS) FROM OPERATIONS NON-GAAP RECONCILIATIONS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

U.S. Segment

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

SEPTEMBER 26, 2021

SEPTEMBER 27, 2020

Income (loss) from operations

$

47,294

$

29,574

$

334,326

$

(21,968)

Operating income (loss) margin

5.2

%

4.1

%

11.9

%

(1.0)

%

Adjustments:

Royalty agreement termination (1)

61,880

-

61,880

-

COVID-19-related costs (2)

-

-

-

72,784

Asset impairments and closure costs (3)

-

-

-

(2,205)

Adjusted income from operations

$

109,174

$

29,574

$

396,206

$

48,611

Adjusted operating income margin

12.0

%

4.1

%

14.0

%

2.3

%

International Segment

Income (loss) from operations

$

1,412

$

(7,926)

$

7,419

$

(18,209)

Operating income (loss) margin

1.4

%

(16.0)

%

2.9

%

(8.9)

%

Adjustments:

Legal and other matters (4)

5,965

-

(372)

-

COVID-19 related costs (2)

-

-

-

5,651

Adjusted income (loss) from operations

$

7,377

$

(7,926)

$

7,047

$

(12,558)

Adjusted operating income (loss) margin

7.3

%

(16.0)

%

2.8

%

(6.1)

%

_________________

(1) Payment made to the founders of our Carrabba's Italian Grill concept in connection with an agreement to terminate future royalty payments.

(2) Costs incurred in connection with 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) Primarily includes a lease termination gain of $2.8 million.

(4) The thirteen and thirty-nine weeks ended September 26, 2021 includes: (i) an adjustment of $(3.2) million to reduce our initial recorded estimate and net $3.1 million benefit from the recognition of recoverable PIS and COFINS taxes, including accrued interest, respectively, within other revenues as a result of favorable court rulings and (ii) an accrual of $2.7 million for ISS, a Brazilian municipal service tax, in connection with royalties from our Brazilian subsidiary over the past five years, including related penalties and interest, recorded within Other restaurant operating expense as a result of an unfavorable Brazilian Supreme Court ruling.

TABLE SEVEN

BLOOMIN' BRANDS, INC.

SEGMENT INCOME (LOSS) FROM OPERATIONS NON-GAAP RECONCILIATIONS

(UNAUDITED)

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

U.S. Segment SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 26, 2021 27, 2020 26, 2021 27, 2020

Income (loss) from $ 47,294 $ 29,574 $ 334,326 $ (21,968) operations

Operating income (loss) 5.2 % 4.1 % 11.9 % (1.0) %margin

Adjustments:

Royalty agreement 61,880 - 61,880 - termination (1)

COVID-19-related costs - - - 72,784 (2)

Asset impairments and - - - (2,205) closure costs (3)

Adjusted income from $ 109,174 $ 29,574 $ 396,206 $ 48,611 operations

Adjusted operating 12.0 % 4.1 % 14.0 % 2.3 %income margin



International Segment

Income (loss) from $ 1,412 $ (7,926) $ 7,419 $ (18,209) operations

Operating income (loss) 1.4 % (16.0) % 2.9 % (8.9) %margin

Adjustments:

Legal and other matters 5,965 - (372) - (4)

COVID-19 related costs - - - 5,651 (2)

Adjusted income (loss) $ 7,377 $ (7,926) $ 7,047 $ (12,558) from operations

Adjusted operating 7.3 % (16.0) % 2.8 % (6.1) %income (loss) margin

_________________

(1) Payment made to the founders of our Carrabba's Italian Grill concept inconnection with an agreement to terminate future royalty payments.

(2) Costs incurred in connection with the COVID-19 pandemic, primarilyconsisting of fixed asset and right-of-use asset impairments, restructuringcharges, inventory obsolescence and spoilage, contingent lease liabilities andcurrent expected credit losses.

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

(4) The thirteen and thirty-nine weeks ended September 26, 2021 includes: (i)an adjustment of $(3.2) million to reduce our initial recorded estimate and net$3.1 million benefit from the recognition of recoverable PIS and COFINS taxes,including accrued interest, respectively, within other revenues as a result offavorable court rulings and (ii) an accrual of $2.7 million for ISS, aBrazilian municipal service tax, in connection with royalties from ourBrazilian subsidiary over the past five years, including related penalties andinterest, recorded within Other restaurant operating expense as a result of anunfavorable Brazilian Supreme Court ruling.

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of the period):

JUNE 27, 2021

OPENINGS

CLOSURES

SEPTEMBER 26, 2021

U.S.:

Outback Steakhouse

Company-owned

566

2

(4)

564

Franchised

131

-

(1)

130

Total

697

2

(5)

694

Carrabba's Italian Grill

Company-owned

199

-

-

199

Franchised

20

-

-

20

Total

219

-

-

219

Bonefish Grill

Company-owned

179

-

(1)

178

Franchised

7

-

-

7

Total

186

-

(1)

185

Fleming's Prime Steakhouse & Wine Bar

Company-owned

64

-

-

64

Other

Company-owned (1)

8

-

(1)

7

U.S. total

1,174

2

(7)

1,169

International:

Company-owned

Outback Steakhouse - Brazil (2)

113

-

-

113

Other (1)(3)

34

-

-

34

Franchised

Outback Steakhouse-South Korea (3)

108

7

(1)

114

Other (1)

55

-

(1)

54

International total

310

7

(2)

315

System-wide total

1,484

9

(9)

1,484

____________________

(1) U.S. Company-owned and International Franchised Other include four and three fast-casual Aussie Grill locations as of September 26, 2021. International Company-owned Other includes two Aussie Grill locations as of September 26, 2021.

(2) The restaurant counts for Brazil are reported as of May 31, 2021 and August 31, 2021, respectively, to correspond with the balance sheet dates of this subsidiary.

(3) As of September 26, 2021, we had 37 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 September 26, 2021.

TABLE EIGHT

BLOOMIN' BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end JUNE 27, OPENINGS CLOSURES SEPTEMBERof the period): 2021 26, 2021

U.S.:

Outback Steakhouse

Company-owned 566 2 (4) 564

Franchised 131 - (1) 130

Total 697 2 (5) 694

Carrabba's Italian Grill

Company-owned 199 - - 199

Franchised 20 - - 20

Total 219 - - 219

Bonefish Grill

Company-owned 179 - (1) 178

Franchised 7 - - 7

Total 186 - (1) 185

Fleming's Prime Steakhouse & Wine Bar

Company-owned 64 - - 64

Other

Company-owned (1) 8 - (1) 7

U.S. total 1,174 2 (7) 1,169

International:

Company-owned

Outback Steakhouse - Brazil (2) 113 - - 113

Other (1)(3) 34 - - 34

Franchised

Outback Steakhouse-South Korea 108 7 (1) 114(3)

Other (1) 55 - (1) 54

International total 310 7 (2) 315

System-wide total 1,484 9 (9) 1,484

____________________

(1) U.S. Company-owned and International Franchised Other include four andthree fast-casual Aussie Grill locations as of September 26, 2021.International Company-owned Other includes two Aussie Grill locations as ofSeptember 26, 2021.

(2) The restaurant counts for Brazil are reported as of May 31, 2021 and August31, 2021, respectively, to correspond with the balance sheet dates of thissubsidiary.

(3) As of September 26, 2021, we had 37 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 September 26, 2021.

TABLE NINE

BLOOMIN' BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

SEPTEMBER 26, 2021

SEPTEMBER 27,

2020

SEPTEMBER 26, 2021

SEPTEMBER 27,

2020

COMPARABLE

TO 2019 (1)

COMPARABLE

TO 2020

COMPARABLE

TO 2019

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

6.0

%

18.3

%

(10.4

)%

3.5

%

25.3

%

(17.4

)%

Carrabba's Italian Grill

17.1

%

28.8

%

(9.0

)%

10.6

%

35.1

%

(18.1

)%

Bonefish Grill

5.7

%

36.6

%

(22.5

)%

(2.7

)%

41.2

%

(31.0

)%

Fleming's Prime Steakhouse & Wine Bar

28.0

%

59.6

%

(20.3

)%

10.8

%

56.9

%

(29.7

)%

Combined U.S.

9.5

%

25.5

%

(12.8

)%

4.3

%

31.4

%

(20.7

)%

International

Outback Steakhouse - Brazil (3)

(5.1

)%

109.8

%

(54.8

)%

(18.9

)%

29.4

%

(36.9

)%

Traffic:

U.S.

Outback Steakhouse

(0.8

)%

14.8

%

(13.6

)%

(2.1

)%

19.6

%

(18.1

)%

Carrabba's Italian Grill

12.2

%

27.1

%

(11.7

)%

7.8

%

27.0

%

(15.1

)%

Bonefish Grill

5.2

%

25.6

%

(14.7

)%

(1.7

)%

23.4

%

(19.4

)%

Fleming's Prime Steakhouse & Wine Bar

14.4

%

48.4

%

(23.3

)%

1.8

%

38.1

%

(26.6

)%

Combined U.S.

2.9

%

19.3

%

(13.6

)%

(0.1

)%

21.9

%

(17.9

)%

International

Outback Steakhouse - Brazil

1.9

%

62.5

%

(37.6

)%

(8.2

)%

25.2

%

(25.9

)%

Average check per person (4):

U.S.

Outback Steakhouse

6.8

%

3.5

%

3.2

%

5.6

%

5.7

%

0.7

%

Carrabba's Italian Grill

4.9

%

1.7

%

2.7

%

2.8

%

8.1

%

(3.0

)%

Bonefish Grill

0.5

%

11.0

%

(7.8

)%

(1.0

)%

17.8

%

(11.6

)%

Fleming's Prime Steakhouse & Wine Bar

13.6

%

11.2

%

3.0

%

9.0

%

18.8

%

(3.1

)%

Combined U.S.

6.6

%

6.2

%

0.8

%

4.4

%

9.5

%

(2.8

)%

International

Outback Steakhouse - Brazil

(6.0

)%

45.5

%

(16.2

)%

(10.3

)%

5.5

%

(11.0

)%

____________________

(1) Represents comparable restaurant sales, traffic and average check per person increases (decreases) 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) 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 THIRTY-NINE WEEKS ENDED

SEPTEMBER SEPTEMBER SEPTEMBER 26, 2021 27, SEPTEMBER 26, 2021 27,

2020 2020

COMPARABLE COMPARABLE COMPARABLE COMPARABLE COMPARABLE COMPARABLE TO 2019 TO 2020 TO 2019 TO 2019 TO 2020 TO 2019 (1) (1)

Year overyear percentagechange:

Comparablerestaurantsales (stores open 18months ormore):

U.S. (2)

Outback 6.0 % 18.3 % (10.4 )% 3.5 % 25.3 % (17.4 )%Steakhouse

Carrabba's 17.1 % 28.8 % (9.0 )% 10.6 % 35.1 % (18.1 )%Italian Grill

Bonefish 5.7 % 36.6 % (22.5 )% (2.7 )% 41.2 % (31.0 )%Grill

Fleming'sPrime 28.0 % 59.6 % (20.3 )% 10.8 % 56.9 % (29.7 )%Steakhouse &Wine Bar

Combined U.S. 9.5 % 25.5 % (12.8 )% 4.3 % 31.4 % (20.7 )%

International

OutbackSteakhouse - (5.1 )% 109.8 % (54.8 )% (18.9 )% 29.4 % (36.9 )%Brazil (3)



Traffic:

U.S.

Outback (0.8 )% 14.8 % (13.6 )% (2.1 )% 19.6 % (18.1 )%Steakhouse

Carrabba's 12.2 % 27.1 % (11.7 )% 7.8 % 27.0 % (15.1 )%Italian Grill

Bonefish 5.2 % 25.6 % (14.7 )% (1.7 )% 23.4 % (19.4 )%Grill

Fleming'sPrime 14.4 % 48.4 % (23.3 )% 1.8 % 38.1 % (26.6 )%Steakhouse &Wine Bar

Combined U.S. 2.9 % 19.3 % (13.6 )% (0.1 )% 21.9 % (17.9 )%

International

OutbackSteakhouse - 1.9 % 62.5 % (37.6 )% (8.2 )% 25.2 % (25.9 )%Brazil



Average checkper person (4):

U.S.

Outback 6.8 % 3.5 % 3.2 % 5.6 % 5.7 % 0.7 %Steakhouse

Carrabba's 4.9 % 1.7 % 2.7 % 2.8 % 8.1 % (3.0 )%Italian Grill

Bonefish 0.5 % 11.0 % (7.8 )% (1.0 )% 17.8 % (11.6 )%Grill

Fleming'sPrime 13.6 % 11.2 % 3.0 % 9.0 % 18.8 % (3.1 )%Steakhouse &Wine Bar

Combined U.S. 6.6 % 6.2 % 0.8 % 4.4 % 9.5 % (2.8 )%

International

OutbackSteakhouse - (6.0 )% 45.5 % (16.2 )% (10.3 )% 5.5 % (11.0 )%Brazil

____________________

(1) Represents comparable restaurant sales, traffic and average check perperson increases (decreases) 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) Average check per person includes the impact of menu pricing changes,product mix and discounts.

TABLE TEN

BLOOMIN' BRANDS, INC.

EBITDA RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 26, 2021

SEPTEMBER 26, 2021

Net income attributable to common stockholders

$

3,449

$

154,856

(Benefit) provision for income taxes

(4,454

)

24,827

Interest expense, net

14,245

43,863

Depreciation and amortization

40,827

122,592

EBITDA

$

54,067

$

346,138

TABLE TEN

BLOOMIN' BRANDS, INC.

EBITDA RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS THIRTY-NINE WEEKS ENDED ENDED

(dollars in thousands) SEPTEMBER 26, SEPTEMBER 26, 2021 2021

Net income attributable to common $ 3,449 $ 154,856stockholders

(Benefit) provision for income taxes (4,454 ) 24,827

Interest expense, net 14,245 43,863

Depreciation and amortization 40,827 122,592

EBITDA $ 54,067 $ 346,138

TABLE ELEVEN

BLOOMIN' BRANDS, INC.

FISCAL 2021 FOURTH QUARTER EBITDA OUTLOOK RECONCILIATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

(dollars in millions)

DECEMBER 26, 2021

Net income attributable to common stockholders

At least $49M

Provision for income taxes

At least $11M

Interest expense, net

At least $14M

Depreciation and amortization

At least $41M

EBITDA

At least $115M

View source version on businesswire.com: https://www.businesswire.com/news/home/20211102005376/en/

CONTACT: Mark Graff SVP, Financial Planning and Investor Relations (813) 830-5311