7 unchanged sentences
As of December 31, 2023, approximately 70% of our estimated 2024 annual food purchases are covered by fixed contracts, most of which are scheduled to expire during 2024.
−Removed: During 2021, commodity markets began experiencing elevated levels of inflation across all proteins given strong consumer demand and product shortages due to supply chain disruptions.
−Removed: In addition, higher input costs across labor, fuel, freight and packaging contributed to increases as well.
−Removed: During 2022, we experienced 14.6% commodity inflation and anticipate mid single digits commodity inflation for 2023.
+Added: During 2023, we experienced 4.3% commodity inflation in the U.S.
+Added: and anticipate 3% to 4% commodity inflation for 2024.
Extreme changes in commodity prices or long-term changes could affect our financial results adversely.
−Removed: We expect that in most cases increased commodity prices could be passed through to our customers through increases in menu prices.
−Removed: However, if there is a time lag between the increasing commodity prices and our ability to increase menu prices, or if we believe the commodity price increase to be short in duration and we choose not to pass on the cost increases, our short-term financial results could be negatively affected.
−Removed: Additionally, from time to time, competitive circumstances could limit menu price flexibility, and in those cases, margins would be negatively impacted by increased commodity prices.
Currently we do not use financial instruments to hedge our commodity risk.
In addition to the market risks identified above, we are subject to business risk as our U.S.
−Removed: beef supply is highly dependent upon a limited number of vendors.
+Added: beef and Brazil pork supplies are highly dependent upon a limited number of vendors.
If these vendors were unable to fulfill their obligations under their contracts, we could encounter supply shortages and incur higher costs to secure adequate supplies.
3 unchanged sentences
A significant number of our restaurant team members are paid at rates related to the federal and/or state minimum wage and, accordingly, increases in the minimum wage increase our labor costs.
−Removed: To the extent permitted by competition and the economy, we have mitigated increased costs by increasing menu prices and may continue to do so if deemed necessary in future years.
−Removed: Substantial increases in costs and expenses could impact our operating results to the extent such increases cannot be passed through to our guests.
−Removed: During 2022, we experienced 7.8% labor cost inflation and anticipate mid single digits labor cost inflation during 2023.
+Added: During 2023, we experienced 5.3% labor cost inflation in the U.S.
Interest Rate Risk
−Removed: We are exposed to market risk from fluctuations in interest rates, which could affect our consolidated balance sheet, earnings and cash flows.
−Removed: We manage our exposure to market risk through regular operating and financing activities and by using a combination of fixed-rate and variable-rate debt.
+Added: Our interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flows by targeting an appropriate mix of variable and fixed-rate debt.
+Added: We manage our exposure to market risk through regular operating and financing activities, using a combination of fixed-rate and variable-rate debt, and when deemed appropriate, through the use of derivative financial instruments.
The amount of variable-rate debt fluctuates during the year based on our working capital requirements.
As of December 31, 2023, our interest rate risk was primarily from variable interest rate changes on our revolving credit facility, which had an outstanding balance of $381.0 million.
−Removed: BLOOMIN’ BRANDS, INC.
We periodically evaluate financial instruments to hedge our exposure to variable interest rates.
−Removed: As of December 26, 2021, we had interest rate swaps with an aggregate notional amount of $125.0 million.
−Removed: These swaps matured in November 2022 and as of December 25, 2022, we had no financial instruments to hedge our interest rate exposure.
+Added: We use derivative financial instruments as risk management tools and not for speculative purposes.
+Added: To manage the risk of fluctuations in variable interest rate debt, we have interest rate swaps with an aggregate notional amount of $200.0 million, with $100.0 million maturing on December 31, 2024 and $100.0 million maturing on December 31, 2025.
See Note 16 - Derivative Instruments and Hedging Activities of the Notes to Consolidated Financial Statements for further information.
+Added: BLOOMIN’ BRANDS, INC.
We utilize valuation models to estimate the effects of changing interest rates.
−Removed: As of December 25, 2022, a potential change from a hypothetical 150 basis point increase/decrease in short-term interest rates would increase or decrease our annual interest expense by $6.5 million.
+Added: The following table summarizes the changes to fair value and interest expense under a shock scenario.
+Added: This analysis assumes that interest rates change suddenly, as an interest rate “shock”, and continue to increase or decrease at a consistent level above or below the SOFR curve.
+Added: DECEMBER 31, 2023
+Added: (dollars in thousands) INCREASE DECREASE
+Added: Change in fair value (1):
+Added: Interest rate swap $ 5,230 $ (5,427)
+Added: Change in annual interest expense (1):
+Added: Variable rate debt $ 3,620 $ (3,620)
+Added: ________________
+Added: (1) The potential change from a hypothetical 200 basis point increase (decrease) in short-term interest rates.
Foreign Currency Exchange Rate Risk
12 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.