What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-07 compared with 2024-05-08 · 215 added, 143 removed, 372 unchanged (49% of the section changed)

41 unchanged sentences

We are one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts.

As of March 31, 2024, we owned and operated 1,162 restaurants and franchised 289 restaurants across 46 states, Guam and 13 countries.

As of June 30, 2024, we owned and operated 1,173 restaurants and franchised 292 restaurants across 46 states, Guam and 13 countries.

We have four founder-inspired concepts:

Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.

Financial Overview - Our financial overview for the thirteen weeks ended March 31, 2024 includes the following:

combined and Outback Steakhouse comparable restaurant sales of (1.6)% and (1.2)%, respectively;

• Decrease in Total revenues of (4.0)% as compared to the first quarter of 2023;

• Operating income and restaurant-level operating margins of 6.4% and 16.0%, respectively, as compared to 9.7% and 17.9%, respectively, for the first quarter of 2023;

• Operating income of $77.1 million as compared to $120.6 million in the first quarter of 2023;

• Diluted loss per share of $(0.96) as compared to diluted earnings per share of $0.93 for the first quarter of 2023.

Reviewing Strategic Alternatives for Brazil Operations - On May 7, 2024, we announced that we are exploring and evaluating strategic alternatives for our Brazil operations that have the potential to maximize value for our shareholders, including but not limited to, a possible sale of the operations.

Financial Overview - Our financial overview for the thirteen weeks ended June 30, 2024 includes the following:

combined and Outback Steakhouse comparable restaurant sales of (0.1)%;

• Decrease in Total revenues of (2.9)% as compared to the second quarter of 2023;

• Operating income and restaurant-level operating margins of 4.1% and 14.3%, respectively, as compared to 7.8% and 16.4%, respectively, for the second quarter of 2023;

• Operating income of $46.1 million as compared to $89.4 million in the second quarter of 2023;

• Diluted earnings per share of $0.32 as compared to $0.70 for the second quarter of 2023.

Reviewing Strategic Alternatives for Brazil Operations - In May 2024, we announced that we are exploring and evaluating strategic alternatives for our Brazil operations that have the potential to maximize value for our shareholders, including but not limited to, a possible sale of the operations.

The Board has retained BofA Securities, Inc.

2 unchanged sentences

There can be no assurance that this review will result in a transaction or other strategic alternative of any kind.

We do not intend to make any further public comment regarding the review unless it determines that disclosure is appropriate or necessary.

We do not intend to make any further public comment regarding the review unless we determine that disclosure is appropriate or necessary.

Key Financial Performance Indicators - Key measures that we use in evaluating our restaurants and assessing our business include the following:

2 unchanged sentences

• System-wide sales —total restaurant sales volume for all Company-owned and franchise restaurants, regardless of ownership, to interpret the overall health of our brands.

• Restaurant-level operating margin, Income from operations, Net (loss) income and Diluted (loss) earnings per share —financial measures utilized to evaluate our operating performance.

• Restaurant-level operating margin, Income from operations, Net income (loss) and Diluted earnings (loss) per share —financial measures utilized to evaluate our operating performance.

Restaurant-level operating margin is a non-GAAP financial measure widely regarded in the industry as a useful metric to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations, and we use it for these purposes, overall and particularly within our two segments.

Our restaurant-level operating margin is expressed as the percentage of our Restaurant sales that Food and beverage costs, Labor and other related expense and Other restaurant operating expense (including advertising expenses) represent, in each case as such items are reflected in our Consolidated Statements of

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

advertising expenses) represent, in each case as such items are reflected in our Consolidated Statements of Operations and Comprehensive (Loss) Income.

Operations and Comprehensive Income (Loss).

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

3 unchanged sentences

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

Restaurant-level operating margin excludes various expenses, as discussed above, that are essential to support the operations of our restaurants and may materially impact our Consolidated Statements of Operations and Comprehensive (Loss) Income.

As a result, restaurant-level operating margin is not indicative of our consolidated results of operations and is presented exclusively as a supplement to, and not a substitute for, Net (loss) income or Income from operations.

In addition, our presentation of restaurant-level operating margin may not be comparable to similarly titled measures used by other companies in our industry.

9 unchanged sentences

Number of restaurants (at end of the period):

MARCH 31, 2024 MARCH 26, 2023

JUNE 30, 2024 JUNE 25, 2023

Outback Steakhouse

26 unchanged sentences

____________________

(1) Excludes four and 26 off-premises only kitchens as of March 31, 2024 and March 26, 2023, respectively.

(1) Excludes three and ten off-premises only kitchens as of June 30, 2024 and June 25, 2023, respectively.

One location was Company-owned in the U.S.

and all others were franchised in South Korea as of March 31, 2024 and March 26, 2023.

(2) The restaurant counts for Brazil, including Abbraccio and Aussie Grill restaurants within International Company-owned Other, are reported as of February 29, 2024 and February 28, 2023, respectively, to correspond with the balance sheet dates of this subsidiary.

(3) International Company-owned Other included two and four Aussie Grill locations as of March 31, 2024 and March 26, 2023, respectively.

International Franchised Other included five and four Aussie Grill locations as of March 31, 2024 and March 26, 2023, respectively.

and all others were franchised in South Korea as of June 30, 2024 and June 25, 2023.

(2) The restaurant counts for Brazil, including Abbraccio and Aussie Grill restaurants within International Company-owned Other, are reported as of May 31, 2024 and 2023, respectively, to correspond with the balance sheet dates of this subsidiary.

(3) International Company-owned Other included two and four Aussie Grill locations as of June 30, 2024 and June 25, 2023, respectively.

International Franchised Other included six and three Aussie Grill locations as of June 30, 2024 and June 25, 2023, respectively.

BLOOMIN’ BRANDS, INC.

2 unchanged sentences

Results of Operations

Restaurant Sales - Following is a summary of the change in Restaurant sales for the period indicated:

(dollars in millions) THIRTEEN WEEKS ENDED

For the period ended March 26, 2023 $ 1,228.2

Comparable restaurant sales (1) (35.7)

Restaurant Sales - Following is a summary of the change in Restaurant sales for the periods indicated:

(dollars in millions) THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

For the periods ended June 25, 2023 $ 1,137.3 $ 2,365.6

Restaurant closures (33.7) (58.8)

Comparable restaurant sales (1) (14.2) (49.7)

Brazil value added tax exemptions (2) (9.6) (19.2)

1 unchanged sentence

Effect of foreign currency translation 0.2 7.4

For the period ended March 31, 2024 $ 1,179.5

For the periods ended June 30, 2024 $ 1,103.6 $ 2,283.1

________________

(1) The thirteen weeks ended March 26, 2023 included high-volume days between December 26 th and December 31 st and the thirteen weeks ended March 31, 2024 excluded these days.

This shift had an estimated $16.5 million negative impact on comparable restaurant sales.

(2) Beginning in the fourth quarter of 2023, we are once again subject to the value added taxes for which we were previously exempt under the Brazil tax legislation.

(1) Comparable restaurant sales for the twenty-six weeks ended June 30, 2024 includes an estimated $16.5 million negative impact from a one-week shift in the fiscal calendar.

(2) During 2023, we were eligible for certain value added tax exemptions under the Brazil tax legislation until August 2023.

Beginning on May 23, 2024, we are eligible for certain value added tax exemptions under the new Brazil tax legislation.

See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements for details regarding value added tax exemptions in connection with Brazil tax legislation.

The decrease in Restaurant sales during the thirteen weeks ended March 31, 2024 was primarily due to:

(i) lower comparable restaurant sales including the impact of the one-week shift in the fiscal calendar, (ii) the closure of 57 restaurants since December 25, 2022 and (iii) value added tax exemptions in Brazil during 2023.

The decrease in Restaurant sales during the thirteen weeks ended June 30, 2024 was primarily due to:

(i) the closure of 53 restaurants since March 26, 2023, (ii) lower comparable restaurant sales and (iii) the benefit from value added tax exemptions in Brazil during 2023.

The decrease in Restaurant sales was partially offset by the opening of 55 new restaurants not included in our comparable restaurant sales base.

The decrease in Restaurant sales during the twenty-six weeks ended June 30, 2024 was primarily due to:

(i) the closure of 57 restaurants since December 25, 2022, (ii) lower comparable restaurant sales including the impact of the one-week shift in the fiscal calendar and (iii) the benefit from value added tax exemptions in Brazil during 2023.

The decrease in Restaurant sales was partially offset by the opening of 65 new restaurants not included in our comparable restaurant sales base and the effect of foreign currency translation of the Brazilian Real relative to the U.S.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Average Restaurant Unit Volumes and Operating Weeks - Following is a summary of the average restaurant unit volumes and operating weeks for the periods indicated:

THIRTEEN WEEKS ENDED

MARCH 31, 2024 MARCH 26, 2023

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Average restaurant unit volumes (weekly):

13 unchanged sentences

____________________

(1) Translated at average exchange rates of 4.92 and 5.21 for the thirteen weeks ended March 31, 2024 and March 26, 2023, respectively.

(1) Translated at average exchange rates of 5.08 and 5.06 for the thirteen weeks ended June 30, 2024 and June 25, 2023, respectively, and 5.00 and 5.14 for the twenty-six weeks ended June 30, 2024 and June 25, 2023, respectively.

Excludes the benefit of the Brazil value added tax exemptions discussed in Note 15 - Income Taxes of the Notes to Consolidated Financial Statements.

3 unchanged sentences

Comparable Restaurant Sales, Traffic and Average Check Per Person (Decreases) Increases - Following is a summary of comparable restaurant sales, traffic and average check per person (decreases) increases for the periods indicated:

THIRTEEN WEEKS ENDED

MARCH 31, 2024 (1) MARCH 26, 2023

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

JUNE 30, 2024 (1) JUNE 25, 2023 JUNE 30, 2024 (1) JUNE 25, 2023

Year over year percentage change:

22 unchanged sentences

Combined U.S.

3.7 % 5.0 % 3.2 % 5.5 %

International

1 unchanged sentence

____________________

(1) For Q1 2024, comparable restaurant sales, traffic and average check per person compare the thirteen weeks from January 1, 2024 through March 31, 2024 to the thirteen weeks from January 2, 2023 through April 2, 2023.

(1) For Q2 2024, comparable restaurant sales, traffic and average check per person compare the thirteen weeks from April 1, 2024 through June 30, 2024 to the thirteen weeks from April 3, 2023 through July 2, 2023, and for the twenty-six weeks from January 1, 2024 through June 30, 2024 to the twenty-six weeks from January 2, 2023 through July 2, 2023.

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

7 unchanged sentences

The following table sets forth the percentages of certain items in our Consolidated Statements of Operations in relation to Restaurant sales or Total revenues for the periods indicated:

THIRTEEN WEEKS ENDED

MARCH 31, 2024 MARCH 26, 2023

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Restaurant sales 98.6 % 98.7 % 98.7 % 98.7 %

12 unchanged sentences

Interest expense, net (1.3) (1.2) (1.2) (1.1)

(Loss) income before provision for income taxes (6.1) 8.7

Income (loss) before provision for income taxes 2.8 6.6 (1.8) 7.7

Provision for income taxes 0.2 0.5 0.5 0.9

Net (loss) income (6.9) 7.5

Net income (loss) 2.6 6.1 (2.3) 6.8

net income attributable to noncontrolling interests 0.1 0.2 0.1 0.1

Net (loss) income attributable to Bloomin’ Brands

Net income (loss) attributable to Bloomin’ Brands

2.5 % 5.9 % (2.4) % 6.7 %

1 unchanged sentence

(1) As a percentage of Restaurant sales.

Thirteen weeks ended March 31, 2024 as compared to thirteen weeks ended March 26, 2023

Thirteen weeks ended June 30, 2024 as compared to thirteen weeks ended June 25, 2023

Food and beverage cost decreased as a percentage of Restaurant sales primarily due to 1.4% from increases in average check per person driven by an increase in menu pricing and 0.6% from cost-saving and productivity initiatives.

These decreases were partially offset by increases as a percentage of Restaurant sales of 0.6% from commodity inflation and 0.4% from unfavorable product mix.

These decreases were partially offset by increases as a percentage of Restaurant sales of 0.9% from unfavorable product mix and 0.4% from commodity inflation.

Labor and other related expense increased as a percentage of Restaurant sales primarily due to 1.8% from higher hourly and field management labor costs, primarily due to wage rate inflation, partially offset by a decrease of 0.8% from an increase in average check per person.

Other restaurant operating expense increased as a percentage of Restaurant sales primarily due to 0.9% from higher restaurant-level operating and supply expenses, primarily due to inflation, and 0.7% from higher advertising expense, partially offset by a decrease of 0.2% from certain cost saving and productivity initiatives.

Depreciation and amortization expense increased primarily due to restaurant development and technology projects, partially offset by a decrease due to restaurant closures under the 2023 Closure Initiative.

General and administrative expense increased primarily due to higher severance partially offset by a decrease in employee stock-based compensation.

Other restaurant operating expense increased as a percentage of Restaurant sales primarily due to 1.6% from higher restaurant-level operating and supply expenses, primarily due to inflation, and 0.4% from higher advertising expense.

These increases were partially offset by decreases as a percentage of Restaurant sales of 0.6% from an increase in average check per person and 0.2% from certain cost-saving and productivity initiatives.

Depreciation and amortization expense increased primarily due to restaurant development and technology projects.

Provision for impaired assets and restaurant closings increased primarily due to impairment and closure charges in connection with the Q2 2024 decision to close nine restaurants in Hong Kong and closure charges in connection with the Q4 2023 decision to close 36 older, predominately underperforming restaurants within the U.S.

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Provision for impaired assets and restaurant closings increased primarily due to charges in connection with the 2023 Closure Initiative within the U.S.

Income from operations during the thirteen weeks ended March 31, 2024 includes a net operating margin decrease of approximatel y 0.3% attributable to the lapping of the 2023 Brazil value added tax exemptions (PIS and COFINS).

Income from operations during the thirteen weeks ended June 30, 2024 includes a net operating margin decrease of approximatel y 0.4% attributable to the lapping of the 2023 Brazil value added tax exemptions (PIS and COFINS).

Beginning on May 23, 2024, we are eligible for certain value added tax exemptions under the new Brazil tax legislation.

See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements for further discussion regarding Brazil tax legislation.

Loss on extinguishment of debt during the thirteen weeks ended March 31, 2024 was in connection with the 2025 Notes Partial Repurchase, which is described in further detail within Note 9 - Convertible Senior Notes of the Notes to Consolidated Financial Statements.

Provision for income taxes for the thirteen weeks ended March 31, 2024 includes the impact of nondeductible losses associated with the 2025 Notes Partial Repurchase which, relative to a pre-tax book loss during the quarter, resulted in a negative effective income tax rate.

Provision for income taxes for the thirteen weeks ended June 30, 2024 includes the impact of lower forecasted annual pre-tax book income for the thirteen weeks ended June 30, 2024 relative to the prior quarter in 2024.

Twenty-six weeks ended June 30, 2024 as compared to twenty-six weeks ended June 25, 2023

Food and beverage cost decreased as a percentage of Restaurant sales primarily due to 1.3% from increases in average check per person driven by an increase in menu pricing and 0.6% from cost-saving and productivity initiatives.

These decreases were partially offset by increases as a percentage of Restaurant sales of:

(i) 0.6% from unfavorable product mix, (ii) 0.2% from commodity inflation and (iii) 0.2% from the lapping of the 2023 Brazil value added tax exemptions.

Labor and other related expense increased as a percentage of Restaurant sales primarily due to 1.7% from higher hourly and field management labor costs, primarily due to wage rate inflation, partially offset by a decrease of 0.5% from an increase in average check per person.

Other restaurant operating expense increased as a percentage of Restaurant sales primarily due to 1.2% from higher restaurant-level operating and supply expenses, primarily due to inflation, and 0.5% from higher advertising expense.

These increases were partially offset by decreases as a percentage of Restaurant sales of 0.3% from an increase in average check per person and 0.2% from certain cost-saving and productivity initiatives.

Depreciation and amortization expense increased primarily due to restaurant development and technology projects.

Provision for impaired assets and restaurant closings increased primarily due to impairment and closure charges in connection with the Q2 2024 decision to close nine restaurants in Hong Kong and the Q4 2023 decision to close 36 older, predominately underperforming restaurants within the U.S.

Income from operations during the twenty-six weeks ended June 30, 2024 includes a net operating margin decrease of approximately 0.3% attributable to the lapping of the 2023 Brazil value added tax exemptions (PIS and COFINS).

Beginning on May 23, 2024, we are eligible for certain value added taxes exemptions under the new Brazil tax legislation.

See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements for further discussion regarding Brazil tax legislation.

Loss on extinguishment of debt during the twenty-six weeks ended June 30, 2024 was in connection with the 2025 Notes Partial Repurchase, which is described in further detail within Note 10 - Convertible Senior Notes of the Notes to Consolidated Financial Statements.

Provision for income taxes for the twenty-six weeks ended June 30, 2024 includes the impact of nondeductible losses associated with the 2025 Notes Partial Repurchase which, relative to a pre-tax book loss during the period, resulted in a negative effective income tax rate.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

SEGMENT PERFORMANCE

21 unchanged sentences

THIRTEEN WEEKS ENDED THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 31, 2024 MARCH 26, 2023 MARCH 31, 2024 MARCH 26, 2023

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Restaurant sales $ 962,088 $ 993,438 $ 141,477 $ 143,892

1 unchanged sentence

Total revenues $ 974,173 $ 1,005,229 $ 144,693 $ 147,465

Income (loss) from operations $ 79,677 $ 103,008 $ (874) $ 20,486

Operating income (loss) margin 8.2 % 10.2 % (0.6) % 13.9 %

Restaurant-level operating income $ 136,455 $ 154,856 $ 22,044 $ 29,673

Restaurant-level operating margin 14.2 % 15.6 % 15.6 % 20.6 %

TWENTY-SIX WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Restaurant sales $ 1,992,984 $ 2,074,007 $ 290,068 $ 291,557

Franchise and other revenues 24,293 24,218 6,848 7,658

Total revenues $ 2,017,277 $ 2,098,225 $ 296,916 $ 299,215

Income from operations $ 177,161 $ 236,251 $ 14,888 $ 44,994

2 unchanged sentences

Restaurant-level operating margin 15.0 % 16.5 % 17.0 % 21.8 %

Restaurant sales - Following is a summary of the change in segment Restaurant sales for the period indicated:

Restaurant sales - Following is a summary of the change in segment Restaurant sales for the periods indicated:

INTERNATIONAL

THIRTEEN WEEKS ENDED THIRTEEN WEEKS ENDED

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in millions) (dollars in millions)

For the period ended March 26, 2023 $ 1,080.6 For the period ended March 26, 2023 $ 147.6

Comparable restaurant sales (1) (32.8) Effect of foreign currency translation 7.4

Restaurant closures (2) (24.5) Restaurant openings (3) 6.7

Restaurant openings (3) 7.6 Brazil value added tax exemptions (4) (9.6)

For the period ended March 31, 2024 $ 1,030.9 Comparable restaurant sales (2.9)

Restaurant closures (2) (0.6)

For the period ended March 31, 2024 $ 148.6

For the periods ended June 25, 2023 $ 993.4 $ 2,074.0 For the periods ended June 25, 2023 $ 143.9 $ 291.6

Restaurant closures (1) (33.0) (57.5) Brazil value added tax exemptions (2) (9.6) (19.2)

Comparable restaurant sales (3) (11.1) (43.8) Comparable restaurant sales (3.1) (5.9)

Restaurant openings (4) 12.8 20.3 Restaurant closures (1) (0.7) (1.3)

For the periods ended June 30, 2024 $ 962.1 $ 1,993.0 Restaurant openings (4) 10.8 17.5

Effect of foreign currency translation 0.2 7.4

For the periods ended June 30, 2024 $ 141.5 $ 290.1

____________________

(1) Includes an estimated $16.5 million negative impact on comparable restaurant sales from a one-week shift in the fiscal calendar.

(2) Includes the restaurant sales impact from the closure of 55 U.S.

(1) The thirteen weeks ended June 30, 2024 includes the restaurant sales impact from the closure of 51 U.S.

and two international restaurants since March 26, 2023.

The twenty-six weeks ended June 30, 2024 includes the restaurant sales impact from the closure of 55 U.S.

and two international restaurants since December 25, 2022.

(3) Includes restaurant sales from 17 U.S.

and 36 international new restaurants not included in our comparable restaurant sales base.

(4) Beginning in the fourth quarter of 2023, we are once again subject to the value added taxes for which we were previously exempt under the Brazil tax legislation.

(2) During 2023, we were eligible for certain value added tax exemptions under the Brazil tax legislation until August 2023.

Beginning on May 23, 2024, we are eligible for certain value added tax exemptions under the new Brazil tax legislation.

See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements for details regarding value added tax exemptions in connection with Brazil tax legislation.

comparable restaurant sales for the twenty-six weeks ended June 30, 2024 includes an estimated $16.5 million negative impact from a one-week shift in the fiscal calendar.

(4) The thirteen weeks ended June 30, 2024 includes restaurant sales from 20 U.S.

and 35 international new restaurants not included in our comparable restaurant sales base.

The twenty-six weeks ended June 30, 2024 includes restaurant sales from 22 U.S.

and 43 international new restaurants not included in our comparable restaurant sales base.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Income from operations

- The decrease in U.S.

Income from operations generated during the thirteen weeks ended March 31, 2024 as compared to the thirteen weeks ended March 26, 2023 was primarily due to:

(i) lower restaurant sales, as discussed above, (ii) higher labor, operating and commodity costs, primarily due to inflation, (iii) impairment and closure costs in connection with the 2023 Closure Initiative, (iv) higher advertising expense and (v) unfavorable product mix.

These decreases were offset by an increase in average check per person and the impact of certain cost saving and productivity initiatives.

International - The decrease in international Income from operations generated during the thirteen weeks ended March 31, 2024 as compared to the thirteen weeks ended March 26, 2023 was primarily due to:

(i) higher operating and labor costs, primarily due to inflation, (ii) lapping value added tax exemptions in Brazil during 2023, (iii) a decline in customer traffic and (iv) commodity inflation.

Income from operations generated during the thirteen weeks ended June 30, 2024 as compared to the thirteen weeks ended June 25, 2023 was primarily due to:

(i) lower restaurant sales, as discussed above, (ii) higher labor and operating costs, primarily due to inflation, (iii) unfavorable product mix and (iv) higher advertising expense.

These decreases were partially offset by increases from an increase in average check per person and the impact of certain cost-saving and productivity initiatives.

The decrease in U.S.

Income from operations generated during the twenty-six weeks ended June 30, 2024 as compared to the twenty-six weeks ended June 25, 2023 was primarily due to:

(i) lower restaurant sales, as discussed above, (ii) higher labor and operating costs, primarily due to inflation, (iii) unfavorable product mix, (iv) higher advertising expense and (v) higher impairment and closure costs.

These decreases were partially offset by increases from an increase in average check per person and the impact of certain cost-saving and productivity initiatives.

International - International Loss from operations generated during the thirteen weeks ended June 30, 2024 as compared to international Income from operations generated during the thirteen weeks ended June 25, 2023 was primarily due to:

(i) higher impairment and closure costs, (ii) higher labor and operating costs, primarily due to inflation and (iii) lapping value added tax exemptions in Brazil during 2023.

These decreases were partially offset by an increase in average check per person.

The decrease in international Income from operations generated during the twenty-six weeks ended June 30, 2024 as compared to the twenty-six weeks ended June 25, 2023 was primarily due to:

(i) higher impairment and closure costs, (ii) higher labor and operating costs, primarily due to inflation and (iii) lapping value added tax exemptions in Brazil during 2023.

These decreases were partially offset by an increase in average check per person.

BLOOMIN’ BRANDS, INC.

3 unchanged sentences

Consolidated Restaurant-level Operating Income and Adjusted Restaurant-level Operating Income and Corresponding Margins Non-GAAP Reconciliations - The following table reconciles consolidated Income from operations and the corresponding margin to restaurant-level operating income and adjusted restaurant-level operating income and the corresponding margins for the periods indicated:

Consolidated THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 31, 2024 MARCH 26, 2023

Consolidated THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Income from operations $ 46,131 $ 89,446 $ 123,224 $ 210,079

6 unchanged sentences

Restaurant-level operating margin 14.3 % 16.4 % 15.2 % 17.2 %

Asset impairments and closure-related costs (1) 434 —

Asset impairments and closure-related charges — — 434 —

Total restaurant-level operating income adjustments — — 434 —

1 unchanged sentence

Adjusted restaurant-level operating margin 14.3 % 16.4 % 15.2 % 17.2 %

_________________

(1) Represents costs in connection with the 2023 Closure Initiative.

Segment Restaurant-level and Adjusted Restaurant-level Operating Income and Corresponding Margins Non-GAAP Reconciliations - The following tables reconcile segment Income from operations and the corresponding margin to segment restaurant-level operating income and adjusted restaurant-level operating income and the corresponding margins for the periods indicated:

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 31, 2024 MARCH 26, 2023

Segment Restaurant-level and Adjusted Restaurant-level Operating Income and Corresponding Margins Non-GAAP Reconciliations - The following tables reconcile segment Income (loss) from operations and the corresponding margin to segment restaurant-level operating income and adjusted restaurant-level operating income and the corresponding margins for the periods indicated:

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Income from operations $ 79,677 $ 103,008 $ 177,161 $ 236,251

6 unchanged sentences

Restaurant-level operating margin 14.2 % 15.6 % 15.0 % 16.5 %

Asset impairments and closure-related costs (1) 434 —

Asset impairments and closure-related charges — — 434 —

Total restaurant-level operating income adjustments — — 434 —

1 unchanged sentence

Adjusted restaurant-level operating margin 14.2 % 15.6 % 15.0 % 16.5 %

_________________

(1) Represents costs in connection with the 2023 Closure Initiative.

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

International THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 31, 2024 MARCH 26, 2023

Income from operations $ 15,762 $ 24,508

Operating income margin 10.4 % 16.2 %

International THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

(Loss) income from operations $ (874) $ 20,486 $ 14,888 $ 44,994

Operating (loss) income margin (0.6) % 13.9 % 5.0 % 15.0 %

Franchise and other revenues 3,216 3,573 6,848 7,658

4 unchanged sentences

Restaurant-level operating margin 15.6 % 20.6 % 17.0 % 21.8 %

Adjusted Restaurant-level Operating Margin Non-GAAP Reconciliations (continued) - The following table presents the percentages of certain operating cost financial statement line items in relation to Restaurant sales for the periods indicated:

Adjusted Restaurant-level Operating Margin Non-GAAP Reconciliations (continued) - The following tables present the percentages of certain operating cost financial statement line items in relation to Restaurant sales for the periods indicated:

THIRTEEN WEEKS ENDED

MARCH 31, 2024 MARCH 26, 2023

REPORTED ADJUSTED (1) REPORTED ADJUSTED

JUNE 30, 2024 JUNE 25, 2023

REPORTED AND ADJUSTED REPORTED AND ADJUSTED

Restaurant sales 100.0 % 100.0 %

3 unchanged sentences

Restaurant-level operating margin 14.3 % 16.4 %

TWENTY-SIX WEEKS ENDED

JUNE 30, 2024 JUNE 25, 2023

REPORTED AND ADJUSTED (1) REPORTED AND ADJUSTED

Restaurant sales 100.0 % 100.0 %

Food and beverage 30.4 % 31.1 %

Labor and other related 29.4 % 28.2 %

Other restaurant operating 25.0 % 23.5 %

Restaurant-level operating margin 15.2 % 17.2 %

_________________

(1) See the Consolidated Restaurant-level Operating Income and Adjusted Restaurant-level Operating Income and Corresponding Margins Non-GAAP Reconciliations table above for details regarding the restaurant-level operating margin adjustments.

All restaurant-level operating margin adjustments for the periods presented were recorded within Labor and other related expense.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Adjusted Income from Operations Non-GAAP Reconciliations - The following table reconciles Income from operations and the corresponding margin to adjusted income from operations and the corresponding margin for the periods indicated:

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 31, 2024 MARCH 26, 2023

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Income from operations $ 46,131 $ 89,446 $ 123,224 $ 210,079

2 unchanged sentences

Asset impairments and closure-related charges (2) 16,225 — 28,746 —

Strategic initiative fees (3) 1,000 — 1,000 —

Total income from operations adjustments 17,225 — 30,180 —

2 unchanged sentences

_________________

(2) Includes asset impairment, closure costs and severance in connection with the 2023 Closure Initiative.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Adjusted Net Income and Adjusted Diluted Earnings Per Share Non-GAAP Reconciliations - The following table reconciles Net (loss) income attributable to Bloomin’ Brands to adjusted net income and adjusted diluted earnings per share for the periods indicated:

THIRTEEN WEEKS ENDED

(in thousands, except per share data) MARCH 31, 2024 MARCH 26, 2023

Net (loss) income attributable to Bloomin’ Brands

(2) Includes asset impairment, closure costs and severance primarily in connection with the Q2 2024 decision to close nine restaurants in Hong Kong and the Q4 2023 decision to close 36 older, predominately underperforming U.S.

(3) Represents fees incurred in connection with a project-based strategic initiative.

The costs incurred represent third-party consulting fees related to a strategic initiative to develop revenue growth management capabilities for Outback Steakhouse and are included in General and administrative expense.

We expect to incur additional fees for this project for the remainder of 2024.

Given the expected magnitude and scope of this initiative and that it is not expected to recur in the foreseeable future after 2024, we consider these incremental expenses to be distinct from other consulting fees that we incur in the ordinary course of business and not reflective of the ongoing costs to operate our business or operating performance in the period.

Adjusted Net Income and Adjusted Diluted Earnings Per Share Non-GAAP Reconciliations - The following table reconciles Net income (loss) attributable to Bloomin’ Brands to adjusted net income and adjusted diluted earnings per share for the periods indicated:

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(in thousands, except per share data) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Net income (loss) attributable to Bloomin’ Brands

$ 28,403 $ 68,277 $ (55,469) $ 159,588

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Adjusted net income $ 45,026 $ 68,277 $ 108,540 $ 159,588

Diluted (loss) earnings per share $ (0.96) $ 0.93

Diluted earnings (loss) per share $ 0.32 $ 0.70 $ (0.64) $ 1.63

Adjusted diluted earnings per share (4)(5) $ 0.51 $ 0.70 $ 1.18 $ 1.63

5 unchanged sentences

See Note 10 - Convertible Senior Notes of the Notes to Consolidated Financial Statements for additional details.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

(3) Includes the tax effects of non-GAAP adjustments determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates for all periods presented.

The primary difference between GAAP and adjusted effective income tax rates relates to certain non-deductible losses and other tax costs associated with the 2025 Notes Partial Repurchase.

(4) Due to a GAAP net loss, antidilutive securities are excluded from diluted weighted average common shares outstanding for the thirteen weeks ended March 31, 2024.

However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates 4,031 dilutive securities, including 3,132 for outstanding warrants.

Adjusted diluted weighted average common shares outstanding was calculated including the benefit of our convertible notes hedge.

The difference between GAAP and adjusted effective income tax rates during the thirteen weeks ended June 30, 2024 primarily relates to asset impairment and closure costs in Hong Kong with no corresponding tax benefit as a result of a full valuation allowance against deferred tax assets in that jurisdiction.

The difference between GAAP and adjusted effective income tax rates for the twenty-six weeks ended June 30, 2024 primarily relates to nondeductible losses and other tax costs associated with the 2025 Notes Partial Repurchase.

(4) Adjusted diluted weighted average common shares outstanding for the thirteen weeks ended June 30, 2024 and June 25, 2023 and the twenty-six weeks ended June 30, 2024 and June 25, 2023 were calculated including the effect of 1.0 million, 5.0 million, 2.7 million and 4.9 million dilutive securities, respectively, for outstanding 2025 Notes and the effect of 0.6 million, 3.3 million, 1.9 million and 3.2 million dilutive securities, respectively, for the Warrant Transactions, as defined below.

In connection with the offering of the 2025 Notes, we entered into convertible note hedge transactions (the “Convertible Note Hedge Transactions”) and concurrently entered into warrant transactions relating to the same number of shares of our common stock (the “Warrant Transactions”).

If our stock price is in excess of the conversion price of the 2025 Notes ($10.94 and $11.37 as of June 30, 2024 and June 25, 2023, respectively), the Convertible Note Hedge Transactions deliver shares to offset dilution from the 2025 Notes, which, in combination with the warrant transactions, effectively offset dilution from the 2025 Notes up to the strike price of the Warrant Transactions ($15.32 and $15.92 as of June 30, 2024 and June 25, 2023, respectively).

Adjusted diluted earnings per share and adjusted diluted weighted average common shares outstanding for the thirteen and twenty-six weeks ended June 25, 2023 have been recast to remove the 5.0 million and 4.9 million share benefit, respectively, of the Convertible Note Hedge Transactions which was previously included as a non-GAAP share adjustment.

(5) Due to a GAAP net loss, antidilutive securities are excluded from diluted weighted average common shares outstanding for the twenty-six weeks ended June 30, 2024.

However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP.

System-Wide Sales - System-wide sales is a non-GAAP financial measure that includes sales of all restaurants operating under our brand names, whether we own them or not.

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For a summary of sales of Company-owned restaurants, refer to Note 2 - Revenue Recognition of the Notes to Consolidated Financial Statements.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

The following table provides a summary of sales of franchised restaurants for the periods indicated, which are not included in our consolidated financial results.

Franchise sales within this table do not represent our sales and are presented only as an indicator of changes in the restaurant system, which management believes is important information regarding the health of our restaurant concepts and in determining our royalties and/or service fees.

THIRTEEN WEEKS ENDED

(dollars in millions) MARCH 31, 2024 MARCH 26, 2023

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in millions) JUNE 30, 2024 JUNE 25, 2023 JUNE 30, 2024 JUNE 25, 2023

Outback Steakhouse $ 128 $ 131 $ 261 $ 267

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Bonefish Grill 2 2 5 5

Aussie Grill 1 — 1 —

total 142 145 290 297

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(1) Includes franchise sales fo r off-premises only kitchens in South Korea.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Liquidity and Capital Resources

Cash and Cash Equivalents

As of March 31, 2024, we had $131.7 million in cash and cash equivalents, of which $57.5 million was held by foreign affiliates.

As of June 30, 2024, we had $117.9 million in cash and cash equivalents, of which $59.2 million was held by foreign affiliates.

The international jurisdictions in which we have significant cash do not have any known restrictions that would prohibit repatriation.

As of March 31, 2024, we had aggregate undistributed foreign earnings of approximately $46.7 million that may be repatriated to the U.S.

As of June 30, 2024, we had aggregate undistributed foreign earnings of approximately $33.1 million that may be repatriated to the U.S.

without additional material U.S.

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2024 payments (556,000) — — (556,000)

2024 conversions — (84,062) — (84,062)

Balance as of March 31, 2024 $ 635,000 $ 20,724 $ 300,000 $ 955,724

Interest rates, as of March 31, 2024 (1) 6.94 % 5.00 % 5.13 %

2024 repurchases and conversions — (84,062) — (84,062)

Balance as of June 30, 2024 $ 685,000 $ 20,724 $ 300,000 $ 1,005,724

Interest rates, as of June 30, 2024 (1) 6.96 % 5.00 % 5.13 %

Principal maturity date April 2026 May 2025 April 2029

____________________

(1) Interest rate for revolving credit facility represents the weighted average interest rate as of March 31, 2024.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

As of March 31, 2024, we had $346.7 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $18.3 million.

(1) The revolving credit facility interest rate represents the weighted average interest rate as of June 30, 2024.

As of June 30, 2024, we had $297.2 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $17.8 million.

Our credit agreement, as amended, contains various financial and non-financial covenants.

1 unchanged sentence

See Note 12 - Long-term Debt, Net in our Annual Report on Form 10-K for the year ended December 31, 2023 for further information.

As of March 31, 2024 and December 31, 2023, we were in compliance with our debt covenants.

As of June 30, 2024 and December 31, 2023, we were in compliance with our debt covenants.

We believe that we will remain in compliance with our debt covenants during the next 12 months and beyond.

1 unchanged sentence

Convertible Note Hedge and Warrant Transactions - In connection with the 2025 Notes Partial Repurchase, we entered into the Early Termination Agreements with the Derivative Counterparties.

Upon settlement, we received approximately $118.2 million in cash and 0.3 million shares of common stock from the Derivative Counterparties and paid $102.2 million in cash to the Derivative Counterparties during the thirteen weeks ended March 31, 2024.

Upon settlement, we received approximately $118.2 million in cash and 0.3 million shares of our common stock from the Derivative

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Counterparties and paid $102.2 million in cash to the Derivative Counterparties during the twenty-six weeks ended June 30, 2024.

See Note 10 - Convertible Senior Notes of the Notes to Consolidated Financial Statements for additional details regarding the 2025 Notes Partial Repurchase and related Early Termination Agreements.

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The amount of actual capital expenditures may be affected by general economic, financial, competitive, legislative and regulatory factors, among other things, including raw material constraints.

Dividends and Share Repurchases - In April 2024, our Board declared a quarterly cash dividend of $0.24 per share, payable on May 31, 2024.

Brazil Judicial Deposit - In July 2024, we made a judicial deposit of $42.9 million in connection with our appeal of an unfavorable court ruling regarding our eligibility for tax exemptions under the Brazil tax legislation.

The judicial deposit includes the disputed amounts through December 31, 2023 and was recorded in Other assets, net, on our Consolidated Balance Sheet.

We believe that we will more likely than not prevail in this appeal and, accordingly, have not recorded any expense or liability for the disputed amounts.

Dividends and Share Repurchases - In July 2024, our Board declared a quarterly cash dividend of $0.24 per share, payable on September 4, 2024.

Future dividend payments are dependent on our earnings, financial condition, capital expenditure requirements, surplus and other factors that our Board considers relevant, as well as continued compliance with the financial covenants in our debt agreements.

2 unchanged sentences

The 2024 Share Repurchase Program will expire on August 13, 2025.

On March 1, 2024, we entered into the ASR Agreement, in connection with our previously announced 2024 Share Repurchase Program, with Wells Fargo to repurchase $220.0 million of our common stock.

Under the ASR Agreement, we made an aggregate payment of $220.0 million to Wells Fargo and received an aggregate initial delivery of approximately 6.5 million shares of our common stock on March 4, 2024, representing approximately 80% of the total shares that are estimated to be repurchased under the ASR Agreement based on the price per share of common stock on that date.

On April 23, 2024, we received 1.4 million additional shares of our common stock from Wells Fargo in connection with the final settlement of the ASR Agreement.

See Note 11 - Stockholders’ Equity of the Notes to Consolidated Financial Statements for additional details regarding the ASR Agreement.

As of June 30, 2024, $115.0 million remained available for repurchase under the 2024 Share Repurchase Program.

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

On March 1, 2024, we entered into the ASR Agreement, in connection with our previously announced 2024 Share Repurchase Program, with Wells Fargo to repurchase $220.0 million of our common stock.

Under the ASR Agreement, we made an aggregate payment of $220.0 million to Wells Fargo and received an aggregate initial delivery of approximately 6.5 million shares of common stock on March 4, 2024, representing approximately 80% of the total shares that are estimated to be repurchased under the ASR Agreement based on the price per share of common stock on that date.

On April 23, 2024, we received 1.4 million additional shares of common stock from Wells Fargo in connection with the final settlement of the ASR Agreement.

See Note 10 - Stockholders’ Equity of the Notes to Consolidated Financial Statements for additional details regarding the ASR Agreement.

As of March 31, 2024, $130.0 million remained available for repurchase under the 2024 Share Repurchase Program.

Following is a summary of dividends and share repurchases from fiscal year 2023 through March 31, 2024:

Following is a summary of dividends and share repurchases from fiscal year 2023 through June 30, 2024:

(dollars in thousands) DIVIDENDS PAID SHARE REPURCHASES TOTAL

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First fiscal quarter 2024 (1) 21,075 188,500 209,575

Second fiscal quarter 2024 (2) 20,762 59,000 79,762

Total (3) $ 125,579 $ 317,500 $ 443,079

________________

(1) Excludes $44.0 million paid in March 2024 for the repurchase of 1.4 million shares that settled on April 23, 2024 in connection with the ASR Agreement.

Also excludes $0.4 million of fees recorded in Additional paid-in capital related to repurchases under the ASR Agreement.

(1) Excludes $0.4 million of fees recorded in Accumulated deficit related to repurchases under the ASR Agreement.

(2) Includes $44.0 million of share repurchases in connection with the ASR Agreement that settled during the thirteen weeks ended June 30, 2024.

(3) Subsequent to June 30, 2024, we repurchased $15.6 million of our common stock authorized under the 2024 Share Repurchase Program through August 2, 2024 under a Rule 10b5-1 plan.

Summary of Cash Flows and Financial Condition

Cash Flows - The following table presents a summary of our cash flows provided by (used in) operating, investing and financing activities for the periods indicated:

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 31, 2024 MARCH 26, 2023

TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 30, 2024 JUNE 25, 2023

Net cash provided by operating activities $ 116,192 $ 287,293

3 unchanged sentences

Net increase in cash, cash equivalents and restricted cash $ 3,546 $ 4,059

Operating Activities - The decrease in net cash provided by operating activities during the thirteen weeks ended March 31, 2024 as compared to the thirteen weeks ended March 26, 2023 was primarily due to changes in working capital and lower net earnings.

Financing Activities - The net cash provided by financing activities during the thirteen weeks ended March 31, 2024 was due to net draws on the revolving credit facility exceeding cash used to repurchase common stock and net cash received from the Early Termination Agreements.

Net cash used in financing activities during thirteen weeks ended March 26, 2023 was primarily due to net repayments on our revolving credit facility.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Operating Activities - The decrease in net cash provided by operating activities during the twenty-six weeks ended June 30, 2024 as compared to the twenty-six weeks ended June 25, 2023 was primarily due to changes in working capital and lower net earnings.

Investing Activities - The decrease in net cash used in investing activities during the twenty-six weeks ended June 30, 2024 as compared to the twenty-six weeks ended June 25, 2023 was primarily due to lower capital expenditures.

Financing Activities - The net cash provided by financing activities during the twenty-six weeks ended June 30, 2024 was due to net draws on the revolving credit facility exceeding cash used to repurchase common stock and pay dividends on our common stock, and net cash received from the Early Termination Agreements.

Net cash used in financing activities during twenty-six weeks ended June 25, 2023 was primarily due to net repayments on our revolving credit facility, cash dividends on our common stock and repurchases of our common stock.

Financial Condition - Following is a summary of our current assets, current liabilities and working capital (deficit) as of the periods indicated:

(dollars in thousands) MARCH 31, 2024 DECEMBER 31, 2023

(dollars in thousands) JUNE 30, 2024 DECEMBER 31, 2023

Current assets $ 300,211 $ 343,314

2 unchanged sentences

Working capital (deficit) includes:

(i) Unearned revenue primarily from unredeemed gift cards of $320.0 million and $381.9 million as of March 31, 2024 and December 31, 2023, respectively, and (ii) current operating lease liabilities of $171.2 million and $175.4 million as of March 31, 2024 and December 31, 2023, respectively, with the corresponding operating right-of-use assets recorded as non-current on our Consolidated Balance Sheets.

We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies).

(i) Unearned revenue primarily from unredeemed gift cards of $309.0 million and $381.9 million as of June 30, 2024 and December 31, 2023, respectively, and (ii) current operating lease liabilities of $169.4 million and $175.4 million as of June 30, 2024 and December 31, 2023, respectively, with the corresponding operating right-of-use assets recorded as non-current on our Consolidated Balance Sheets.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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.

1 unchanged sentence

Recently Issued Financial Accounting Standards

For a description of recently issued Financial Accounting Standards that we adopted during the thirteen weeks ended March 31, 2024 and, that are applicable to us and likely to have material effect on our consolidated financial statements, but have not yet been adopted, see Note 1 - Description of the Business and Basis of Presentation of the Notes to Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

For a description of recently issued Financial Accounting Standards that we adopted during the thirteen weeks ended June 30, 2024 and, that are applicable to us and likely to have material effect on our consolidated financial statements, but have not yet been adopted, see Note 1 - Description of the Business and Basis of Presentation of the Notes to Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

BLOOMIN’ BRANDS, INC.

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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis