12 unchanged sentences
In addition to the market risks identified above, we are subject to business risk as our U.S.
−Removed: beef and Brazil pork supplies are highly dependent upon a limited number of vendors.
+Added: beef supply is 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: During 2023, we experienced 5.3% labor cost inflation in the U.S.
+Added: During 2024, we experienced 3.7% labor cost inflation in the U.S and anticipate 4.0% to 5.0% labor cost inflation for 2025.
Interest Rate Risk
2 unchanged sentences
The amount of variable-rate debt fluctuates during the year based on our working capital requirements.
−Removed: 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.
+Added: As of December 29, 2024, our interest rate risk was primarily from variable interest rate changes on our revolving credit facility.
We periodically evaluate financial instruments to hedge our exposure to variable interest rates.
We use derivative financial instruments as risk management tools and not for speculative purposes.
−Removed: 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.
+Added: To manage the risk of fluctuations in variable interest rate debt, we have interest rate swaps with an aggregate notional amount of $375.0 million, with $100.0 million maturing on December 31, 2024, $100.0 million maturing on December 31, 2025, and $175.0 million maturing March 31, 2026.
See Note 13 - Derivative Instruments and Hedging Activities of the Notes to Consolidated Financial Statements for further information.
12 unchanged sentences
Foreign Currency Exchange Rate Risk
−Removed: We are subject to foreign currency exchange risk for our restaurants operating in foreign countries.
−Removed: Our exposure to foreign currency exchange risk is primarily related to fluctuations in the Brazilian Real relative to the U.S.
−Removed: Our operations in other markets consist of Company-owned restaurants on a smaller scale than Brazil.
−Removed: If foreign currency exchange rates depreciate in the countries in which we operate, we may experience declines in our operating results.
−Removed: Currently, we do not use financial instruments to hedge foreign currency exchange rate changes.
−Removed: For 2023, 13.2% of our revenue was generated in foreign currencies.
−Removed: A 10% change in average foreign currency rates against the U.S.
−Removed: dollar would have increased or decreased our Total revenues and Net income for our foreign entities by $67.0 million and $8.5 million, respectively.
+Added: We are subject to foreign currency exchange risk.
+Added: To manage a portion of our exchange rate risk, we entered into foreign currency forward contracts during 2024 to partially offset the foreign currency exchange gains and losses generated by the rate risk associated with the purchase price installment payments from the Brazil Sale Transaction.
+Added: We recorded gains of $15.7 million as a result of changes in the fair value of foreign currency forward contracts during fiscal year 2024.
+Added: As of December 29, 2024, the fair value of the derivative instruments was $0.3 million in an asset position.
+Added: As of December 29, 2024, our total notional amount of outstanding foreign currency forward contracts was $184.6 million.
+Added: Subsequent to December 29, 2024, the outstanding notional amount decreased to $107.7 million following the collection of the first installment payment from the Brazil Sale Transaction.
+Added: A hypothetical 10% increase or decrease in the Brazilian Real relative to the U.S.
+Added: dollar for the remaining $107.7 million notional amount would result in a corresponding increase or decrease of approximately $8.4 million or $(10.2) million, respectively, in operating income with a corresponding decrease or increase in the U.S.
+Added: dollar value of the hedged portion of the related receivable.
This market risk discussion contains forward-looking statements.
Actual results may differ materially from the discussion based upon general market conditions and changes in U.S.
−Removed: and global financial markets.
+Added: and global financ ial markets.
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.