Bloomin' Brands, Inc. 10-Q

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) MARCH 30, 2025 DECEMBER 29, 2024 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $ 57,691 $ 70,056 Inventories 60,565 68,699 Other current assets, net 200,625 158,775 Current assets of discontinued operations held for sale — 22,989 Total current assets 318,881 320,519 Property, fixtures and equipment, net 951,544 948,521 Operating lease right-of-use assets 1,031,937 1,012,857 Goodwill 213,323 213,323 Intangible assets, net 428,135 429,091 Deferred income tax assets, net 193,783 185,522 Equity method investment 61,776 — Other assets, net 105,991 74,471 Non-current assets of discontinued operations held for sale — 200,501 Total assets $ 3,305,370 $ 3,384,805 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 143,246 $ 153,161 Current operating lease liabilities 161,188 158,806 Accrued and other current liabilities 156,360 178,314 Unearned revenue 317,671 374,099 Current liabilities of discontinued operations held for sale — 87,956 Total current liabilities 778,465 952,336 Non-current operating lease liabilities 1,095,873 1,088,518 Deferred income tax liabilities, net 23,934 33,822 Long-term debt, net 917,610 1,027,398 Other long-term liabilities, net 104,638 93,420 Non-current liabilities of discontinued operations held for sale — 49,865 Total liabilities 2,920,520 3,245,359 Commitments and contingencies (Note 15) Stockholders’ equity Bloomin’ Brands stockholders’ equity Preferred stock, $ 0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 30, 2025 and December 29, 2024 — — Common stock, $ 0.01 par value, 475,000,000 shares authorized; 84,987,054 and 84,854,768 shares issued and outstanding as of March 30, 2025 and December 29, 2024, respectively 850 849 Additional paid-in capital 1,261,204 1,273,288 Accumulated deficit ( 883,682 ) ( 925,834 ) Accumulated other comprehensive income (loss) 2,225 ( 212,793 ) Total Bloomin’ Brands stockholders’ equity 380,597 135,510 Noncontrolling interests 4,253 3,936 Total stockholders’ equity 384,850 139,446 Total liabilities and stockholders’ equity $ 3,305,370 $ 3,384,805 The accompanying notes are an integral part of these unaudited consolidated financial statements. 3 Table of Contents BLOOMIN’ BRANDS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED) THIRTEEN WEEKS ENDED MARCH 30, 2025 MARCH 31, 2024 Revenues Restaurant sales $ 1,029,517 $ 1,046,690 Franchise and other revenues 20,077 22,383 Total revenues 1,049,594 1,069,073 Costs and expenses Food and beverage 313,304 315,521 Labor and other related 315,250 314,718 Other restaurant operating 258,135 254,868 Depreciation and amortization 43,947 42,700 General and administrative 61,377 59,476 Provision for impaired assets and restaurant closings 350 10,873 Total costs and expenses 992,363 998,156 Income from operations 57,231 70,917 Loss on extinguishment of debt — ( 135,797 ) Interest expense, net ( 11,187 ) ( 13,676 ) Income (loss) before provision for income taxes 46,044 ( 78,556 ) Provision for income taxes 903 6,642 Loss from equity method investment, net of tax ( 1,291 ) — Net income (loss) from continuing operations 43,850 ( 85,198 ) Net (loss) income from discontinued operations, net of tax ( 254 ) 2,908 Net income (loss) 43,596 ( 82,290 ) Less: net income attributable to noncontrolling interests 1,444 1,582 Net income (loss) attributable to Bloomin’ Brands $ 42,152 $ ( 83,872 ) Net income (loss) $ 43,596 $ ( 82,290 ) Other comprehensive income (loss): Foreign currency translation adjustment ( 2,353 ) ( 1,931 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business 217,548 — Net (loss) gain on derivatives, net of tax ( 177 ) 1,157 Comprehensive income (loss) 258,614 ( 83,064 ) Less: comprehensive income attributable to noncontrolling interests 1,444 1,582 Comprehensive income (loss) attributable to Bloomin’ Brands $ 257,170 $ ( 84,646 ) Basic earnings (loss) per share: Continuing operations $ 0.50 $ ( 1.00 ) Discontinued operations — 0.03 Net basic earnings (loss) per share $ 0.50 $ ( 0.96 ) Diluted earnings (loss) per share: Continuing operations $ 0.50 $ ( 1.00 ) Discontinued operations — 0.03 Net diluted earnings (loss) per share $ 0.50 $ ( 0.96 ) Weighted average common shares outstanding: Basic 84,902 87,024 Diluted 85,130 87,024 Th e accompanying notes are an integral part of these unaudited consolidated financial statements. 4 Table of Contents BLOOMIN’ BRANDS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED) BLOOMIN’ BRANDS, INC. COMMON STOCK ADDITIONAL PAID-IN CAPITAL ACCUM- ULATED DEFICIT ACCUMULATED OTHER COMPREHENSIVE INCOME NON-CONTROLLING INTERESTS TOTAL SHARES AMOUNT Balance, December 29, 2024 84,855 $ 849 $ 1,273,288 $ ( 925,834 ) $ ( 212,793 ) $ 3,936 $ 139,446 Net income — — — 42,152 — 1,444 43,596 Other comprehensive income, net of tax — — — — 215,018 — 215,018 Cash dividends declared, $ 0.15 per common share — — ( 12,747 ) — — — ( 12,747 ) Stock-based compensation — — 1,229 — — — 1,229 Common stock issued under stock plans (1) 132 1 ( 566 ) — — — ( 565 ) Distributions to noncontrolling interests — — — — — ( 1,800 ) ( 1,800 ) Contributions from noncontrolling interests — — — — — 673 673 Balance, March 30, 2025 84,987 $ 850 $ 1,261,204 $ ( 883,682 ) $ 2,225 $ 4,253 $ 384,850 BLOOMIN’ BRANDS, INC. COMMON STOCK ADDITIONAL PAID-IN CAPITAL ACCUM- ULATED DEFICIT ACCUMULATED OTHER COMPREHENSIVE LOSS NON-CONTROLLING INTERESTS TOTAL SHARES AMOUNT Balance, December 31, 2023 86,969 $ 870 $ 1,115,387 $ ( 528,831 ) $ ( 178,304 ) $ 2,881 $ 412,003 Net (loss) income — — — ( 83,872 ) — 1,582 ( 82,290 ) Other comprehensive loss, net of tax — — — — ( 774 ) — ( 774 ) Cash dividends declared, $ 0.24 per common share — — ( 21,075 ) — — — ( 21,075 ) Repurchase and retirement of common stock ( 6,948 ) ( 69 ) ( 44,000 ) ( 188,834 ) — — ( 232,903 ) Stock-based compensation — — 2,448 — — — 2,448 Common stock issued under stock plans (1) 590 6 ( 2,403 ) — — — ( 2,397 ) Distributions to noncontrolling interests — — — — — ( 2,043 ) ( 2,043 ) Contributions from noncontrolling interests — — — — — 330 330 Issuance of common stock from repurchase of convertible senior notes 7,489 74 216,078 — — — 216,152 Retirement of convertible senior note hedges ( 289 ) ( 3 ) 126,543 ( 8,343 ) — — 118,197 Retirement of warrants — — ( 102,213 ) — — — ( 102,213 ) Balance, March 31, 2024 87,811 $ 878 $ 1,290,765 $ ( 809,880 ) $ ( 179,078 ) $ 2,750 $ 305,435 ________________ (1) Net of shares withheld for employee taxes. The accompanying notes are an integral part of these unaudited consolidated financial statements. 5 Table of Contents BLOOMIN’ BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS, UNAUDITED) THIRTEEN WEEKS ENDED MARCH 30, 2025 MARCH 31, 2024 Cash flows provided by operating activities: Net income (loss) $ 43,596 $ ( 82,290 ) Net (loss) income from discontinued operations, net of tax ( 254 ) 2,908 Net income (loss) from continuing operations 43,850 ( 85,198 ) Adjustments to reconcile Net income (loss) from continuing operations to cash provided by operating activities of continuing operations: Depreciation and amortization 43,947 42,700 Amortization of debt discounts and issuance costs 779 734 Amortization of deferred gift card sales commissions 6,897 7,498 Provision for impaired assets and restaurant closings 350 10,873 Stock-based compensation expense 1,229 2,448 Deferred income tax expense 2,292 1,077 Loss on extinguishment of debt — 135,797 Loss on foreign currency forward contracts 10,250 — Loss from equity method investment, net of tax 1,291 — Foreign currency translation gain on installment receivable from sale of business ( 7,922 ) — Interest income on installment receivable from sale of business ( 3,420 ) — Other, net 662 ( 2,114 ) Change in assets and liabilities ( 29,365 ) ( 46,936 ) Net cash provided by operating activities of continuing operations 70,840 66,879 Net cash provided by operating activities of discontinued operations 2,625 6,907 Net cash provided by operating activities $ 73,465 $ 73,786 Cash flows provided by (used in) investing activities: Capital expenditures $ ( 45,771 ) $ ( 53,768 ) Payments on foreign currency forward contracts ( 9,885 ) — Cash received from sale, net of tax withheld and cash left in business 95,863 — Other investments, net 1,149 287 Net cash provided by (used in) investing activities of continuing operations 41,356 ( 53,481 ) Net cash used in investing activities of discontinued operations ( 1,623 ) ( 11,104 ) Net cash provided by (used in) investing activities $ 39,733 $ ( 64,585 ) (CONTINUED...) 6 Table of Contents BLOOMIN’ BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS, UNAUDITED) THIRTEEN WEEKS ENDED MARCH 30, 2025 MARCH 31, 2024 Cash flows (used in) provided by financing activities: Proceeds from borrowings on revolving credit facilities $ 385,000 $ 550,000 Repayments of borrowings on revolving credit facilities ( 495,000 ) ( 296,000 ) Repayments of long-term debt and finance lease obligations ( 636 ) ( 440 ) Principal settlements and repurchase of convertible senior notes — ( 2,335 ) Proceeds from retirement of convertible senior note hedges — 118,197 Payments for retirement of warrants — ( 102,213 ) Payment of taxes from share-based compensation, net ( 565 ) ( 2,397 ) Distributions to noncontrolling interests ( 1,800 ) ( 2,043 ) Contributions from noncontrolling interests 673 330 Purchase of noncontrolling interests ( 100 ) ( 100 ) Repurchase of common stock — ( 232,903 ) Cash dividends paid on common stock ( 12,747 ) ( 21,075 ) Net cash (used in) provided by financing activities of continuing operations ( 125,175 ) 9,021 Net cash used in financing activities of discontinued operations ( 65 ) ( 263 ) Net cash (used in) provided by financing activities ( 125,240 ) 8,758 Effect of exchange rate changes on cash and cash equivalents ( 323 ) ( 668 ) Net (decrease) increase in cash and cash equivalents ( 12,365 ) 17,291 Cash and cash equivalents as of the beginning of the period 70,056 114,373 Cash and cash equivalents as of the end of the period $ 57,691 $ 131,664 Supplemental disclosures of cash flow information: Cash paid for interest $ 10,537 $ 10,011 Cash paid for income taxes, net of refunds $ 15,802 $ 3,189 Supplemental disclosures of non-cash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities $ 36,008 $ 25,679 Leased assets obtained in exchange for new finance lease liabilities $ 3,692 $ 3 Capital expenditures included in current liabilities $ 23,620 $ 36,909 Shares issued on settlement of convertible senior notes $ — $ 216,152 Shares received and retired on exercise of call option under bond hedge upon settlement of convertible senior notes $ — $ ( 8,346 ) The accompanying notes are an integral part of these unaudited consolidated financial statements. 7 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Description of the Business and Basis of Presentation Description of the Business - Bloomin’ Brands (“Bloomin’ Brands” or the “Company”) owns and operates casual, upscale casual and fine dining restaurants. OSI Restaurant Partners, LLC (“OSI”) is the Company’s primary operating entity. The Company’s restaurant portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants are operated under franchise agreements. Basis of Presentation - The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair statement of results for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Unless otherwise noted, disclosures within these Notes to Consolidated Financial Statements relate solely to the Company’s continuing operations. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2024. Recently Issued Financial Accounting Standards Not Yet Adopted - In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” (“ASU No. 2023-09”) which expands existing income tax disclosures, including disaggregation of the Company’s effective income tax rate reconciliation table and income taxes paid disclosures. ASU No. 2023-09 is effective for the Company beginning with the 2025 Form 10-K, with early adoption permitted, and may be applied either prospectively for reporting periods after the effective date or retrospectively to prior periods presented. The Company is currently evaluating the impact ASU No. 2023-09 will have on its disclosures. In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses,” (“ASU No. 2024-03”) which requires detailed disclosures in the notes to financial statements of expense categories within relevant income statement captions including purchases of inventory, employee compensation, depreciation and intangible asset amortization. ASU No. 2024-03 is effective for the Company beginning with the 2027 Form 10-K, with early adoption permitted, and may be applied either prospectively for reporting periods after the effective date or retrospectively to prior periods presented. The Company is currently evaluating the impact ASU No. 2024-03 will have on its disclosures. Recent accounting guidance not discussed herein is not applicable, did not have or is not expected to have a material impact to the Company. Reclassifications - The Company reclassified certain immaterial amounts in prior period financial statements to conform to the current period’s presentation. These reclassifications had no effect on previously reported net income. 2. Discontinued Operations On December 30, 2024 (the “Closing Date”), an indirect wholly owned subsidiary of the Company (the “Seller”) completed the sale of 67 % of the ownership interest in its business in Brazil (the “Disposal Group”) to a fund managed by an affiliate of Vinci Partners Investments Ltd. (the “Buyer”) (the “Brazil Sale Transaction”). Following the closing, the Brazil restaurants began operating as unconsolidated franchisees. 8 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The aggregate consideration paid to the Seller consists of 67 % of the enterprise valuation of the Disposal Group in the amount of R$ 2.06 billion Brazilian Reais, which equals R$ 1.4 billion Brazilian Reais (approximately $ 225.3 million in U.S. Dollars based on the exchange rate on the Closing Date), subject to customary adjustments, and withholding for Brazilian taxes (the “Purchase Price”). On December 30, 2024 the Company received cash proceeds, net of withheld income taxes, of $ 103.9 million, in U.S. dollars based on the exchange rate on the Closing Date, representing 52 % of the Purchase Price. The proceeds were applied to the Company’s revolving credit facility during the thirteen weeks ended March 30, 2025. The second installment payment, representing 48 % of the Purchase Price, is due on the first anniversary of the Closing Date (based on the exchange rate on the date of payment) and will generate interest income based on the interbank deposit rate in Brazil until paid. During the thirteen weeks ended March 30, 2025 the Company recorded a pretax gain on the sale of the Disposal Group of $ 2.9 million within Net (loss) income from discontinued operations, net of tax in its Consolidated Statements of Operations and Comprehensive Income (Loss). The sale represents a strategic shift to a primarily franchised model for the Company’s international operations. The assets and liabilities of the Disposal Group were classified as held for sale on the Company’s Consolidated Balance Sheet as of December 29, 2024. For the thirteen weeks ended March 30, 2025 and March 31, 2024, all sales, direct costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption titled (Loss) income from discontinued operations, net of tax in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented. As of the Closing Date, the fair value of the Company’s retained interest was $ 59.9 million based on the proportional enterprise valuation of the Disposal Group, adjusted for debt used by the Buyer to fund a portion of the Purchase Price and to be pushed down to the operating entity subsequent to the second installment payment. See Note 3 - Equity Method Investment for additional details regarding the Company’s retained interest in its Brazil operations. (Loss) income from discontinued operations, net of tax , in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) includes the following for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Revenues $ — $ 132,810 Operating costs and expenses — 126,574 Gain on sale of Brazil business (1) 2,903 — Income from operations 2,903 6,236 Provision for income taxes 3,157 3,328 (Loss) income from discontinued operations, net of tax $ ( 254 ) $ 2,908 ____________________ (1) Includes $ 1.6 million of foreign currency translation gains on contingent consideration assets and indemnification liabilities, as discussed below. Contingent Consideration Assets and Indemnification Liabilities - During the thirteen weeks ended March 30, 2025 , the Company recognized contingent consideration assets of $ 29.3 million and indemnification liabilities of $ 6.9 million within Other assets, net and Other long-term liabilities, net, respectively, on the Company’s Consolidated Balance Sheet in connection with the Brazil Sale Transaction. As of March 30, 2025, the Company’s balance of contingent consideration assets and indemnification liabilities, which are denominated in Brazilian Reais, increased to $ 31.5 million and $ 7.5 million, respectively, as a result of fluctuations in foreign exchange rates. All future activity related to contingent consideration assets and indemnification liabilities, including foreign exchange gains and losses, will also be reflected in discontinued operations. 9 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 3. Equity Method Investment Subsequent to the Brazil Sale Transaction, the Company retained a 33 % interest in the franchisee of the Company’s restaurants in Brazil, which is accounted for using the equity method of accounting. To ensure timely reporting, the Company records the results of the equity method investment in Brazil on a calendar basis one-month lag. As of March 30, 2025, the carrying value of the Company’s equity method investment was $ 61.8 million and is recorded in Equity method investment on its Consolidated Balance Sheet. The Company’s proportionate share of net loss from its equity interest was $ 1.3 million for the quarter ended March 30, 2025 and is recorded within Loss from equity method investment, net of tax in the Consolidated Statements of Operations and Comprehensive Income (Loss). 4. Revenue Recognition The following table includes the disaggregation of Restaurant sales and franchise revenues by restaurant concept and segment for the periods indicated: THIRTEEN WEEKS ENDED MARCH 30, 2025 MARCH 31, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 597,481 $ 8,169 $ 603,613 $ 8,320 Carrabba’s Italian Grill 184,330 662 184,429 736 Bonefish Grill 135,991 104 144,503 160 Fleming’s Prime Steakhouse & Wine Bar 102,328 — 96,162 — Other — — 2,189 38 U.S. total 1,020,130 8,935 1,030,896 9,254 International Franchise (1) — 9,283 — 10,112 Other (2) 9,387 22 15,794 — Total $ 1,029,517 $ 18,240 $ 1,046,690 $ 19,366 ________________ (1) T he thirteen weeks ended March 30, 2025 include intercompany royalties from Brazil prior to the sale and royalties from Brazil after the sale. (2) Includes Restaurant sales for Company-owned restaurants in Hong Kong and China. 10 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Other current assets, net Deferred gift card sales commissions $ 13,127 $ 16,935 Unearned revenue Deferred gift card revenue $ 308,738 $ 366,059 Deferred loyalty revenue 6,599 6,073 Deferred franchise fees - current 492 490 Other 1,842 1,477 Total Unearned revenue $ 317,671 $ 374,099 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,010 $ 3,901 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Balance, beginning of the period $ 16,935 $ 18,081 Deferred gift card sales commissions amortization ( 6,897 ) ( 7,498 ) Deferred gift card sales commissions capitalization 3,973 3,914 Other ( 884 ) ( 977 ) Balance, end of the period $ 13,127 $ 13,520 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Balance, beginning of the period $ 366,059 $ 372,551 Gift card sales 46,526 45,161 Gift card redemptions ( 97,594 ) ( 101,016 ) Gift card breakage ( 6,253 ) ( 6,062 ) Balance, end of the period $ 308,738 $ 310,634 11 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 5. Impairments and Exit Costs The components of Provision for impaired assets and restaurant closings are as follows for the period indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 31, 2024 Impairment losses U.S. $ 1,852 Other — Total impairment losses 1,852 Restaurant closure charges U.S. 9,084 Other ( 63 ) Total restaurant closure charges 9,021 Provision for impaired assets and restaurant closings (1) $ 10,873 ________________ (1) Primarily related to the closure of 36 predominantly older, underperforming U.S. restaurants (the “2023 Restaurant Closures”). Activity for the thirteen weeks ended March 30, 2025 is immaterial. 6. Earnings (Loss) Per Share The following table presents the computation of basic and diluted earnings (loss) per share for the periods indicated: THIRTEEN WEEKS ENDED (in thousands, except per share data) MARCH 30, 2025 MARCH 31, 2024 Net income (loss) attributable to Bloomin’ Brands $ 42,152 $ ( 83,872 ) Net (loss) income from discontinued operations, net of tax ( 254 ) 2,908 Net income (loss) attributable to Bloomin’ Brands from continuing operations $ 42,406 $ ( 86,780 ) Basic weighted average common shares outstanding 84,902 87,024 Effect of dilutive securities: Stock-based compensation awards 228 — Diluted weighted average common shares outstanding 85,130 87,024 Basic earnings (loss) per share: Continuing operations $ 0.50 $ ( 1.00 ) Discontinued operations — 0.03 Net basic earnings (loss) per share $ 0.50 $ ( 0.96 ) Diluted earnings (loss) per share: Continuing operations $ 0.50 $ ( 1.00 ) Discontinued operations — 0.03 Net diluted earnings (loss) per share $ 0.50 $ ( 0.96 ) Antidilutive stock-based compensation awards 2,151 1,095 12 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 7. Stock-based Compensation Plans The following table presents a summary of the Company’s performance-based share units (“PSUs”) and restricted stock units (“RSUs”) activity: WEIGHTED AVERAGE GRANT DATE FAIR VALUE PER UNIT AGGREGATE INTRINSIC VALUE (1) (in thousands, except per unit data) PSUs RSUs PSUs RSUs PSUs RSUs Outstanding as of December 29, 2024 722 1,044 $ 27.42 $ 19.80 $ 8,860 $ 12,814 Granted (2) 312 727 $ 7.75 $ 7.83 Performance adjustment (3) ( 229 ) — $ 26.10 $ — Vested — ( 184 ) $ — $ 23.88 Forfeited ( 172 ) ( 129 ) $ 27.81 $ 22.55 Outstanding as of March 30, 2025 633 1,458 $ 18.12 $ 13.06 $ 4,692 $ 10,801 Expected to vest as of March 30, 2025 (4) 312 1,458 $ 2,309 $ 10,801 ________________ (1) Based on the $ 12.27 and $ 7.41 share price of the Company’s common stock on December 27, 2024 and March 28, 2025, the last trading day of the year ended December 29, 2024 and thirteen weeks ended March 30, 2025, respectively. (2) The weighted average dividend yield was 6.40 % and 6.46 % for PSUs and RSUs, respectively. For PSU’s, a new performance structure was used for grants beginning in 2025. The new structure contains separate performance goals that are set at the beginning of each of the three annual performance periods and cliff vest after three years . (3) Represents adjustment to 0 % payout for PSUs granted during 2022. (4) For PSUs, estimated number of units to be issued upon the vesting of outstanding PSUs based on Company performance projections of performance criteria set forth in the 2023, 2024 and 2025 PSU award agreements. The following represents unrecognized stock-based compensation expense and the remaining weighted average recognition period as of March 30, 2025: UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands) REMAINING WEIGHTED AVERAGE RECOGNITION PERIOD (in years) Performance-based share units $ 2,349 2.9 Restricted stock units $ 14,925 2.3 8. Supplemental Balance Sheet Information Other current assets, net , consisted of the following as of the periods indicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Prepaid expenses $ 28,329 $ 23,102 Installment receivable from sale of business 120,214 — Accounts receivable - gift cards, net 8,016 73,113 Accounts receivable - vendors, net 13,538 29,233 Accounts receivable - franchisees, net 3,061 2,975 Accounts receivable - other, net 9,443 9,280 Deferred gift card sales commissions 13,127 16,935 Other current assets, net 4,897 4,137 $ 200,625 $ 158,775 13 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Other assets, net , consisted of the following as of the periods indicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Company-owned life insurance $ 30,999 $ 31,971 Deferred debt issuance costs - revolving credit facility (1) 10,176 10,743 Liquor licenses 22,533 22,422 Contingent consideration assets 31,493 — Other assets 10,790 9,335 $ 105,991 $ 74,471 ________________ (1) Net of accumulated amortization of $ 1.2 million and $ 0.6 million as of March 30, 2025 and December 29, 2024, respectively. Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Accrued payroll and other compensation $ 50,961 $ 64,522 Accrued insurance 16,334 19,527 Other current liabilities 89,065 94,265 $ 156,360 $ 178,314 Other long-term liabilities, net , consisted of the following as of the periods indicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Accrued insurance $ 36,499 $ 33,519 Deferred compensation obligations 29,342 32,597 Other long-term liabilities (1) 38,797 27,304 $ 104,638 $ 93,420 ________________ (1) Includes indemnification liabilities in connection with the Brazil Sale Transaction. See Note 2 – Discontinued Operations for additional details. Long-term debt, net , consisted of the following as of the periods indicated: MARCH 30, 2025 DECEMBER 29, 2024 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior secured credit facility - revolving credit facility (1) $ 600,000 6.22 % $ 710,000 6.52 % 2025 Notes (2) 20,724 5.00 % 20,724 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Long-term debt 920,724 1,030,724 Less: unamortized debt discount and issuance costs ( 3,114 ) ( 3,326 ) Long-term debt, net $ 917,610 $ 1,027,398 ________________ (1) Interest rate represents the weighted average interest rate as of the respective periods. (2) Obligations under the 2025 Notes, which matured on May 1, 2025, have been classified as long-term, reflecting the Company’s intent and ability to refinance these notes through borrowings on its existing revolving credit facility. On May 1, 2025, the 2025 Notes were settled primarily using borrowings from the revolving credit facility. Debt Covenants - As of March 30, 2025 and December 29, 2024, the Company was in compliance with its debt c ovenants. 14 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 9. Convertible Senior Notes The following table includes the outstanding principal amount and carrying value of the Company’s remaining 5.00 % convertible senior notes due in 2025 (the “2025 Notes”) as of the periods indicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Principal $ 20,724 $ 20,724 Less: unamortized debt issuance costs ( 14 ) ( 56 ) Net carrying amount $ 20,710 $ 20,668 Following is a summary of interest expense for the 2025 Notes by component for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Coupon interest $ 259 $ 1,006 Debt issuance cost amortization 42 158 Total interest expense (1) $ 301 $ 1,164 ________________ (1) The effective rate of the 2025 Notes over their expected life is 5.85 %. The 2025 Notes matured on May 1, 2025, and were settled in cash for $ 20.7 million, excluding accrued interest. In connection with the maturity of the 2025 Notes, the related convertible note hedges entered into with certain purchasers of the 2025 Notes and/or their respective affiliates and other financial institutions expired. The warrants remain proportional to the 2025 Notes that matured May 1, 2025 and have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the warrants. The warrants expire on various dates following the maturity of the 2025 Notes through November 21, 2025, unless the Company terminates the warrants prior to their scheduled expiration. In connection with dividends paid during thirteen weeks ended March 30, 2025, the strike price for the remaining warrants decreased to $ 14.60 . 10. Stockholders’ Equity Share Repurchases - In February 2024, the Company’s Board of Directors (the “Board”) approved a $ 350.0 million share repurchase authorization (the “2024 Share Repurchase Program”). As of March 30, 2025, $ 96.8 million remained available for repurchase. Dividends - The Company declared and paid dividends per share during fiscal year 2025 as follows: (dollars in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.15 $ 12,747 In April 2025, the Board declared a quarterly cash dividend of $ 0.15 per share, payable on June 4, 2025 to shareholders of record at the close of business on May 20, 2025. 15 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Accumulated Other Comprehensive Income (Loss) - The following table is a rollforward of the components of Accumulated Other Comprehensive Income (Loss) for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Foreign currency translation: Balance, beginning of the period $ ( 212,172 ) $ ( 177,689 ) Foreign currency translation adjustment (1) ( 2,353 ) ( 1,931 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business 217,548 — Balance, end of the period $ 3,023 $ ( 179,620 ) (Loss) gain on derivatives, net of tax: Balance, beginning of the period $ ( 621 ) $ ( 615 ) Change in fair value of derivatives, net of tax ( 200 ) 1,435 Reclassification realized in Net income (loss), net of tax 23 ( 278 ) Balance, end of the period $ ( 798 ) $ 542 Accumulated other comprehensive income (loss): Balance beginning of the period $ ( 212,793 ) $ ( 178,304 ) Other comprehensive income (loss) attributable to Bloomin' Brands 215,018 ( 774 ) Balance, end of the period $ 2,225 $ ( 179,078 ) ____________________ (1) Represents foreign currency translation adjustments primarily related to the Company’s equity method investment. 11. Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk - In March 2024 and December 2023, OSI entered into 11 interest rate swap agreements with ten counterparties (the “Swap Transactions”) to manage its exposure to fluctuations in variable interest rates that include one and two-year tenors. The remaining Swap Transactions have an aggregate notional amount of $ 275.0 million with the following terms: NOTIONAL AMOUNT WEIGHTED AVERAGE FIXED INTEREST RATE (1) EFFECTIVE DATE TERMINATION DATE $ 100,000,000 4.34 % December 29, 2023 December 31, 2025 175,000,000 4.40 % March 29, 2024 March 31, 2026 $ 275,000,000 4.38 % ____________________ (1) The weighted average fixed interest rate excludes the term SOFR adjustment and interest rate spread described below. In connection with the remaining Swap Transactions, the Company effectively converted $ 275.0 million of its outstanding indebtedness from SOFR, plus a term SOFR adjustment of 0.10 % and a spread of 150 to 250 basis points, to the weighted average fixed interest rates within the table above, plus a term SOFR adjustment of 0.10 % and a spread of 150 to 250 basis points. The Swap Transactions have an embedded floor of minus 0.10 %. The Swap Transactions have been designated and qualify as cash flow hedges, are recognized on the Company’s Consolidated Balance Sheets at fair value and are classified based on the instruments’ maturity dates. The Company estimates $ 1.1 million of interest expense will be reclassified from Accumulated Other Comprehensive Income (Loss) to Interest expense, net over the next 12 months related to the Swap Transactions. 16 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table presents the fair value and classification of the Company’s swap agreements as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEETS CLASSIFICATION MARCH 30, 2025 DECEMBER 29, 2024 Interest rate swaps - liability Accrued and other current liabilities $ 951 $ 579 Interest rate swaps - liability Other long-term liabilities, net 121 255 Total fair value of derivative instruments - liabilities (1) $ 1,072 $ 834 ____________________ (1) See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of March 30, 2025, all counterparties to the Swap Transactions performed in accordance with their contractual obligations. As of March 30, 2025 and December 29, 2024, the fair value of the Company’s Swap Transactions was in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk, of $ 1.1 million and $ 0.8 million, respectively. As of March 30, 2025 and December 29, 2024, the Company has not posted any collateral related to the Swap Transactions. The Swap Transactions contain provisions whereby the Company could be declared in default on its derivative obligations if the repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on indebtedness. If the Company had breached any of these provisions as of March 30, 2025 and December 29, 2024, it could have been required to settle its obligations under the Swap Transactions at their termination value of $ 1.1 million and $ 0.8 million, respectively. Non-Designated Hedges During the fourth quarter of 2024, the Company entered into foreign currency forward contracts to partially offset the foreign currency exchange gains and losses generated by the Brazilian Reais rate risk associated with the purchase price installment payments from the Brazil Sale Transaction. As of March 30, 2025, the Company had R$ 697.0 million Brazilian Reais (approximately $ 120.2 million U.S. Dollars) of outstanding notional amounts related to its foreign currency forward contracts. The liability and asset related to the foreign exchange forward contracts as of March 30, 2025 and December 29, 2024 are not material. As of March 30, 2025 and December 29, 2024, the Company has not posted any collateral related to the foreign currency forward contracts. The followin g table summarizes the effects of the Company’s foreign exchange forward contracts on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the period indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 Loss on foreign currency forward contracts (1) General and administrative $ 10,250 ____________________ (1) The loss on foreign currency forward contracts is materially offset by the gains on foreign currency exchange related to the installment receivable from the Brazil Sale Transaction. The Company’s interest rate swaps and foreign currency forward contracts are subject to master netting arrangements. As of March 30, 2025, the Company elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. 17 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 12. Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEETS CLASSIFICATION MARCH 30, 2025 DECEMBER 29, 2024 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,031,937 $ 1,012,857 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 12,271 10,058 Total lease assets, net $ 1,044,208 $ 1,022,915 Current operating lease liabilities Current operating lease liabilities $ 161,188 $ 158,806 Current finance lease liabilities Accrued and other current liabilities 3,338 2,618 Non-current operating lease liabilities Non-current operating lease liabilities 1,095,873 1,088,518 Non-current finance lease liabilities Other long-term liabilities, net 10,694 8,359 Total lease liabilities $ 1,271,093 $ 1,258,301 ________________ (1) Net of accumulated amortization of $ 4.7 million and $ 4.0 million as of March 30, 2025 and December 29, 2024, respectively. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Operating lease cost (1) Other restaurant operating $ 42,305 $ 42,932 Variable lease cost Other restaurant operating 1,192 1,054 Finance lease costs: Amortization of leased assets Depreciation and amortization 690 513 Interest on lease liabilities Interest expense, net 239 175 Sublease revenue Franchise and other revenues ( 1,702 ) ( 1,735 ) Lease costs, net $ 42,724 $ 42,939 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $ 3.6 million and $ 3.4 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively, which is included in General and administrative expense. The following table is a summary of cash flow impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 47,242 $ 47,244 18 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 13. Fair Value Measurements Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: CONSOLIDATED BALANCE SHEETS CLASSIFICATION MEASUREMENT LEVEL FAIR VALUE (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Assets: Short-term investments Cash and cash equivalents Level 1 $ 4,982 $ 11,868 Foreign currency forward contracts Other current assets, net Level 2 $ — $ 304 Liabilities: Interest rate swaps Accrued and other current liabilities Level 2 $ 951 $ 579 Foreign currency forward contracts Other current liabilities, net Level 2 $ 192 $ — Interest rate swaps Other long-term liabilities Level 2 $ 121 $ 255 Fair value of each class of financial instruments is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Short-term investments Carrying value approximates fair value because maturities are less than three months. Derivative instruments The Company’s derivative instruments include interest rate swaps and foreign currency forward contracts. Fair value measurements are based on the contractual terms of the derivatives and observable market-based inputs. Interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. Foreign currency forwards are valued by comparing the contracted forward exchange rate to the current market forward exchange rate. Key inputs for the valuation of the foreign currency forwards are spot rates, foreign currency forward rates, and the interest rate curve of the domestic currency. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of March 30, 2025 and December 29, 2024, the Company determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported on the Company’s Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: MARCH 30, 2025 DECEMBER 29, 2024 (dollars in thousands) CARRYING VALUE FAIR VALUE LEVEL 2 CARRYING VALUE FAIR VALUE LEVEL 2 Senior secured credit facility - revolving credit facility $ 600,000 $ 600,000 $ 710,000 $ 710,000 2025 Notes $ 20,724 $ 20,562 $ 20,724 $ 24,145 2029 Notes $ 300,000 $ 259,005 $ 300,000 $ 270,132 19 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 14. Income Taxes THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Income (loss) before provision for income taxes $ 46,044 $ ( 78,556 ) Provision for income taxes $ 903 $ 6,642 Effective income tax rate 2.0 % ( 8.5 ) % The effective income tax rate for the thirteen weeks ended March 30, 2025 increased by 10.5 percentage points as compared to the thirteen weeks ended March 31, 2024. This increase was primarily due to impact of the non-deductible losses associated with the repurchase of $ 83.6 million of the outstanding 2025 Notes (the “Second 2025 Notes Partial Repurchase”) recorded in the thirteen weeks ended March 31, 2024 which, relative to a pre-tax book loss, resulted in a negative effective income tax rate. The increase was partially offset by the benefit of FICA tax credits on certain employees’ tips in 2025 relative to forecasted pretax book income. In the U.S., a restaurant company employer may claim a credit against its federal income taxes for FICA taxes paid on certain tipped wages (the “FICA tax credit”). The level of FICA tax credits is primarily driven by U.S. Restaurant sales and is not impacted by costs incurred that may reduce Income (loss) before provision for income taxes. The effective income tax rate for the thirteen weeks ended March 30, 2025 was lower than the Company’s blended federal and state statutory rate of approximately 26 % primarily due to the benefit of FICA tax credits on certain tipped wages. The effective income tax rate for the thirteen weeks ended March 31, 2024 was lower than the Company’s blended federal and state statutory rate of approximately 26 % primarily due to the impact of nondeductible losses associated with the Second 2025 Notes Partial Repurchase, partially offset by the benefit of FICA tax credits on certain tipped wages which, relative to a pre-tax book loss during the quarter, resulted in a negative effective income tax rate. 15. Commitments and Contingencies Litigation and Other Matters - The Company recorded reserves of $ 2.2 million and $ 2.3 million for certain of its outstanding legal proceedings as of March 30, 2025 and December 29, 2024, respectively, within Accrued and other current liabilities on its Consolidated Balance Sheets. While the Company believes that additional losses beyond these accruals are reasonably possible, it cannot estimate a possible loss contingency or range of reasonably possible loss contingencies beyond these accruals. Lease Guarantees - The Company assigned its interest, and is contingently liable, under certain real estate leases. These leases have varying terms, the latest of which expires in 2032. As of March 30, 2025, the undiscounted payments that the Company could be required to make in the event of non-payment by the primary lessees was $ 11.6 million. The present value of these potential payments discounted at the Company’s incremental borrowing rate as of March 30, 2025 was $ 9.4 million. In the event of default, the indemnity clauses in the Company’s purchase and sale agreements generally govern its ability to pursue and recover damages incurred. As of March 30, 2025 and December 29, 2024, the Company’s recorded contingent lease liability was $ 1.8 million and $ 1.6 million, respectively. 20 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 16. Segment Reporting The following is a summary of reportable segments: REPORTABLE SEGMENT CONCEPT GEOGRAPHIC LOCATION U.S. (1) Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Franchise Outback Steakhouse 12 Franchise Markets Carrabba’s Italian Grill (Abbraccio) _________________ (1) Includes franchise locations. Segment accounting policies are the same as those described in Note 2 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 29, 2024. Revenues for all segments include only transactions with customers and exclude intersegment revenues. There were no material transactions among reportable segments. Excluded from Income from operations for U.S. are certain legal and corporate costs not directly related to the performance of the segment, most stock-based compensation expenses, a portion of insurance expenses and certain bonus expenses. The below segment disclosures have been recast to include amounts that relate solely to the Company’s continuing operations. In the tables below, “other” includes amounts related to the Company’s equity method investment in Brazil and its Hong Kong subsidiary. The following table is a summary of revenues by segment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Revenues U.S. $ 1,030,903 $ 1,043,104 International Franchise 9,283 10,112 Total segment revenues 1,040,186 1,053,216 All other revenues 9,408 15,857 Total revenues $ 1,049,594 $ 1,069,073 21 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table presents segment operating income and significant segment expense information for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 U.S. Total revenues $ 1,030,903 $ 1,043,104 Less: Food and beverage 310,312 311,549 Labor and other related 312,705 311,199 Other restaurant operating 253,609 246,172 Other (1) 66,607 76,700 Total segment expenses 943,233 945,620 Income from operations $ 87,670 $ 97,484 International Franchise Total revenues $ 9,283 $ 10,112 Less: Total segment expenses (2) 279 423 Income from operations $ 9,004 $ 9,689 Total segment Total revenues $ 1,040,186 $ 1,053,216 Less: Total segment expenses 943,512 946,043 Total segment income from operations $ 96,674 $ 107,173 _________________ (1) Includes depreciation and amortization, general and administrative and impairment expense. (2) Includes general and administrative expense. The following table is a reconciliation of segment income from operations to Income (loss) before provision for income taxes for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 Total segment income from operations $ 96,674 $ 107,173 Unallocated corporate operating expense ( 39,768 ) ( 35,739 ) Other income (loss) from operations 325 ( 517 ) Total income from operations 57,231 70,917 Loss on extinguishment of debt — ( 135,797 ) Interest expense, net ( 11,187 ) ( 13,676 ) Income (loss) before provision for income taxes $ 46,044 $ ( 78,556 ) 22 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table is a summary of depreciation and amortization and capital expenditures by segment for the periods indicated: THIRTEEN WEEKS ENDED DEPRECIATION AND AMORTIZATION CAPITAL EXPENDITURES (dollars in thousands) MARCH 30, 2025 MARCH 31, 2024 MARCH 30, 2025 MARCH 31, 2024 U.S. $ 41,613 $ 39,968 $ 42,301 $ 48,589 Corporate 2,084 2,053 6,353 2,296 Other 250 679 — 332 Total $ 43,947 $ 42,700 $ 48,654 $ 51,217 The following table sets forth Total assets by segment as of the periods i ndicated: (dollars in thousands) MARCH 30, 2025 DECEMBER 29, 2024 Assets U.S. $ 2,653,142 $ 2,735,251 International Franchise 104,480 103,242 Total segment assets $ 2,757,622 $ 2,838,493 Corporate 466,923 306,560 Other 80,825 16,262 Assets of discontinued operations held for sale — 223,490 Total assets $ 3,305,370 $ 3,384,805 23 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS