Bloomin' Brands, Inc. 10-Q

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) JUNE 29, 2025 DECEMBER 29, 2024 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $ 50,308 $ 70,056 Inventories 57,153 68,699 Other current assets, net 224,503 158,775 Current assets of discontinued operations held for sale — 22,989 Total current assets 331,964 320,519 Property, fixtures and equipment, net 941,676 948,521 Operating lease right-of-use assets 1,015,518 1,012,857 Goodwill 213,323 213,323 Intangible assets, net 427,179 429,091 Deferred income tax assets, net 205,993 185,522 Equity method investment 61,702 — Other assets, net 110,193 74,471 Non-current assets of discontinued operations held for sale — 200,501 Total assets $ 3,307,548 $ 3,384,805 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 142,521 $ 153,161 Current operating lease liabilities 162,509 158,806 Accrued and other current liabilities 163,752 178,314 Unearned revenue 308,416 374,099 Current liabilities of discontinued operations held for sale — 87,956 Total current liabilities 777,198 952,336 Non-current operating lease liabilities 1,077,983 1,088,518 Deferred income tax liabilities, net 23,610 33,822 Long-term debt, net 917,073 1,027,398 Other long-term liabilities, net 110,390 93,420 Non-current liabilities of discontinued operations held for sale — 49,865 Total liabilities 2,906,254 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 June 29, 2025 and December 29, 2024 — — Common stock, $ 0.01 par value, 475,000,000 shares authorized; 85,062,439 and 84,854,768 shares issued and outstanding as of June 29, 2025 and December 29, 2024, respectively 851 849 Additional paid-in capital 1,250,403 1,273,288 Accumulated deficit ( 858,263 ) ( 925,834 ) Accumulated other comprehensive income (loss) 4,246 ( 212,793 ) Total Bloomin’ Brands stockholders’ equity 397,237 135,510 Noncontrolling interests 4,057 3,936 Total stockholders’ equity 401,294 139,446 Total liabilities and stockholders’ equity $ 3,307,548 $ 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 TWENTY-SIX WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Revenues Restaurant sales $ 984,771 $ 977,779 $ 2,014,288 $ 2,024,469 Franchise and other revenues 17,595 21,590 37,672 43,973 Total revenues 1,002,366 999,369 2,051,960 2,068,442 Costs and expenses Food and beverage 298,332 294,761 611,636 610,282 Labor and other related 315,494 300,332 630,744 615,050 Other restaurant operating 253,225 245,955 511,360 500,823 Depreciation and amortization 44,598 43,390 88,545 86,090 General and administrative 59,527 56,195 120,904 115,671 Provision for impaired assets and restaurant closings 1,540 14,684 1,890 25,557 Total costs and expenses 972,716 955,317 1,965,079 1,953,473 Income from operations 29,650 44,052 86,881 114,969 Loss on extinguishment of debt — — — ( 135,797 ) Interest expense, net ( 10,699 ) ( 15,296 ) ( 21,886 ) ( 28,972 ) Income (loss) before (benefit) provision for income taxes 18,951 28,756 64,995 ( 49,800 ) (Benefit) provision for income taxes ( 8,748 ) 2,780 ( 7,845 ) 9,422 Loss from equity method investment, net of tax ( 1,806 ) — ( 3,097 ) — Net income (loss) from continuing operations 25,893 25,976 69,743 ( 59,222 ) Net income from discontinued operations, net of tax 779 3,655 525 6,563 Net income (loss) 26,672 29,631 70,268 ( 52,659 ) Less: net income attributable to noncontrolling interests 1,253 1,228 2,697 2,810 Net income (loss) attributable to Bloomin’ Brands $ 25,419 $ 28,403 $ 67,571 $ ( 55,469 ) Net income (loss) $ 26,672 $ 29,631 $ 70,268 $ ( 52,659 ) Other comprehensive income (loss): Foreign currency translation adjustment 1,731 ( 9,858 ) ( 622 ) ( 11,789 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business — — 217,548 — Net gain on derivatives, net of tax 290 330 113 1,487 Comprehensive income (loss) 28,693 20,103 287,307 ( 62,961 ) Less: comprehensive income attributable to noncontrolling interests 1,253 1,228 2,697 2,810 Comprehensive income (loss) attributable to Bloomin’ Brands $ 27,440 $ 18,875 $ 284,610 $ ( 65,771 ) Basic earnings (loss) per share: Continuing operations $ 0.29 $ 0.29 $ 0.79 $ ( 0.71 ) Discontinued operations 0.01 0.04 0.01 0.08 Net basic earnings (loss) per share $ 0.30 $ 0.33 $ 0.80 $ ( 0.64 ) Diluted earnings (loss) per share: Continuing operations $ 0.29 $ 0.28 $ 0.79 $ ( 0.71 ) Discontinued operations 0.01 0.04 0.01 0.08 Net diluted earnings (loss) per share $ 0.30 $ 0.32 $ 0.79 $ ( 0.64 ) Weighted average common shares outstanding: Basic 85,041 86,688 84,971 86,856 Diluted 85,140 88,632 85,135 86,856 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 (LOSS) NON-CONTROLLING INTERESTS TOTAL SHARES AMOUNT Balance, March 30, 2025 84,987 $ 850 $ 1,261,204 $ ( 883,682 ) $ 2,225 $ 4,253 $ 384,850 Net income — — — 25,419 — 1,253 26,672 Other comprehensive income, net of tax — — — — 2,021 — 2,021 Cash dividends declared, $ 0.15 per common share — — ( 12,759 ) — — — ( 12,759 ) Stock-based compensation — — 2,403 — — — 2,403 Common stock issued under stock plans (1) 75 1 ( 46 ) — — — ( 45 ) Distributions to noncontrolling interests — — — — — ( 1,651 ) ( 1,651 ) Contributions from noncontrolling interests — — — — — 202 202 Retirement of warrants — — ( 399 ) — — — ( 399 ) Balance, June 29, 2025 85,062 $ 851 $ 1,250,403 $ ( 858,263 ) $ 4,246 $ 4,057 $ 401,294 Balance, December 29, 2024 84,855 $ 849 $ 1,273,288 $ ( 925,834 ) $ ( 212,793 ) $ 3,936 $ 139,446 Net income — — — 67,571 — 2,697 70,268 Other comprehensive income, net of tax — — — — 217,039 — 217,039 Cash dividends declared, $ 0.30 per common share — — ( 25,506 ) — — — ( 25,506 ) Stock-based compensation — — 3,632 — — — 3,632 Common stock issued under stock plans (1) 207 2 ( 612 ) — — — ( 610 ) Distributions to noncontrolling interests — — — — — ( 3,451 ) ( 3,451 ) Contributions from noncontrolling interests — — — — — 875 875 Retirement of warrants — — ( 399 ) — — — ( 399 ) Balance, June 29, 2025 85,062 $ 851 $ 1,250,403 $ ( 858,263 ) $ 4,246 $ 4,057 $ 401,294 (CONTINUED...) 5 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 LOSS NON-CONTROLLING INTERESTS TOTAL SHARES AMOUNT Balance, March 31, 2024 87,811 $ 878 $ 1,290,765 $ ( 809,880 ) $ ( 179,078 ) $ 2,750 $ 305,435 Net income — — — 28,403 — 1,228 29,631 Other comprehensive loss, net of tax — — — — ( 9,528 ) — ( 9,528 ) Cash dividends declared, $ 0.24 per common share — — ( 20,762 ) — — — ( 20,762 ) Repurchase and retirement of common stock, including excise tax of $ 151 ( 2,156 ) ( 21 ) 38,319 ( 53,449 ) — — ( 15,151 ) Stock-based compensation — — 483 — — — 483 Common stock issued under stock plans (1) 121 1 677 — — — 678 Distributions to noncontrolling interests — — — — — ( 1,431 ) ( 1,431 ) Contributions from noncontrolling interests — — — — — 338 338 Balance, June 30, 2024 85,776 $ 858 $ 1,309,482 $ ( 834,926 ) $ ( 188,606 ) $ 2,885 $ 289,693 Balance, December 31, 2023 86,969 $ 870 $ 1,115,387 $ ( 528,831 ) $ ( 178,304 ) $ 2,881 $ 412,003 Net (loss) income — — — ( 55,469 ) — 2,810 ( 52,659 ) Other comprehensive loss, net of tax — — — — ( 10,302 ) — ( 10,302 ) Cash dividends declared, $ 0.48 per common share — — ( 41,837 ) — — — ( 41,837 ) Repurchase and retirement of common stock, including excise tax of $ 151 ( 9,104 ) ( 90 ) ( 5,681 ) ( 242,283 ) — — ( 248,054 ) Stock-based compensation — — 2,931 — — — 2,931 Common stock issued under stock plans (1) 711 7 ( 1,726 ) — — — ( 1,719 ) Distributions to noncontrolling interests — — — — — ( 3,474 ) ( 3,474 ) Contributions from noncontrolling interests — — — — — 668 668 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, June 30, 2024 85,776 $ 858 $ 1,309,482 $ ( 834,926 ) $ ( 188,606 ) $ 2,885 $ 289,693 ________________ (1) Net of shares withheld for employee taxes. The accompanying notes are an integral part of these unaudited consolidated financial statements. 6 Table of Contents BLOOMIN’ BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS, UNAUDITED) TWENTY-SIX WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 Cash flows provided by operating activities: Net income (loss) $ 70,268 $ ( 52,659 ) Net income from discontinued operations, net of tax 525 6,563 Net income (loss) from continuing operations 69,743 ( 59,222 ) Adjustments to reconcile Net income (loss) from continuing operations to cash provided by operating activities of continuing operations: Depreciation and amortization 88,545 86,090 Amortization of debt discounts and issuance costs 1,533 1,353 Amortization of deferred gift card sales commissions 11,767 12,661 Provision for impaired assets and restaurant closings 1,890 25,557 Stock-based compensation expense 3,632 2,931 Deferred income tax expense (benefit) 1,055 ( 7,259 ) Loss on extinguishment of debt — 135,797 Loss on foreign currency forward contracts 18,711 — Loss from equity method investment, net of tax 3,097 — Foreign currency translation gain on installment receivable from sale of business ( 14,152 ) — Other, net ( 1,122 ) ( 2,072 ) Change in assets and liabilities ( 64,014 ) ( 103,742 ) Net cash provided by operating activities of continuing operations 120,685 92,094 Net cash provided by operating activities of discontinued operations 2,443 24,098 Net cash provided by operating activities $ 123,128 $ 116,192 Cash flows used in investing activities: Capital expenditures $ ( 84,297 ) $ ( 108,242 ) Payments on foreign currency forward contracts ( 12,436 ) — Cash received from sale, net of tax withheld and cash left in business 95,863 — Other investments, net 1,290 286 Net cash provided by (used in) investing activities of continuing operations 420 ( 107,956 ) Net cash used in investing activities of discontinued operations ( 1,623 ) ( 23,262 ) Net cash used in investing activities $ ( 1,203 ) $ ( 131,218 ) (CONTINUED...) 7 Table of Contents BLOOMIN’ BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS, UNAUDITED) TWENTY-SIX WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 Cash flows (used in) provided by financing activities: Proceeds from borrowings on revolving credit facilities $ 770,000 $ 860,000 Repayments of borrowings on revolving credit facilities ( 860,000 ) ( 556,000 ) Repayments of finance lease obligations ( 1,348 ) ( 882 ) Principal settlements and repurchase of convertible senior notes ( 20,724 ) ( 2,335 ) Proceeds from retirement of convertible senior note hedges — 118,197 Payments for retirement of warrants ( 399 ) ( 102,213 ) Payment of taxes from share-based compensation, net ( 610 ) ( 1,719 ) Distributions to noncontrolling interests ( 3,451 ) ( 3,474 ) Contributions from noncontrolling interests 875 668 Purchase of noncontrolling interests ( 100 ) ( 100 ) Repurchase of common stock — ( 247,500 ) Cash dividends paid on common stock ( 25,506 ) ( 41,837 ) Net cash (used in) provided by financing activities of continuing operations ( 141,263 ) 22,805 Net cash used in financing activities of discontinued operations ( 65 ) ( 517 ) Net cash (used in) provided by financing activities ( 141,328 ) 22,288 Effect of exchange rate changes on cash and cash equivalents ( 345 ) ( 3,716 ) Net (decrease) increase in cash and cash equivalents ( 19,748 ) 3,546 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 $ 50,308 $ 117,919 Supplemental disclosures of cash flow information: Cash paid for interest $ 29,134 $ 29,812 Cash paid for income taxes, net of refunds $ 22,288 $ 14,913 Supplemental disclosures of non-cash activities: Leased assets obtained in exchange for new operating lease liabilities $ 42,892 $ 47,846 Leased assets obtained in exchange for new finance lease liabilities $ 5,629 $ 7 Capital expenditures included in current liabilities $ 20,090 $ 37,668 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. 8 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 (loss). 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. 9 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The aggregate consideration paid to the Seller consisted of 67 % of the enterprise valuation of the Disposal Group in the amount of R$ 2.06 billion Brazilian Reais, which equaled 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. 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 and twenty-six weeks ended June 29, 2025 and June 30, 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 Net 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. Net 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 TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Revenues $ — $ 125,799 $ — $ 258,609 Operating costs and expenses — 123,226 — 249,800 Gain on sale of Brazil business (1) 1,672 — 4,575 — Income from operations 1,672 2,573 4,575 8,809 Provision (benefit) for income taxes 893 ( 1,082 ) 4,050 2,246 Net income from discontinued operations, net of tax $ 779 $ 3,655 $ 525 $ 6,563 ____________________ (1) The thirteen and twenty-six weeks ended June 29, 2025 i nclude $ 1.3 million and $ 2.9 million, respectively, of net foreign currency translation gains on contingent consideration assets and indemnification liabilities, as discussed below. Contingent Consideration Assets and Indemnification Liabilities - On the Closing Date , the Company recognized contingent consideration assets of $ 29.3 million, primarily judicial deposits, and indemnification liabilities of $ 6.9 million, primarily labor and tax exposures, 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 June 29, 2025, the Company’s balance of contingent consideration assets and indemnification liabilities, which are denominated in Brazilian Reais, increased to $ 33.1 million and $ 7.8 million, respectively, as a result of fluctuations in foreign exchange rates. All post-closing adjustments related to contingent consideration assets and indemnification liabilities will be reflected in discontinued operations. 10 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 3. Equity Method Investment The Company retained a 33 % interest in the franchisee of the Company’s restaurants in Brazil subsequent to the sale, 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 June 29, 2025, the carrying value of the Company’s equity method investment was $ 61.7 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 $ 1.8 million and $ 3.1 million for the thirteen and twenty-six weeks ended June 29, 2025, respectively, 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 tables include the disaggregation of Restaurant sales and franchise revenues by restaurant concept and segment for the periods indicated: THIRTEEN WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 571,897 $ 7,800 $ 562,904 $ 8,076 Carrabba’s Italian Grill 181,141 573 174,576 752 Bonefish Grill 126,671 89 134,279 128 Fleming’s Prime Steakhouse & Wine Bar 95,586 — 88,390 — Other — — 1,939 18 U.S. total 975,295 8,462 962,088 8,974 International Franchise (1) — 7,051 — 9,444 Other (2) 9,476 10 15,691 — Total $ 984,771 $ 15,523 $ 977,779 $ 18,418 TWENTY-SIX WEEKS ENDED JUNE 29, 2025 JUNE 30, 2024 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 1,169,378 $ 15,969 $ 1,166,517 $ 16,396 Carrabba’s Italian Grill 365,471 1,235 359,005 1,488 Bonefish Grill 262,662 193 278,782 288 Fleming’s Prime Steakhouse & Wine Bar 197,914 — 184,552 — Other — — 4,128 56 U.S. total 1,995,425 17,397 1,992,984 18,228 International Franchise (1) — 16,334 — 19,556 Other (2) 18,863 32 31,485 — Total $ 2,014,288 $ 33,763 $ 2,024,469 $ 37,784 ________________ (1) Includes 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. 11 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) JUNE 29, 2025 DECEMBER 29, 2024 Other current assets, net Deferred gift card sales commissions $ 12,554 $ 16,935 Unearned revenue Deferred gift card revenue $ 299,636 $ 366,059 Deferred loyalty revenue 6,892 6,073 Deferred franchise fees - current 530 490 Other 1,358 1,477 Total Unearned revenue $ 308,416 $ 374,099 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,360 $ 3,901 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Balance, beginning of the period $ 13,127 $ 13,520 $ 16,935 $ 18,081 Deferred gift card sales commissions amortization ( 4,870 ) ( 5,163 ) ( 11,767 ) ( 12,661 ) Deferred gift card sales commissions capitalization 4,900 4,942 8,873 8,856 Other ( 603 ) ( 649 ) ( 1,487 ) ( 1,626 ) Balance, end of the period $ 12,554 $ 12,650 $ 12,554 $ 12,650 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Balance, beginning of the period $ 308,738 $ 310,634 $ 366,059 $ 372,551 Gift card sales 58,035 57,997 104,561 103,158 Gift card redemptions ( 63,072 ) ( 65,580 ) ( 160,666 ) ( 166,596 ) Gift card breakage ( 4,065 ) ( 3,961 ) ( 10,318 ) ( 10,023 ) Balance, end of the period $ 299,636 $ 299,090 $ 299,636 $ 299,090 12 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 periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Impairment losses U.S. $ 5,680 $ — $ 6,266 $ 1,852 Other — 12,471 — 12,471 Total impairment losses $ 5,680 $ 12,471 $ 6,266 $ 14,323 Restaurant closure (benefits) charges U.S. $ ( 3,726 ) $ 2,135 $ ( 3,670 ) $ 11,219 Other ( 414 ) 78 ( 706 ) 15 Total restaurant closure (benefits) charges ( 4,140 ) 2,213 ( 4,376 ) 11,234 Provision for impaired assets and restaurant closings (1) $ 1,540 $ 14,684 $ 1,890 $ 25,557 ________________ (1) For the thirteen and twenty-six weeks ended June 30, 2024, primarily related to the Q2 2024 decision to close nine restaurants in Hong Kong and the closure of 36 predominantly older, underperforming U.S. restaurants (the “2023 Restaurant Closures”). 13 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 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 TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Net income (loss) attributable to Bloomin’ Brands $ 25,419 $ 28,403 $ 67,571 $ ( 55,469 ) Net income from discontinued operations, net of tax 779 3,655 525 6,563 Net income (loss) attributable to Bloomin’ Brands from continuing operations $ 24,640 $ 24,748 $ 67,046 $ ( 62,032 ) Basic weighted average common shares outstanding 85,041 86,688 84,971 86,856 Effect of dilutive securities: Stock-based compensation awards 99 290 151 — Convertible senior notes (1) — 1,005 13 — Warrants (1) — 649 — — Diluted weighted average common shares outstanding 85,140 88,632 85,135 86,856 Basic earnings (loss) per share: Continuing operations $ 0.29 $ 0.29 $ 0.79 $ ( 0.71 ) Discontinued operations 0.01 0.04 0.01 0.08 Net basic earnings (loss) per share $ 0.30 $ 0.33 $ 0.80 $ ( 0.64 ) Diluted earnings (loss) per share: Continuing operations $ 0.29 $ 0.28 $ 0.79 $ ( 0.71 ) Discontinued operations 0.01 0.04 0.01 0.08 Net diluted earnings (loss) per share $ 0.30 $ 0.32 $ 0.79 $ ( 0.64 ) Antidilutive stock-based compensation awards 1,754 998 1,953 1,193 Antidilutive convertible senior notes and warrants (2) 1,682 — 1,835 4,554 ________________ (1) During the thirteen weeks ended June 29, 2025, the 2025 Notes matured and were settled in cash and the proportional warrants were terminated. See Note 9 - Convertible Senior Notes for additional details. (2) For the thirteen and twenty-six weeks ended June 29, 2025, the Company’s share price was lower than the conversion and strike price related to the 2025 Notes and related warrants, respectively, which resulted in antidilutive shares. For the twenty-six weeks ended June 30, 2024, as a result of the loss from continuing operations, securities are classified as antidilutive. 14 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) 312 922 $ 7.75 $ 7.83 Performance adjustment (3) ( 229 ) — $ 26.10 $ — Vested — ( 266 ) $ — $ 24.13 Forfeited ( 176 ) ( 154 ) $ 27.53 $ 21.53 Outstanding as of June 29, 2025 629 1,546 $ 18.13 $ 11.75 $ 5,445 $ 13,387 Expected to vest as of June 29, 2025 (4) 309 1,546 $ 2,678 $ 13,387 ________________ (1) Based on the $ 12.27 and $ 8.66 share price of the Company’s common stock on December 27, 2024 and June 27, 2025, the last trading day of the year ended December 29, 2024 and the twenty-six weeks ended June 29, 2025, respectively. (2) The weighted average dividend yield was 6.40 % and 6.60 % for PSUs and RSUs, respectively. For PSUs, 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 units earned based on performance will cliff vest after three years . (3) Represents adjustment to 0 % payout for PSUs granted during 2022. (4) For PSUs, the estimated number of units to be issued upon the vesting of outstanding PSUs is 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 June 29, 2025: UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands) REMAINING WEIGHTED AVERAGE RECOGNITION PERIOD (in years) Performance-based share units $ 2,132 2.7 Restricted stock units $ 13,842 2.0 8. Supplemental Balance Sheet Information Other current assets, net , consisted of the following as of the periods indicated: (dollars in thousands) JUNE 29, 2025 DECEMBER 29, 2024 Prepaid expenses $ 27,083 $ 23,102 Installment receivable from sale of business 131,228 — Accounts receivable - gift cards, net 13,551 73,113 Accounts receivable - vendors, net 17,382 29,233 Accounts receivable - franchisees, net 4,906 2,975 Accounts receivable - other, net 12,541 9,280 Deferred gift card sales commissions 12,554 16,935 Other current assets, net 5,258 4,137 $ 224,503 $ 158,775 15 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Goodwill and Intangible Assets - The Company performs its annual assessment for impairment of goodwill and other indefinite-lived intangible assets during its second fiscal quarter. During the thirteen weeks ended June 29, 2025, the Company performed a quantitative impairment analysis due to the recent decline in the Company’s market capitalization, while its 2024 assessment was qualitative. In connection with these assessments, the Company did no t record any impairment charges. The goodwill analysis indicated that all reporting units had fair values that exceeded their carrying values. However, the Outback Steakhouse and Bonefish Grill reporting units had fair values that decreased to approximately 10 % above their respective carrying values. The fair values for the Outback Steakhouse and Bonefish Grill reporting units decreased primarily due to lower cash flow estimates, increased discount rates, lower market multiples, and additionally for Bonefish Grill, a lower long-term growth rate, compared to the last quantitative impairment analysis performed during the quarter ended June 25, 2023. The quantitative impairment analysis for indefinite-lived intangible assets indicated that all trade names had fair values exceeding their carrying values; however, the Outback Steakhouse trade name’s fair value decreased to approximately 15 % above its carrying value. Similar to the goodwill analysis, the fair value of the Outback Steakhouse trade name decreased primarily due to lower projected system-wide sales and an increased discount rate. Fair value determinations require considerable judgement and are sensitive to changes in underlying assumptions, estimates and market factors. Key assumptions include cash flow estimates (including sales and operating profit), long-term growth rates, discount rates, royalty rates, market multiples and other market factors. Sales declines, unplanned increases in commodity or labor costs, decreases to the market multiples, increases in discount rates, deterioration in overall economic conditions and challenges in the restaurant industry or any such event may impact the Company’s fair value determinations and may result in future impairment charges. It is possible that changes in circumstances or changes in assumptions and estimates could result in impairment of the Company’s goodwill or other intangible assets. Further, as a result of the decreased fair values, the Outback Steakhouse and Bonefish Grill reporting units and the Outback Steakhouse trade name are at a higher risk of future impairment. Other assets, net , consisted of the following as of the periods indicated: (dollars in thousands) JUNE 29, 2025 DECEMBER 29, 2024 Company-owned life insurance $ 33,341 $ 31,971 Deferred debt issuance costs - revolving credit facility (1) 9,609 10,743 Liquor licenses 22,533 22,422 Contingent consideration assets 33,068 — Other assets 11,642 9,335 $ 110,193 $ 74,471 ________________ (1) Net of accumulated amortization of $ 1.8 million and $ 0.6 million as of June 29, 2025 and December 29, 2024, respectively. Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) JUNE 29, 2025 DECEMBER 29, 2024 Accrued payroll and other compensation $ 55,951 $ 64,522 Accrued insurance 22,006 19,527 Other current liabilities 85,795 94,265 $ 163,752 $ 178,314 16 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Other long-term liabilities, net , consisted of the following as of the periods indicated: (dollars in thousands) JUNE 29, 2025 DECEMBER 29, 2024 Accrued insurance $ 37,837 $ 33,519 Deferred compensation obligations 33,049 32,597 Other long-term liabilities (1) 39,504 27,304 $ 110,390 $ 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: JUNE 29, 2025 DECEMBER 29, 2024 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior secured credit facility - revolving credit facility (1) $ 620,000 6.51 % $ 710,000 6.52 % 2025 Notes (2) — 20,724 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Long-term debt 920,000 1,030,724 Less: unamortized debt discount and issuance costs ( 2,927 ) ( 3,326 ) Long-term debt, net $ 917,073 $ 1,027,398 ________________ (1) Interest rate represents the weighted average interest rate as of the respective periods. (2) On May 1, 2025, the 2025 Notes were settled primarily using borrowings from the revolving credit facility. Debt Covenants - As of June 29, 2025 and December 29, 2024, the Company was in compliance with its debt c ovenants. 17 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 9. Convertible Senior Notes The Company’s 5.00 % convertible senior notes due in 2025 (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. On May 16, 2025, the Company terminated the remaining proportional warrants in cash for $ 0.4 million. The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the period indicated: (dollars in thousands) DECEMBER 29, 2024 Principal $ 20,724 Less: unamortized debt issuance costs ( 56 ) Net carrying amount $ 20,668 Following is a summary of interest expense for the 2025 Notes by component for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Coupon interest $ 86 $ 259 $ 345 $ 1,265 Debt issuance cost amortization 14 40 56 198 Total interest expense (1) $ 100 $ 299 $ 401 $ 1,463 ________________ (1) The effective rate of the 2025 Notes was 5.85 %. 10. Stockholders’ Equity 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 Second fiscal quarter 0.15 12,759 Total cash dividends declared and paid $ 0.30 $ 25,506 In July 2025, the Company’s Board of directors (the “Board”) declared a quarterly cash dividend of $ 0.15 per share, payable on September 3, 2025 to shareholders of record at the close of business on August 19, 2025. 18 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 TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Foreign currency translation: Balance, beginning of the period $ 3,023 $ ( 179,620 ) $ ( 212,172 ) $ ( 177,689 ) Foreign currency translation adjustment (1) 1,731 ( 9,858 ) ( 622 ) ( 11,789 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business — — 217,548 — Balance, end of the period $ 4,754 $ ( 189,478 ) $ 4,754 $ ( 189,478 ) (Loss) gain on derivatives, net of tax: Balance, beginning of the period $ ( 798 ) $ 542 $ ( 621 ) $ ( 615 ) Change in fair value of derivatives, net of tax 263 898 63 2,333 Reclassification realized in Net income (loss), net of tax 27 ( 568 ) 50 ( 846 ) Balance, end of the period $ ( 508 ) $ 872 $ ( 508 ) $ 872 Accumulated other comprehensive income (loss): Balance beginning of the period $ 2,225 $ ( 179,078 ) $ ( 212,793 ) $ ( 178,304 ) Other comprehensive income (loss) attributable to Bloomin' Brands 2,021 ( 9,528 ) 217,039 ( 10,302 ) Balance, end of the period $ 4,246 $ ( 188,606 ) $ 4,246 $ ( 188,606 ) ____________________ (1) For the thirteen and twenty-six weeks ended June 29, 2025, 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 $ 0.7 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. 19 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 JUNE 29, 2025 DECEMBER 29, 2024 Interest rate swaps - liability Accrued and other current liabilities $ 683 $ 579 Interest rate swaps - liability Other long-term liabilities, net — 255 Total fair value of derivative instruments - liabilities (1) $ 683 $ 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 June 29, 2025, all counterparties to the Swap Transactions performed in accordance with their contractual obligations. 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 June 29, 2025 and December 29, 2024, it could have been required to settle its obligations under the Swap Transactions at their termination value of $ 0.7 million and $ 0.8 million, respectively. As of June 29, 2025 and December 29, 2024, the Company has not posted any collateral related to the Swap Transactions. 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 June 29, 2025, the Company had R$ 720.0 million Brazilian Reais (approximately $ 130.6 million U.S. Dollars) of outstanding notional amounts related to its foreign currency forward contracts. The asset related to the foreign exchange forward contracts as of June 29, 2025 and December 29, 2024 is not material as they are short term and typically mature monthly. As of June 29, 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 periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 29, 2025 Loss on foreign currency forward contracts (1) General and administrative $ 8,461 $ 18,711 ____________________ (1) The loss on foreign currency forward contracts is materially offset within General and administrative expense 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 June 29, 2025, the Company elected not to offset derivative positions in its Consolidated Balance Sheet with the same counterparty under the same agreement. 20 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 JUNE 29, 2025 DECEMBER 29, 2024 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,015,518 $ 1,012,857 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 13,433 10,058 Total lease assets, net $ 1,028,951 $ 1,022,915 Current operating lease liabilities Current operating lease liabilities $ 162,509 $ 158,806 Current finance lease liabilities Accrued and other current liabilities 3,668 2,618 Non-current operating lease liabilities Non-current operating lease liabilities 1,077,983 1,088,518 Non-current finance lease liabilities Other long-term liabilities, net 11,589 8,359 Total lease liabilities $ 1,255,749 $ 1,258,301 ________________ (1) Net of accumulated amortization of $ 5.3 million and $ 4.0 million as of June 29, 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 TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Operating lease cost (1) Other restaurant operating $ 42,623 $ 42,364 $ 84,928 $ 85,296 Variable lease cost Other restaurant operating 1,294 941 2,486 1,995 Finance lease costs: Amortization of leased assets Depreciation and amortization 750 511 1,440 1,024 Interest on lease liabilities Interest expense, net 261 169 500 344 Sublease revenue Franchise and other revenues ( 1,745 ) ( 1,832 ) ( 3,447 ) ( 3,567 ) Lease costs, net $ 43,183 $ 42,153 $ 85,907 $ 85,092 ________________ (1) Excludes rent expense for office facilities and closed or subleased properties of $ 3.4 million and $ 3.6 million for the thirteen weeks ended June 29, 2025 and June 30, 2024, respectively, and $ 7.0 million for the twenty-six weeks ended June 29, 2025 and June 30, 2024, 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: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 91,977 $ 93,842 21 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) JUNE 29, 2025 DECEMBER 29, 2024 Assets: Short-term investments Cash and cash equivalents Level 1 $ 5,026 $ 11,868 Foreign currency forward contracts Other current assets, net Level 2 $ 282 $ 304 Liabilities: Interest rate swaps Accrued and other current liabilities Level 2 $ 683 $ 579 Interest rate swaps Other long-term liabilities Level 2 $ — $ 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 June 29, 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, including the second installment receivable related to the Brazil Sale Transaction, and accounts payable approximate their carrying amounts reported on the Company’s Consolidated Balance Sheets due to their short duration. 22 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 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: JUNE 29, 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 $ 620,000 $ 620,000 $ 710,000 $ 710,000 2025 Notes (1) $ — $ — $ 20,724 $ 24,145 2029 Notes $ 300,000 $ 277,776 $ 300,000 $ 270,132 ________________ (1) On May 1, 2025, the 2025 Notes matured and were settled in cash. See Note 9 - Convertible Senior Notes for additional details. 14. Income Taxes THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Income (loss) before (benefit) provision for income taxes $ 18,951 $ 28,756 $ 64,995 $ ( 49,800 ) (Benefit) provision for income taxes $ ( 8,748 ) $ 2,780 $ ( 7,845 ) $ 9,422 Effective income tax rate (NM) 9.7 % ( 12.1 ) % ( 18.9 ) % ________________ NM Not meaningful. For the thirteen weeks ended June 29, 2025 and June 30, 2024, the (benefit) provision for income taxes includes the impact of changes to the estimate of forecasted annual pre-tax book income relative to the prior quarter in each respective year and the benefit of FICA tax credits on certain tipped wages. The effective income tax rate for the twenty-six weeks ended June 29, 2025 includes the benefit of FICA tax credits on certain tipped wages relative to forecasted annual pre-tax book income which resulted in a negative effective income tax rate. The effective income tax rate for the twenty-six weeks ended June 30, 2024 includes the 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 twenty-six weeks ended June 30, 2024, which, relative to a pre-tax book loss, resulted in a negative effective income tax rate. 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 (benefit) provision for income taxes. The effective income tax rates for the thirteen weeks ended June 29, 2025 and June 30, 2024 and the twenty-six weeks ended June 29, 2025 were 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 twenty-six weeks ended June 30, 2024 was lower than the Company’s blended federal and state statutory rate of approximately 26 % primarily due to the impact of the non-deductible 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, resulted in a negative effective income tax rate. 23 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which enacted or modified, among other things, several business tax rules. The Company is currently evaluating the potential impact of the OBBBA and does not anticipate it will have a material impact on the Company’s financial statements. 15. Commitments and Contingencies Litigation and Other Matters - The Company recorded reserves of $ 2.1 million and $ 2.3 million for certain of its outstanding legal proceedings as of June 29, 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 June 29, 2025, the undiscounted payments that the Company could be required to make in the event of non-payment by the primary lessees was $ 11.3 million. The present value of these potential payments discounted at the Company’s incremental borrowing rate as of June 29, 2025 was $ 8.7 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 June 29, 2025 and December 29, 2024, the Company’s recorded contingent lease liability was $ 1.7 million and $ 1.6 million, respectively. 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 its Hong Kong subsidiary. 24 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table is a summary of revenues by segment for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Revenues U.S. $ 985,828 $ 974,173 $ 2,016,731 $ 2,017,277 International Franchise 7,051 9,444 16,334 19,556 Total segment revenues 992,879 983,617 2,033,065 2,036,833 All other revenues 9,487 15,752 18,895 31,609 Total revenues $ 1,002,366 $ 999,369 $ 2,051,960 $ 2,068,442 The following table presents segment operating income and significant segment expense information for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 U.S. Total revenues $ 985,828 $ 974,173 $ 2,016,731 $ 2,017,277 Less: Food and beverage 295,414 288,902 605,726 600,451 Labor and other related 307,652 295,685 620,357 606,884 Other restaurant operating 247,446 241,046 501,055 487,218 Other (1) 66,855 68,863 133,462 145,563 Total segment expenses 917,367 894,496 1,860,600 1,840,116 Income from operations $ 68,461 $ 79,677 $ 156,131 $ 177,161 International Franchise Total revenues $ 7,051 $ 9,444 $ 16,334 $ 19,556 Less: Total segment expenses (2) 213 394 492 817 Income from operations $ 6,838 $ 9,050 $ 15,842 $ 18,739 Total segment Total revenues $ 992,879 $ 983,617 $ 2,033,065 $ 2,036,833 Less: Total segment expenses 917,580 894,890 1,861,092 1,840,933 Total segment income from operations $ 75,299 $ 88,727 $ 171,973 $ 195,900 _________________ (1) Includes depreciation and amortization, general and administrative and impairment expense. (2) Includes general and administrative expense. 25 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table is a reconciliation of segment income from operations to Income (loss) before (benefit) provision for income taxes for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Total segment income from operations $ 75,299 $ 88,727 $ 171,973 $ 195,900 Unallocated corporate operating expense ( 46,422 ) ( 32,286 ) ( 86,190 ) ( 68,025 ) Other income (loss) from operations 773 ( 12,389 ) 1,098 ( 12,906 ) Total income from operations 29,650 44,052 86,881 114,969 Loss on extinguishment of debt — — — ( 135,797 ) Interest expense, net ( 10,699 ) ( 15,296 ) ( 21,886 ) ( 28,972 ) Income (loss) before (benefit) provision for income taxes $ 18,951 $ 28,756 $ 64,995 $ ( 49,800 ) The following table is a summary of depreciation and amortization by segment for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024 Depreciation and amortization U.S. $ 42,145 $ 40,616 $ 83,758 $ 80,584 Corporate 2,205 2,214 4,289 4,267 Other 248 560 498 1,239 Total depreciation and amortization $ 44,598 $ 43,390 $ 88,545 $ 86,090 The following table is a summary of capital expenditures by segment, excluding non-cash activity, for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 29, 2025 JUNE 30, 2024 Capital expenditures U.S. $ 76,906 $ 103,691 Corporate 7,380 3,836 Other 11 715 Total capital expenditures $ 84,297 $ 108,242 The following table sets forth Total assets by segment as of the periods i ndicated: (dollars in thousands) JUNE 29, 2025 DECEMBER 29, 2024 Assets U.S. $ 2,630,373 $ 2,735,251 International Franchise 105,776 103,242 Total segment assets 2,736,149 2,838,493 Corporate 494,822 306,560 Other (1) 76,577 16,262 Assets of discontinued operations held for sale — 223,490 Total assets $ 3,307,548 $ 3,384,805 _________________ (1) Includes the Company’s equity method investment in Brazil. 26 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS