Quantitative and Qualitative Disclosures about Market Risk
−Removed: We are exposed to market risk from changes in commodity prices, labor inflation, interest rates and foreign currency exchange rates.
+Added: We are exposed to market risk from changes in commodity prices, interest rates and foreign currency exchange rates.
Commodity Pricing Risk
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The related agreements may contain contractual features that limit the price paid by establishing certain price floors and caps.
−Removed: As of December 29, 2024, approximately 80% of our estimated 2025 annual food purchases are covered by fixed contracts, most of which are scheduled to expire during 2025.
−Removed: During 2024, we experienced 1.1% commodity inflation in the U.S.
−Removed: and anticipate 2.5% to 3.5% commodity inflation for 2025.
Extreme changes in commodity prices or long-term changes could affect our financial results adversely.
Currently we do not use financial instruments to hedge our commodity risk.
−Removed: In addition to the market risks identified above, we are subject to business risk as our U.S.
−Removed: beef supply is highly dependent upon a limited number of vendors.
+Added: In addition to the market risks identified above, we are subject to business risk as our beef supply is highly dependent upon a limited number of vendors.
If these vendors were unable to fulfill their obligations under their contracts, we could encounter supply shortages and incur higher costs to secure adequate supplies.
See Note 17 - Commitments and Contingencies of the Notes to Consolidated Financial Statements for further details.
−Removed: Labor Inflation
−Removed: Our restaurant operations are subject to federal and state minimum wage and other laws governing such matters as working conditions, overtime and tip credits.
−Removed: A significant number of our restaurant team members are paid at rates related to the federal and/or state minimum wage and, accordingly, increases in the minimum wage increase our labor costs.
−Removed: During 2024, we experienced 3.7% labor cost inflation in the U.S and anticipate 4.0% to 5.0% labor cost inflation for 2025.
Interest Rate Risk
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As of December 28, 2025, our interest rate risk was primarily from variable interest rate changes on our revolving credit facility.
+Added: Based on outstanding unhedged borrowings on December 28, 2025, a hypothetical 200 basis points increase in short-term interest rates would increase our annual interest expense by $3.9 million.
We periodically evaluate financial instruments to hedge our exposure to variable interest rates.
We use derivative financial instruments as risk management tools and not for speculative purposes.
−Removed: To manage the risk of fluctuations in variable interest rate debt, we have interest rate swaps with an aggregate notional amount of $375.0 million, with $100.0 million maturing on December 31, 2024, $100.0 million maturing on December 31, 2025, and $175.0 million maturing March 31, 2026.
+Added: To manage the risk of fluctuations in variable interest rate debt, we have interest rate swaps with an aggregate notional amount of $275.0 million, with $100.0 million that matured subsequent to our fiscal year end on December 31, 2025 and $175.0 million maturing March 31, 2026.
+Added: We also have $100.0 million of interest rate swaps that became effective subsequent to our fiscal year end on December 31, 2025, and mature on December 31, 2026 and $200.0 million of interest rate swaps that will become effective on March 31, 2026 and mature on December 31, 2027 .
See Note 13 - Derivative Instruments and Hedging Activities of the Notes to Consolidated Financial Statements for further information.
−Removed: BLOOMIN’ BRANDS, INC.
−Removed: We utilize valuation models to estimate the effects of changing interest rates.
−Removed: The following table summarizes the changes to fair value and interest expense under a shock scenario.
−Removed: This analysis assumes that interest rates change suddenly, as an interest rate “shock”, and continue to increase or decrease at a consistent level above or below the SOFR curve.
−Removed: DECEMBER 29, 2024
−Removed: (dollars in thousands) INCREASE DECREASE
−Removed: Change in fair value (1):
−Removed: Interest rate swap $ 5,693 $ (5,847)
−Removed: Change in annual interest expense (1):
−Removed: Variable rate debt $ 8,700 $ (8,700)
−Removed: ________________
−Removed: (1) The potential change from a hypothetical 200 basis point increase (decrease) in short-term interest rates.
+Added: A hypothetical 200 basis points increase (decrease) in short-term interest rates would have increased (decreased) the fair value of our interest rate swaps by $9.2 million and $(9.6) million, respectively.
Foreign Currency Exchange Rate Risk
−Removed: We are subject to foreign currency exchange risk.
−Removed: To manage a portion of our exchange rate risk, we entered into foreign currency forward contracts during 2024 to partially offset the foreign currency exchange gains and losses generated by the rate risk associated with the purchase price installment payments from the Brazil Sale Transaction.
−Removed: We recorded gains of $15.7 million as a result of changes in the fair value of foreign currency forward contracts during fiscal year 2024.
−Removed: As of December 29, 2024, the fair value of the derivative instruments was $0.3 million in an asset position.
−Removed: As of December 29, 2024, our total notional amount of outstanding foreign currency forward contracts was $184.6 million.
−Removed: Subsequent to December 29, 2024, the outstanding notional amount decreased to $107.7 million following the collection of the first installment payment from the Brazil Sale Transaction.
−Removed: A hypothetical 10% increase or decrease in the Brazilian Real relative to the U.S.
−Removed: dollar for the remaining $107.7 million notional amount would result in a corresponding increase or decrease of approximately $8.4 million or $(10.2) million, respectively, in operating income with a corresponding decrease or increase in the U.S.
−Removed: dollar value of the hedged portion of the related receivable.
+Added: During 2024 and 2025, we entered into foreign currency forward contracts to partially offset the foreign currency exchange gains and losses generated by the rate risk associated with the purchase price installment payments from the Brazil Sale Transaction.
+Added: We recorded (losses) gains of $(26.4) million and $15.7 million as a result of changes in the fair value of foreign currency forward contracts during fiscal year 2025 and 2024, respectively.
+Added: In November 2025, we received the final installment payment from the Brazil Sale Transaction and our foreign currency forward contracts matured.
+Added: Currently, exposure to international currency exchange rate fluctuations is not material.
+Added: BLOOMIN’ BRANDS, INC.
This market risk discussion contains forward-looking statements.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.