What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-06 · 150 added, 308 removed, 226 unchanged (67% of the section changed)

1 unchanged sentence

Management’s discussion and analysis of financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and the related notes.

Unless the context otherwise indicates, as used in this report, the term the “Company,” “we,” “us,” “our” and other similar terms mean Bloomin’ Brands, Inc.

Unless the context otherwise indicates, as used in this report, the terms the “Company,” “we,” “us,” “our” and other similar terms mean Bloomin’ Brands, Inc.

and its subsidiaries.

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Important factors that could cause actual results to differ materially from statements made or suggested by forward-looking statements include, but are not limited to, the following:

(i) Consumer reactions to public health and food safety issues;

(ii) Minimum wage increases, additional mandated employee benefits and fluctuations in the cost and availability of employees;

(iii) Our ability to recruit and retain high-quality leadership, restaurant-level management and team members;

(iv) Economic and geopolitical conditions, including recent tariff developments and the ongoing U.S.

government shutdown, and their effects on consumer confidence and discretionary spending, consumer traffic, the cost and availability of credit and interest rates;

(v) Our ability to compete in the highly competitive restaurant industry with many well-established competitors and new market entrants;

(vi) Our ability to protect our information technology systems from interruption or security breach, including cybersecurity threats, and to protect consumer data and personal employee information;

(i) Our ability to execute and achieve the expected benefits of our actions to focus on operational priorities, including our turnaround plans and cost-saving initiatives to fund such plans;

(ii) Consumer reactions to public health and food safety issues;

(iii) Minimum wage increases, additional mandated employee benefits and fluctuations in the cost and availability of employees;

(iv) Our ability to recruit and retain high-quality leadership, restaurant-level management and team members;

(v) Economic and geopolitical conditions, including tariff developments and international conflicts and their effects on consumer confidence and discretionary spending, consumer traffic, the cost and availability of credit and interest rates;

(vi) Our ability to compete in the highly competitive restaurant industry with many well-established competitors and new market entrants;

BLOOMIN’ BRANDS, INC.

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

(vii) Fluctuations in the price and availability of commodities, including supplier freight charges and restaurant distribution expenses, and other impacts of inflation and our dependence on a limited number of suppliers and distributors to meet our beef, pork, chicken and other major product supply needs;

(viii) Our ability to preserve and grow the reputation and value of our brands, particularly in light of our turnaround plans, changes in consumer engagement with social media platforms and limited control with respect to the operations of our franchisees;

(ix) The effects of international economic, political and social conditions and legal systems on our foreign operations and on foreign currency exchange rates;

(x) The impacts of our operations in Brazil as a minority investor and franchisor following our sale transaction;

(xi) Our ability to comply with corporate citizenship and sustainability reporting requirements and investor expectations or our failure to achieve any goals, targets or objectives that we establish with respect to sustainability matters;

(xii) Our ability to effectively respond to changes in patterns of consumer traffic, including by maintaining relationships with third-party delivery apps and services, consumer tastes and dietary habits;

(xiii) Our ability to comply with governmental laws and regulations, the costs of compliance with such laws and regulations and the effects of changes or uncertainty with respect to applicable laws and regulations, including tax laws and unanticipated liabilities, and the impact of any litigation;

(xiv) Our ability to implement our remodeling, relocation and expansion plans, due to uncertainty in locating, acquiring and redesigning attractive sites on acceptable terms, obtaining required permits and approvals, recruiting and training necessary personnel, obtaining adequate financing and estimating the performance of newly opened, remodeled or relocated restaurants;

(xv) Our cost savings plans to enable reinvestment in our business, due to uncertainty with respect to macroeconomic conditions and the efficiency that may be added by the actions we take, and the projected benefits of our reinvestments;

(xvi) Seasonal and periodic fluctuations in our results and the effects of significant adverse weather conditions and other disasters or unforeseen events;

(xvii) The effects of our leverage and restrictive covenants in our various credit facilities on our ability to raise additional capital to fund our operations, to make capital expenditures to invest in new or renovate restaurants and to react to changes in the economy or our industry;

(xviii) Any impairment in the carrying value of our goodwill or other intangible or long-lived assets and its effect on our financial condition and results of operations;

(xix) Such other factors as discussed in Part I, Item IA.

(vii) Our ability to protect our information technology systems from interruption or security breach, including cybersecurity threats, and to protect consumer data and personal employee information;

(viii) Fluctuations in the price and availability of commodities, including supplier freight charges and restaurant distribution expenses, and other impacts of inflation and our dependence on a limited number of suppliers and distributors to meet our beef, pork, chicken and other major product supply needs;

(ix) Our ability to preserve and grow the reputation and value of our brands, particularly in light of our turnaround plans, changes in consumer engagement with social media platforms and limited control with respect to the operations of our franchisees or the business challenges they face;

(x) The effects of international economic, political and social conditions and legal systems on our foreign operations and on foreign currency exchange rates;

(xi) The impacts of our operations in Brazil as a minority investor and franchisor following our sale transaction;

(xii) Our ability to comply with corporate citizenship and sustainability reporting requirements and investor expectations or our failure to achieve any goals, targets or objectives that we establish with respect to sustainability matters;

(xiii) Our ability to effectively respond to changes in patterns of consumer traffic, including by maintaining relationships with third-party delivery apps and services, consumer tastes and dietary habits;

(xiv) Our ability to comply with governmental laws and regulations, the costs of compliance with such laws and regulations and the effects of changes or uncertainty with respect to applicable laws and regulations, including tax laws and unanticipated liabilities, and the impact of any litigation;

(xv) Our ability to implement our remodeling, relocation and expansion plans, due to uncertainty in locating, acquiring and redesigning attractive sites on acceptable terms, obtaining required permits and approvals, recruiting and training necessary personnel, obtaining adequate financing and estimating the performance of newly opened, remodeled or relocated restaurants;

(xvi) Our cost savings plans to enable reinvestment in our business, due to uncertainty with respect to macroeconomic conditions and the efficiency that may be added by the actions we take, and the projected benefits of our reinvestments;

(xvii) Seasonal and periodic fluctuations in our results and the effects of significant adverse weather conditions and other disasters or unforeseen events;

(xviii) The effects of our leverage and restrictive covenants in our various credit facilities on our ability to raise additional capital to fund our operations, to make capital expenditures to invest in new or renovate restaurants and to react to changes in the economy or our industry;

(xix) Any impairment in the carrying value of our goodwill or other intangible or long-lived assets and its effect on our financial condition and results of operations;

(xx) Such other factors as discussed in Part I, Item IA.

Risk Factors of our Annual Report on Form 10-K for the year ended December 28, 2025.

Given these risks and uncertainties, we caution you not to place undue reliance on these forward-looking statements.

Any forward-looking statement that we make in this Report speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking statement or to publicly announce the results of any revision to any of those statements to reflect future events or developments.

Comparisons of results for current and any prior

BLOOMIN’ BRANDS, INC.

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

Given these risks and uncertainties, we caution you not to place undue reliance on these forward-looking statements.

Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

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

As of September 28, 2025, we owned and operated 987 restaurants and franchised 496 restaurants across 46 states, Guam and 12 countries.

As of March 29, 2026, we owned and operated 962 restaurants and franchised 490 restaurants across 46 states, Guam and 12 countries.

Our restaurant portfolio includes:

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

Our Turnaround Strategy - We are implementing a comprehensive turnaround strategy, with a key focus on Outback Steakhouse, to drive long-term sustainable and profitable growth.

This strategy is based on four key platforms, including:

• Deliver a Remarkable Dine-In Experience:

focus on operational excellence with center of the plate quality and service enhancements to deliver an exceptional guest experience, which will drive in-restaurant traffic growth

• Drive Brand Relevancy:

expand brand reach to recruit new guests and increase frequency of visits

• Reignite a Culture of Ownership and Fun:

reinvest in our people and strengthen our Principles & Beliefs-based culture which will drive an enhanced guest experience

• Invest in Our Restaurants:

refresh our existing asset base to ensure restaurants are updated and reflect brand standards

These platforms will be supported by:

• Non-Guest Facing Productivity Savings:

we are focused on cost savings in areas that will not impact the guest, such as indirect spend and contract negotiations

• Balanced Capital Allocation:

we have a dual approach to invest in the base business and focus on debt paydown.

To support the objectives, we suspended the dividend

• Strong Management Team:

we have the right team in place to lead our brands through our turnaround initiatives, centered on an operational mindset and guest centricity

Financial Overview - Our financial overview for the thirteen weeks ended September 28, 2025 includes the following:

Financial Overview - Our financial overview for the thirteen weeks ended March 29, 2026 for continuing operations includes the following:

combined and Outback Steakhouse comparable restaurant sales of 0.9% and (0.3)%, respectively;

• Increase in Total revenues of 2.1% as compared to the third quarter of 2024;

• Operating (loss) income and restaurant-level operating margins of (3.9)% and 9.2%, respectively, as compared to 0.9% and 11.1%, respectively, for the third quarter of 2024;

• Operating loss of $(36.4) million as compared to operating income of $8.6 million in the third quarter of 2024;

• Diluted loss per share of $(0.54) as compared to $(0.01) for the third quarter of 2024.

• Increase in Total revenues of 1.0% as compared to the first quarter of 2025;

• Operating income and restaurant-level operating margins of 5.6% and 14.0%, respectively, as compared to 5.5% and 13.9%, respectively, for the first quarter of 2025;

• Operating income of $59.1 million as compared to $57.2 million in the first quarter of 2025;

• Diluted earnings per share of $0.64 as compared to $0.50 for the first quarter of 2025.

Our Turnaround Strategy - In November 2025, we announced a comprehensive turnaround strategy, with a key focus on Outback Steakhouse, to drive long-term sustainable and profitable growth.

This strategy is based on four key platforms, including:

(i) deliver a remarkable dine-in experience, (ii) drive brand relevancy, (iii) reignite a culture of ownership and fun and (iv) invest in our restaurants.

These platforms will be supported by non-guest facing productivity savings, balanced capital allocation and a strong management team.

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

• Average restaurant unit volumes —average sales (excluding gift card breakage) per restaurant to measure changes in customer traffic, pricing and development of the brand.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

• Comparable restaurant sales —year-over-year comparison of the change in sales volumes (excluding gift card breakage) for Company-owned restaurants that are open 18 months or more in order to remove the impact of new restaurant openings in comparing the operations of existing restaurants.

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For a summary of sales of Company-owned restaurants, refer to Note 3 - Revenue Recognition of the Notes to Consolidated Financial Statements.

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

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

Franchise restaurant sales disclosed as system-wide sales do not represent our sales and are

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

presented only as an indicator of changes in the restaurant system, which management believes is important information regarding the health of our restaurant concepts and in determining our royalties and/or service fees.

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

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

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

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

(i) Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income;

(ii) Depreciation and amortization, which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants;

(ii) Depreciation and amortization, which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than current cash outlays for the restaurants;

(iii) General and administrative expense, which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices;

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

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

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

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

• Adjusted restaurant-level operating margin, Adjusted income from operations, Adjusted net (loss) income and Adjusted diluted (loss) earnings per share —non-GAAP financial measures utilized to evaluate our operating performance.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

• Adjusted restaurant-level operating margin, Adjusted income from operations, Adjusted net income and Adjusted diluted earnings per share —non-GAAP financial measures utilized to evaluate our operating performance.

We believe that our use of these non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on U.S.

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Number of restaurants (at end of the period):

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

MARCH 29, 2026 MARCH 30, 2025

Outback Steakhouse

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Company-owned 65 65

Company-owned — 4

Franchised 1 1

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Outback Steakhouse - South Korea 101 98

Other (1) 66 49

International Franchise total 354 343

International other - Company-owned

Outback Steakhouse - Hong Kong/China 10 11

Outback Steakhouse - Brazil (1) — 172

Other - Brazil (1) — 19

International other - Company-owned total 10 202

International - Company-owned

Outback Steakhouse - Hong Kong 10 10

System-wide total 1,452 1,466

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System-wide total - Franchised 490 486

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(1) The September 29, 2024 restaurant counts for Brazil, are reported as of August 31, 2024, to correspond with the balance sheet date of this subsidiary.

Following the close of the Brazil Sale Transaction on December 30, 2024, all restaurants in that market operate as unconsolidated franchisees and the related store count is no longer reported on a one-month lag.

See Note 2 - Discontinued Operations of the Notes to Consolidated Financial Statements for further details.

BLOOMIN’ BRANDS, INC.

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Results of Operations

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

(dollars in millions) THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

For the periods ended September 29, 2024 $ 889.8 $ 2,914.3

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

(dollars in millions) THIRTEEN WEEKS ENDED

For the period ended March 30, 2025 $ 1,029.5

Restaurant openings (1) 22.0

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Restaurant closures (2) (21.2)

Other 0.6 1.6

For the periods ended September 28, 2025 $ 911.9 $ 2,926.2

For the period ended March 29, 2026 $ 1,041.8

________________

(1) The thirteen and thirty-nine weeks ended September 28, 2025 include restaurant sales from 30 and 35 new restaurants, respectively, not included in our comparable restaurant sales base.

(2) The thirteen and thirty-nine weeks ended September 28, 2025 include the restaurant sales impact from the closure of 23 and 61 restaurants since June 30, 2024 and December 31, 2023, respectively.

(1) Includes restaurant sales from 25 new restaurants, not included in our comparable restaurant sales base.

(2) Includes restaurant sales from the closure of 38 restaurants since December 29, 2024.

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

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

THIRTEEN WEEKS ENDED

MARCH 29, 2026 MARCH 30, 2025

Average restaurant unit volumes:

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

Comparable Restaurant Sales, Traffic and Average Check Per Person - Following is a summary of the year over year percentage change of comparable restaurant sales, traffic and average check per person for the periods indicated:

THIRTEEN WEEKS ENDED

MARCH 29, 2026 MARCH 30, 2025

Year over year percentage change:

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____________________

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

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

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

THIRTEEN WEEKS ENDED

MARCH 29, 2026 MARCH 30, 2025

Restaurant sales 98.3 % 98.1 %

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Total costs and expenses 94.4 94.5

(Loss) income from operations (3.9) 0.9 1.7 4.2

Loss on extinguishment of debt — (*) — (4.6)

Income from operations 5.6 5.5

Interest expense, net (1.2) (1.1)

(Loss) income before (benefit) provision for income taxes (5.1) (0.9) 0.6 (1.9)

Income before (benefit) provision for income taxes 4.4 4.4

(Benefit) provision for income taxes (1.0) 0.1

Loss from equity method investment, net of tax (*) (0.1)

Net (loss) income from continuing operations (4.9) (*) 0.8 (2.0)

Net income from discontinued operations, net of tax * 0.8 * 0.5

Net (loss) income (4.9) 0.8 0.8 (1.5)

Net income from continuing operations 5.4 4.2

Income (loss) from discontinued operations, net of tax * (*)

Net income 5.4 4.2

net income attributable to noncontrolling interests 0.1 0.2

Net (loss) income attributable to Bloomin’ Brands

(4.9) % 0.8 % 0.7 % (1.6) %

Net income attributable to Bloomin’ Brands

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* Less than 1/10th of one percent of Total revenues.

Thirteen weeks ended September 28, 2025 as compared to thirteen weeks ended September 29, 2024

Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.6% from commodity inflation and 0.4% from unfavorable product cost mix.

These impacts were partially offset by 1.0% from an increase in average check per person, primarily due to menu pricing, and 0.2% from cost-saving and productivity initiatives.

Labor and other related expense increased as a percentage of Restaurant sales primarily due to 0.9% from higher hourly and field management labor costs, mainly due to wage rate inflation, partially offset by 0.3% from an increase in average check per person and 0.2% from cost-saving and productivity initiatives.

Other restaurant operating expense increased as a percentage of Restaurant sales primarily due to 0.8% from higher restaurant-level operating and supply expenses, mainly due to inflation, and 0.6% from higher insurance expense.

These impacts were partially offset by 0.5% from lower advertising expense and 0.2% from an increase in average check per person.

General and administrative expense decreased primarily due to lower compensation and related expenses partially offset by costs associated with our foreign currency forward contracts.

Thirteen weeks ended March 29, 2026 as compared to thirteen weeks ended March 30, 2025

Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.3% from commodity inflation.

This impact was offset by 1.3% from an increase in average check per person, primarily due to menu pricing.

Labor and other related expense increased as a percentage of Restaurant sales primarily due to 0.6% from higher hourly and field management labor costs, mainly due to wage rate inflation and health insurance, partially offset by 0.5% from an increase in average check per person.

Other restaurant operating expense decreased as a percentage of Restaurant sales primarily due to:

(i) 0.5% from cost-saving and productivity initiatives, (ii) 0.3% from lower advertising expense and (iii) 0.2% from an increase in average check per person.

These impacts were partially offset by 0.8% from higher restaurant-level operating and supply expenses, mainly due to inflation.

Depreciation and amortization expense increased primarily due to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.

BLOOMIN’ BRANDS, INC.

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Provision for impaired assets and restaurant closings increased during the thirteen weeks ended September 28, 2025 primarily due to higher impairment and closure charges related to restaurant closures and underperforming restaurants.

We expect to incur an estimated $5.0 million to $7.0 million of related severance and closure charges in connection with the 2025 Restaurant Closures during the thirteen weeks ended December 28, 2025.

See Note 5 – Impairments and Exit Costs for additional details.

Interest expense, net decreased primarily due to $4.8 million of interest income on the second installment related to the Brazil Sale Transaction.

Benefit for income taxes for the thirteen weeks ended September 28, 2025 and September 29, 2024 includes the impact of changes to the estimate of forecasted annual pre-tax book income relative to the respective prior quarter and the benefit of FICA tax credits.

Thirty-nine weeks ended September 28, 2025 as compared to thirty-nine weeks ended September 29, 2024

Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.1% from commodity inflation and 0.5% from unfavorable product cost mix.

These impacts were partially offset by 1.0% from an increase in average check per person, primarily due to menu pricing, and 0.3% from cost-saving and productivity initiatives.

Labor and other related expense increased as a percentage of Restaurant sales primarily due to 1.3% from higher hourly and field management labor costs, mainly due to wage rate inflation and health insurance, partially offset by 0.4% from an increase in average check per person.

Other restaurant operating expense increased as a percentage of Restaurant sales primarily due to 0.9% from higher restaurant-level operating and supply expenses, mainly due to inflation, and 0.3% from higher insurance expense.

These increases were partially offset by 0.4% from lower advertising expense.

General and administrative expense increased primarily due to costs associated with our foreign currency forward contracts and severance partially offset by lower compensation and related expenses.

Provision for impaired assets and restaurant closings increased primarily due to higher impairment and closure charges related to restaurant closures and underperforming restaurants.

Loss on extinguishment of debt during the thirty-nine weeks ended September 29, 2024 was in connection with the Second 2025 Notes Partial Repurchase .

Interest expense, net decreased primarily due to $12.4 million of interest income on the second installment related to the Brazil Sale Transaction.

(Benefit) provision for income taxes for the thirty-nine weeks ended September 28, 2025 includes the impact of FICA tax credits relative to low forecasted annual pretax book income.

Provision for income taxes for the thirty-nine weeks ended September 29, 2024 includes the impact of the non-deductible losses associated with the Second 2025 Notes Partial Repurchase.

General and administrative expense decreased primarily due to lapping severance and costs associated with our foreign currency forward contracts incurred during the thirteen weeks ended March 30, 2025.

Provision for impaired assets and restaurant closings increased primarily due to higher impairment and other costs related to restaurant closures and underperforming restaurants.

(Benefit) provision for income taxes for the thirteen weeks ended March 29, 2026 and March 30, 2025 includes the benefit of FICA tax credits on certain employees’ tips relative to forecasted full year Income before (benefit) provision for income taxes.

A higher forecasted full year Income before (benefit) provision for income taxes for 2025 when compared to forecasted full year Income before (benefit) provision for income taxes for 2026, resulted in provision for income taxes for the thirteen weeks ended March 30, 2025 as compared to benefit for income taxes for the thirteen weeks ended March 29, 2026.

SEGMENT PERFORMANCE

Revenues for both segments include transactions with customers and royalties from franchisees.

Revenue for the U.S.

reportable segment includes transactions with customers and revenues for both reportable segments include royalties from franchisees.

There were no material transactions among reportable segments.

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are certain legal and corporate costs not directly related to the performance of the segments, 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 our continuing operations.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Operating income is utilized by our CODM as the primary segment profit or loss measure to allocate resources in the planning and forecasting process and also to review operating performance by monitoring actual results versus prior year and forecasts.

Refer to Note 13 - Segment Reporting of the Notes to Consolidated Financial Statements for reconciliations of segment income from operations to the consolidated operating results.

See the Overview-Key Financial Performance Indicators and Non-GAAP Financial Measures sections of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional details regarding the calculation of restaurant-level operating margin.

Summary financial data - Following is a summary of financial data by segment for the periods indicated:

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

Summary financial data - Following is a summary of U.S.

segment financial data for the periods indicated:

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 29, 2026 MARCH 30, 2025

Restaurant sales (1) $ 1,032,191 $ 1,020,130

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Operating income margin 8.4 % 8.5 %

INTERNATIONAL FRANCHISE

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

Franchise revenues (2)

____________________

Income from operations $ 6,998 $ 9,553 $ 22,840 $ 28,292

____________________

(1) The increase during the thirteen and thirty-nine weeks ended September 28, 2025 compared to the thirteen and thirty-nine weeks ended September 29, 2024 was primarily due to the net impact of restaurant openings and closures and higher comparable restaurant sales.

(2) On December 30, 2024, we entered into franchise agreements in connection with the Brazil Sale Transaction that include royalty rates that are lower than our 5% historical intercompany royalty rates and are on the low end of our international franchisee royalty percentage range.

Income from operations

- The decrease in U.S.

Income from operations generated during the thirteen weeks ended September 28, 2025 as compared to the thirteen weeks ended September 29, 2024 was primarily due to:

(i) higher impairment and closure costs , (ii) higher commodity, labor and operating costs, mainly due to inflation, and (iii) unfavorable product cost mix.

These decreases were partially offset by:

(i) an increase in average check per person, primarily due to pricing, (ii) lower General and administrative expense, (iii) lower advertising expense and (iv) cost-saving and productivity initiatives.

- The decrease in U.S.

Income from operations generated during the thirty-nine weeks ended September 28, 2025 as compared to the thirty-nine weeks ended September 29, 2024 was primarily due to:

(i) higher labor, commodity and operating costs, mainly due to inflation, (ii) higher impairment and closure costs and (iii) unfavorable product cost mix.

These decreases were partially offset by:

(i) an increase in average check per person, primarily due to pricing, (ii) lower advertising expense and (iii) cost-saving and productivity initiatives.

(1) The increase was due to the impact of restaurant openings and higher comparable restaurant sales partially offset by restaurant closures.

- The increase in U.S.

Income from operations generated during the thirteen weeks ended March 29, 2026 as compared to the thirteen weeks ended March 30, 2025 was primarily due to:

(i) an increase in average check per person, primarily due to pricing, (ii) cost-saving and productivity initiatives and (iii) lower advertising expense.

These increases were partially offset by higher commodity, operating and labor costs, mainly due to inflation.

BLOOMIN’ BRANDS, INC.

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Following is a summary of international franchise segment financial data for the periods indicated:

INTERNATIONAL FRANCHISE

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 29, 2026 MARCH 30, 2025

Franchise revenues (1) $ 7,570 $ 9,283

Income from operations $ 7,336 $ 9,004

____________________

(1) The thirteen weeks ended March 30, 2025 includes one additional month of pre-Brazil Sale Transaction intercompany royalties from Brazil.

Non-GAAP Financial Measures

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

Consolidated THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

(Loss) income from operations $ (36,420) $ 8,642 $ 50,461 $ 123,611

Operating (loss) income margin (3.9) % 0.9 % 1.7 % 4.2 %

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

Consolidated THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 29, 2026 MARCH 30, 2025

Income from operations $ 59,103 $ 57,231

Operating income margin 5.6 % 5.5 %

Franchise and other revenues 17,847 20,077

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Restaurant-level operating margin 14.0 % 13.9 %

Employee benefits policy change (1) 2,763 — 2,763 —

Closure-related charges — — — 434

Total restaurant-level operating income adjustments 2,763 — 2,763 434

Adjusted restaurant-level operating income $ 86,736 $ 98,343 $ 347,284 $ 397,091

Adjusted restaurant-level operating margin 9.5 % 11.1 % 11.9 % 13.6 %

_________________

(1) Represents costs associated with updated field PTO policy in connection with the transition to a new human resources and payroll system.

BLOOMIN’ BRANDS, INC.

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in thousands) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

(Loss) income from operations $ (36,420) $ 8,642 $ 50,461 $ 123,611

Operating (loss) income margin (3.9) % 0.9 % 1.7 % 4.2 %

Total restaurant-level operating income adjustments (1) 2,763 — 2,763 434

Asset impairments and closure-related charges (2) 31,570 5,127 29,641 32,407

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

THIRTEEN WEEKS ENDED

(dollars in thousands) MARCH 29, 2026 MARCH 30, 2025

Income from operations $ 59,103 $ 57,231

Operating income margin 5.6 % 5.5 %

Severance and other transformational costs (1) 3,381 6,058

Foreign currency forward contract costs (2) — 2,328

Asset impairments and closure-related charges (3) — (1,929)

Total income from operations adjustments 3,381 6,457

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_________________

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

(2) The thirteen and thirty-nine weeks ended September 28, 2025 primarily include costs related to the 2025 Restaurant Closures and the five underperforming U.S.

The thirteen and thirty-nine weeks ended September 29, 2024 include asset impairment, closure costs and severance primarily in connection with previous restaurant closures.

See Note 5 - Impairments and Exit Costs for additional details.

(3) Includes severance, professional fees and other costs incurred as a result of transformational and restructuring activities.

(1) Costs for the thirteen weeks ended March 29, 2026 relate to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.

Costs for the thirteen weeks ended March 30, 2025 include severance, professional fees and other costs incurred as a result of transformational and restructuring activities.

(2) Represents costs in connection with the foreign currency forward contracts that mostly offset foreign currency exchange risk associated with installment payments from the Brazil Sale Transaction.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(in thousands, except per share data) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

Net (loss) income attributable to Bloomin’ Brands $ (45,859) $ 6,912 $ 21,712 $ (48,557)

Net income from discontinued operations, net of tax 189 7,577 714 14,140

Net (loss) income attributable to Bloomin’ Brands from continuing operations (46,048) (665) 20,998 (62,697)

(3) Primarily includes gains from certain lease terminations for the thirteen weeks ended March 30, 2025.

Adjusted Net Income and Adjusted Diluted Earnings Per Share Non-GAAP Reconciliations - The following table reconciles Net income from continuing operations to adjusted net income from continuing operations for the periods indicated:

THIRTEEN WEEKS ENDED

(in thousands, except per share data) MARCH 29, 2026 MARCH 30, 2025

Net income from continuing operations $ 56,804 $ 43,850

net income attributable to noncontrolling interests 1,582 1,444

Net income attributable to Bloomin’ Brands from continuing operations 55,222 42,406

Income from operations adjustments (1) 3,381 6,457

Loss on extinguishment of debt (2) — — — 135,797

Total adjustments, before income taxes 3,381 6,457

Adjustment to (benefit) provision for income taxes (3) (1,028) (2,098) (3,023) (3,894)

Tax effect of adjustments (2) (1,246) 1,130

Net adjustments, continuing operations 2,135 7,587

Adjusted net (loss) income, continuing operations (2,902) 9,485 74,381 110,168

Adjusted net income, discontinued operations (4) 189 8,667 714 16,524

Adjusted net (loss) income $ (2,713) $ 18,152 $ 75,095 $ 126,692

Diluted (loss) earnings per share (5):

Continuing operations $ (0.54) $ (0.01) $ 0.25 $ (0.73)

Discontinued operations — 0.09 0.01 0.16

Net diluted (loss) earnings per share $ (0.54) $ 0.08 $ 0.25 $ (0.56)

Adjusted diluted (loss) earnings per share (5):

Continuing operations $ (0.03) $ 0.11 $ 0.87 $ 1.22

Discontinued operations — 0.10 0.01 0.18

Adjusted diluted (loss) earnings per share (6) $ (0.03) $ 0.21 $ 0.88 $ 1.41

Adjusted net income, continuing operations $ 57,357 $ 49,993

Diluted earnings per share - continuing operations $ 0.64 $ 0.50

Adjusted diluted earnings per share - continuing operations $ 0.67 $ 0.59

Diluted weighted average common shares outstanding 85,751 85,130

Adjusted diluted weighted average common shares outstanding (6) 85,093 86,164 85,222 90,057

_________________

(1) See the Adjusted Income from Operations Non-GAAP Reconciliations table above for details regarding (Loss) income from operations adjustments.

(2) Includes losses in connection with the Second 2025 Notes Partial Repurchase , including settlements of the related convertible senior note hedges and warrants.

(1) See the Adjusted Income from Operations Non-GAAP Reconciliations table above for details regarding income from operations adjustments.

(2) The tax effect of non-GAAP adjustments is determined by recomputing the (benefit) provision for income taxes on an adjusted basis.

The difference between the recomputed (benefit) provision for income taxes and the GAAP (benefit) provision for income taxes represents the tax effect of non-GAAP adjustments.

For the thirteen and thirty-nine weeks ended September 28, 2025, the difference between GAAP and adjusted (benefit) provision for income taxes is primarily related to the changes to forecasted pre-tax book income relative to prior quarters under both GAAP and non-GAAP and its impact on the application of the estimated annualized effective income tax rate to year-to-date ordinary income.

As a result of this methodology, we expect that a portion of the tax effect of the total adjustments for the thirteen and thirty-nine weeks ended September 28, 2025 will be reflected in the last quarter of this fiscal year.

For the thirty-nine weeks ended September 29, 2024, the difference between GAAP and adjusted effective income tax rates primarily relates to nondeductible losses and other tax costs associated with the Second 2025 Notes Partial Repurchase.

(4) Includes net income from our Brazil operations for the periods presented.

The thirteen and thirty-nine weeks ended September 29, 2024 include a non-GAAP adjustment for $1.5 million of transaction-related professional fees and the tax effect of non-GAAP adjustments.

The thirty-nine weeks ended September 29, 2024 also includes $1.5 million of asset impairment.

See Note 2 - Discontinued Operations of the Notes to Consolidated Financial Statements for additional details regarding the Brazil Sale Transaction.

(5) Amounts may not add due to rounding.

The thirteen weeks ended March 30, 2025 also includes an adjustment to (benefit) provision for income taxes related to foreign currency gains on the Brazil Sale Transaction installment receivable.

BLOOMIN’ BRANDS, INC.

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

(6) Due to a GAAP net loss from continuing operations, antidilutive securities are excluded from diluted weighted average common shares outstanding for the thirteen weeks ended September 28, 2025 and the thirteen and thirty-nine weeks ended September 29, 2024.

However, considering the adjusted net income position for the thirteen and thirty-nine weeks ended September 29, 2024, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP.

System-Wide Sales - The following table provides a summary of sales of franchised restaurants by segment for the periods indicated:

THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED

(dollars in millions) SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

THIRTEEN WEEKS ENDED

(dollars in millions) MARCH 29, 2026 MARCH 30, 2025

Outback Steakhouse $ 127 $ 130

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Bonefish Grill 1 2

Aussie Grill — — — 1

total 138 143

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Outback Steakhouse - South Korea 85 80

Other 32 33 95 97

International Franchise total 240 217

Total franchise sales $ 378 $ 360

_________________

(1) The decrease for the thirteen and thirty-nine weeks ended September 28, 2025 compared to the thirteen and thirty-nine weeks ended September 29, 2024 primarily resulted from fluctuations in foreign exchange rates.

Brazil sales are no longer reported on a one-month lag beginning December 31, 2024.

Liquidity and Capital Resources

Cash and Cash Equivalents

As of September 28, 2025, we had $66.5 million in cash and cash equivalents, of which $5.6 million was held by foreign affiliates, and did not have aggregate undistributed foreign earnings from our consolidated foreign subsidiaries.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

As of March 29, 2026, we had $71.3 million in cash and cash equivalents, of which $5.4 million was held by foreign affiliates, and did not have aggregate undistributed foreign earnings from our consolidated foreign subsidiaries.

Borrowing Capacity and Debt Service

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SENIOR SECURED CREDIT FACILITY TOTAL CREDIT FACILITIES

(dollars in thousands) REVOLVING CREDIT FACILITY 2025 NOTES 2029 NOTES

(dollars in thousands) REVOLVING CREDIT FACILITY 2029 NOTES

Balance as of December 28, 2025 $ 490,000 $ 300,000 $ 790,000

1 unchanged sentence

2026 payments (285,000) — (285,000)

Balance as of September 28, 2025 (1) $ 665,000 $ — $ 300,000 $ 965,000

Interest rates, as of September 28, 2025 (2) 6.47 % 5.13 %

Balance as of March 29, 2026 $ 455,000 $ 300,000 $ 755,000

Interest rates, as of March 29, 2026 (1) 5.57 % 5.13 %

Principal maturity date September 2029 April 2029

____________________

(1) On May 1, 2025, the 2025 Notes were settled primarily using borrowings from the revolving credit facility.

(2) Interest rate for revolving credit facility represents the weighted average interest rate as of September 28, 2025.

As of September 28, 2025, we had $518.7 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $16.3 million.

(1) Interest rate for revolving credit facility represents the weighted average interest rate as of March 29, 2026.

As of March 29, 2026, we had $728.7 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $16.3 million.

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

A violation of these covenants could negatively impact our liquidity by restricting our ability to borrow under the revolving credit facility and cause an acceleration of the amounts due under the credit facilities.

As of September 28, 2025 and December 29, 2024, we were in compliance with our debt covenants.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

As of March 29, 2026 and December 28, 2025, we were in compliance with our debt covenants.

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

Sources and Uses of Cash

Cash flows generated from operating activities, availability under our revolving credit facility and proceeds received from the Brazil Sale Transaction are our principal sources of liquidity, which we use for operating expenses, development of new restaurants, investments in technology, remodeling or relocating older restaurants, and dividend payments.

Cash flows generated from operating activities and availability under our revolving credit facility are our principal sources of liquidity, which we use for operating expenses, remodeling or relocating older restaurants, investments in technology and equipment and development of new restaurants.

We believe that our expected liquidity sources are adequate to fund debt service requirements, lease obligations, capital expenditures and working capital obligations during the 12 months following this filing.

However, our ability to continue to meet these requirements and obligations will depend on, among other things, our ability to achieve anticipated levels of revenue and cash flow and our ability to manage costs and working capital successfully.

Brazil Sale Transaction - On December 30, 2024, we 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 total Purchase Price from the Brazil Sale Transaction, and applied the proceeds to our revolving credit facility during the thirteen weeks ended March 30, 2025.

The second installment payment, representing 48% of total proceeds from the Brazil Sale Transaction and accumulated interest, is due on or before December 30, 2025, which we anticipate also applying towards the revolving credit facility.

Capital Expenditures - We estimate that our capital expenditures will be approximately $190 million in 2025.

The amount of actual capital expenditures may be affected by general economic, financial, competitive, legislative and

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

regulatory factors, among other things, including raw material constraints.

Dividends and Share Repurchases - I n October 2025, the Board suspended the dividend as a component of our turnaround strategy.

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

In February 2024, our Board approved a $350.0 million share repurchase authorization, which expired on August 13, 2025.

The following table presents our dividends and share repurchases for the periods indicated:

(dollars in thousands) DIVIDENDS PAID SHARE REPURCHASES TOTAL

Fiscal year 2024 $ 82,574 $ 265,695 $ 348,269

First fiscal quarter 2025 12,747 — 12,747

Second fiscal quarter 2025 12,759 — 12,759

Third fiscal quarter 2025 12,760 — 12,760

Total $ 120,840 $ 265,695 $ 386,535

Capital Expenditures - We estimate that our capital expenditures will total approximately $185 million to $195 million in 2026.

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

Summary of Cash Flows and Financial Condition

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

Operating Activities - The increase in net cash provided by operating activities during the thirty-nine weeks ended September 28, 2025 as compared to the thirty-nine weeks ended September 29, 2024 was primarily due to changes in working capital.

Investing Activities - Net cash used in investing activities during the thirty-nine weeks ended September 28, 2025 was primarily due to capital expenditures and payments on foreign currency forward contracts partially offset by the proceeds from the Brazil sale, net of taxes withheld.

Net cash used in investing activities during the thirty-nine weeks ended September 29, 2024 was primarily due to capital expenditures.

Operating Activities - The increase in net cash provided by operating activities during the thirteen weeks ended March 29, 2026 as compared to the thirteen weeks ended March 30, 2025 was primarily due to higher cash earnings partially offset by changes in working capital.

Investing Activities - Net cash used in investing activities during the thirteen weeks ended March 29, 2026 was due to capital expenditures.

Net cash provided by investing activities during the thirteen weeks ended March 30, 2025 was primarily due to proceeds from the Brazil Sale Transaction, net of taxes withheld, partially offset by capital expenditures and payments on foreign currency forward contracts.

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Financing Activities - Net cash used in financing activities during the thirty-nine weeks ended September 28, 2025 was primarily due to:

(i) net payments on the revolving credit facility from the proceeds on the Brazil Sale Transaction, (ii) payments of cash dividends and (iii) maturity settlement for the 2025 Notes.

Net cash provided by financing activities during the thirty-nine weeks ended September 29, 2024 was primarily due to net draws on the revolving credit facility exceeding cash used to repurchase common stock and pay dividends on our common stock, and net cash received from the partial unwind agreements relating to a portion of the convertible note hedge and warrant transactions that were entered into in connection with the issuance of the 2025 Notes.

Financing Activities - Net cash used in financing activities during the thirteen weeks ended March 29, 2026 was primarily due to net payments on the revolving credit facility.

Net cash used in financing activities during the thirteen weeks ended March 30, 2025 was primarily due to net payments on the revolving credit facility from the Brazil Sale Transaction proceeds.

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

(dollars in thousands) SEPTEMBER 28, 2025 DECEMBER 29, 2024

(dollars in thousands) MARCH 29, 2026 DECEMBER 28, 2025

Current assets $ 208,804 $ 269,638

2 unchanged sentences

Working capital (deficit) includes:

(i) Unearned revenue primarily from unredeemed gift cards of $295.4 million and $374.1 million as of September 28, 2025 and December 29, 2024, respectively, and (ii) current operating lease liabilities of $176.3 million and $158.8 million as of September 28, 2025 and December 29, 2024, respectively, with the corresponding operating right-of-use assets recorded as non-current on our Consolidated Balance Sheets.

(i) Unearned revenue primarily from unredeemed gift cards of $321.4 million and $377.9 million as of March 29, 2026 and December 28, 2025, respectively, and (ii) current operating lease liabilities of $177.0 million and $176.3 million as of March 29, 2026 and December 28, 2025, respectively, with the corresponding operating right-of-use assets recorded as non-current on our Consolidated Balance Sheets.

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

2 unchanged sentences

Critical Accounting Policies and Estimates

Our significant accounting policies are described in Note 2 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 29, 2024.

We prepare our condensed consolidated financial statements in conformity with U.S.

The preparation of these financial statements requires the use of estimates, judgments, and assumptions.

Our critical accounting estimates and assumptions related to goodwill and indefinite-lived intangible assets are described below.

We have included an update to our critical accounting estimates as we performed our annual impairment test and noted decreased fair values.

Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 29, 2024 for a discussion of our other critical accounting estimates and assumptions.

Goodwill and Indefinite-Lived Intangible Assets - Goodwill and indefinite-lived intangible assets are not subject to amortization and are tested for impairment annually in the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

We may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired.

If the qualitative assessment is not performed or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, a quantitative assessment is performed.

Fair value of a reporting unit is estimated by utilizing a weighted average of the income approach, typically using a discounted cash flow model, and the market approach, including the guideline public company method and guideline transaction method.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

We estimate the fair value of trade names using the relief-from-royalty method, which requires assumptions related to projected system-wide sales, market royalty rates and discount rates.

The carrying value of the reporting unit or trade name is compared to its estimated fair value, with any excess of carrying value over fair value deemed to be an impairment.

The carrying values of goodwill and trade names as of June 29, 2025 were $213.3 million and $414.7 million, respectively.

During the second quarter of 2025, we performed a quantitative impairment analysis due to the recent decline in our stock price and market capitalization.

We used a combination of the income and market approaches, weighted 50% each, to determine the fair value of the reporting units.

Some of the more significant estimates and assumptions included cash flow estimates (including sales and operating profit), long-term growth rates, discount rates that appropriately reflect the risks inherent in cash flow estimates, and market multiples.

These estimates are subjective, and our ability to achieve the forecasted cash flows used in our fair value calculations is affected by factors such as the success of strategic initiatives, changes in economic conditions, changes in our operating performance and changes in our business strategies.

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 (“cushion”) while the other reporting units had cushions that were above 20%.

The carrying values of goodwill for Outback Steakhouse and Bonefish Grill as of June 29, 2025 were $123.2 million and $28.2 million, respectively.

The fair value 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.

The discount rates for Outback Steakhouse and Bonefish Grill include a higher risk premium to reflect the elevated risk in management’s forecasted cash flows.

In addition, we considered the reasonableness of the fair value of the reporting units by assessing the implied enterprise value control premiums based on our market capitalization.

We determined that the implied control premium was reasonable, which corroborates our fair value estimates for the reporting units.

Assumptions used in the quantitative approach are made at a point in time and require significant judgment.

They are subject to change based on facts and circumstances present at the impairment test date.

However, it is reasonably possible that changes in assumptions could occur.

As a sensitivity measure, the following table summarizes the changes to the fair value of our Outback Steakhouse and Bonefish Grill reporting units if the discount rate or the long-term growth rate used to estimate fair value would have been increased (decreased) by the amounts stated in the table below, only for the discounted cash flow method.

These estimated changes in fair value are not necessarily representative of the actual impairment that would be recorded in the event of a fair value decline.

DISCOUNT RATE LONG-TERM GROWTH RATE

100-BASIS-POINT

50-BASIS-POINT

(dollars in thousands) INCREASE (1)

DECREASE INCREASE DECREASE (1)

Reporting Unit

Outback Steakhouse

$ (45,700) $ 51,400 $ 13,900 $ (13,300)

Bonefish Grill

$ (5,900) $ 6,700 $ 2,300 $ (2,100)

____________________

(1) The cushions for Outback Steakhouse and Bonefish Grill are reduced by 62% and 36%, respectively, as a result of increasing the discount rate by 100 basis points.

The cushions for Outback Steakhouse and Bonefish Grill are reduced by 18% and 13%, respectively, as a result of decreasing the long-term growth rate by 50 basis points.

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 cushion decreased to approximately 15% while the other trade names had cushions that were above 20%.

The carrying value of the Outback Steakhouse trade name as of June 29, 2025 was $287.0 million.

Similar to the goodwill analysis, the fair

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

value of the Outback Steakhouse trade name decreased primarily due to lower projected system-wide sales and an increased discount rate.

As a result of the decreased fair values, the goodwill associated with the Outback Steakhouse and Bonefish Grill reporting units and the Outback Steakhouse trade name are at a higher risk of future impairments if any assumptions, estimates, or market factors change in the future.

The preparation of these financial statements requires the use of estimates, judgments, and assumptions that affect the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities.

Actual results could differ from these estimates.

Our critical accounting estimates have not changed materially from those previously reported in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

Recently Issued Financial Accounting Standards

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis