Bloomin' Brands, Inc. 10-Q

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) MARCH 29, 2026 DECEMBER 28, 2025 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $ 71,300 $ 59,461 Inventories 53,199 61,486 Other current assets, net 84,305 148,691 Total current assets 208,804 269,638 Property, fixtures and equipment, net 899,167 912,645 Operating lease right-of-use assets 977,103 979,270 Goodwill 185,135 185,135 Intangible assets, net 424,311 425,266 Deferred income tax assets, net 242,459 224,693 Equity method investment 66,404 63,967 Other assets, net 111,049 111,293 Total assets $ 3,114,432 $ 3,171,907 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 144,517 $ 138,189 Current operating lease liabilities 177,045 176,268 Accrued and other current liabilities 156,929 186,256 Unearned revenue 321,388 377,933 Total current liabilities 799,879 878,646 Non-current operating lease liabilities 1,043,034 1,046,380 Deferred income tax liabilities, net 9,929 9,009 Long-term debt, net 752,605 787,425 Other long-term liabilities, net 110,218 113,282 Total liabilities 2,715,665 2,834,742 Commitments and contingencies (Note 12) Stockholders’ equity Bloomin’ Brands stockholders’ equity Preferred stock, $ 0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 29, 2026 and December 28, 2025 — — Common stock, $ 0.01 par value, 475,000,000 shares authorized; 85,408,968 and 85,221,767 shares issued and outstanding as of March 29, 2026 and December 28, 2025, respectively 854 852 Additional paid-in capital 1,243,290 1,241,239 Accumulated deficit ( 861,943 ) ( 917,597 ) Accumulated other comprehensive income 13,326 9,108 Total Bloomin’ Brands stockholders’ equity 395,527 333,602 Noncontrolling interests 3,240 3,563 Total stockholders’ equity 398,767 337,165 Total liabilities and stockholders’ equity $ 3,114,432 $ 3,171,907 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 (IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED) THIRTEEN WEEKS ENDED MARCH 29, 2026 MARCH 30, 2025 Revenues Restaurant sales $ 1,041,826 $ 1,029,517 Franchise and other revenues 17,847 20,077 Total revenues 1,059,673 1,049,594 Costs and expenses Food and beverage 317,413 313,304 Labor and other related 320,209 315,250 Other restaurant operating 258,814 258,135 Depreciation and amortization 46,296 43,947 General and administrative 52,306 61,377 Provision for impaired assets and restaurant closings 5,532 350 Total costs and expenses 1,000,570 992,363 Income from operations 59,103 57,231 Interest expense, net ( 12,412 ) ( 11,187 ) Income before (benefit) provision for income taxes 46,691 46,044 (Benefit) provision for income taxes ( 10,291 ) 903 Loss from equity method investment, net of tax ( 178 ) ( 1,291 ) Net income from continuing operations 56,804 43,850 Income (loss) from discontinued operations, net of tax 432 ( 254 ) Net income 57,236 43,596 Less: net income attributable to noncontrolling interests 1,582 1,444 Net income attributable to Bloomin’ Brands $ 55,654 $ 42,152 Net income $ 57,236 $ 43,596 Other comprehensive income: Foreign currency translation adjustments 2,570 ( 2,353 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business — 217,548 Net gain (loss) on derivatives, net of tax 1,648 ( 177 ) Comprehensive income 61,454 258,614 Less: comprehensive income attributable to noncontrolling interests 1,582 1,444 Comprehensive income attributable to Bloomin’ Brands $ 59,872 $ 257,170 Basic earnings per share: Continuing operations $ 0.65 $ 0.50 Discontinued operations 0.01 — Net basic earnings per share $ 0.65 $ 0.50 Diluted earnings per share: Continuing operations $ 0.64 $ 0.50 Discontinued operations 0.01 — Net diluted earnings per share $ 0.65 $ 0.50 Weighted average common shares outstanding: Basic 85,278 84,902 Diluted 85,751 85,130 Th e accompanying notes are an integral part of these unaudited consolidated financial statements. Amounts may not add due to rounding. 4 Table of Contents BLOOMIN’ BRANDS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED) BLOOMIN’ BRANDS, INC. COMMON STOCK ADDITIONAL PAID-IN CAPITAL ACCUM- ULATED DEFICIT ACCUMULATED OTHER COMPREHENSIVE INCOME NON-CONTROLLING INTERESTS TOTAL SHARES AMOUNT Balance, December 28, 2025 85,222 $ 852 $ 1,241,239 $ ( 917,597 ) $ 9,108 $ 3,563 $ 337,165 Net income — — — 55,654 — 1,582 57,236 Other comprehensive income, net of tax — — — — 4,218 — 4,218 Stock-based compensation — — 2,670 — — — 2,670 Common stock issued under stock plans (1) 187 2 ( 619 ) — — — ( 617 ) Distributions to noncontrolling interests — — — — — ( 1,939 ) ( 1,939 ) Contributions from noncontrolling interests — — — — — 34 34 Balance, March 29, 2026 85,409 $ 854 $ 1,243,290 $ ( 861,943 ) $ 13,326 $ 3,240 $ 398,767 BLOOMIN’ BRANDS, INC. COMMON STOCK ADDITIONAL PAID-IN CAPITAL ACCUM- ULATED DEFICIT ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME NON-CONTROLLING INTERESTS TOTAL SHARES AMOUNT Balance, December 29, 2024 84,855 $ 849 $ 1,273,288 $ ( 925,834 ) $ ( 212,793 ) $ 3,936 $ 139,446 Net income — — — 42,152 — 1,444 43,596 Other comprehensive income, net of tax — — — — 215,018 — 215,018 Cash dividends declared, $ 0.15 per common share — — ( 12,747 ) — — — ( 12,747 ) Stock-based compensation — — 1,229 — — — 1,229 Common stock issued under stock plans (1) 132 1 ( 566 ) — — — ( 565 ) Distributions to noncontrolling interests — — — — — ( 1,800 ) ( 1,800 ) Contributions from noncontrolling interests — — — — — 673 673 Balance, March 30, 2025 84,987 $ 850 $ 1,261,204 $ ( 883,682 ) $ 2,225 $ 4,253 $ 384,850 ________________ (1) Net of shares withheld for employee taxes. The accompanying notes are an integral part of these unaudited consolidated financial statements. 5 Table of Contents BLOOMIN’ BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS, UNAUDITED) THIRTEEN WEEKS ENDED MARCH 29, 2026 MARCH 30, 2025 Cash flows provided by operating activities: Net income $ 57,236 $ 43,596 Income (loss) from discontinued operations, net of tax 432 ( 254 ) Net income from continuing operations 56,804 43,850 Adjustments to reconcile Net income from continuing operations to cash provided by operating activities of continuing operations: Depreciation and amortization 46,296 43,947 Amortization of deferred gift card sales commissions 6,801 6,897 Provision for impaired assets and restaurant closings 5,532 350 Stock-based compensation expense 2,670 1,229 Deferred income tax expense — 2,292 Loss on foreign currency forward contracts — 10,250 Loss from equity method investment, net of tax 178 1,291 Foreign currency translation gain on installment receivable from sale of business — ( 7,922 ) Other, net 3,332 1,441 Change in assets and liabilities ( 46,204 ) ( 32,785 ) Net cash provided by operating activities of continuing operations 75,409 70,840 Net cash (used in) provided by operating activities of discontinued operations ( 110 ) 2,625 Net cash provided by operating activities $ 75,299 $ 73,465 Cash flows (used in) provided by investing activities: Capital expenditures $ ( 25,182 ) $ ( 45,771 ) Payments on foreign currency forward contracts — ( 9,885 ) Cash received from sale, net of tax withheld and cash left in business — 95,863 Other investments, net — 1,149 Net cash (used in) provided by investing activities of continuing operations ( 25,182 ) 41,356 Net cash used in investing activities of discontinued operations — ( 1,623 ) Net cash (used in) provided by investing activities $ ( 25,182 ) $ 39,733 Cash flows used in financing activities: Proceeds from borrowings on revolving credit facilities $ 250,000 $ 385,000 Repayments of borrowings on revolving credit facilities ( 285,000 ) ( 495,000 ) Repayments of finance lease obligations ( 721 ) ( 636 ) Payments of taxes from share-based compensation, net ( 617 ) ( 565 ) Distributions to noncontrolling interests ( 1,939 ) ( 1,800 ) Contributions from noncontrolling interests 34 673 Cash dividends paid on common stock — ( 12,747 ) Other — ( 100 ) Net cash used in financing activities of continuing operations ( 38,243 ) ( 125,175 ) Net cash used in financing activities of discontinued operations — ( 65 ) Net cash used in financing activities ( 38,243 ) ( 125,240 ) Effect of exchange rate changes on cash and cash equivalents ( 35 ) ( 323 ) Net increase (decrease) in cash and cash equivalents 11,839 ( 12,365 ) Cash and cash equivalents as of the beginning of the period 59,461 70,056 Cash and cash equivalents as of the end of the period $ 71,300 $ 57,691 Supplemental disclosures of cash flow information: Cash paid for interest $ 8,287 $ 10,537 Supplemental disclosures of non-cash activities: Capital expenditures included in current liabilities $ 22,420 $ 23,620 The accompanying notes are an integral part of these unaudited consolidated financial statements. 6 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, Inc. (“Bloomin’ Brands” or the “Company”), a holding company that conducts its operations through its subsidiaries, is one of the largest casual dining restaurant companies in the world, with a portfolio of leading, differentiated restaurant concepts. OSI Restaurant Partners, LLC (“OSI”) is the Company’s primary operating entity. The Company owns and operates casual, polished casual and fine dining restaurants. 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. The Company utilizes a 52-53-week year ending on the last Sunday in December and its fiscal year ending December 27, 2026 will contain 52 weeks. 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 28, 2025. The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated. 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. Recently Issued Financial Accounting Standards Not Yet Adopted - 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 fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. ASU No. 2024-03 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. 2. Equity Method Investment On December 30, 2024, an indirect wholly owned subsidiary of the Company completed the sale of 67 % of the ownership interest in its business in Brazil to a fund managed by an affiliate of Vinci Partners Investments Ltd. (the 7 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued “Brazil Sale Transaction”). Following the closing, the Brazil restaurants began operating as unconsolidated franchisees and the Company retained a 33 % interest, 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. Following is a rollforward of the Company’s equity method investment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Balance, beginning of the period $ 63,967 $ — Fair value of retained interest at sale closing date — 59,863 Loss, net of tax ( 178 ) ( 1,291 ) Foreign currency translation adjustment 2,615 3,204 Balance, end of the period $ 66,404 $ 61,776 3. Revenue Recognition The following table includes the disaggregation of Restaurant sales and franchise revenues by restaurant concept and segment for the periods indicated: THIRTEEN WEEKS ENDED MARCH 29, 2026 MARCH 30, 2025 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 600,310 $ 8,009 $ 597,481 $ 8,169 Carrabba’s Italian Grill 184,487 587 184,330 662 Bonefish Grill 140,478 69 135,991 104 Fleming’s Prime Steakhouse & Wine Bar 106,916 — 102,328 — U.S. total 1,032,191 8,665 1,020,130 8,935 International Franchise (1) — 7,570 — 9,283 Other (2) 9,635 16 9,387 22 Total $ 1,041,826 $ 16,251 $ 1,029,517 $ 18,240 ________________ (1) The thirteen weeks ended March 30, 2025 includes one additional month of pre-Brazil Sale Transaction intercompany royalties. (2) Includes Restaurant sales for Company-owned restaurants in Hong Kong. 8 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Franchise Revenue - Effective December 31, 2023, the Company entered into an Amended & Restated Holistic Resolution Agreement (the “2023 Resolution Agreement”) with Cerca Trova Southwest Restaurant Group, LLC (d/b/a Out West Restaurant Group) and certain of its affiliates (collectively, “Out West”), who currently operate 72 franchised Outback Steakhouse restaurants in the western United States. The 2023 Resolution Agreement provided for forbearance regarding prior defaults and established operating covenants to maintain such forbearance. Subsequent to the thirteen weeks ended March 29, 2026, the Company received notice from the agent for Out West’s senior lender that Out West was in default of its separate Credit and Guaranty Agreement, dated as of April 25, 2017 (as amended or otherwise modified from time to time, the "Credit Agreement”) and Forbearance Agreement and Fourth Amendment to Credit and Guaranty Agreement (the “Forbearance Agreement”) with such agent and senior lenders as Out West was no longer in compliance with one or more covenants of such agreements. The senior agent and lenders have not yet elected to take any specific actions with respect to the default notice and have not yet elected to terminate the Forbearance Agreement, Credit Agreement, or other credit documents. Out West continues to operate its restaurants in the ordinary course and was current in its obligations to the Company as of March 29, 2026, including payment of royalties and other fees. If the senior lenders exercise their rights under their forbearance agreement with respect to this default, or the forbearance agreement expires or is terminated, the lenders have a priority right to payment of amounts due and may exercise creditor remedies against Out West, subject to applicable law and loan documents, including foreclosure on Out West’s assets. At this time, the Company is unable to predict the outcome of this process, possible actions by Out West’s lenders or any alternatives the Company may consider. The Company is working with Out West and other parties to mitigate potential disruptions and actively evaluating operational, contractual and strategic alternatives to address Out West’s near-term liquidity constraints and longer-term operations. The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) MARCH 29, 2026 DECEMBER 28, 2025 Other current assets, net Deferred gift card sales commissions $ 13,633 $ 17,155 Unearned revenue Deferred gift card revenue $ 313,425 $ 370,439 Deferred loyalty revenue 5,647 5,695 Deferred franchise fees - current 548 544 Other 1,768 1,255 Total Unearned revenue $ 321,388 $ 377,933 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,496 $ 4,408 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Balance, beginning of the period $ 17,155 $ 16,935 Deferred gift card sales commissions amortization ( 6,801 ) ( 6,897 ) Deferred gift card sales commissions capitalization 4,052 3,973 Other ( 773 ) ( 884 ) Balance, end of the period $ 13,633 $ 13,127 9 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Balance, beginning of the period $ 370,439 $ 366,059 Gift card sales 48,108 46,526 Gift card redemptions ( 97,427 ) ( 97,594 ) Gift card breakage ( 7,695 ) ( 6,253 ) Balance, end of the period $ 313,425 $ 308,738 4. Earnings Per Share The following table presents the computation of basic and diluted earnings per share for the periods indicated: THIRTEEN WEEKS ENDED (in thousands, except per share data) MARCH 29, 2026 MARCH 30, 2025 Net income attributable to Bloomin’ Brands $ 55,654 $ 42,152 Income (loss) from discontinued operations, net of tax 432 ( 254 ) Net income attributable to Bloomin’ Brands from continuing operations $ 55,222 $ 42,406 Basic weighted average common shares outstanding 85,278 84,902 Effect of dilutive securities: Stock-based compensation awards 473 228 Diluted weighted average common shares outstanding 85,751 85,130 Basic earnings per share (1): Continuing operations $ 0.65 $ 0.50 Discontinued operations 0.01 — Net basic earnings per share $ 0.65 $ 0.50 Diluted earnings per share (1): Continuing operations $ 0.64 $ 0.50 Discontinued operations 0.01 — Net diluted earnings per share $ 0.65 $ 0.50 Antidilutive stock-based compensation awards 1,394 2,151 Antidilutive convertible senior notes and warrants — 1,987 ________________ (1) Amounts may not add due to rounding. 10 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 5. 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 28, 2025 626 1,461 $ 16.08 $ 9.48 $ 4,253 $ 9,920 Granted (2) 1,150 1,807 $ 6.12 $ 6.27 Performance adjustment (3) ( 229 ) — $ 21.02 $ — Vested — ( 287 ) $ — $ 12.21 Forfeited — ( 1 ) $ — $ 23.87 Outstanding as of March 29, 2026 1,547 2,980 $ 7.95 $ 7.27 $ 8,137 $ 15,676 Expected to vest as of March 29, 2026 (4) 1,424 2,980 $ 7,491 $ 15,676 ________________ (1) Based on the $ 6.79 and $ 5.26 share price of the Company’s common stock on the last trading day of the year ended December 28, 2025 and the thirteen weeks ended March 29, 2026, respectively. (2) For PSUs, a new performance structure was used for certain 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 2023 and adjustment to 67 % payout for the first annual performance period for PSUs granted during 2025. (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 2024, 2025 and 2026 PSU award agreements. The following represents unrecognized stock-based compensation expense and the remaining weighted average recognition period as of March 29, 2026: UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands) REMAINING WEIGHTED AVERAGE RECOGNITION PERIOD (in years) Performance-based share units $ 8,149 2.4 Restricted stock units $ 18,222 2.4 6. Supplemental Balance Sheet Information Other current assets, net , consisted of the following as of the periods indicated: (dollars in thousands) MARCH 29, 2026 DECEMBER 28, 2025 Prepaid expenses $ 28,132 $ 24,018 Accounts receivable - gift cards, net 8,442 71,232 Accounts receivable - vendors, net 15,779 19,495 Accounts receivable - franchisees, net 3,116 3,603 Accounts receivable - other, net 9,451 7,886 Deferred gift card sales commissions 13,633 17,155 Other current assets, net 5,752 5,302 $ 84,305 $ 148,691 11 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) MARCH 29, 2026 DECEMBER 28, 2025 Accrued payroll and other compensation $ 43,223 $ 79,436 Accrued insurance 26,995 22,733 Other current liabilities 86,711 84,087 $ 156,929 $ 186,256 Long-term debt, net , consisted of the following as of the periods indicated: MARCH 29, 2026 DECEMBER 28, 2025 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior secured credit facility - revolving credit facility (1) $ 455,000 5.57 % $ 490,000 6.09 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Long-term debt 755,000 790,000 Less: unamortized debt discount and issuance costs ( 2,395 ) ( 2,575 ) Long-term debt, net $ 752,605 $ 787,425 ________________ (1) Includes a maximum capacity of $ 1.2 billion and matures on September 19, 2029. Interest rate represents the weighted average interest rate as of the respective periods. Debt Covenants - As of March 29, 2026 and December 28, 2025, the Company was in compliance with its debt c ovenants. 7. Stockholders’ Equity Accumulated Other Comprehensive Income (“AOCI”) - The following table is a rollforward of the components of AOCI for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Foreign currency translation: Balance, beginning of the period $ 9,262 $ ( 212,172 ) Foreign currency translation adjustment - equity method investment 2,615 3,204 Foreign currency translation adjustment - other ( 45 ) ( 5,557 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business — 217,548 Balance, end of the period $ 11,832 $ 3,023 Income (loss) on derivatives, net of tax: Balance, beginning of the period $ ( 154 ) $ ( 621 ) Change in fair value of derivatives, net of tax 1,472 ( 200 ) Reclassification realized in Net income, net of tax 176 23 Balance, end of the period $ 1,494 $ ( 798 ) Accumulated other comprehensive income: Balance beginning of the period $ 9,108 $ ( 212,793 ) Other comprehensive income attributable to Bloomin' Brands 4,218 215,018 Balance, end of the period $ 13,326 $ 2,225 12 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 8. Derivative Instruments and Hedging Activities Interest Rate Risk - The Company manages economic risks, including interest rate variability, primarily by managing the amount, sources and duration of its debt funding and through the use of derivative financial instruments. The Company’s objective in using interest rate derivatives is to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps. Designated Hedges Cash Flow Hedges of Interest Rate Risk - To manage its exposure to fluctuations in variable interest rates, in March 2024 and December 2023, OSI entered into 11 interest rate swap agreements with ten counterparties with an aggregate notional amount of $ 375.0 million and one and two-year tenors (the “2023 and 2024 Swap Agreements”). The Company had $ 100.0 million of interest rate swap agreements that matured on December 31, 2024 and December 31, 2025, respectively. In October 2025, OSI entered into an additional eight interest rate swap agreements with eight counterparties with an aggregate notional amount of $ 300.0 million and 12 - and 21 -month tenors (the “2025 Swap Transactions”, together with the 2023 and 2024 Swap Agreements, the “Swap Transactions”). The following are the terms of the remaining Swap Transactions: NOTIONAL AMOUNT WEIGHTED AVERAGE FIXED INTEREST RATE (1) EFFECTIVE DATE TERMINATION DATE $ 175,000,000 4.40 % March 29, 2024 March 31, 2026 $ 100,000,000 3.37 % December 31, 2025 December 31, 2026 $ 200,000,000 3.18 % March 31, 2026 December 31, 2027 ____________________ (1) The weighted average fixed interest rate excludes the term SOFR adjustment and interest rate spread described below. In connection with the Swap Transactions, the Company effectively converted its outstanding indebtedness based on the notional amount from a variable rate of SOFR, plus a term SOFR adjustment of 0.10 % and a spread of 150 to 250 basis points, to the weighted average fixed interest rates within the table above, plus a term SOFR adjustment of 0.10 % and a spread of 150 to 250 basis points. The Swap Transactions have an embedded floor of minus 0.10 %. The Swap Transactions have been designated and qualify as cash flow hedges, are recognized on the Company’s Consolidated Balance Sheets at fair value and are classified based on the instruments’ maturity dates. The Company estimates $ 1.3 million of interest income will be reclassified from Accumulated Other Comprehensive Income to Interest expense, net over the next 12 months related to the remaining Swap Transactions. 13 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 Transactions as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEETS CLASSIFICATION MARCH 29, 2026 DECEMBER 28, 2025 Interest rate swaps - asset Other current assets, net $ 1,235 $ 208 Interest rate swaps - asset Other assets, net 768 — Total fair value of derivative instruments - assets (1) $ 2,003 $ 208 Interest rate swaps - liability Accrued and other current liabilities $ 3 $ 330 Interest rate swaps - liability Other long-term liabilities, net — 87 Total fair value of derivative instruments - liabilities (1) $ 3 $ 417 ____________________ (1) See Note 7 - Stockholders’ Equity for interest rate swaps impact on AOCI and Note 10 - Fair Value Measurements for fair value discussion of the interest rate swaps. By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of March 29, 2026, 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. As of March 29, 2026 and December 28, 2025, the Company has not posted any collateral related to the Swap Transactions. The Company’s Swap Transactions are subject to master netting arrangements. As of March 29, 2026, the Company elected not to offset derivative positions in its Consolidated Balance Sheet with the same counterparty under the same agreement. Non-Designated Hedges 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. During the thirteen weeks ended December 28, 2025, the Company received the final installment payment related to the Brazil Sale Transaction and the foreign currency forward contracts matured. The followin g table summarizes the effects of the Company’s foreign exchange forward contracts on the Consolidated Statements of Operations and Comprehensive Income for the period indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 30, 2025 Loss on foreign currency forward contracts (1) General and administrative $ 10,250 ____________________ (1) The loss on foreign currency forward contracts, which includes costs in connection with the forward contracts, is partially offset within General and administrative expense by foreign currency exchange gains of $ 7.9 million related to the installment receivable from the Brazil Sale Transaction. 14 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 9. Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEETS CLASSIFICATION MARCH 29, 2026 DECEMBER 28, 2025 Operating lease right-of-use assets Operating lease right-of-use assets $ 977,103 $ 979,270 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 8,602 9,296 Total lease assets, net $ 985,705 $ 988,566 Current operating lease liabilities Current operating lease liabilities $ 177,045 $ 176,268 Current finance lease liabilities Accrued and other current liabilities 3,336 3,389 Non-current operating lease liabilities Non-current operating lease liabilities 1,043,034 1,046,380 Non-current finance lease liabilities Other long-term liabilities, net 7,223 7,890 Total lease liabilities $ 1,230,638 $ 1,233,927 ________________ (1) Net of accumulated amortization of $ 6.1 million and $ 5.4 million as of March 29, 2026 and December 28, 2025, respectively. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME CLASSIFICATION THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Operating lease cost (1) Other restaurant operating $ 42,451 $ 42,305 Variable lease cost Other restaurant operating 1,173 1,192 Finance lease costs: Amortization of leased assets Depreciation and amortization 695 690 Interest on lease liabilities Interest expense, net 193 239 Sublease revenue Franchise and other revenues ( 1,474 ) ( 1,702 ) Lease costs, net $ 43,038 $ 42,724 ________________ (1) Excludes rent expense for office facilities and closed or subleased properties of $ 3.2 million and $ 3.6 million for the thirteen weeks ended March 29, 2026 and March 30, 2025, respectively, which is included in General and administrative expense. The following table is a summary of supplemental information related to leases for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 45,415 $ 47,242 Leased assets obtained in exchange for new operating lease liabilities $ 20,548 $ 36,008 Leased assets obtained in exchange for new finance lease liabilities $ — $ 3,692 15 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 10. Fair Value Measurements Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: CONSOLIDATED BALANCE SHEETS CLASSIFICATION MEASUREMENT LEVEL FAIR VALUE (dollars in thousands) MARCH 29, 2026 DECEMBER 28, 2025 Assets: Short-term investments Cash and cash equivalents Level 1 $ 5,625 $ 5,597 Interest rate swaps Other current assets, net Level 2 $ 1,235 $ 208 Interest rate swaps Other assets, net Level 2 $ 768 $ — Liabilities: Interest rate swaps Accrued and other current liabilities Level 2 $ 3 $ 330 Interest rate swaps Other long-term liabilities Level 2 $ — $ 87 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 Fair value measurements are based on the contractual terms of the derivatives and observable market-based inputs. The 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. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of March 29, 2026 and December 28, 2025, the Company determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash equivalents, accounts receivable, and accounts payable approximate their carrying amounts reported on the Company’s Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: MARCH 29, 2026 DECEMBER 28, 2025 (dollars in thousands) CARRYING VALUE FAIR VALUE LEVEL 2 CARRYING VALUE FAIR VALUE LEVEL 2 Senior secured credit facility - revolving credit facility $ 455,000 $ 455,000 $ 490,000 $ 490,000 2029 Notes $ 300,000 $ 264,468 $ 300,000 $ 269,505 16 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 11. Income Taxes THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Income before (benefit) provision for income taxes $ 46,691 $ 46,044 (Benefit) provision for income taxes $ ( 10,291 ) $ 903 Effective income tax rate ( 22.0 ) % 2.0 % 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 before (benefit) provision for income taxes. For the thirteen weeks ended March 29, 2026 and March 30, 2025, the (benefit) provision for income taxes includes the benefit of FICA tax credits on certain tipped wages 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. The effective income tax rate for the thirteen weeks ended March 29, 2026 and March 30, 2025 was lower than the Company’s blended federal and state statutory rate of approximately 26 % primarily due to the benefit of FICA tax credits on certain tipped wages. The following table is a summary of cash paid for income taxes for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Cash paid for income taxes, net of refunds (1) $ 1,817 $ 15,802 ________________ (1) The thirteen weeks ended March 30, 2025 includes approximately $ 13.3 million of withholding taxes related to the first installment of the Brazil Sale Transaction. 12. Commitments and Contingencies Litigation and Other Matters - The Company recorded reserves of $ 4.9 million for certain of its outstanding legal proceedings as of March 29, 2026 and December 28, 2025, 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, the latest of which expires in 2032. As of March 29, 2026, the undiscounted payments that the Company could be required to make in the event of non-payment by the primary lessees were $ 10.4 million. The present value of these potential payments discounted at the Company’s incremental borrowing rate as of March 29, 2026 was $ 8.7 million. As of March 29, 2026 and December 28, 2025, the Company’s recorded contingent lease liability was $ 1.6 million. 17 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued 13. 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 1 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 28, 2025. Revenues for all segments include transactions with customers and royalties from franchisees. 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. In the tables below, “other” primarily includes amounts related to the Company’s Hong Kong subsidiary and its equity method investment in Brazil. Operating income is utilized by the Company’s Chief Operating Decision Maker (“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. The following table is a summary of revenues by segment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Revenues U.S. $ 1,042,453 $ 1,030,903 International Franchise 7,570 9,283 Total segment revenues 1,050,023 1,040,186 All other revenues 9,650 9,408 Total revenues $ 1,059,673 $ 1,049,594 18 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table presents segment operating income and significant segment expense information for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 U.S. Total revenues $ 1,042,453 $ 1,030,903 Less: Food and beverage 314,375 310,312 Labor and other related 314,292 312,705 Other restaurant operating 253,369 253,609 Other (1) 72,401 66,607 Total segment expenses 954,437 943,233 Income from operations $ 88,016 $ 87,670 International Franchise Total revenues (2) $ 7,570 $ 9,283 Less: Total segment expenses (1) 234 279 Income from operations $ 7,336 $ 9,004 Total segment Total revenues $ 1,050,023 $ 1,040,186 Less: Total segment expenses 954,671 943,512 Total segment income from operations $ 95,352 $ 96,674 _________________ (1) Includes depreciation and amortization and general and administrative expense. The U.S. segment also includes impairment expense. (2) The thirteen weeks ended March 30, 2025 includes one additional month of pre-Brazil Sale Transaction intercompany royalties. The following table is a reconciliation of segment income from operations to Income before (benefit) provision for income taxes for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Total segment income from operations $ 95,352 $ 96,674 Unallocated corporate operating expense ( 36,728 ) ( 39,768 ) Other income from operations 479 325 Total income from operations 59,103 57,231 Interest expense, net ( 12,412 ) ( 11,187 ) Income before (benefit) provision for income taxes $ 46,691 $ 46,044 The following table is a summary of depreciation and amortization by segment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Depreciation and amortization U.S. $ 44,034 $ 41,613 Corporate 2,101 2,084 Other 161 250 Total depreciation and amortization $ 46,296 $ 43,947 19 Table of Contents BLOOMIN’ BRANDS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued The following table is a summary of capital expenditures by segment, for the periods indicated: THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Capital expenditures U.S. $ 24,165 $ 39,297 Corporate 973 6,467 Other 44 7 Total capital expenditures $ 25,182 $ 45,771 The following table sets forth Total assets by segment as of the periods i ndicated: (dollars in thousands) MARCH 29, 2026 DECEMBER 28, 2025 Assets U.S. $ 2,515,590 $ 2,598,842 International Franchise 104,723 105,237 Total segment assets 2,620,313 2,704,079 Corporate 411,769 387,573 Other (1) 82,350 80,255 Total assets $ 3,114,432 $ 3,171,907 _________________ (1) Includes the Company’s equity method investment in Brazil. 20 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS