Bloomin' Brands, Inc. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 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 terms the “Company,” “we,” “us,” “our” and other similar terms mean Bloomin’ Brands, Inc. and its subsidiaries. Cautionary Statement This Quarterly Report on Form 10-Q (the “Report”) includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “feels,” “seeks,” “forecasts,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could” or “would” or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and industry developments may differ materially from statements made in or suggested by the forward-looking statements contained in this Report. In addition, even if our results of operations, financial condition and liquidity, and industry developments are consistent with the forward-looking statements contained in this Report, those results or developments may not be indicative of results or developments in subsequent periods. 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) 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; 21 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued (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; and (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. 22 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 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 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. Overview We are one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. 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. Financial Overview - Our financial overview for the thirteen weeks ended March 29, 2026 for continuing operations includes the following: • U.S. combined and Outback Steakhouse comparable restaurant sales of 0.9% and (0.3)%, respectively; • 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; and • 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. • 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. • System-wide sales —total restaurant sales volume for all Company-owned and franchise restaurants, regardless of ownership, to interpret the overall health of our brands. System-wide sales is a non-GAAP financial measure that includes sales of all restaurants operating under our brand names, whether we own them or not. Sales from restaurants we do not own are not included in our consolidated Restaurant sales. Management uses this information to make decisions about future plans for the development of additional restaurants and new concepts, as well as evaluation of current operations. System-wide sales comprise sales of Company-owned and franchised restaurants. For a summary of sales of Company-owned restaurants, refer to Note 3 - Revenue Recognition of the Notes to Consolidated Financial Statements. Franchise restaurant sales disclosed as system-wide sales do not represent our sales and are 23 Table of Contents 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 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 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; and (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 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 or 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 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. GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board evaluate our operating performance, allocate resources and administer employee incentive plans. 24 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Selected Operating Data - The table below presents the number of our restaurants in operation as of the periods indicated: Number of restaurants (at end of the period): MARCH 29, 2026 MARCH 30, 2025 U.S. Outback Steakhouse Company-owned 546 552 Franchised 116 121 Total 662 673 Carrabba’s Italian Grill Company-owned 186 191 Franchised 17 17 Total 203 208 Bonefish Grill Company-owned 155 162 Franchised 2 4 Total 157 166 Fleming’s Prime Steakhouse & Wine Bar Company-owned 65 65 Other Franchised 1 1 U.S. total 1,088 1,113 International Franchise Outback Steakhouse - Brazil 188 178 Outback Steakhouse - South Korea 101 98 Other 65 67 International Franchise total 354 343 International - Company-owned Outback Steakhouse - Hong Kong 10 10 System-wide total 1,452 1,466 System-wide total - Company-owned 962 980 System-wide total - Franchised 490 486 25 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Results of Operations REVENUES 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 Change from: Restaurant openings (1) 22.0 U.S. comparable restaurant sales 9.2 Restaurant closures (2) (21.2) Other 2.3 For the period ended March 29, 2026 $ 1,041.8 ________________ (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 MARCH 29, 2026 MARCH 30, 2025 Average restaurant unit volumes: U.S. Outback Steakhouse $ 83,307 $ 82,423 Carrabba’s Italian Grill $ 76,077 $ 74,224 Bonefish Grill $ 69,647 $ 64,573 Fleming’s Prime Steakhouse & Wine Bar $ 126,463 $ 123,287 Operating weeks: U.S. Outback Steakhouse 7,122 7,182 Carrabba’s Italian Grill 2,425 2,483 Bonefish Grill 2,017 2,106 Fleming’s Prime Steakhouse & Wine Bar 845 830 26 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 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: Comparable restaurant sales (restaurants open 18 months or more): U.S. (1) Outback Steakhouse (0.3) % (1.3) % Carrabba’s Italian Grill 1.3 % 1.4 % Bonefish Grill 6.1 % (4.0) % Fleming’s Prime Steakhouse & Wine Bar 0.8 % 5.1 % Combined U.S. 0.9 % (0.5) % Traffic: U.S. Outback Steakhouse (2.4) % (4.1) % Carrabba’s Italian Grill (2.7) % (0.3) % Bonefish Grill 3.0 % (9.4) % Fleming’s Prime Steakhouse & Wine Bar (2.9) % (0.5) % Combined U.S. (1.8) % (3.9) % Average check per person (2): U.S. Outback Steakhouse 2.1 % 2.8 % Carrabba’s Italian Grill 4.0 % 1.7 % Bonefish Grill 3.1 % 5.4 % Fleming’s Prime Steakhouse & Wine Bar 3.7 % 5.6 % Combined U.S. 2.7 % 3.4 % ____________________ (1) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening. (2) Includes the impact of menu pricing changes, product mix and discounts. 27 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued COSTS AND EXPENSES 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 MARCH 29, 2026 MARCH 30, 2025 Revenues Restaurant sales 98.3 % 98.1 % Franchise and other revenues 1.7 1.9 Total revenues 100.0 100.0 Costs and expenses Food and beverage (1) 30.5 30.4 Labor and other related (1) 30.7 30.6 Other restaurant operating (1) 24.8 25.1 Depreciation and amortization 4.4 4.2 General and administrative 4.9 5.8 Provision for impaired assets and restaurant closings 0.5 * Total costs and expenses 94.4 94.5 Income from operations 5.6 5.5 Interest expense, net (1.2) (1.1) 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 income from continuing operations 5.4 4.2 Income (loss) from discontinued operations, net of tax * (*) Net income 5.4 4.2 Less: net income attributable to noncontrolling interests 0.1 0.2 Net income attributable to Bloomin’ Brands 5.3 % 4.0 % ____________________ (1) As a percentage of Restaurant sales. * Less than 1/10th of one percent of Total revenues. 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. 28 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 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 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. Excluded from Income from operations for U.S. 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. 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. Summary financial data - Following is a summary of U.S. segment financial data for the periods indicated: U.S. THIRTEEN WEEKS ENDED (dollars in thousands) MARCH 29, 2026 MARCH 30, 2025 Revenues Restaurant sales (1) $ 1,032,191 $ 1,020,130 Franchise and other revenues 10,262 10,773 Total revenues $ 1,042,453 $ 1,030,903 Income from operations $ 88,016 $ 87,670 Operating income margin 8.4 % 8.5 % ____________________ (1) The increase was due to the impact of restaurant openings and higher comparable restaurant sales partially offset by restaurant closures. U.S. - 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. 29 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF 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 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 % Less: Franchise and other revenues 17,847 20,077 Plus: Depreciation and amortization 46,296 43,947 General and administrative 52,306 61,377 Provision for impaired assets and restaurant closings 5,532 350 Restaurant-level operating income $ 145,390 $ 142,828 Restaurant-level operating margin 14.0 % 13.9 % 30 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 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 % Adjustments: 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 Adjusted income from operations $ 62,484 $ 63,688 Adjusted operating income margin 5.9 % 6.1 % _________________ (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. (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 Less: net income attributable to noncontrolling interests 1,582 1,444 Net income attributable to Bloomin’ Brands from continuing operations 55,222 42,406 Adjustments: Income from operations adjustments (1) 3,381 6,457 Total adjustments, before income taxes 3,381 6,457 Tax effect of adjustments (2) (1,246) 1,130 Net adjustments, continuing operations 2,135 7,587 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 _________________ (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. 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. 31 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued System-Wide Sales - The following table provides a summary of sales of franchised restaurants by segment for the periods indicated: THIRTEEN WEEKS ENDED (dollars in millions) MARCH 29, 2026 MARCH 30, 2025 U.S. Outback Steakhouse $ 127 $ 130 Carrabba’s Italian Grill 10 11 Bonefish Grill 1 2 U.S. total 138 143 International Franchise Outback Steakhouse - Brazil 123 106 Outback Steakhouse - South Korea 85 80 Other 32 31 International Franchise total 240 217 Total franchise sales $ 378 $ 360 Liquidity and Capital Resources Cash and Cash Equivalents 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 Credit Facilities - Following is a summary of our outstanding credit facilities as of the dates indicated and principal payments and debt issuance during the period indicated: SENIOR SECURED CREDIT FACILITY TOTAL CREDIT FACILITIES (dollars in thousands) REVOLVING CREDIT FACILITY 2029 NOTES Balance as of December 28, 2025 $ 490,000 $ 300,000 $ 790,000 2026 new debt 250,000 — 250,000 2026 payments (285,000) — (285,000) 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) 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. 32 Table of Contents 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 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. 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 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. 33 Table of Contents BLOOMIN’ BRANDS, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 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) MARCH 29, 2026 DECEMBER 28, 2025 Current assets $ 208,804 $ 269,638 Current liabilities 799,879 878,646 Working capital (deficit) $ (591,075) $ (609,008) Working capital (deficit) includes: (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). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital ex penditures. Critical Accounting Policies and Estimates We prepare our condensed consolidated financial statements in conformity with U.S. GAAP. 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 See Note 1 - Description of the Business and Basis of Presentation of the Notes to Consolidated Financial Statements of this Quarterly Report on Form 10-Q for a summary of new accounting standards. 34 Table of Contents BLOOMIN’ BRANDS, INC.