What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 115 added, 89 removed, 287 unchanged (42% of the section changed)

12 unchanged sentences

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;

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

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

10 unchanged sentences

(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;

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

(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;

2 unchanged sentences

(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;

(xvi) Our productivity initiatives 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;

9 unchanged sentences

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

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

As of June 28, 2026, we owned and operated 959 restaurants and franchised 489 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:

Financial Overview - Our financial overview for the thirteen weeks ended June 28, 2026 includes the following:

combined and Outback Steakhouse comparable restaurant sales of 2.3% and 1.4%, 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;

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

• Increase in Total revenues of 1.3% as compared to the second quarter of 2025;

• Operating income and restaurant-level operating margins of 3.8% and 12.4%, respectively, as compared to 3.0% and 12.0%, respectively, for the second quarter of 2025;

• Operating income of $38.3 million as compared to $29.7 million in the second quarter of 2025;

• Diluted earnings per share from continuing operations of $0.37 as compared to $0.29 for the second 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.

37 unchanged sentences

Number of restaurants (at end of the period):

MARCH 29, 2026 MARCH 30, 2025

JUNE 28, 2026 JUNE 29, 2025

Outback Steakhouse

27 unchanged sentences

Results of Operations

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

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

(dollars in millions) THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

For the periods ended June 29, 2025 $ 984.8 $ 2,014.3

comparable restaurant sales 21.7 30.8

Restaurant openings (1) 13.0 34.9

Restaurant closures (2) (22.5) (43.5)

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

Other 1.0 3.3

For the periods ended June 28, 2026 $ 998.0 $ 2,039.8

________________

(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.

(1) The thirteen and twenty-six weeks ended June 28, 2026 i nclude restaurant sales from 24 and 26 new restaurants, respectively, not included in our comparable restaurant sales base.

(2) The thirteen and twenty-six weeks ended June 28, 2026 include restaurant sales from the closure of 38 and 42 restaurants since March 30, 2025 and December 29, 2024, respectively.

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Average restaurant unit volumes:

12 unchanged sentences

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Year over year percentage change:

19 unchanged sentences

4.2 % 1.9 % 3.4 % 2.7 %

____________________

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

5 unchanged sentences

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Restaurant sales 98.2 % 98.2 % 98.3 % 98.2 %

11 unchanged sentences

Interest expense, net (1.1) (1.1) (1.1) (1.0)

Income before (benefit) provision for income taxes 4.4 4.4

(Benefit) provision for income taxes (1.0) 0.1

Income before benefit for income taxes 2.7 1.9 3.6 3.2

Benefit for income taxes (0.6) (0.9) (0.8) (0.4)

Loss from equity method investment, net of tax (0.1) (0.2) (0.1) (0.2)

Net income from continuing operations 3.2 2.6 4.3 3.4

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

(Loss) income from discontinued operations, net of tax (*) 0.1 * *

Net income 3.2 2.7 4.3 3.4

2 unchanged sentences

3.1 % 2.5 % 4.2 % 3.3 %

____________________

(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.

Thirteen weeks ended June 28, 2026 as compared to thirteen weeks ended June 29, 2025

• Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.6% from commodity inflation partially offset by 1.4% from an increase in average check per person, primarily due to menu pricing.

• Labor and other related expense decreased as a percentage of Restaurant sales primarily due to 0.8% from an increase in average check per person and 0.2% from lower health insurance expense.

These impacts were partially offset by 0.4% from higher hourly and field management labor costs, mainly due to wage rate inflation.

• 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.

(i) 0.5% from productivity initiatives, (ii) 0.3% from an increase in average check per person and (iii) 0.3% from a decrease in preopening expense.

These impacts were partially offset by 0.5% from higher advertising expense and 0.3% 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.

• General and administrative expense decreased primarily due to lapping costs related to transformational and restructuring initiatives and foreign currency forward contracts.

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

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

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.

• Interest expense, net was flat primarily due to lapping the interest income realized during the thirteen weeks ended June 29, 2025 in connection with the installment payments from the Brazil Sale Transaction.

This was offset primarily by lower interest expense as a result of lower balances and interest rates on our revolving credit facility.

Benefit for income taxes for the thirteen weeks ended June 28, 2026 is lower than the thirteen weeks ended June 29, 2025 due to the impact of changes to the estimate of forecasted annual Income before benefit for income taxes relative to the prior quarter and the benefit of FICA Tax Credits for the thirteen weeks ended June 29, 2025.

Twenty-six weeks ended June 28, 2026 as compared to twenty-six weeks ended June 29, 2025

• Food and beverage cost increased as a percentage of Restaurant sales primarily due to 1.5% from commodity inflation partially offset by 1.4% from an increase in average check per person, primarily due to menu pricing.

• Labor and other related expense decreased as a percentage of Restaurant sales primarily due to 0.6% from an increase in average check per person, partially offset by 0.4% from higher hourly and field management labor costs, mainly due to wage rate inflation.

• Other restaurant operating expense decreased as a percentage of Restaurant sales primarily due to 0.5% from productivity initiatives partially offset by 0.3% 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.

• General and administrative expense decreased primarily due to lapping costs related to severance, foreign currency forward contracts and transformational and restructuring initiatives.

• 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.

• Interest expense, net increased primarily due to lapping the interest income realized during the twenty-six weeks ended June 29, 2025 in connection with the installment payments from the Brazil Sale Transaction.

This was offset primarily by lower interest expense as a result of lower balances and interest rates on our revolving credit facility.

Benefit for income taxes for the twenty-six weeks ended June 28, 2026 is higher than for the twenty-six weeks ended June 29, 2025, despite higher Income before benefit for income taxes, primarily due to lower forecasted full-year Income before benefit for income taxes in 2026 compared to 2025, which increased the relative benefit of the FICA Tax Credits.

SEGMENT PERFORMANCE

5 unchanged sentences

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.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Refer to Note 14 - Segment Reporting of the Notes to Consolidated Financial Statements for reconciliations of segment income from operations to the consolidated operating results.

1 unchanged sentence

segment financial data for the periods indicated:

THIRTEEN WEEKS ENDED

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Restaurant sales (1) $ 988,385 $ 975,295 $ 2,020,576 $ 1,995,425

4 unchanged sentences

____________________

(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.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

(1) The increases during the periods presented were due to higher comparable restaurant sales and the impact of restaurant openings partially offset by restaurant closures.

- The decrease in U.S.

Income from operations generated during the thirteen weeks ended June 28, 2026 as compared to the thirteen weeks ended June 29, 2025 was primarily due to:

(i) higher commodity, operating and labor costs, mainly due to inflation, (ii) higher advertising expense, (iii) higher costs from accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy and (iv) higher impairment expense.

These impacts were partially offset by:

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

The decrease in U.S.

Income from operations generated during the twenty-six weeks ended June 28, 2026 as compared to the twenty-six weeks ended June 29, 2025 was primarily due to:

(i) higher commodity, operating and labor costs, mainly due to inflation, (ii) higher impairment expense and (iii) higher costs from accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.

These impacts were partially offset by:

(i) an increase in average check per person, primarily due to pricing, and (ii) productivity initiatives.

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Franchise revenues (1) $ 7,593 $ 7,051 $ 15,163 $ 16,334

1 unchanged sentence

____________________

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

(1) The twenty-six weeks ended June 29, 2025 includes one month of pre-Brazil Sale Transaction intercompany royalties.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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

Consolidated THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Income from operations $ 38,263 $ 29,650 $ 97,366 $ 86,881

6 unchanged sentences

Restaurant-level operating margin 12.4 % 12.0 % 13.2 % 12.9 %

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in thousands) JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Income from operations $ 38,263 $ 29,650 $ 97,366 $ 86,881

7 unchanged sentences

_________________

(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.

(1) Costs for the thirteen and twenty-six weeks ended June 28, 2026 relate to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy.

Costs for the thirteen and twenty-six weeks ended June 29, 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.

(3) Primarily includes gains from certain lease terminations.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(in thousands, except per share data) JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Net income from continuing operations $ 32,930 $ 25,893 $ 89,734 $ 69,743

11 unchanged sentences

(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.

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

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

The difference between the recomputed Benefit for income taxes and the GAAP Benefit for income taxes represents the tax effect of non-GAAP adjustments.

The thirteen and twenty-six weeks ended June 29, 2025 also include an adjustment to Benefit for income taxes related to foreign currency gains on the Brazil Sale Transaction installment receivable.

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

THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED

(dollars in millions) JUNE 28, 2026 JUNE 29, 2025 JUNE 28, 2026 JUNE 29, 2025

Outback Steakhouse $ 124 $ 123 $ 251 $ 253

5 unchanged sentences

Outback Steakhouse - South Korea 72 74 157 154

Other 32 32 64 63

International Franchise total 241 225 481 442

2 unchanged sentences

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.

As of June 28, 2026, we had $66.6 million in cash and cash equivalents, of which $5.9 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

Borrowing Capacity and Debt Service

5 unchanged sentences

2026 payments (490,000) — (490,000)

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

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

Balance as of June 28, 2026 $ 405,000 $ 300,000 $ 705,000

Interest rates, as of June 28, 2026 (1) 5.55 % 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.

(1) Interest rate for revolving credit facility represents the weighted average interest rate as of June 28, 2026.

As of June 28, 2026, we had $774.2 million in available unused borrowing capacity under our revolving credit facility, net of letters of credit of $20.8 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.

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.

As of June 28, 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.

5 unchanged sentences

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.

BLOOMIN’ BRANDS, INC.

1 unchanged sentence

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.

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 twenty-six weeks ended June 28, 2026 as compared to the twenty-six weeks ended June 29, 2025 was primarily due to higher cash earnings and changes in working capital.

Investing Activities - Net cash used in investing activities during the twenty-six weeks ended June 28, 2026 was due to capital expenditures.

Net cash provided by investing activities during the twenty-six weeks ended June 29, 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.

Financing Activities - Net cash used in financing activities during the twenty-six weeks ended June 28, 2026 was primarily due to net payments on the revolving credit facility.

Net cash used in financing activities during the twenty-six weeks ended June 29, 2025 was primarily due to:

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

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

(dollars in thousands) JUNE 28, 2026 DECEMBER 28, 2025

Current assets $ 209,593 $ 269,638

2 unchanged sentences

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.

(i) Unearned revenue primarily from unredeemed gift cards of $310.1 million and $377.9 million as of June 28, 2026 and December 28, 2025, respectively, and (ii) current operating lease liabilities of $176.8 million and $176.3 million as of June 28, 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.

BLOOMIN’ BRANDS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

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.

8 unchanged sentences

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