Bloomin’ Brands leveraging Carry-out and Delivery service in response to COVID-19
March 20 2020 - 7:49AM
Business Wire
Company draws down revolving credit facility
and withdraws financial guidance for 2020
Bloomin’ Brands, Inc. (Nasdaq: BLMN) today provided the
following update in response to the COVID-19 outbreak:
“The health and safety of our customers, team members and their
families is our top priority,” said David Deno, CEO of Bloomin’
Brands. “We remain committed to servicing our communities as we
navigate through the current environment. As part of this effort,
we will leverage our carry-out service and delivery network, to
customers at home, as well as provide limited in-restaurant dining
in areas where available.”
Increased Cash Reserves
The Company has a cash position of over $400 million after
drawing down substantially all of its revolving credit facility.
The increased borrowings were taken as a precautionary measure to
provide additional financial flexibility.
2020 Outlook
Due to the current unprecedented global market and economic
conditions, the Company is withdrawing its financial guidance for
the fiscal year ending December 27, 2020. The Board of Directors
has also suspended the quarterly cash dividend. The Company plans
to provide an update on its fiscal First Quarter earnings call.
“In addition to expanding our growing carry-out and delivery
business, we have taken actions to tightly manage costs in this new
environment,” said Chris Meyer, CFO of Bloomin’ Brands. “These
actions, combined with our strong cash reserves, address near-term
volatility under current market conditions.”
About Bloomin’ Brands,
Inc.
Bloomin’ Brands, Inc. is one of the largest casual dining
restaurant companies in the world with a portfolio of leading,
differentiated restaurant concepts. The Company has four
founder-inspired brands: Outback Steakhouse, Carrabba’s Italian
Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine
Bar. The Company operates more than 1,450 restaurants in 48 states,
Puerto Rico, Guam and 21 countries, some of which are franchise
locations. For more information, please visit
www.bloominbrands.com.
Forward-Looking
Statements
Certain statements contained herein are not based on historical
fact and are “forward-looking statements” within the meaning of
applicable securities laws. Generally, these statements can be
identified by the use of words such as “guidance,” “believes,”
“estimates,” “anticipates,” “expects,” “on track,” “feels,”
“forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,”
“will,” “should,” “could,” “would” and similar expressions intended
to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements include all matters that are not
historical facts. By their nature, forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from the Company’s forward-looking statements.
These risks and uncertainties include, but are not limited to: the
effects of the COVID-19 outbreak and uncertainties about its depth
and duration, as well as the impacts to economic conditions and
consumer behavior; the outcome of our review of strategic
alternatives, including the impact on our ongoing business, our
stock price and our ability to successfully implement any
alternatives that we pursue including our ability to achieve the
cost savings described in this release; consumer reaction to public
health and food safety issues; competition; increases in labor
costs; government actions and policies; increases in unemployment
rates and taxes; local, regional, national and international
economic conditions; consumer confidence and spending patterns;
price and availability of commodities; the effects of changes in
tax laws; challenges associated with our remodeling, relocation and
expansion plans; interruption or breach of our systems or loss of
consumer or employee information; political, social and legal
conditions in international markets and their effects on foreign
operations and foreign currency exchange rates; our ability to
preserve the value of and grow our brands; the seasonality of the
Company’s business; weather, acts of God and other disasters;
changes in patterns of consumer traffic, consumer tastes and
dietary habits; the cost and availability of credit; interest rate
changes; compliance with debt covenants and the Company’s ability
to make debt payments and planned investments; and our ability to
continue to pay dividends and repurchase shares of our common
stock. Further information on potential factors that could affect
the financial results of the Company and its forward-looking
statements is included in its most recent Form 10-K and subsequent
filings with the Securities and Exchange Commission. The Company
assumes no obligation to update any forward-looking statement,
except as may be required by law. These forward-looking statements
speak only as of the date of this release. All forward-looking
statements are qualified in their entirety by this cautionary
statement.
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Mark Graff Group Vice President, IR & Finance (813)
830-5311
Bloomin Brands (NASDAQ:BLMN)
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