Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced a business
update related to COVID-19 as well as recent sales results and
details on cash utilization and liquidity.
Statement from David Deno, Chief
Executive Officer
The priorities for Bloomin’ Brands remain unchanged as we
navigate these challenging times. We are focused on taking care of
our people and serving food in a safe environment that protects
both our Team Members and customers.
Since the onset of the pandemic, we have been nimble in adapting
our business. This included a pivot to an off-premises model as
dining rooms were forced to close. We were able to triple our
off-premises sales per restaurant while our dining rooms were
closed. Starting in early May states began the process of partially
re-opening their economies. Our decision to not furlough any
employees during this pandemic has allowed us to quickly prepare
our restaurants for the reopening of dining rooms in a safe and
efficient manner.
As of June 7, 2020, over 760 company-operated U.S. restaurants
(approximately 74% of U.S. restaurants) have reopened with limited
in-restaurant dining capacity in accordance with local mandates. At
Outback Steakhouse, we had 373 restaurants open for dine-in service
at limited capacity during the full week ended June 7, 2020.
Comparable restaurant sales at these locations were down 13.6% from
the prior year. We are encouraged by these sales trends as we begin
to reopen our dining rooms. By the end of the month, we expect to
have substantially all our domestic restaurant dining rooms opened
with limited seating capacity.
We continue to adhere to the strongest of safety measures as we
open dining rooms. These measures include additional sanitation and
disinfecting practices, enhanced hand-washing protocols, use of
gloves and facial protection for our employees, and we are also
providing contactless payment options for our customers. In
addition, each dining room seating configuration has been modified
to adhere to social distancing and reduced capacity standards, and
we are leveraging our table management notification system to allow
guests to wait in their cars for their table.
We are tightly managing our cash usage and the recent
convertible note transaction has further enhanced our liquidity
position. We believe we are well positioned to build upon our
recent success and emerge a stronger company as we navigate the
ongoing crisis.
Cash Utilization and Liquidity
Update
As of this morning, our total liquidity position was $493
million, which includes approximately $128 million of cash and $365
million of capacity on our revolving credit facility. This
liquidity position includes the $202 million net proceeds from the
recent convertible note offering. Our liquidity position over the
last several weeks has improved due to increased sales performance,
working capital inflows, and earned tax credits for employee relief
pay related to the CARES Act.
Recent Sales Results
The following table includes estimated comparable restaurant
sales by concept for our U.S. company-owned restaurants for the
periods indicated:
WEEK ENDED
Comparable restaurant sales (stores
open 18 months or more):
MAY 10, 2020(1)
MAY 17, 2020
MAY 24, 2020
MAY 31, 2020
JUNE 6, 2020
Outback Steakhouse
(32.8)%
(30.6)%
(27.1)%
(24.8)%
(24.7)%
Carrabba’s Italian Grill
(39.0)%
(35.2)%
(31.2)%
(24.1)%
(21.4)%
Bonefish Grill
(62.4)%
(61.8)%
(55.9)%
(48.6)%
(40.5)%
Fleming’s Prime Steakhouse & Wine
Bar
(66.9)%
(61.5)%
(51.8)%
(36.9)%
(45.2)%
Combined U.S.
(42.2)%
(39.1)%
(34.7)%
(29.5)%
(28.3)%
__________
(1) The week ended May 10, 2020 includes
the benefit of Mother’s Day.
- For the fiscal second quarter 2020, Brazil comparable
restaurant sales were (63.9)%. Following the onset of the pandemic,
most of our Brazil restaurants were open for off-premises only.
Brazil comparable restaurant sales are on a one-month lag and are
presented on a calendar basis. Represents results From March 1,
2020 through May 31, 2020.
The following table includes U.S. company-owned comparable
restaurant sales metrics for both restaurants open for
in-restaurant dining and restaurants with off premises only dining
for the full weekly periods ended as indicated:
RESTAURANTS WITH
RESTAURANTS WITH
OPEN IN-RESTAURANT
DINING
OFF-PREMISES DINING
ONLY
WEEK ENDED
WEEK ENDED
Comparable restaurant sales (stores
open 18 months or more):
MAY 10, 2020(1)
MAY 17, 2020
MAY 24, 2020
MAY 31, 2020
JUNE 6, 2020
MAY 10, 2020(1)
MAY 17, 2020
MAY 24, 2020
MAY 31, 2020
JUNE 6, 2020
Outback Steakhouse
Average sales volumes
$66,180
$54,464
$54,490
$57,276
$57,223
$53,684
$40,480
$40,518
$36,352
$36,248
Comparable restaurant sales
(22.2)%
(16.9)%
(17.1)%
(13.2)%
(13.6)%
(37.6)%
(40.1)%
(36.8)%
(44.7)%
(45.5)%
Number of Restaurants
178
239
277
360
373
393
332
294
211
198
Carrabba’s Italian Grill
Average sales volumes
$57,070
$42,351
$43,510
$45,099
$46,334
$35,886
$25,369
$27,039
$24,405
$25,507
Comparable restaurant sales
(30.0)%
(26.5)%
(24.2)%
(16.1)%
(13.3)%
(47.8)%
(48.2)%
(44.3)%
(49.1)%
(48.0)%
Number of Restaurants
92
114
125
150
153
112
90
79
54
51
Bonefish Grill
Average sales volumes
$39,209
$30,465
$33,013
$34,421
$38,708
$25,072
$15,692
$17,010
$17,569
$19,447
Comparable restaurant sales
(51.4)%
(48.4)%
(44.4)%
(38.0)%
(30.7)%
(67.8)%
(72.6)%
(69.4)%
(68.4)%
(64.5)%
Number of Restaurants
61
83
99
123
133
128
106
90
66
56
Fleming’s Prime Steakhouse & Wine
Bar
Average sales volumes
$69,378
$44,407
$49,225
$47,440
$47,955
$41,908
$21,340
$27,343
$30,827
$18,273
Comparable restaurant sales
(52.8)%
(32.2)%
(31.1)%
(17.0)%
(30.2)%
(67.4)%
(77.1)%
(69.1)%
(62.3)%
(78.9)%
Number of Restaurants
2
28
33
42
48
63
37
32
23
17
Combined U.S.
Average sales volumes
$58,742
$46,588
$47,613
$49,793
$50,754
$44,492
$32,169
$33,241
$30,669
$30,676
Comparable restaurant sales
(29.8)%
(25.4)%
(24.4)%
(18.1)%
(17.7)%
(48.0)%
(50.0)%
(46.1)%
(50.7)%
(51.1)%
Number of Restaurants
333
464
534
675
707
696
565
495
354
322
__________
(1) The week ended May 10, 2020 includes
the benefit of Mother’s Day.
Preliminary Data
The unaudited data presented in this release is preliminary,
based upon certain management estimates and subject to the
completion of our quarter end procedures for the preparation and
review of our quarterly financial statements. In addition,
estimated weekly sales data has been provided to help investors
understand and assess the near-term impacts of the COVID-19
pandemic, but is subject to variability and may not be indicative
of our results or trends for any full reporting period.
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 20 countries, some of which are franchise
locations. For more information, please visit
www.bloominbrands.com.
Forward-Looking
Statements
Certain statements contained herein, including statements under
the headings “Statement from David Deno, Chief Executive Officer”
and “Cash Utilization and Liquidity Update” 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 pandemic and uncertainties about its depth
and duration, as well as the impacts to economic conditions and
consumer behavior, including, among others: the inability of
workers, including delivery drivers, to work due to illness,
quarantine, or government mandates, temporary restaurant closures
due to reduced workforces or government mandates, the unemployment
rate, the extent, availability and effectiveness of any COVID-19
stimulus packages or loan programs, the ability of our franchisees
to operate their restaurants during the pandemic and pay royalties,
and trends in consumer behavior and spending during and after the
end of the pandemic; 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; and compliance with debt covenants and the Company’s
ability to make debt payments and planned investments. 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.
Note: Numerical figures included in this release have been
subject to rounding adjustments.
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version on businesswire.com: https://www.businesswire.com/news/home/20200611005179/en/
Mark Graff Group Vice President, IR & Finance (813)
830-5311
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