Bloomin' Brands (BLMN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues declined 3.8% year-over-year to $1.04 billion, driven by lower comparable sales, FX headwinds from Brazil, and net restaurant closures.

• Diluted EPS was $0.08, down from $0.45 in the prior year; adjusted diluted EPS was $0.21, reflecting lower sales and higher costs.

• Leadership transition completed, with renewed focus on operational excellence and guest experience.

• Announced agreement to sell 67% of Brazil operations to Vinci Partners for R$1.4 billion (~$243 million), retaining 33% ownership and ongoing royalty stream.

• Net income attributable to Bloomin' Brands was $6.9 million, down from $44.5 million in Q3 2023.

Financial highlights

• GAAP operating income margin fell to 1.7% from 5.4% year-over-year; adjusted operating margin declined to 3% from 5.3%.

• Restaurant-level operating margin decreased to 12.5% from 13.8%, impacted by labor inflation and higher operating expenses.

• Off-premises sales comprised 23% of U.S. sales; third-party delivery rose to 13%.

• Cash and cash equivalents at quarter-end were $83.6 million; total debt increased to $1.09 billion.

• Repurchased $265.7 million of common stock YTD; $96.8 million remains under the current share repurchase authorization.

Outlook and guidance

• FY 2024 U.S. comparable restaurant sales guidance updated to -1% to -0.5%, reflecting continued industry softness.

• Adjusted diluted EPS guidance narrowed to $1.72–$1.82; Q4 adjusted EPS expected between $0.32 and $0.42.

• Sale of Brazil operations expected to close by year-end 2024, with Brazil restaurants to operate as unconsolidated franchisees post-closing.

• Commodity inflation for FY 2024 expected at 1–3%; adjusted tax rate expected at 6–7%.

• Capital expenditures for 2024 estimated at $260–$270 million.