Bloomin’ Brands Announces 2021 Q2 Financial Results and Strong Operating Margin Expansion

Q2

2021

2020

CHANGE

Q2 2019 (1)

Diluted earnings (loss) per share attributable to common stockholders

$

0.75

$

(1.05)

$

1.80

$

0.32

Adjustments (2)

0.06

0.31

(0.25)

0.04

Adjusted diluted earnings (loss) per share (2)

$

0.81

$

(0.74)

$

1.55

$

0.36

___________________
(1) Presented for improved comparability.
(2) See Non-GAAP Measures later in this release.

(dollars in millions)

Q2 2021

Q2 2020

CHANGE

Q2 2019 (1)

Total revenues

$

1,077.4

$

578.5

86.2

%

$

1,021.9

Restaurant-level operating margin

20.3

%

2.1

%

18.2

%

15.0

%

Adjusted restaurant-level operating margin (2)

20.3

%

2.7

%

17.6

%

15.0

%

GAAP operating income (loss) margin

11.6

%

(19.3)

%

30.9

%

4.3

%

Adjusted operating income (loss) margin (2)

11.0

%

(13.7)

%

24.7

%

4.6

%

___________________
(1) Presented for improved comparability.
(2) See Non-GAAP Measures later in this release.

THIRTEEN WEEKS ENDED

JUNE 27, 2021

Comparable restaurant sales (stores open 18 months or more):

COMPARABLE TO 2019 (1)

COMPARABLE TO 2020

U.S.

Outback Steakhouse

11.3

%

65.8

%

Carrabba’s Italian Grill

16.7

%

84.3

%

Bonefish Grill

4.2

%

141.2

%

Fleming’s Prime Steakhouse & Wine Bar

24.4

%

182.6

%

Combined U.S.

12.1

%

84.6

%

International

Outback Steakhouse - Brazil (2)(3)

(36.3)

%

78.8

%

_________________
(1) Represents comparable restaurant sales increases (decreases) relative to 2019 for improved comparability due to the impact of COVID-19 on fiscal year 2020 restaurant sales.
(2) Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.
(3) Outback Steakhouse Brazil results are reported on a one-month lag and are presented on a calendar basis. Represents results through May 31, 2021.

FOUR WEEKS ENDED

JULY 25, 2021

Comparable restaurant sales (stores open 18 months or more):

COMPARABLE TO 2019 (1)

COMPARABLE TO 2020 (2)

U.S.

Outback Steakhouse

11.2

%

27.4

%

Carrabba’s Italian Grill

23.3

%

46.5

%

Bonefish Grill

12.3

%

65.4

%

Fleming’s Prime Steakhouse & Wine Bar

37.5

%

100.8

%

Combined U.S.

15.2

%

40.0

%

FOUR WEEKS ENDED

Comparable restaurant average unit volumes (weekly):

JULY 25, 2021 (3)

JULY 28, 2019 (3)

U.S.

Outback Steakhouse

$

73,367

$

65,938

Carrabba’s Italian Grill

$

63,650

$

51,640

Bonefish Grill

$

62,118

$

55,334

Fleming’s Prime Steakhouse & Wine Bar

$

94,553

$

68,769

Combined U.S.

$

70,762

$

61,379

_________________
(1) For the four-week period June 28, 2021 through July 25, 2021 as compared to July 1, 2019 through July 28, 2019.
(2) For the four-week period June 28, 2021 through July 25, 2021 as compared to June 29, 2020 through July 26, 2020.
(3) For the four-week periods June 28, 2021 through July 25, 2021 and July 1, 2019 through July 28, 2019, respectively.

EIGHT WEEKS ENDED

JULY 25, 2021

Comparable restaurant sales (stores open 18 months or more):

COMPARABLE TO 2019 (1)

COMPARABLE TO 2020 (2)

International

Outback Steakhouse - Brazil (3)

(7.9)

%

141.6

%

EIGHT WEEKS ENDED

Comparable restaurant average unit volumes (weekly):

JULY 25, 2021 (4)

JULY 28, 2019 (4)

International

Outback Steakhouse - Brazil (5)

$

59,222

$

64,816

________________
(1) For the eight-week period May 31, 2021 through July 25, 2021 as compared to June 3, 2019 through July 28, 2019.
(2) For the eight-week period May 31, 2021 through July 25, 2021 as compared to June 1, 2020 through July 26, 2020.
(3) Excludes the effect of fluctuations in foreign currency rates.
(4) For the eight-week periods May 31, 2021 through July 25, 2021 and June 3, 2019 through July 28, 2019, respectively.
(5) Translated at an average exchange rate of 5.09.

Selected Financial Data:

Q3 2021 Outlook

Total revenues

At least $1.015B

EBITDA (1)

At least $115M

GAAP diluted earnings per share (2)

At least $0.45

Adjusted diluted earnings per share (3)

At least $0.50

_________________
(1) See EBITDA outlook reconciliation later in this release.
(2) Assumes weighted average diluted shares of approximately 110 million, which includes the dilutive impact of shares issuable in excess of the convertible note principal and excludes the benefit of the convertible notes hedge.
(3) Assumes weighted average adjusted diluted shares of approximately 100 million, which excludes common shares to be issued upon conversion of the 2025 Notes for the amount in excess of the principal since our convertible note hedge offsets the dilutive impact of the shares underlying the 2025 Notes.

Selected Financial Data:

Prior Outlook

Current Outlook

Commodity inflation

Flat

Approx. 1.0%

Labor inflation

3.0% - 3.5%

3.0% - 3.5%

General and administrative expenses

$225M - $230M

$240M - $245M

Depreciation and amortization

$165M - $175M

$165M - $175M

Capital expenditures

$170M - $185M

$140M - $150M

Number of new system-wide restaurants

20 - 25

20 - 25

TABLE ONE

BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(in thousands, except per share data)

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Revenues

Restaurant sales

$

1,055,227

$

576,261

$

2,034,678

$

1,572,498

Franchise and other revenues

22,139

2,198

30,161

14,298

Total revenues

1,077,366

578,459

2,064,839

1,586,796

Costs and expenses

Food and beverage costs

312,102

180,758

603,972

500,451

Labor and other related

294,999

205,537

569,637

514,806

Other restaurant operating

233,450

177,846

462,743

424,401

Depreciation and amortization

40,539

45,784

81,765

94,052

General and administrative

66,462

55,487

123,710

140,289

Provision for impaired assets and restaurant closings

5,177

24,959

7,377

66,277

Total costs and expenses

952,729

690,371

1,849,204

1,740,276

Income (loss) from operations

124,637

(111,912)

215,635

(153,480)

Loss on extinguishment and modification of debt

(2,073)

(237)

(2,073)

(237)

Other income (expense), net

—

581

21

(212)

Interest expense, net

(14,990)

(16,639)

(29,618)

(28,347)

Income (loss) before provision (benefit) for income taxes

107,574

(128,207)

183,965

(182,276)

Provision (benefit) for income taxes

22,688

(35,779)

29,281

(55,434)

Net income (loss)

84,886

(92,428)

154,684

(126,842)

Less: net income (loss) attributable to noncontrolling interests

2,341

(172)

3,277

25

Net income (loss) attributable to Bloomin’ Brands

82,545

(92,256)

151,407

(126,867)

Redemption of preferred stock in excess of carrying value

—

—

—

(3,496)

Net income (loss) attributable to common stockholders

82,545

(92,256)

151,407

(130,363)

Convertible senior notes if-converted method interest adjustment, net of tax

—

—

691

—

Diluted net income (loss) attributable to common stockholders

$

82,545

$

(92,256)

$

152,098

$

(130,363)

Earnings (loss) per share attributable to common stockholders:

Basic

$

0.93

$

(1.05)

$

1.71

$

(1.49)

Diluted

$

0.75

$

(1.05)

$

1.38

$

(1.49)

Weighted average common shares outstanding:

Basic

89,075

87,496

88,721

87,312

Diluted

109,805

87,496

110,223

87,312

TABLE TWO

BLOOMIN’ BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

U.S. Segment

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Revenues

Restaurant sales

$

990,293

$

536,767

$

1,890,352

$

1,421,656

Franchise and other revenues

12,765

313

17,624

9,921

Total revenues

$

1,003,058

$

537,080

$

1,907,976

$

1,431,577

Restaurant-level operating margin

21.7

%

3.2

%

20.5

%

8.4

%

Income (loss) from operations

$

165,297

$

(62,921)

$

287,032

$

(51,542)

Operating income (loss) margin

16.5

%

(11.7)

%

15.0

%

(3.6)

%

International Segment

Revenues

Restaurant sales

$

64,934

$

39,494

$

144,326

$

150,842

Franchise and other revenues (1)

9,374

1,885

12,537

4,377

Total revenues

$

74,308

$

41,379

$

156,863

$

155,219

Restaurant-level operating margin

3.2

%

(21.8)

%

9.3

%

8.0

%

Income (loss) from operations

$

2,470

$

(17,070)

$

6,007

$

(10,283)

Operating income (loss) margin

3.3

%

(41.3)

%

3.8

%

(6.6)

%

Reconciliation of Segment Income (Loss) from Operations to Consolidated Income (Loss) from Operations

Segment income (loss) from operations

U.S.

$

165,297

$

(62,921)

$

287,032

$

(51,542)

International

2,470

(17,070)

6,007

(10,283)

Total segment income (loss) from operations

167,767

(79,991)

293,039

(61,825)

Unallocated corporate operating expense (2)

(43,130)

(31,921)

(77,404)

(91,655)

Total income (loss) from operations

$

124,637

$

(111,912)

$

215,635

$

(153,480)

____________________
(1) During the thirteen and twenty-six weeks ended June 27, 2021, we recognized $6.3 million of other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base of Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes.
(2) The thirteen and twenty-six weeks ended June 28, 2020 include $2.4 million and $24.6 million, respectively, of charges that were not allocated to our segments related to our transformational initiatives.

TABLE THREE

BLOOMIN’ BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

(UNAUDITED)

(dollars in thousands)

JUNE 27, 2021

DECEMBER 27, 2020

Cash and cash equivalents

$

101,285

$

109,980

Net working capital (deficit) (1)

$

(666,393)

$

(626,250)

Total assets

$

3,246,753

$

3,362,107

Total debt, net

$

850,063

$

1,036,480

Total stockholders’ equity

$

152,907

$

10,957

_________________
(1) 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 expenditures.

TABLE FOUR

BLOOMIN’ BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN RECONCILIATIONS

(UNAUDITED)

Consolidated

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Income (loss) from operations

$

124,637

$

(111,912)

$

215,635

$

(153,480)

Operating income (loss) margin

11.6

%

(19.3)

%

10.4

%

(9.7)

%

Less:

Franchise and other revenues

22,139

2,198

30,161

14,298

Plus:

Depreciation and amortization

40,539

45,784

81,765

94,052

General and administrative

66,462

55,487

123,710

140,289

Provision for impaired assets and restaurant closings

5,177

24,959

7,377

66,277

Restaurant-level operating income

$

214,676

$

12,120

$

398,326

$

132,840

Restaurant-level operating margin

20.3

%

2.1

%

19.6

%

8.4

%

U.S.

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Income (loss) from operations

$

165,297

$

(62,921)

$

287,032

$

(51,542)

Operating income (loss) margin

16.5

%

(11.7)

%

15.0

%

(3.6)

%

Less:

Franchise and other revenues

12,765

313

17,624

9,921

Plus:

Depreciation and amortization

33,579

37,308

67,224

74,948

General and administrative

22,953

18,343

44,045

49,223

Provision for impaired assets and restaurant closings

5,676

24,781

7,139

56,475

Restaurant-level operating income

$

214,740

$

17,198

$

387,816

$

119,183

Restaurant-level operating margin

21.7

%

3.2

%

20.5

%

8.4

%

International

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Income (loss) from operations

$

2,470

$

(17,070)

$

6,007

$

(10,283)

Operating income (loss) margin

3.3

%

(41.3)

%

3.8

%

(6.6)

%

Less:

Franchise and other revenues

9,374

1,885

12,537

4,377

Plus:

Depreciation and amortization

5,565

5,884

11,285

12,642

General and administrative

4,116

4,146

8,721

10,402

Provision for impaired assets and restaurant closings

(708)

296

(1)

3,640

Restaurant-level operating income (loss)

$

2,069

$

(8,629)

$

13,475

$

12,024

Restaurant-level operating margin

3.2

%

(21.8)

%

9.3

%

8.0

%

TABLE FIVE

BLOOMIN’ BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

FAVORABLE
(UNFAVORABLE)
CHANGE IN
ADJUSTED

QUARTER TO
DATE

JUNE 27, 2021

JUNE 28, 2020

Consolidated:

REPORTED

ADJUSTED

REPORTED

ADJUSTED (1)

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

29.6

%

29.6

%

31.4

%

31.2

%

1.6

%

Labor and other related

28.0

%

28.0

%

35.7

%

35.7

%

7.7

%

Other restaurant operating

22.1

%

22.1

%

30.9

%

30.4

%

8.3

%

Restaurant-level operating margin (2)

20.3

%

20.3

%

2.1

%

2.7

%

17.6

%

Segments - Restaurant-level operating margin:

U.S. (2)

21.7

%

21.7

%

3.2

%

3.9

%

17.8

%

International (2)

3.2

%

3.2

%

(21.8)

%

(21.4)

%

24.6

%

TWENTY-SIX WEEKS ENDED

FAVORABLE (UNFAVORABLE) CHANGE IN ADJUSTED

YEAR TO DATE

JUNE 27, 2021

JUNE 28, 2020

Consolidated:

REPORTED

ADJUSTED

REPORTED

ADJUSTED (1)

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

29.7

%

29.7

%

31.8

%

31.4

%

1.7

%

Labor and other related

28.0

%

28.0

%

32.7

%

32.7

%

4.7

%

Other restaurant operating

22.7

%

22.7

%

27.0

%

27.0

%

4.3

%

Restaurant-level operating margin (2)

19.6

%

19.6

%

8.4

%

8.9

%

10.7

%

Segments - Restaurant-level operating margin:

U.S. (2)

20.5

%

20.5

%

8.4

%

8.7

%

11.8

%

International (2)

9.3

%

9.3

%

8.0

%

9.3

%

—

%

(1)

The table set forth below titled “Restaurant-level Operating Margin Adjustments” provides additional information regarding the adjustments for each period presented.

(2)

The following categories of our revenue and operating expenses are not included in restaurant-level operating margin because we do not consider them reflective of operating performance at the restaurant-level within a period:

(a)

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.

(b)

Depreciation and amortization which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.

(c)

General and administrative expense which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.

(d)

Asset impairment charges and restaurant closing costs which are not reflective of ongoing restaurant performance in a period.

THIRTEEN WEEKS

TWENTY-SIX WEEKS

ENDED

ENDED

(dollars in millions)

JUNE 28, 2020

JUNE 28, 2020

COVID-19 related costs (1)

$

(3.7)

$

(9.9)

Restaurant relocations, asset impairments and closing costs

—

2.7

$

(3.7)

$

(7.2)

_________________
(1) Includes $1.2 million and $7.3 million of adjustments for the thirteen and twenty-six weeks ended June 28, 2020, respectively, recorded in Food and beverage costs, including $0.2 million and $2.0 million of adjustments, respectively, recorded in the international segment. All other adjustments were recorded within the U.S. segment.

TABLE SIX

BLOOMIN’ BRANDS, INC.

INCOME (LOSS) FROM OPERATIONS, NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(in thousands, except per share data)

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Income (loss) from operations

$

124,637

$

(111,912)

$

215,635

$

(153,480)

Operating income (loss) margin

11.6

%

(19.3)

%

10.4

%

(9.7)

%

Adjustments:

Legal and other matters (1)

(6,337)

—

(6,337)

178

COVID-19-related costs (2)

—

30,342

—

79,218

Severance and other transformational costs (3)

—

2,415

—

24,647

Restaurant relocations, asset impairments and closing costs (4)

—

—

—

(2,205)

Total income (loss) from operations adjustments

(6,337)

32,757

(6,337)

101,838

Adjusted income (loss) from operations

$

118,300

$

(79,155)

$

209,298

$

(51,642)

Adjusted operating income (loss) margin

11.0

%

(13.7)

%

10.2

%

(3.3)

%

Diluted net income (loss) attributable to common stockholders

$

82,545

$

(92,256)

$

152,098

$

(130,363)

Convertible senior notes if-converted method interest
adjustment, net of tax (5)

—

—

691

—

Net income (loss) attributable to common stockholders

82,545

(92,256)

151,407

(130,363)

Adjustments:

Income (loss) from operations adjustments

(6,337)

32,757

(6,337)

101,838

Loss on extinguishment and modification of debt

2,073

—

2,073

—

Amortization of debt discount (6)

—

1,379

—

1,379

Total adjustments, before income taxes

(4,264)

34,136

(4,264)

103,217

Adjustment to provision for income taxes (7)

1,243

(6,474)

1,243

(28,469)

Redemption of preferred stock in excess of carrying value (8)

—

—

—

3,496

Net adjustments

(3,021)

27,662

(3,021)

78,244

Adjusted net income (loss)

$

79,524

$

(64,594)

$

148,386

$

(52,119)

Diluted earnings (loss) per share attributable to common stockholders (9)

$

0.75

$

(1.05)

$

1.38

$

(1.49)

Adjusted diluted earnings (loss) per share (9)(10)

$

0.81

$

(0.74)

$

1.53

$

(0.60)

Diluted weighted average common shares outstanding (9)

109,805

87,496

110,223

87,312

Adjusted diluted weighted average common shares outstanding (9)(10)

98,574

87,496

97,011

87,312

_________________
(1) The thirteen and twenty-six weeks ended June 27, 2021 includes the recognition of recoverable PIS and COFINS taxes, including accrued interest, within other revenues as a result of favorable court rulings in Brazil during the second quarter of 2021.
(2) Costs incurred in connection with the COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage,contingent lease liabilities and current expected credit losses.
(3) Severance, professional fees and other costs incurred as a result of transformational and restructuring activities.
(4) Includes asset impairment charges and accelerated depreciation incurred in connection with our relocation program and a lease termination gain of $2.8 million.
(5) Adjustment for interest expense related to our convertible senior notes (the “2025 Notes”) weighted for the portion of the period prior to our election under the 2025 Notes indenture to settle the principal portion of our 2025 Notes in cash. The calculation of adjusted diluted earnings per share excludes the 2025 Notes interest adjustment.
(6) Amortization of the debt discount related to the issuance of the 2025 Notes.
(7) Income tax effect of the adjustments for the periods presented.
(8) Consideration paid in excess of the carrying value for the redemption of preferred stock of our Abbraccio subsidiary.
(9) Due to the GAAP net loss, the effect of dilutive securities was excluded from the calculation of GAAP diluted loss per share for the thirteen and twenty-six weeks ended June 28, 2020.
(10) For the twenty-six weeks ended June 27, 2021, adjusted diluted weighted average common shares outstanding was calculated assuming our February 2021 election to settle the principal portion of the 2025 Notes in cash was in effect for the entire period. For the thirteen and twenty-six weeks ended June 27, 2021, adjusted diluted weighted average common shares outstanding was calculated excluding the dilutive effect of 11,231 and 10,442 shares, respectively, to be issued upon conversion of the 2025 Notes to satisfy the amount in excess of the principal since our convertible note hedge offsets the dilutive impact of the shares underlying the 2025 Notes.

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Franchise and other revenues

$

(6,337)

$

—

$

(6,337)

$

—

Food and beverage costs

—

1,163

—

7,345

Other restaurant operating

—

2,467

—

(176)

Depreciation and amortization

—

—

—

407

General and administrative

—

3,632

—

27,856

Provision for impaired assets and restaurant closings

—

25,495

—

66,406

Loss on extinguishment and modification of debt

2,073

—

2,073

—

Interest expense, net

—

1,379

—

1,379

Provision (benefit) for income taxes

1,243

(6,474)

1,243

(28,469)

Redemption of preferred stock in excess of carrying value

—

—

—

3,496

Net adjustments

$

(3,021)

$

27,662

$

(3,021)

$

78,244

TABLE SEVEN

BLOOMIN’ BRANDS, INC.

SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATIONS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

U.S. Segment

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Income (loss) from operations

$

165,297

$

(62,921)

$

287,032

$

(51,542)

Operating income (loss) margin

16.5

%

(11.7)

%

15.0

%

(3.6)

%

Adjustments:

COVID-19-related costs (1)

—

29,805

—

72,784

Restaurant relocations, asset impairments and closing costs (2)

—

—

—

(2,205)

Adjusted income (loss) from operations

$

165,297

$

(33,116)

$

287,032

$

19,037

Adjusted operating income (loss) margin

16.5

%

(6.2)

%

15.0

%

1.3

%

International Segment

Income (loss) from operations

$

2,470

$

(17,070)

$

6,007

$

(10,283)

Operating income (loss) margin

3.3

%

(41.3)

%

3.8

%

(6.6)

%

Adjustments:

Legal and other matters (3)

(6,337)

—

(6,337)

—

COVID-19 related costs (1)

—

459

—

5,651

Adjusted loss from operations

$

(3,867)

$

(16,611)

$

(330)

$

(4,632)

Adjusted operating loss margin

(5.7)

%

(40.1)

%

(0.2)

%

(3.0)

%

_________________
(1) Costs incurred in connection with the COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory obsolescence and spoilage, contingent lease liabilities and current expected credit losses.
(2) Includes asset impairment charges and accelerated depreciation incurred in connection with our relocation program and a lease termination gain of $2.8 million.
(3) Recognition of recoverable PIS and COFINS taxes, including accrued interest, within other revenues as a result of favorable court rulings in Brazil during the second quarter of 2021.

TABLE EIGHT

BLOOMIN’ BRANDS, INC.

COMPARATIVE RESTAURANT INFORMATION

(UNAUDITED)

Number of restaurants (at end of the period):

MARCH 28, 2021

OPENINGS

CLOSURES

JUNE 27, 2021

U.S.:

Outback Steakhouse

Company-owned

567

—

(1)

566

Franchised

131

—

—

131

Total

698

—

(1)

697

Carrabba’s Italian Grill

Company-owned

199

—

—

199

Franchised

21

—

(1)

20

Total

220

—

(1)

219

Bonefish Grill

Company-owned

180

—

(1)

179

Franchised

7

—

—

7

Total

187

—

(1)

186

Fleming’s Prime Steakhouse & Wine Bar

Company-owned

64

—

—

64

Other

Company-owned (1)

6

2

—

8

U.S. total

1,175

2

(3)

1,174

International:

Company-owned

Outback Steakhouse - Brazil (2)

110

3

—

113

Other (1)(3)

34

—

—

34

Franchised

Outback Steakhouse—South Korea (3)

100

9

(1)

108

Other (1)

57

—

(2)

55

International total

301

12

(3)

310

System-wide total

1,476

14

(6)

1,484

____________________
(1) U.S. Company-owned and International Franchised Other includes four and three fast-casual Aussie Grill locations as of June 27, 2021. International Company-owned Other includes two fast-casual Aussie Grill locations as of June 27, 2021.
(2) The restaurant counts for Brazil are reported as of February 28, 2021 and May 31, 2021, respectively, to correspond with the balance sheet dates of this subsidiary.
(3) As of June 27, 2021, we had 32 international dark kitchens that offer delivery only included in Franchised Outback Steakhouse - South Korea. In addition, we had one international dark kitchen location included within Company-owned Other as of June 27, 2021.

TABLE NINE

BLOOMIN’ BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

JUNE 27, 2021

JUNE 28, 2020

JUNE 27, 2021

JUNE 28, 2020

Comparable to
2019 (1)

Comparable to
2020

Comparable to
2019

Comparable to
2019 (1)

Comparable to
2020

Comparable to
2019

Year over year percentage change:

Comparable restaurant sales (stores open 18 months or more):

U.S. (2)

Outback Steakhouse

11.3

%

65.8

%

(32.9)

%

2.3

%

28.8

%

(20.6)

%

Carrabba’s Italian Grill

16.7

%

84.3

%

(36.7)

%

7.7

%

38.4

%

(22.2)

%

Bonefish Grill

4.2

%

141.2

%

(56.8)

%

(6.3)

%

43.5

%

(34.7)

%

Fleming’s Prime Steakhouse &
Wine Bar

24.4

%

182.6

%

(56.3)

%

3.6

%

55.6

%

(33.6)

%

Combined U.S.

12.1

%

84.6

%

(39.4)

%

1.9

%

34.4

%

(24.2)

%

International

Outback Steakhouse - Brazil (3)

(36.3)

%

78.8

%

(63.9)

%

(26.2)

%

2.7

%

(27.4)

%

Traffic:

U.S.

Outback Steakhouse

4.4

%

51.4

%

(31.0)

%

(2.7)

%

21.9

%

(20.2)

%

Carrabba’s Italian Grill

13.0

%

57.2

%

(28.1)

%

5.8

%

27.0

%

(16.7)

%

Bonefish Grill

3.9

%

52.4

%

(29.8)

%

(4.7)

%

22.4

%

(20.6)

%

Fleming’s Prime Steakhouse & Wine Bar

11.9

%

97.0

%

(43.5)

%

(3.5)

%

33.5

%

(28.0)

%

Combined U.S.

6.2

%

53.6

%

(30.6)

%

(1.4)

%

23.2

%

(19.8)

%

International

Outback Steakhouse - Brazil

(20.3)

%

63.0

%

(48.5)

%

(13.6)

%

8.9

%

(19.0)

%

Average check per person (4):

U.S.

Outback Steakhouse

6.9

%

14.4

%

(1.9)

%

5.0

%

6.9

%

(0.4)

%

Carrabba’s Italian Grill

3.7

%

27.1

%

(8.6)

%

1.9

%

11.4

%

(5.5)

%

Bonefish Grill

0.3

%

88.8

%

(27.0)

%

(1.6)

%

21.1

%

(14.1)

%

Fleming’s Prime Steakhouse & Wine Bar

12.5

%

85.6

%

(12.8)

%

7.1

%

22.1

%

(5.6)

%

Combined U.S.

5.9

%

31.0

%

(8.8)

%

3.3

%

11.2

%

(4.4)

%

International

Outback Steakhouse - Brazil

(15.8)

%

22.2

%

(15.2)

%

(12.4)

%

(4.5)

%

(8.4)

%

____________________
(1) Represents comparable restaurant sales, traffic and average check per person increases (decreases) relative to fiscal year 2019 for improved comparability due to the impact of COVID-19 on fiscal year 2020 restaurant sales.
(2) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(3) Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.
(4) Average check per person includes the impact of menu pricing changes, product mix and discounts.

TABLE TEN

BLOOMIN’ BRANDS, INC.

EBITDA RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

TWENTY-SIX WEEKS ENDED

(dollars in thousands)

JUNE 27, 2021

JUNE 27, 2021

Net income attributable to common stockholders

$

82,545

$

151,407

Provision for income taxes

22,688

29,281

Interest expense, net

14,990

29,618

Depreciation and amortization

40,539

81,765

EBITDA

$

160,762

$

292,071

TABLE ELEVEN

BLOOMIN’ BRANDS, INC.

FISCAL 2021 THIRD QUARTER EBITDA OUTLOOK RECONCILIATION

(UNAUDITED)

(dollars in millions)

Net income attributable to common stockholders

At least $50M

Provision for income taxes

At least $10M

Interest expense, net

At least $14M

Depreciation and amortization

At least $41M

EBITDA

At least $115M