Cover Page
Cover Page - $ / shares | 6 Months Ended | |
Jun. 27, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 27, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35625 | |
Entity Registrant Name | BLOOMIN’ BRANDS, INC. | |
Entity Incorporation, State | DE | |
Entity Tax Identification Number | 20-8023465 | |
Entity Address, Address Line One | 2202 North West Shore Boulevard | |
Entity Address Line Two | Suite 500 | |
Entity Address City | Tampa | |
Entity Address State | FL | |
Entity Address Postal Zip Code | 33607 | |
City Area Code | 813 | |
Local Phone Number | 282-1225 | |
Title of 12(b) Security | Common Stock | |
Security Trading Currency | USD | |
Par Value Per Share | $ 0.01 | |
Trading Symbol | BLMN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 89,224,282 | |
Amendment Flag | false | |
Entity Central Index Key | 0001546417 | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 |
Current assets | ||
Cash and cash equivalents | $ 101,285 | $ 109,980 |
Restricted cash and cash equivalents | 1,790 | 428 |
Inventories | 59,004 | 61,928 |
Other current assets, net | 84,984 | 151,518 |
Total current assets | 247,063 | 323,854 |
Property, fixtures and equipment, net | 855,021 | 887,687 |
Operating lease right-of-use assets | 1,161,650 | 1,172,910 |
Goodwill | 272,707 | 271,164 |
Intangible assets, net | 457,371 | 459,983 |
Deferred income tax assets, net | 156,485 | 153,883 |
Other assets, net | 96,456 | 92,626 |
Total assets | 3,246,753 | 3,362,107 |
Current liabilities | ||
Accounts payable | 160,142 | 141,457 |
Accrued and other current liabilities | 439,296 | 388,321 |
Unearned revenue | 302,996 | 381,616 |
Current portion of long-term debt | 11,022 | 38,710 |
Total current liabilities | 913,456 | 950,104 |
Non-current operating lease liabilities | 1,207,055 | 1,217,921 |
Long-term debt, net | 839,041 | 997,770 |
Other long-term liabilities, net | 134,294 | 185,355 |
Total liabilities | 3,093,846 | 3,351,150 |
Commitments and contingencies | ||
Bloomin’ Brands stockholders’ equity | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of June 27, 2021 and December 27, 2020 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 89,210,729 and 87,855,571 shares issued and outstanding as of June 27, 2021 and December 27, 2020, respectively | 892 | 879 |
Additional paid-in capital | 1,109,904 | 1,132,808 |
Accumulated deficit | (762,319) | (918,096) |
Accumulated other comprehensive loss | (202,188) | (211,446) |
Total Bloomin’ Brands stockholders’ equity | 146,289 | 4,145 |
Noncontrolling interests | 6,618 | 6,812 |
Total stockholders’ equity | 152,907 | 10,957 |
Total liabilities and stockholders’ equity | $ 3,246,753 | $ 3,362,107 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 27, 2021 | Dec. 27, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 89,210,729 | 87,855,571 |
Common stock, shares outstanding (in shares) | 89,210,729 | 87,855,571 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||
Revenues | |||||
Restaurant sales, franchise and other 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 | 0 | 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 | 0 | 0 | 0 | (3,496) | [1] |
Net income (loss) attributable to common stockholders | 82,545 | (92,256) | 151,407 | (130,363) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 10,015 | (29,146) | 3,440 | (37,107) | |
Unrealized loss on derivatives, net of tax | (128) | (1,556) | (170) | (14,892) | |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | 1,514 | 2,585 | 4,517 | 3,981 | |
Amortization of terminated interest rate swaps, net of tax | 1,471 | 0 | 1,471 | 0 | |
Comprehensive income (loss) | 97,758 | (120,545) | 163,942 | (174,860) | |
Less: comprehensive income (loss) attributable to noncontrolling interests | 2,341 | (172) | 3,277 | (639) | |
Comprehensive income (loss) attributable to Bloomin’ Brands | $ 95,417 | $ (120,373) | $ 160,665 | $ (174,221) | |
Earnings (loss) per share attributable to common stockholders: | |||||
Basic (in USD per share) | $ 0.93 | $ (1.05) | $ 1.71 | $ (1.49) | |
Diluted (in USD per share) | $ 0.75 | $ (1.05) | $ 1.38 | $ (1.49) | |
Weighted average common shares outstanding: | |||||
Basic (in shares) | 89,075 | 87,496 | 88,721 | 87,312 | |
Diluted (in shares) | 109,805 | 87,496 | 110,223 | 87,312 | |
Restaurant sales | |||||
Revenues | |||||
Restaurant sales, franchise and other revenues | $ 1,055,227 | $ 576,261 | $ 2,034,678 | $ 1,572,498 | |
Franchise and other revenues | |||||
Revenues | |||||
Restaurant sales, franchise and other revenues | $ 22,139 | $ 2,198 | $ 30,161 | $ 14,298 | |
[1] | Consideration paid in excess of carrying value for the redemption of preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders for the twenty-six weeks ended June 28, 2020. See Note 12 - Stockholders’ Equity |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative-effect from a change in accounting principle | Common stock | Additional paid-in capital | Additional paid-in capitalCumulative-effect from a change in accounting principle | Accumulated deficit | Accumulated deficitCumulative-effect from a change in accounting principle | Accumulated other comprehensive loss | Non-controlling interests | |
Balance at beginning of period (in shares) at Dec. 29, 2019 | 86,946,000 | |||||||||
Balance at beginning of period at Dec. 29, 2019 | $ 177,481 | $ (4,292) | $ 869 | $ 1,094,338 | $ (755,089) | $ (4,292) | $ (169,776) | $ 7,139 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Consideration for preferred stock in excess of carrying value, net of tax | (3,500) | |||||||||
Balance at end of period (in shares) at Mar. 29, 2020 | 87,417,000 | |||||||||
Balance at end of period at Mar. 29, 2020 | 100,143 | $ 874 | 1,074,081 | (793,992) | (189,013) | 8,193 | ||||
Balance at beginning of period (in shares) at Dec. 29, 2019 | 86,946,000 | |||||||||
Balance at beginning of period at Dec. 29, 2019 | $ 177,481 | (4,292) | $ 869 | 1,094,338 | (755,089) | (4,292) | (169,776) | 7,139 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | ASU No. 2016-13 | |||||||||
Net income (loss) | $ (126,842) | (126,867) | 25 | |||||||
Other comprehensive income (loss), net of tax | $ (48,018) | (47,871) | (147) | |||||||
Cash dividends declared per common share (in dollars per share) | $ 0.20 | |||||||||
Cash dividends declared, per common share | $ (17,480) | (17,480) | ||||||||
Stock-based compensation | 8,360 | 8,360 | ||||||||
Consideration for preferred stock in excess of carrying value, net of tax | (1,718) | (3,496) | 517 | 1,261 | ||||||
Common stock issued under stock plans (in shares) | [1] | 588,000 | ||||||||
Common stock issued under stock plans | [1] | (2,862) | $ 6 | (2,868) | ||||||
Purchase of noncontrolling interests | (57) | (58) | 1 | |||||||
Distributions to noncontrolling interests | (338) | (338) | ||||||||
Contributions from noncontrolling interests | 147 | 147 | ||||||||
Adjustments to additional paid in capital, equity component of convertible debt, tax effect | 650 | |||||||||
Equity component value of convertible note issuance, net | 64,367 | 64,367 | ||||||||
Sale of common stock warrant | 46,690 | 46,690 | ||||||||
Purchase of convertible note hedge | (66,240) | (66,240) | ||||||||
Balance at end of period (in shares) at Jun. 28, 2020 | 87,534,000 | |||||||||
Balance at end of period at Jun. 28, 2020 | 29,198 | $ 875 | 1,123,613 | (886,248) | (217,130) | 8,088 | ||||
Balance at beginning of period (in shares) at Mar. 29, 2020 | 87,417,000 | |||||||||
Balance at beginning of period at Mar. 29, 2020 | 100,143 | $ 874 | 1,074,081 | (793,992) | (189,013) | 8,193 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (92,428) | (92,256) | (172) | |||||||
Other comprehensive income (loss), net of tax | (28,117) | (28,117) | ||||||||
Stock-based compensation | 5,071 | 5,071 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 117,000 | ||||||||
Common stock issued under stock plans | [1] | (355) | $ 1 | (356) | ||||||
Distributions to noncontrolling interests | (27) | (27) | ||||||||
Contributions from noncontrolling interests | 94 | 94 | ||||||||
Adjustments to additional paid in capital, equity component of convertible debt, tax effect | 650 | |||||||||
Equity component value of convertible note issuance, net | 64,367 | 64,367 | ||||||||
Sale of common stock warrant | 46,690 | 46,690 | ||||||||
Purchase of convertible note hedge | (66,240) | (66,240) | ||||||||
Balance at end of period (in shares) at Jun. 28, 2020 | 87,534,000 | |||||||||
Balance at end of period at Jun. 28, 2020 | $ 29,198 | $ 875 | 1,123,613 | (886,248) | (217,130) | 8,088 | ||||
Balance at beginning of period (in shares) at Dec. 27, 2020 | 87,855,571 | 87,856,000 | ||||||||
Balance at beginning of period at Dec. 27, 2020 | $ 10,957 | $ (42,953) | $ 879 | 1,132,808 | $ (47,323) | (918,096) | $ 4,370 | (211,446) | 6,812 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting standards update 2020-06 | |||||||||
Net income (loss) | $ 154,684 | 151,407 | 3,277 | |||||||
Other comprehensive income (loss), net of tax | 9,258 | 9,258 | ||||||||
Stock-based compensation | 14,507 | 14,507 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 1,355,000 | ||||||||
Common stock issued under stock plans | [1] | 9,925 | $ 13 | 9,912 | ||||||
Distributions to noncontrolling interests | (4,141) | (4,141) | ||||||||
Contributions from noncontrolling interests | $ 670 | 670 | ||||||||
Balance at end of period (in shares) at Jun. 27, 2021 | 89,210,729 | 89,211,000 | ||||||||
Balance at end of period at Jun. 27, 2021 | $ 152,907 | $ 892 | 1,109,904 | (762,319) | (202,188) | 6,618 | ||||
Balance at beginning of period (in shares) at Mar. 28, 2021 | 88,855,000 | |||||||||
Balance at beginning of period at Mar. 28, 2021 | 45,405 | $ 889 | 1,097,639 | (844,864) | (215,060) | 6,801 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 84,886 | 82,545 | 2,341 | |||||||
Other comprehensive income (loss), net of tax | 12,872 | 12,872 | ||||||||
Stock-based compensation | 9,781 | 9,781 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 356,000 | ||||||||
Common stock issued under stock plans | [1] | 2,487 | $ 3 | 2,484 | ||||||
Distributions to noncontrolling interests | (2,683) | (2,683) | ||||||||
Contributions from noncontrolling interests | $ 159 | 159 | ||||||||
Balance at end of period (in shares) at Jun. 27, 2021 | 89,210,729 | 89,211,000 | ||||||||
Balance at end of period at Jun. 27, 2021 | $ 152,907 | $ 892 | $ 1,109,904 | $ (762,319) | $ (202,188) | $ 6,618 | ||||
[1] | Net of forfeitures and shares withheld for employee taxes. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 154,684 | $ (126,842) |
Adjustments to reconcile Net income (loss) to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 81,765 | 94,052 |
Amortization of debt discounts and issuance costs | 2,396 | 2,966 |
Amortization of deferred gift card sales commissions | 14,436 | 11,592 |
Provision for impaired assets and restaurant closings | 7,377 | 66,277 |
Amortization of unrealized loss on terminated interest rate swaps | 1,981 | 0 |
Non-cash operating lease costs | 38,073 | 36,230 |
Provision for expected credit losses and contingent lease liabilities | 937 | 7,447 |
Inventory obsolescence and spoilage | 0 | 6,413 |
Stock-based and other non-cash compensation expense | 14,507 | 8,360 |
Deferred income tax expense (benefit) | 10,300 | (58,578) |
(Gain) loss on disposal of property, fixtures and equipment | (709) | 1,014 |
Other, net | 502 | (991) |
Change in assets and liabilities | (43,067) | (51,253) |
Net cash provided by (used in) operating activities | 283,182 | (3,313) |
Cash flows used in investing activities: | ||
Proceeds from disposal of property, fixtures and equipment | 4,828 | 422 |
Capital expenditures | (51,398) | (53,205) |
Other investments, net | 3,945 | 4,782 |
Net cash used in investing activities | (42,625) | (48,001) |
Cash flows (used in) provided by financing activities: | ||
Proceeds from issuance of long-term debt | 200,000 | 0 |
Repayments of long-term debt and finance lease obligations | (425,564) | (13,242) |
Proceeds from borrowings on revolving credit facilities, net | 286,000 | 505,000 |
Repayments of borrowings on revolving credit facilities | (599,000) | (489,000) |
Financing fees | (5,868) | (3,096) |
Proceeds from issuance of senior notes | 300,000 | 0 |
Proceeds from issuance of convertible senior notes | 0 | 230,000 |
Proceeds from issuance of warrants | 0 | 46,690 |
Purchase of convertible note hedge | 0 | (66,240) |
Issuance costs related to senior notes | (5,546) | (8,416) |
Proceeds (payments of taxes) from share-based compensation, net | 9,925 | (2,862) |
Distributions to noncontrolling interests | (4,141) | (338) |
Contributions from noncontrolling interests | 670 | 147 |
Purchase of limited partnership and noncontrolling interests | 0 | (57) |
Payments for partner equity plan | (4,494) | (9,976) |
Cash dividends paid on common stock | 0 | (17,480) |
Redemption of subsidiary preferred stock | 0 | (1,475) |
Net cash (used in) provided by financing activities | (248,018) | 169,655 |
Effect of exchange rate changes on cash and cash equivalents | 128 | (2,955) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (7,333) | 115,386 |
Cash, cash equivalents and restricted cash as of the beginning of the period | 110,408 | 67,145 |
Cash, cash equivalents and restricted cash as of the end of the period | 103,075 | 182,531 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 23,748 | 23,595 |
Cash paid for income taxes, net of refunds | 11,883 | 5,287 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 28,261 | 13,549 |
Leased assets obtained in exchange for new finance lease liabilities | 48 | 538 |
Decrease in liabilities from the acquisition of property, fixtures and equipment | $ (203) | $ (9,666) |
Description of the Business and
Description of the Business and Basis of Presentation | 6 Months Ended |
Jun. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation Description of the Business - Bloomin’ Brands (“Bloomin’ Brands” or the “Company”) owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements. Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2020. Recently Adopted Financial Accounting Standards - On December 28, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity,” (“ASU No. 2020-06”) which removes the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. ASU No. 2020-06 also requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method is no longer permitted for convertible instruments. The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021: ADJUSTMENT CONSOLIDATED BALANCE SHEET CLASSIFICATION AMOUNT Deferred tax impact of cumulative-effect adjustment Deferred income tax assets, net $ 14.9 Debt discount reclassification Long-term debt, net $ 59.9 Equity issuance costs reclassification Long-term debt, net $ (2.1) Debt discount amortization reclassification, net of tax Accumulated deficit $ 4.4 Reversal of separated equity component, net of tax Additional paid-in capital $ (47.3) After adopting ASU No. 2020-06, the Company’s convertible senior notes due 2025 (the “2025 Notes”) are reflected entirely as a liability since the embedded conversion feature is no longer separately presented within stockholders’ equity. During 2020, the Company recognized debt discount amortization of $6.3 million within Interest expense, net related to its 2025 Notes. In February 2021, the Company made an irrevocable election under the indenture to require the principal portion of its 2025 Notes to be settled in cash and any excess in shares. Following the irrevocable notice, only the amounts expected to be settled in excess of the principal will be considered in diluted earnings per share under the if-converted method. Recently Issued Financial Accounting Standards Not Yet Adopted - Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period. These reclassifications had no effect on previously reported net income. |
COVID-19 Charges
COVID-19 Charges | 6 Months Ended |
Jun. 27, 2021 | |
COVID-19 Impact [Abstract] | |
COVID-19 Charges | COVID-19 Charges In March 2020, the Company temporarily closed all restaurant dining rooms in the U.S. to comply with state and local regulations in response to the COVID-19 pandemic (“COVID-19”). Following is a summary of charges recorded in connection with the COVID-19 pandemic for the periods indicated (dollars in thousands): CHARGES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 28, 2020 JUNE 28, 2020 Inventory obsolescence and spoilage (1) Food and beverage costs $ 1,163 $ 7,345 Compensation for idle employees (2) Labor and other related 11,388 27,574 Other operating charges Other restaurant operating 2,467 2,467 Lease guarantee contingent liabilities (3) General and administrative — 4,188 Allowance for expected credit losses (4) General and administrative — 3,334 Other charges General and administrative 1,216 1,789 Right-of-use asset impairment (5) Provision for impaired assets and restaurant closings 5,273 25,757 Fixed asset impairment (5) Provision for impaired assets and restaurant closings 19,611 31,339 Goodwill and other impairment (6) Provision for impaired assets and restaurant closings 611 2,999 $ 41,729 $ 106,792 ________________ (1) Includes the write-off of value-added tax credits during the twenty-six weeks ended June 28, 2020 related to the purchase of inventory by the Company’s Brazil subsidiary. (2) Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $13.7 million of employee retention tax credits earned during the thirteen and twenty-six weeks ended June 28, 2020. (3) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (4) Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. (5) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then current economic conditions, restructuring charges and the closure of certain restaurants. (6) Includes impairment of goodwill for the Company’s Hong Kong subsidiary during the twenty-six weeks ended June 28, 2020. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 27, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) 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 Franchise revenue 12,221 1,951 19,010 11,500 Other revenues (1) 9,918 247 11,151 2,798 Total 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 ________________ (1) During the thirteen and twenty-six weeks ended June 27, 2021, the Company 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. The amount recognized as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest, and will be recovered by offsetting future PIS and COFINS taxes due. The following tables include disaggregation of Restaurant sales and franchise revenue, by restaurant concept and major international market, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUE RESTAURANT SALES FRANCHISE REVENUE U.S. Outback Steakhouse $ 579,096 $ 8,418 $ 346,553 $ 136 Carrabba’s Italian Grill 171,408 665 93,738 7 Bonefish Grill 149,036 174 63,744 4 Fleming’s Prime Steakhouse & Wine Bar 88,101 — 31,156 — Other 2,652 — 1,576 — U.S. total 990,293 9,257 536,767 147 International Outback Steakhouse Brazil 43,310 — 24,003 — Other (1) 21,624 2,964 15,491 1,804 International total 64,934 2,964 39,494 1,804 Total $ 1,055,227 $ 12,221 $ 576,261 $ 1,951 TWENTY-SIX WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUE RESTAURANT SALES FRANCHISE REVENUE U.S. Outback Steakhouse $ 1,126,291 $ 11,374 $ 877,238 $ 6,677 Carrabba’s Italian Grill 329,094 1,282 240,613 468 Bonefish Grill 276,010 304 198,816 140 Fleming’s Prime Steakhouse & Wine Bar 154,412 — 102,116 — Other 4,545 — 2,873 — U.S. total 1,890,352 12,960 1,421,656 7,285 International Outback Steakhouse Brazil 104,158 — 115,593 — Other (1) 40,168 6,050 35,249 4,215 International total 144,326 6,050 150,842 4,215 Total $ 2,034,678 $ 19,010 $ 1,572,498 $ 11,500 ________________ (1) Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Other current assets, net Deferred gift card sales commissions $ 12,548 $ 19,300 Unearned revenue Deferred gift card revenue $ 293,955 $ 373,048 Deferred loyalty revenue 8,604 8,099 Deferred franchise fees - current 437 469 Total Unearned revenue $ 302,996 $ 381,616 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,174 $ 4,301 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Balance, beginning of period $ 13,502 $ 13,049 $ 19,300 $ 18,554 Deferred gift card sales commissions amortization (5,711) (2,502) (14,436) (11,592) Deferred gift card sales commissions capitalization 5,297 3,142 8,796 7,466 Other (540) (65) (1,112) (804) Balance, end of period $ 12,548 $ 13,624 $ 12,548 $ 13,624 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Balance, beginning of period $ 306,075 $ 277,518 $ 373,048 $ 358,757 Gift card sales 63,921 41,649 108,090 100,088 Gift card redemptions (71,859) (37,404) (176,799) (170,585) Gift card breakage (4,182) (1,790) (10,384) (8,287) Balance, end of period $ 293,955 $ 279,973 $ 293,955 $ 279,973 |
Impairments and Exit Costs
Impairments and Exit Costs | 6 Months Ended |
Jun. 27, 2021 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Impairments and Exit Costs | Impairments and Exit Costs The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Impairment losses U.S. (1) $ 5,768 $ 23,741 $ 7,174 $ 54,713 International (1)(2) (555) 296 152 3,468 Corporate (3) 209 (119) 238 6,161 Total impairment losses 5,422 23,918 7,564 64,342 Restaurant closure charges U.S. (1) (92) 1,041 (34) 1,762 International (1) (153) — (153) 173 Total restaurant closure charges (245) 1,041 (187) 1,935 Provision for impaired assets and restaurant closings $ 5,177 $ 24,959 $ 7,377 $ 66,277 ________________ (1) U.S. and international impairment and closure charges for the thirteen and twenty-six weeks ended June 28, 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. (2) Includes goodwill impairment charges of $2.0 million during the twenty-six weeks ended June 28, 2020. (3) Corporate impairment charges for the twenty-six weeks ended June 28, 2020 primarily relate to transformational initiatives. COVID-19 Restructuring - During the thirteen and twenty-six weeks ended June 28, 2020, the Company recognized pre-tax asset impairments and closure charges in connection with the closure of 22 restaurants and from the update of certain cash flow assumptions, including lease renewal considerations (the “COVID-19 Restructuring”). Following is a summary of the COVID-19 Restructuring charges recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated (dollars in thousands): CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN AND TWENTY-SIX WEEKS ENDED DESCRIPTION JUNE 28, 2020 Property, fixtures and equipment impairments Provision for impaired assets and restaurant closings $ 16,932 Lease right-of-use asset impairments and closing costs Provision for impaired assets and restaurant closings 3,920 Severance and other expenses General and administrative 1,160 $ 22,012 The remaining impairment and closure charges during the periods presented resulted primarily from locations identified for relocation or closure. Annual Goodwill and Intangible Asset Impairment Assessment - The Company performs its annual assessment for impairment of goodwill and other indefinite-lived intangible assets during its second fiscal quarter. The Company’s 2021 assessment was qualitative and its 2020 assessment was quantitative. In connection with these assessments, the Company did not record any impairment charges. Accrued Facility Closure and Other Costs Rollforward - The following table is a rollforward of the Company’s closed facility lease liabilities and other accrued costs associated with the closure and restructuring initiatives, for the period indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 Balance, beginning of the period $ 12,879 Cash payments (2,239) Accretion 488 Adjustments (790) Balance, end of the period (1) $ 10,338 ________________ (1) As of June 27, 2021, the Company had exit-related accruals related to certain closure and restructuring initiatives of $3.6 million recorded in Accrued and other current liabilities and $6.7 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 27, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The dilutive effect of the 2025 Notes is calculated using the if-converted method which was required upon the Company’s adoption of ASU No. 2020-06. To the extent the Company has the ability to settle its 2025 Notes in shares of its common stock, the principal and conversion spread on the 2025 Notes will have a dilutive impact on diluted earnings per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of $11.89 per share of common stock. In February 2021, the Company provided the trustee of its 2025 Notes notice of the Company’s irrevocable election to settle the principal portion of the 2025 Notes in cash and any excess in shares. As a result, subsequent to the election, only the amounts in excess of the principal amount are considered in diluted earnings per share under the if-converted method. In connection with the offering of the 2025 Notes, the Company entered into the Convertible Note Hedge Transactions and Warrant Transactions described in Note 10 - Convertible Senior Notes. However, the Convertible Note Hedge Transactions are not considered when calculating dilutive shares given their impact is anti-dilutive. The impact of the Convertible Note Hedge Transactions would offset the dilutive impact of the shares underlying the 2025 Notes. The Warrant Transactions have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the $16.64 strike price of the Warrant Transactions. See Note 10 - Convertible Senior Notes for additional information regarding the 2025 Notes, Convertible Note Hedge Transactions and Warrant Transactions . The following table presents the computation of basic and diluted earnings (loss) per share attributable to common stockholders for the periods indicated: 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 Net income (loss) attributable to Bloomin’ Brands $ 82,545 $ (92,256) $ 151,407 $ (126,867) Redemption of preferred stock in excess of carrying value (1) — — — (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 (2) — — 691 — Diluted net income (loss) attributable to common stockholders $ 82,545 $ (92,256) $ 152,098 $ (130,363) Basic weighted average common shares outstanding 89,075 87,496 88,721 87,312 Effect of dilutive securities: Stock options 1,165 — 937 — Nonvested restricted stock units 351 — 427 — Nonvested performance-based share units — — 47 — Convertible senior notes (2)(3) 11,231 — 13,212 — Warrants (3) 7,983 — 6,879 — Diluted weighted average common shares outstanding 109,805 87,496 110,223 87,312 Basic earnings (loss) per share attributable to common stockholders $ 0.93 $ (1.05) $ 1.71 $ (1.49) Diluted earnings (loss) per share attributable to common stockholders $ 0.75 $ (1.05) $ 1.38 $ (1.49) ________________ (1) Consideration paid in excess of carrying value for the redemption of preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders for the twenty-six weeks ended June 28, 2020. See Note 12 - Stockholders’ Equity for additional details. (2) Adjustment for interest related to the 2025 Notes weighted for the portion of the period prior to the Company’s election under the 2025 Notes indenture to settle the principal portion of its 2025 Notes in cash. Effective with the Company’s election, there will be no further numerator adjustments for interest or denominator adjustments for shares required to settle the principal portion. (3) Due to the Company’s net loss during the thirteen and twenty-six weeks ended June 28, 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted earnings per share as their effect would be antidilutive. Share-based compensation-related weighted-average securities outstanding not included in the computation of net earnings (loss) per share attributable to common stockholders because their effect was antidilutive were as follows, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (shares in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Stock options — 5,352 682 5,009 Nonvested restricted stock units 9 990 41 821 Nonvested performance-based share units 465 624 448 578 |
Stock-based Compensation Plans
Stock-based Compensation Plans | 6 Months Ended |
Jun. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation Plans | Stock-based Compensation Plans The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Stock options $ 469 $ 1,038 $ 1,334 $ 1,870 Restricted stock units 1,964 2,340 4,330 4,023 Performance-based share units (1) 7,318 1,693 8,787 2,392 $ 9,751 $ 5,071 $ 14,451 $ 8,285 ________________ (1) The thirteen and twenty-six weeks ended June 27, 2021 includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections of performance criteria set forth in the award agreements. In February 2021, the Company granted 0.3 million performance-based share units (“PSUs”). These PSUs maintain a three-year cliff vesting period and the underlying adjusted diluted earnings per share performance metric can range from zero to 200% of the annual target grant. The grants additionally included a Relative Total Shareholder Return (“Relative TSR”) modifier to the final payout outcome, which can adjust the payout by 75%, 100% or 125% of the achieved performance metric, with the overall payout capped at 200% of the annual target grant. The Relative TSR is measured by comparing the Company’s Relative TSR to that of the constituents of the S&P 1500 Restaurants index. The fair value of PSUs granted was estimated using the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that the market conditions will be achieved and was applied to the trading price of the Company’s common stock on the date of the grant. Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the period indicated: TWENTY-SIX WEEKS ENDED JUNE 27, 2021 Assumptions: Risk-free interest rate (1) 0.20 % Volatility (2) 48.45 % Grant date fair value per unit (3) $ 29.73 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit. (2) Based on the historical volatility of the Company’s stock over the last seven years. (3) Represents a 14.3% premium above the per share value of the Company’s common stock as of the grant date. The following represents unrecognized stock-based compensation expense and the remaining weighted-average vesting period as of June 27, 2021: UNRECOGNIZED COMPENSATION EXPENSE REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years) Stock options $ 1,556 0.9 Restricted stock units $ 13,678 2.1 Performance-based share units $ 24,264 1.8 |
Other Current Assets, Net
Other Current Assets, Net | 6 Months Ended |
Jun. 27, 2021 | |
Other Current Assets, Net [Abstract] | |
Other Current Assets, Net | Other Current Assets, Net Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Prepaid expenses $ 22,668 $ 12,148 Accounts receivable - gift cards, net (1) 16,177 76,808 Accounts receivable - vendors, net (1) 9,212 8,886 Accounts receivable - franchisees, net (1) 887 1,007 Accounts receivable - other, net (1) 13,378 16,782 Deferred gift card sales commissions 12,548 19,300 Assets held for sale 1,358 3,831 Other current assets, net 8,756 12,756 $ 84,984 $ 151,518 ________________ (1) See Note 16 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jun. 27, 2021 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Accrued rent and current operating lease liabilities $ 184,486 $ 192,369 Accrued payroll and other compensation (1) 116,951 79,291 Accrued insurance 22,414 20,648 Other current liabilities (2) 115,445 96,013 $ 439,296 $ 388,321 ________________ (1) During the twenty-six weeks ended June 27, 2021, the Company reclassified $27.3 million of payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act (“CARES Act”) to current. (2) During the twenty-six weeks ended June 27, 2021, sales tax payable and income tax payable increased by $8.7 million and $6.4 million, respectively, due to increased sales and pre-tax income during the period. |
Long-term Debt, Net
Long-term Debt, Net | 6 Months Ended |
Jun. 27, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net Following is a summary of outstanding long-term debt, as of the periods indicated: JUNE 27, 2021 DECEMBER 27, 2020 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 200,000 2.59 % $ — Revolving credit facility (1) 134,000 2.59 % — Total Senior Secured Credit Facility 334,000 — Former Credit Facility: Term loan A (1) — 425,000 2.88 % Revolving credit facility (1) — 447,000 2.88 % Total Former Credit Facility — 872,000 2025 Notes (2) 230,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % — Finance lease liabilities 1,794 2,405 Less: unamortized debt discount and issuance costs (3) (15,576) (67,704) Less: finance lease interest (155) (221) Total debt, net 850,063 1,036,480 Less: current portion of long-term debt (11,022) (38,710) Long-term debt, net $ 839,041 $ 997,770 ________________ (1) Interest rate represents the weighted-average interest rate as of the respective periods. (2) See Note 10 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. (3) In connection with the adoption of ASU No. 2020-06, debt discount of $59.9 million related to the 2025 Notes was de-recognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. 2029 Notes - On April 16, 2021, the Company and its wholly-owned subsidiary OSI Restaurant Partners, LLC (“OSI”), as co-issuers, issued $300.0 million aggregate principal amount of senior unsecured notes due 2029 (the “2029 Notes”). The 2029 Notes were issued pursuant to an Indenture, dated April 16, 2021 (the “Indenture”), by and among the Company, the guarantors named therein, and Wells Fargo Bank, National Association, as trustee. The 2029 Notes are guaranteed by each of the Company’s existing and future domestic restricted subsidiaries (other than OSI) that are guarantors or borrowers under its Senior Secured Credit Facility (as defined below) or certain other indebtedness. The 2029 Notes will mature on April 15, 2029, unless earlier redeemed or purchased by the Company. The 2029 Notes bear cash interest at an annual rate of 5.125% payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021. The Company may redeem some or all of the 2029 Notes at any time on or after April 15, 2024, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest. The Company may also redeem up to 40% of the 2029 Notes in an amount not greater than the proceeds of certain equity offerings completed before April 15, 2024, at a redemption price equal to 105.125% of the principal amount thereof, plus accrued and unpaid interest. In addition, at any time prior to April 15, 2024, the Company may redeem some or all of the 2029 Notes at a price equal to 100% of the principal amount, plus a make-whole premium, plus accrued and unpaid interest. The Indenture contains restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness or issue certain preferred stock; pay dividends, redeem stock or make other distributions; make certain investments; create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company; create certain liens; transfer or sell certain assets; merge or consolidate; enter into certain transactions with the Company’s affiliates; and designate subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications as set forth in the Indenture. The Indenture contains customary events of default, including, without limitation, failure to make required payments, failure to comply with certain agreements or covenants, cross-acceleration to certain other indebtedness in excess of specified amounts, certain events of bankruptcy and insolvency, and failure to pay certain judgments. The net proceeds from the 2029 Notes offering were approximately $294.5 million, after deducting the initial purchaser’s discount and the Company’s offering expenses. The net proceeds were used to repay a portion of the Company’s outstanding Term loan A and revolving credit facility in conjunction with the refinancing of its Former Credit Facility. Second Amended and Restated Credit Agreement - On April 16, 2021, the Company and OSI, as co-borrowers, entered into the Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”), which provides for senior secured financing of up to $1.0 billion consisting of a $200.0 million Term loan A and an $800.0 million revolving credit facility (the “Senior Secured Credit Facility”). The Senior Secured Credit Facility matures on April 16, 2026 and replaced the Company’s prior senior secured financing of up to $1.5 billion (the “Former Credit Facility”). The commitments under the Senior Secured Credit Facility may be increased in an aggregate principal amount of up to: (i) $425.0 million or (ii) at the Company’s option, up to an unlimited amount of incremental facilities, so long as the Consolidated Senior Secured Net Leverage Ratio (“CSSNLR”), as defined in the Second Amended and Restated Credit Agreement, is no more than 3.00 to 1.00 as of the last day of the most recent period of four consecutive fiscal quarters ended. The Company may elect an interest rate at each reset period based on the Base Rate or the Eurocurrency Rate, plus an applicable spread. The Base Rate option is the highest of: (i) the prime rate of Wells Fargo Bank, National Association, (ii) the federal funds effective rate plus 0.5 of 1.0% or (iii) the Eurocurrency rate with a one-month interest period plus 1.0% (the “Base Rate”). The Eurocurrency Rate option is the seven, 30, 60, 90 or 180-day Eurocurrency rate, subject to a 0% floor (the “Eurocurrency Rate”). The interest rates are as follows: BASE RATE ELECTION EUROCURRENCY RATE ELECTION Term loan A and revolving credit facility 50 to 150 basis points over the Base Rate 150 to 250 basis points over the Eurocurrency Rate Fees on letters of credit and daily unused availability under the revolving credit facility will be 150 to 250 basis points and 25 to 40 basis points, respectively. The following is a summary of required quarterly amortization payments for the Term loan A (dollars in thousands): SCHEDULED QUARTERLY PAYMENT DATES TERM LOAN A September 26, 2021 through June 30, 2024 $ 2,500 September 29, 2024 through June 29, 2025 $ 3,750 September 28, 2025 and December 28, 2025 $ 5,000 The Senior Secured Credit Facility contains mandatory prepayment requirements for the Term loan A, including the requirement that the Company prepay outstanding amounts under these loans with 50% of its annual excess cash flow, as defined in the Second Amended and Restated Credit Agreement, commencing with the fiscal year ending December 25, 2022. The amount of outstanding loans required to be prepaid in accordance with the debt covenants may vary based on the Company’s CSSNLR and year end results. Total Net Leverage Ratio (“TNLR”) is the ratio of Consolidated Total Debt (Current portion of long-term debt and Long-term debt, net of cash, excluding the 2025 Notes) to Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization and certain other adjustments as defined in the Second Amended and Restated Credit Agreement). The Second Amended and Restated Credit Agreement requires a TNLR not to exceed the following thresholds for the periods indicated: QUARTERLY PERIOD ENDED MAXIMUM RATIO June 27, 2021 (1) 5.00 to 1.00 September 26, 2021 (2) and thereafter 4.50 to 1.00 ________________ (1) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the two consecutive quarters ending June 27, 2021 divided by 58.5%. (2) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the three consecutive quarters ending September 26, 2021 divided by 77.0%. The Second Amended and Restated Credit Agreement limits, subject to certain exceptions, the Company’s ability and the ability of its subsidiaries to: incur additional indebtedness; make significant payments; sell assets; pay dividends and other restricted payments; make certain investments; acquire certain assets; effect mergers and similar transactions; and effect certain other transactions with affiliates. The Company is also limited to $200.0 million of aggregate capital expenditures during the year ended December 26, 2021. The Second Amended and Restated Credit Agreement also prohibits the Company from paying certain dividends and making certain restricted payments and acquisitions until the Company is in compliance with its TNLR covenant for the period ended September 26, 2021. As of June 27, 2021 and December 27, 2020, the Company was in compliance with its debt covenants. Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated: (dollars in thousands) JUNE 27, 2021 Year 1 $ 11,051 Year 2 10,250 Year 3 10,188 Year 4 245,175 Year 5 289,130 Thereafter 300,000 Total payments 865,794 Less: unamortized debt discount and issuance costs (15,576) Less: finance lease interest (155) Total principal payments $ 850,063 Deferred Financing Fees - During the thirteen weeks ended June 27, 2021, t he Company deferred $5.5 million and $5.9 million of financing costs incurred in connection with the 2029 Notes and Second Amended Credit Agreement, respectively. Deferred financing fees of $3.7 million associated with the revolving credit facility portion of the Second Amended Credit Agreement were recorded in Other assets, net and all other deferred financing fees were recorded in Long-term debt, net. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 27, 2021 | |
Convertible Notes [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes 2025 Notes - In May 2020, the Company completed a $230.0 million principal amount private offering of 5.00% convertible senior notes due in 2025. The 2025 Notes are governed by the terms of an indenture between the Company and Wells Fargo Bank, National Association, as the Trustee. The 2025 Notes will mature on May 1, 2025, unless earlier converted, redeemed or purchased by the Company. The 2025 Notes bear cash interest at an annual rate of 5.00%, payable semi-annually in arrears on May 1 and November 1 of each year. Net proceeds from the 2025 Notes offering were approximately $221.6 million, after deducting the initial purchaser’s discounts and commissions and the Company’s offering expenses. The initial conversion rate applicable to the 2025 Notes is 84.122 shares of common stock per $1,000 principal amount of 2025 Notes, or a total of approximately 19.348 million shares for the total $230.0 million principal amount. This initial conversion rate is equivalent to an initial conversion price of approximately $11.89 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events. Prior to the close of business on the business day immediately preceding November 1, 2024, holders may convert all or a portion of their 2025 Notes under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock and the conversion rate on each such trading day; (iii) upon the occurrence of specified corporate events or distributions on the Company’s common stock; (iv) if the Company calls the 2025 Notes for redemption, and (v) at any time from, and including November 1, 2024 until the close of business on the second scheduled trading day immediately before the maturity date. The 2025 Notes will be redeemable by the Company, in whole or in part, at the Company’s option at any time, and from time to time, on or after May 1, 2023 and on or before the 40 th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any of the 2025 Notes for redemption will constitute a make-whole fundamental change with respect to that note, in which case the conversion rate applicable to the conversion of the 2025 Notes will be increased in certain circumstances if it is converted after it is called for redemption. If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2025 Notes for cash at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest. Holders of 2025 Notes who convert their 2025 Notes in connection with a notice of a redemption or a make-whole fundamental change may be entitled to a premium in the form of an increase in the conversion rate of the 2025 Notes . The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Long-term debt, net Principal $ 230,000 $ 230,000 Less: Debt discount (1) — (59,862) Less: Debt issuance costs (1)(2) (6,688) (5,427) Net carrying amount 223,312 164,711 Equity component (1) $ — $ 64,367 ________________ (1) In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were de-recognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. (2) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the expected life of the 2025 Notes. The effective rate of the 2025 Notes over their expected life is 5.85%. Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 27, 2021 Coupon interest $ 2,875 $ 5,750 Deferred issuance cost amortization 386 767 Total interest expense $ 3,261 $ 6,517 Based on the daily closing prices of the Company’s stock during the quarter ended June 27, 2021, holders of the 2025 Notes are eligible to convert their 2025 Notes during the third quarter of 2021. In February 2021, the Company provided the trustee of the 2025 Notes notice of its irrevocable election under the 2025 Notes indenture to settle the principal portion of the 2025 Notes upon conversion in cash and any excess in shares. Convertible Note Hedge and Warrant Transactions - In connection with the offering of the 2025 Notes , the Company entered into convertible note hedge transactions (the “Convertible Note Hedge Transactions”) with certain of the initial purchasers of the 2025 Notes and/or their respective affiliates and other financial institutions (in this capacity, the “Hedge Counterparties”). Concurrently with the Company’s entry into the Convertible Note Hedge Transactions, the Company also entered into separate, warrant transactions with the Hedge Counterparties collectively relating to the same number of shares of the Company’s common stock, subject to customary anti-dilution adjustments, and for which the Company received proceeds that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “Warrant Transactions”). The Convertible Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the 2025 Notes , and are expected generally to reduce the potential equity dilution in excess of the principal amount due upon conversion of the 2025 Notes . The Warrant Transactions have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions. The strike price is initially $16.64 per share and is subject to certain adjustments under the terms of the Warrant Transactions. The Convertible Note Hedge Transactions are exercisable upon conversion of the 2025 Notes . The Convertible Note Hedge Transactions expire upon maturity of the 2025 Notes |
Other Long-term Liabilities, Ne
Other Long-term Liabilities, Net | 6 Months Ended |
Jun. 27, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities, Net | Other Long-term Liabilities, Net Other long-term liabilities, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Accrued insurance liability $ 32,704 $ 32,128 Chef and Restaurant Managing Partner deferred compensation obligations 20,687 32,306 Deferred payroll tax liabilities (1) 27,302 55,204 Other long-term liabilities (2) 53,601 65,717 $ 134,294 $ 185,355 _______________ (1) During the twenty-six weeks ended June 27, 2021, the Company reclassified $27.3 million of payroll taxes deferred under the CARES Act to current. (2) The Company’s hedge liability decreased by $11.8 million during the twenty-six weeks ended June 27, 2021 primarily from the termination of certain interest rate swaps. See Note 13 - Derivative Instruments and Hedging Activities |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 27, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Redeemable Preferred Stock - In connection with the development of its Abbraccio Cucina Italiana (“Abbraccio”) concept in 2015, the Company sold preferred shares of its Abbraccio subsidiary (“Abbraccio Shares”) to certain investors. During the thirteen weeks ended March 29, 2020, the Company exercised a call option to purchase all outstanding Abbraccio Shares for $1.0 million and recorded a reduction to Accumulated deficit and an increase in Net loss applicable to common stockholders of $3.5 million for the consideration paid in excess of the Abbraccio Shares’ carrying value. Accumulated Other Comprehensive Loss (“AOCL”) - Following are the components of AOCL as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Foreign currency translation adjustment $ (185,443) $ (188,883) Unrealized loss on derivatives, net of tax (16,745) (22,563) Accumulated other comprehensive loss $ (202,188) $ (211,446) Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Foreign currency translation adjustment $ 10,015 $ (29,146) $ 3,440 $ (36,443) Unrealized loss on derivatives, net of tax (1) (128) (1,556) (170) (14,892) Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2) 1,514 2,585 4,517 3,981 Amortization of terminated interest rate swaps, net of tax 1,471 — 1,471 — Total unrealized gain (loss) on derivatives, net of tax 2,857 1,029 5,818 (10,911) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 12,872 $ (28,117) $ 9,258 $ (47,354) ________________ (1) Unrealized loss on derivatives is net of tax of $0.5 million and $5.2 million for the thirteen and twenty-six weeks ended June 28, 2020, respectively. (2) Reclassifications of adjustments for loss on derivatives are net of tax. See Note 13 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 27, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk - In October 2018, the Company entered into variable-to-fixed interest rate swap agreements with 12 counterparties to hedge a portion of the cash flows of the Company’s variable rate debt. The swap agreements have an aggregate notional amount of $550.0 million and mature on November 30, 2022. Under the terms of the swap agreements, the Company pays a weighted-average fixed rate of 3.04% on the notional amount and receives payments from the counterparty based on the one-month LIBOR rate. In connection with the refinancing of its Former Credit Facility, on April 16, 2021 the Company terminated its variable-to-fixed interest rate swap agreements with seven counterparties having an aggregate notional amount of $275.0 million for a payment of approximately $13.3 million, including accrued interest. Following these terminations, $13.4 million of unrealized losses related to the terminated swap agreements included in AOCL will be amortized on a straight-line basis to Interest expense, net over the remaining original term of the terminated swaps. The Company’s swap agreements have been designated and qualify as cash flow hedges, are recognized on its Consolidated Balance Sheets at fair value and are classified based on the instruments’ maturity dates. As of June 27, 2021, the Company estimated $16.0 million will be reclassified to Interest expense, net over the next 12 fiscal months, including interest expense related to the terminated swap agreements discussed above. The following table presents the fair value and classification of the Company’s swap agreements, as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 7,437 $ 14,855 Accrued and other current liabilities Interest rate swaps - liability 3,821 15,640 Other long-term liabilities, net Total fair value of derivative instruments - liabilities (1) $ 11,258 $ 30,495 Accrued interest $ 697 $ 1,237 Accrued and other current liabilities ____________________ (1) See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. The following table summarizes the effects of the swap agreements on Net income (loss) for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Interest rate swap expense recognized in Interest expense, net $ (2,038) $ (3,482) $ (6,082) $ (5,362) Income tax benefit recognized in Provision (benefit) for income taxes 524 897 1,565 1,381 Total effects on Net income (loss) $ (1,514) $ (2,585) $ (4,517) $ (3,981) By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of June 27, 2021, all counterparties to the interest rate swaps had performed in accordance with their contractual obligations. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if the repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on indebtedness. |
Leases
Leases | 6 Months Ended |
Jun. 27, 2021 | |
Leases [Abstract] | |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION JUNE 27, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,161,650 $ 1,172,910 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 1,447 1,947 Total lease assets, net $ 1,163,097 $ 1,174,857 Current operating lease liabilities (2) Accrued and other current liabilities $ 177,807 $ 176,791 Current finance lease liabilities Current portion of long-term debt 1,022 1,210 Non-current operating lease liabilities (3) Non-current operating lease liabilities 1,206,269 1,216,666 Non-current finance lease liabilities Long-term debt, net 617 974 Total lease liabilities $ 1,385,715 $ 1,395,641 ________________ (1) Net of accumulated amortization of $2.8 million and $2.3 million as of June 27, 2021 and December 27, 2020, respectively. (2) Excludes COVID-19-related deferred rent accruals of $3.4 million and $12.8 million as of June 27, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.3 million and $2.7 million, as of June 27, 2021 and December 27, 2020, respectively. (3) Excludes COVID-19-related non-current deferred rent accruals of $0.8 million and $1.2 million as of June 27, 2021 and December 27, 2020, respectively. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Operating leases (1) Other restaurant operating $ 43,763 $ 42,776 $ 88,555 $ 88,658 Variable lease cost (2) Other restaurant operating 731 (1,046) 1,508 74 Finance leases Amortization of leased assets Depreciation and amortization 258 315 520 657 Interest on lease liabilities Interest expense, net 31 37 67 83 Sublease revenue (3) Franchise and other revenues (2,825) (109) (3,660) (1,786) Lease costs, net $ 41,958 $ 41,973 $ 86,990 $ 87,686 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.2 million and $3.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020, respectively, and $6.7 million and $6.9 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, respectively, which is included in General and administrative expense. Also excludes certain supply chain related rent expense of $0.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020 and $0.6 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, which is included in Food and beverage costs. (2) Includes COVID-19-related rent abatement for all periods presented. (3) Excludes immaterial rental income from Company-owned properties. The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 105,323 $ 75,688 |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION JUNE 27, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,161,650 $ 1,172,910 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 1,447 1,947 Total lease assets, net $ 1,163,097 $ 1,174,857 Current operating lease liabilities (2) Accrued and other current liabilities $ 177,807 $ 176,791 Current finance lease liabilities Current portion of long-term debt 1,022 1,210 Non-current operating lease liabilities (3) Non-current operating lease liabilities 1,206,269 1,216,666 Non-current finance lease liabilities Long-term debt, net 617 974 Total lease liabilities $ 1,385,715 $ 1,395,641 ________________ (1) Net of accumulated amortization of $2.8 million and $2.3 million as of June 27, 2021 and December 27, 2020, respectively. (2) Excludes COVID-19-related deferred rent accruals of $3.4 million and $12.8 million as of June 27, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.3 million and $2.7 million, as of June 27, 2021 and December 27, 2020, respectively. (3) Excludes COVID-19-related non-current deferred rent accruals of $0.8 million and $1.2 million as of June 27, 2021 and December 27, 2020, respectively. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Operating leases (1) Other restaurant operating $ 43,763 $ 42,776 $ 88,555 $ 88,658 Variable lease cost (2) Other restaurant operating 731 (1,046) 1,508 74 Finance leases Amortization of leased assets Depreciation and amortization 258 315 520 657 Interest on lease liabilities Interest expense, net 31 37 67 83 Sublease revenue (3) Franchise and other revenues (2,825) (109) (3,660) (1,786) Lease costs, net $ 41,958 $ 41,973 $ 86,990 $ 87,686 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.2 million and $3.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020, respectively, and $6.7 million and $6.9 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, respectively, which is included in General and administrative expense. Also excludes certain supply chain related rent expense of $0.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020 and $0.6 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, which is included in Food and beverage costs. (2) Includes COVID-19-related rent abatement for all periods presented. (3) Excludes immaterial rental income from Company-owned properties. The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 105,323 $ 75,688 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: JUNE 27, 2021 DECEMBER 27, 2020 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 8,664 $ 8,664 $ — $ 15,404 $ 15,404 $ — Money market funds 14,054 14,054 — 16,494 16,494 — Restricted cash equivalents: Money market funds 1,790 1,790 — 428 428 — Total asset recurring fair value measurements $ 24,508 $ 24,508 $ — $ 32,326 $ 32,326 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 7,437 $ — $ 7,437 $ 14,855 $ — $ 14,855 Other long-term liabilities: Derivative instruments - interest rate swaps 3,821 — 3,821 15,640 — 15,640 Total liability recurring fair value measurements $ 11,258 $ — $ 11,258 $ 30,495 $ — $ 30,495 Fair value of each class of financial instrument is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Fixed income funds and Money market funds Carrying value approximates fair value because maturities are less than three months. Derivative instruments The Company’s derivative instruments include interest rate swaps. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of June 27, 2021 and December 27, 2020, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. Fair Value Measurements on a Nonrecurring Basis - Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to property, fixtures and equipment, operating lease right-of-use assets, goodwill and other intangible assets, which are remeasured when carrying value exceeds fair value. Carrying value after impairment approximates fair value. The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Operating lease right-of-use assets (1) $ 5,687 $ 962 $ 32,404 $ 4,028 Property, fixtures and equipment (2) 8,192 4,460 9,992 19,595 Goodwill and other assets (3) — — 748 295 $ 13,879 $ 5,422 $ 43,144 $ 23,918 TWENTY-SIX WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ — $ — $ 1,182 $ 75 Operating lease right-of-use assets (1) 7,651 1,512 85,537 23,591 Property, fixtures and equipment (2) 8,928 6,052 28,390 37,993 Goodwill and other assets (3) — — 748 2,683 $ 16,579 $ 7,564 $ 115,857 $ 64,342 ____________________ (1) Asset carrying values measured using discounted cash flow models (Level 3). (2) Carrying values measured using Level 2 inputs to estimate fair value totaled $0.5 million and $2.2 million for the thirteen and twenty-six weeks ended June 28, 2020, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (3) Other assets generally measured using the quoted market value of comparable assets (Level 2). See Note 4 - Impairments and Exit Costs for information regarding impairment charges resulting from the fair value measurement performed on a nonrecurring basis during the thirteen and twenty-six weeks ended June 28, 2020. Projected future cash flows, including discount rate and growth rate assumptions, are derived from then current economic conditions, expectations of management and projected trends of current operating results. As a result, the Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs that fall within Level 3 of the fair value hierarchy. In assessment of impairment for operating locations, the Company determined the fair values of individual operating locations using an income approach, which required discounting projected future cash flows. When determining the stream of projected future cash flows associated with an individual operating location, management made assumptions, including highest and best use and inputs from restaurant operations, where necessary, and about key variables including the following unobservable inputs: revenue growth rates, controllable and uncontrollable expenses, and asset residual values. In order to calculate the present value of those future cash flows, the Company discounted cash flow estimates at its weighted-average cost of capital applicable to the country in which the measured assets reside. The following table presents quantitative information related to certain unobservable inputs used in the Company’s Level 3 fair value measurements of Operating lease right-of-use assets and Property, fixtures and equipment for the impairment losses incurred for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED UNOBSERVABLE INPUTS JUNE 28, 2020 JUNE 28, 2020 Weighted-average cost of capital 10.9% 10.4% to 10.9% Long-term growth rate 1.5% to 2.0% 1.5% to 2.0% Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and current and long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported on its Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: JUNE 27, 2021 DECEMBER 27, 2020 CARRYING VALUE FAIR VALUE LEVEL 2 CARRYING VALUE FAIR VALUE LEVEL 2 (dollars in thousands) Senior Secured Credit Facility: Term loan A $ 200,000 $ 196,250 $ — $ — Revolving credit facility $ 134,000 $ 128,850 $ — $ — Former Credit Facility: Term loan A $ — $ — $ 425,000 $ 412,250 Revolving credit facility $ — $ — $ 447,000 $ 419,612 2025 Notes $ 230,000 $ 559,450 $ 230,000 $ 413,818 2029 Notes $ 300,000 $ 307,503 $ — $ — |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 6 Months Ended |
Jun. 27, 2021 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The following table is a rollforward of the Company’s trade receivables allowance for expected credit losses for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Allowance for expected credit losses, beginning of period $ 3,997 $ 4,551 $ 4,095 $ 199 Adjustment for adoption of ASU No. 2016-13 — — — 1,018 Provision for expected credit losses (1) — 15 — 3,349 Charge-off of accounts (8) — (106) — Allowance for expected credit losses, end of period $ 3,989 $ 4,566 $ 3,989 $ 4,566 ________________ (1) In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. The Company is also exposed to credit losses from off-balance sheet lease guarantees primarily related to the divestiture of certain formerly Company-owned restaurant sites. See Note 18 - Commitments and Contingencies |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 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) Effective income tax rate 21.1 % 27.9 % 15.9 % 30.4 % The effective income tax rate for the thirteen and twenty-six weeks ended June 27, 2021 decreased by 6.8 and 14.5 percentage points, respectively, as compared to the thirteen and twenty-six weeks ended June 28, 2020. These decreases were primarily due to the benefit of FICA tax credits on certain employees’ tips reducing the effective tax rate in 2021 as a result of forecasted pre-tax book income as compared to increasing the effective tax rate in 2020 as a result of forecasted pre-tax book loss. As of December 27, 2020, the Company had $155.3 million in general business tax credits carryforwards, which have a 20-year carryforward period and are utilized on a first-in, first-out basis. The Company does not expect to increase its general business credit carryforwards in 2021 and currently expects to utilize these tax credit carryforwards within a 10-year period. However, the Company’s ability to utilize these tax credits could be adversely impacted by, among other items, a future ownership change as defined under Section 382 of the Internal Revenue Code. The Company has a blended federal and state statutory rate of approximately 26%. The effective income tax rate for the thirteen and twenty-six weeks ended June 27, 2021 was lower than the statutory rate primarily due to the benefit of FICA tax credits on certain employees’ tips. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Other Matters - The Company is subject to legal proceedings, claims and liabilities, such as liquor liability, slip and fall cases, wage-and-hour and other employment-related litigation, which arise in the ordinary course of business. A reserve is recorded when it is both: (i) probable that a loss has occurred and (ii) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. The Company’s legal proceedings range from cases brought by a single plaintiff to threatened class actions with many putative class members. While some matters pending against the Company specify the damages claimed by the plaintiff or class, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against the Company are stated, the claimed amount may be exaggerated, unsupported or unrelated to possible outcomes, and as such, are not meaningful indicators of the Company’s potential liability or financial exposure. As a result, some matters have not yet progressed sufficiently through discovery or development of important factual information and legal issues to enable the Company to estimate an amount of loss or a range of possible loss. The Company recorded reserves of $5.9 million and $4.6 million for certain of its outstanding legal proceedings as of June 27, 2021 and December 27, 2020, respectively, within Accrued and other current liabilities and Other long-term liabilities on its Consolidated Balance Sheets. While the Company believes that additional losses beyond these accruals are reasonably possible, it cannot estimate a possible loss contingency or range of reasonably possible loss contingencies beyond these accruals. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 27, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company considers its restaurant concepts and international markets as operating segments, which reflects how the Company manages its business, reviews operating performance and allocates resources. Resources are allocated and performance is assessed by the Company’s Chief Executive Officer (“CEO”), whom the Company has determined to be its Chief Operating Decision Maker (“CODM”). The Company aggregates its operating segments into two reportable segments, U.S. and international. The U.S. segment includes all restaurants operating in the U.S. while restaurants operating outside the U.S. are included in the international segment. The following is a summary of reporting segments: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. Segment accounting policies are the same as those described in Note 2 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 27, 2020. Revenues for all segments include only transactions with customers and exclude intersegment revenues. Excluded from Income (loss) from operations for U.S. and international are certain legal and corporate costs not directly related to the performance of the segments, most stock-based compensation expenses and certain bonus expenses. The following table is a summary of Total revenues by segment, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Total revenues U.S. $ 1,003,058 $ 537,080 $ 1,907,976 $ 1,431,577 International 74,308 41,379 156,863 155,219 Total revenues $ 1,077,366 $ 578,459 $ 2,064,839 $ 1,586,796 The following table is a reconciliation of Segment income (loss) from operations to Income (loss) before provision (benefit) for income taxes, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 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 (1) (43,130) (31,921) (77,404) (91,655) Total 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) ____________________ (1) 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 the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings. The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Depreciation and amortization U.S. $ 33,578 $ 37,308 $ 67,223 $ 74,948 International 5,566 5,884 11,286 12,642 Corporate 1,395 2,592 3,256 6,462 Total depreciation and amortization $ 40,539 $ 45,784 $ 81,765 $ 94,052 The following table is a summary of capital expenditures by segment for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 Capital expenditures U.S. $ 42,574 $ 30,692 International 5,531 10,914 Corporate 3,138 2,471 Total capital expenditures $ 51,243 $ 44,077 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 27, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn August 2, 2021, wholly-owned subsidiaries of the Company entered into the Purchase and Sale of Royalty Payment Stream and Termination of Royalty Agreement (the “Royalty Termination Agreement”) with the Carrabba’s Italian Grill founders (the “Carrabba’s Founders”), pursuant to which the Company’s obligation to pay future royalties on U.S. Carrabba’s Italian Grill restaurant sales and lump sum royalty fees on Carrabba’s Italian Grill restaurants opened outside the U.S. was terminated. Upon execution of the Royalty Termination Agreement, the Company made a cash payment of $61.9 million to the Carrabba’s Founders, which was recorded in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss) during the thirteen weeks ended September 26, 2021. |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of Presentation - The accompanying interim unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2020. |
Recently adopted financial accounting standards | Recently Adopted Financial Accounting Standards - On December 28, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity,” (“ASU No. 2020-06”) which removes the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. ASU No. 2020-06 also requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method is no longer permitted for convertible instruments. The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021: ADJUSTMENT CONSOLIDATED BALANCE SHEET CLASSIFICATION AMOUNT Deferred tax impact of cumulative-effect adjustment Deferred income tax assets, net $ 14.9 Debt discount reclassification Long-term debt, net $ 59.9 Equity issuance costs reclassification Long-term debt, net $ (2.1) Debt discount amortization reclassification, net of tax Accumulated deficit $ 4.4 Reversal of separated equity component, net of tax Additional paid-in capital $ (47.3) After adopting ASU No. 2020-06, the Company’s convertible senior notes due 2025 (the “2025 Notes”) are reflected entirely as a liability since the embedded conversion feature is no longer separately presented within stockholders’ equity. During 2020, the Company recognized debt discount amortization of $6.3 million within Interest expense, net related to its 2025 Notes. In February 2021, the Company made an irrevocable election under the indenture to require the principal portion of its 2025 Notes to be settled in cash and any excess in shares. Following the irrevocable notice, only the amounts expected to be settled in excess of the principal will be considered in diluted earnings per share under the if-converted method. Recently Issued Financial Accounting Standards Not Yet Adopted - Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. |
Reclassifications | Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period. These reclassifications had no effect on previously reported net income. |
Description of the Business a_3
Description of the Business and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting standards update and change in accounting principle | The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021: ADJUSTMENT CONSOLIDATED BALANCE SHEET CLASSIFICATION AMOUNT Deferred tax impact of cumulative-effect adjustment Deferred income tax assets, net $ 14.9 Debt discount reclassification Long-term debt, net $ 59.9 Equity issuance costs reclassification Long-term debt, net $ (2.1) Debt discount amortization reclassification, net of tax Accumulated deficit $ 4.4 Reversal of separated equity component, net of tax Additional paid-in capital $ (47.3) |
COVID-19 Charges (Tables)
COVID-19 Charges (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
COVID-19 Impact [Abstract] | |
Charges from COVID-19 | Following is a summary of charges recorded in connection with the COVID-19 pandemic for the periods indicated (dollars in thousands): CHARGES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED JUNE 28, 2020 JUNE 28, 2020 Inventory obsolescence and spoilage (1) Food and beverage costs $ 1,163 $ 7,345 Compensation for idle employees (2) Labor and other related 11,388 27,574 Other operating charges Other restaurant operating 2,467 2,467 Lease guarantee contingent liabilities (3) General and administrative — 4,188 Allowance for expected credit losses (4) General and administrative — 3,334 Other charges General and administrative 1,216 1,789 Right-of-use asset impairment (5) Provision for impaired assets and restaurant closings 5,273 25,757 Fixed asset impairment (5) Provision for impaired assets and restaurant closings 19,611 31,339 Goodwill and other impairment (6) Provision for impaired assets and restaurant closings 611 2,999 $ 41,729 $ 106,792 ________________ (1) Includes the write-off of value-added tax credits during the twenty-six weeks ended June 28, 2020 related to the purchase of inventory by the Company’s Brazil subsidiary. (2) Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $13.7 million of employee retention tax credits earned during the thirteen and twenty-six weeks ended June 28, 2020. (3) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (4) Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. (5) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then current economic conditions, restructuring charges and the closure of certain restaurants. (6) Includes impairment of goodwill for the Company’s Hong Kong subsidiary during the twenty-six weeks ended June 28, 2020. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Revenue Recognition [Line Items] | |
Schedule of principal transactions, revenue | The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) 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 Franchise revenue 12,221 1,951 19,010 11,500 Other revenues (1) 9,918 247 11,151 2,798 Total 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 ________________ (1) During the thirteen and twenty-six weeks ended June 27, 2021, the Company 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. The amount recognized as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest, and will be recovered by offsetting future PIS and COFINS taxes due. |
Disaggregation of revenue | The following tables include disaggregation of Restaurant sales and franchise revenue, by restaurant concept and major international market, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUE RESTAURANT SALES FRANCHISE REVENUE U.S. Outback Steakhouse $ 579,096 $ 8,418 $ 346,553 $ 136 Carrabba’s Italian Grill 171,408 665 93,738 7 Bonefish Grill 149,036 174 63,744 4 Fleming’s Prime Steakhouse & Wine Bar 88,101 — 31,156 — Other 2,652 — 1,576 — U.S. total 990,293 9,257 536,767 147 International Outback Steakhouse Brazil 43,310 — 24,003 — Other (1) 21,624 2,964 15,491 1,804 International total 64,934 2,964 39,494 1,804 Total $ 1,055,227 $ 12,221 $ 576,261 $ 1,951 TWENTY-SIX WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUE RESTAURANT SALES FRANCHISE REVENUE U.S. Outback Steakhouse $ 1,126,291 $ 11,374 $ 877,238 $ 6,677 Carrabba’s Italian Grill 329,094 1,282 240,613 468 Bonefish Grill 276,010 304 198,816 140 Fleming’s Prime Steakhouse & Wine Bar 154,412 — 102,116 — Other 4,545 — 2,873 — U.S. total 1,890,352 12,960 1,421,656 7,285 International Outback Steakhouse Brazil 104,158 — 115,593 — Other (1) 40,168 6,050 35,249 4,215 International total 144,326 6,050 150,842 4,215 Total $ 2,034,678 $ 19,010 $ 1,572,498 $ 11,500 ________________ (1) Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. |
Contract with customers, asset and liability | The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Other current assets, net Deferred gift card sales commissions $ 12,548 $ 19,300 Unearned revenue Deferred gift card revenue $ 293,955 $ 373,048 Deferred loyalty revenue 8,604 8,099 Deferred franchise fees - current 437 469 Total Unearned revenue $ 302,996 $ 381,616 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,174 $ 4,301 |
Other current assets, net | |
Revenue Recognition [Line Items] | |
Contract with customers, asset and liability | The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Balance, beginning of period $ 13,502 $ 13,049 $ 19,300 $ 18,554 Deferred gift card sales commissions amortization (5,711) (2,502) (14,436) (11,592) Deferred gift card sales commissions capitalization 5,297 3,142 8,796 7,466 Other (540) (65) (1,112) (804) Balance, end of period $ 12,548 $ 13,624 $ 12,548 $ 13,624 |
Unearned revenue | |
Revenue Recognition [Line Items] | |
Contract with customers, asset and liability | The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Balance, beginning of period $ 306,075 $ 277,518 $ 373,048 $ 358,757 Gift card sales 63,921 41,649 108,090 100,088 Gift card redemptions (71,859) (37,404) (176,799) (170,585) Gift card breakage (4,182) (1,790) (10,384) (8,287) Balance, end of period $ 293,955 $ 279,973 $ 293,955 $ 279,973 |
Impairments and Exit Costs (Tab
Impairments and Exit Costs (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Provision for impaired assets and restaurant closings | The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Impairment losses U.S. (1) $ 5,768 $ 23,741 $ 7,174 $ 54,713 International (1)(2) (555) 296 152 3,468 Corporate (3) 209 (119) 238 6,161 Total impairment losses 5,422 23,918 7,564 64,342 Restaurant closure charges U.S. (1) (92) 1,041 (34) 1,762 International (1) (153) — (153) 173 Total restaurant closure charges (245) 1,041 (187) 1,935 Provision for impaired assets and restaurant closings $ 5,177 $ 24,959 $ 7,377 $ 66,277 ________________ (1) U.S. and international impairment and closure charges for the thirteen and twenty-six weeks ended June 28, 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. (2) Includes goodwill impairment charges of $2.0 million during the twenty-six weeks ended June 28, 2020. (3) Corporate impairment charges for the twenty-six weeks ended June 28, 2020 primarily relate to transformational initiatives. |
Restructuring and related costs | Following is a summary of the COVID-19 Restructuring charges recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated (dollars in thousands): CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN AND TWENTY-SIX WEEKS ENDED DESCRIPTION JUNE 28, 2020 Property, fixtures and equipment impairments Provision for impaired assets and restaurant closings $ 16,932 Lease right-of-use asset impairments and closing costs Provision for impaired assets and restaurant closings 3,920 Severance and other expenses General and administrative 1,160 $ 22,012 |
Accrued facility closure and other costs rollforward | The following table is a rollforward of the Company’s closed facility lease liabilities and other accrued costs associated with the closure and restructuring initiatives, for the period indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 Balance, beginning of the period $ 12,879 Cash payments (2,239) Accretion 488 Adjustments (790) Balance, end of the period (1) $ 10,338 ________________ (1) As of June 27, 2021, the Company had exit-related accruals related to certain closure and restructuring initiatives of $3.6 million recorded in Accrued and other current liabilities and $6.7 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share, basic and diluted | The following table presents the computation of basic and diluted earnings (loss) per share attributable to common stockholders for the periods indicated: 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 Net income (loss) attributable to Bloomin’ Brands $ 82,545 $ (92,256) $ 151,407 $ (126,867) Redemption of preferred stock in excess of carrying value (1) — — — (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 (2) — — 691 — Diluted net income (loss) attributable to common stockholders $ 82,545 $ (92,256) $ 152,098 $ (130,363) Basic weighted average common shares outstanding 89,075 87,496 88,721 87,312 Effect of dilutive securities: Stock options 1,165 — 937 — Nonvested restricted stock units 351 — 427 — Nonvested performance-based share units — — 47 — Convertible senior notes (2)(3) 11,231 — 13,212 — Warrants (3) 7,983 — 6,879 — Diluted weighted average common shares outstanding 109,805 87,496 110,223 87,312 Basic earnings (loss) per share attributable to common stockholders $ 0.93 $ (1.05) $ 1.71 $ (1.49) Diluted earnings (loss) per share attributable to common stockholders $ 0.75 $ (1.05) $ 1.38 $ (1.49) ________________ (1) Consideration paid in excess of carrying value for the redemption of preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders for the twenty-six weeks ended June 28, 2020. See Note 12 - Stockholders’ Equity for additional details. (2) Adjustment for interest related to the 2025 Notes weighted for the portion of the period prior to the Company’s election under the 2025 Notes indenture to settle the principal portion of its 2025 Notes in cash. Effective with the Company’s election, there will be no further numerator adjustments for interest or denominator adjustments for shares required to settle the principal portion. (3) Due to the Company’s net loss during the thirteen and twenty-six weeks ended June 28, 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted earnings per share as their effect would be antidilutive. |
Schedule of antidilutive securities excluded from computation of earnings (loss) per share | Share-based compensation-related weighted-average securities outstanding not included in the computation of net earnings (loss) per share attributable to common stockholders because their effect was antidilutive were as follows, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (shares in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Stock options — 5,352 682 5,009 Nonvested restricted stock units 9 990 41 821 Nonvested performance-based share units 465 624 448 578 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of compensation cost for stock-based payment arrangements, allocation of share-based compensation costs by plan | The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Stock options $ 469 $ 1,038 $ 1,334 $ 1,870 Restricted stock units 1,964 2,340 4,330 4,023 Performance-based share units (1) 7,318 1,693 8,787 2,392 $ 9,751 $ 5,071 $ 14,451 $ 8,285 ________________ (1) The thirteen and twenty-six weeks ended June 27, 2021 includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections of performance criteria set forth in the award agreements. |
Schedule of stock-based payment award, performance-based shares, valuation assumptions | Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the period indicated: TWENTY-SIX WEEKS ENDED JUNE 27, 2021 Assumptions: Risk-free interest rate (1) 0.20 % Volatility (2) 48.45 % Grant date fair value per unit (3) $ 29.73 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit. (2) Based on the historical volatility of the Company’s stock over the last seven years. |
Schedule of unrecognized compensation cost, nonvested awards | The following represents unrecognized stock-based compensation expense and the remaining weighted-average vesting period as of June 27, 2021: UNRECOGNIZED COMPENSATION EXPENSE REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years) Stock options $ 1,556 0.9 Restricted stock units $ 13,678 2.1 Performance-based share units $ 24,264 1.8 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Other Current Assets, Net [Abstract] | |
Schedule of other current assets | Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Prepaid expenses $ 22,668 $ 12,148 Accounts receivable - gift cards, net (1) 16,177 76,808 Accounts receivable - vendors, net (1) 9,212 8,886 Accounts receivable - franchisees, net (1) 887 1,007 Accounts receivable - other, net (1) 13,378 16,782 Deferred gift card sales commissions 12,548 19,300 Assets held for sale 1,358 3,831 Other current assets, net 8,756 12,756 $ 84,984 $ 151,518 ________________ (1) See Note 16 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued and other current liabilities | Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Accrued rent and current operating lease liabilities $ 184,486 $ 192,369 Accrued payroll and other compensation (1) 116,951 79,291 Accrued insurance 22,414 20,648 Other current liabilities (2) 115,445 96,013 $ 439,296 $ 388,321 ________________ (1) During the twenty-six weeks ended June 27, 2021, the Company reclassified $27.3 million of payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act (“CARES Act”) to current. (2) During the twenty-six weeks ended June 27, 2021, sales tax payable and income tax payable increased by $8.7 million and $6.4 million, respectively, due to increased sales and pre-tax income during the period. |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding long-term debt, as of the periods indicated: JUNE 27, 2021 DECEMBER 27, 2020 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 200,000 2.59 % $ — Revolving credit facility (1) 134,000 2.59 % — Total Senior Secured Credit Facility 334,000 — Former Credit Facility: Term loan A (1) — 425,000 2.88 % Revolving credit facility (1) — 447,000 2.88 % Total Former Credit Facility — 872,000 2025 Notes (2) 230,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % — Finance lease liabilities 1,794 2,405 Less: unamortized debt discount and issuance costs (3) (15,576) (67,704) Less: finance lease interest (155) (221) Total debt, net 850,063 1,036,480 Less: current portion of long-term debt (11,022) (38,710) Long-term debt, net $ 839,041 $ 997,770 ________________ (1) Interest rate represents the weighted-average interest rate as of the respective periods. (2) See Note 10 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. (3) In connection with the adoption of ASU No. 2020-06, debt discount of $59.9 million related to the 2025 Notes was de-recognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. |
Schedule of interest rate options | The interest rates are as follows: BASE RATE ELECTION EUROCURRENCY RATE ELECTION Term loan A and revolving credit facility 50 to 150 basis points over the Base Rate 150 to 250 basis points over the Eurocurrency Rate |
Schedule of required amortization payments | The following is a summary of required quarterly amortization payments for the Term loan A (dollars in thousands): SCHEDULED QUARTERLY PAYMENT DATES TERM LOAN A September 26, 2021 through June 30, 2024 $ 2,500 September 29, 2024 through June 29, 2025 $ 3,750 September 28, 2025 and December 28, 2025 $ 5,000 |
Schedule of maximum total net leverage ratio | The Second Amended and Restated Credit Agreement requires a TNLR not to exceed the following thresholds for the periods indicated: QUARTERLY PERIOD ENDED MAXIMUM RATIO June 27, 2021 (1) 5.00 to 1.00 September 26, 2021 (2) and thereafter 4.50 to 1.00 ________________ (1) Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the two consecutive quarters ending June 27, 2021 divided by 58.5%. |
Schedule of maturities of long-term debt | Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated: (dollars in thousands) JUNE 27, 2021 Year 1 $ 11,051 Year 2 10,250 Year 3 10,188 Year 4 245,175 Year 5 289,130 Thereafter 300,000 Total payments 865,794 Less: unamortized debt discount and issuance costs (15,576) Less: finance lease interest (155) Total principal payments $ 850,063 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Convertible Notes [Abstract] | |
Convertible senior notes balances | The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Long-term debt, net Principal $ 230,000 $ 230,000 Less: Debt discount (1) — (59,862) Less: Debt issuance costs (1)(2) (6,688) (5,427) Net carrying amount 223,312 164,711 Equity component (1) $ — $ 64,367 ________________ (1) In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were de-recognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. (2) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the expected life of the 2025 Notes. |
Convertible senior notes interest expense | Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 27, 2021 Coupon interest $ 2,875 $ 5,750 Deferred issuance cost amortization 386 767 Total interest expense $ 3,261 $ 6,517 |
Other Long-term Liabilities, _2
Other Long-term Liabilities, Net (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | Other long-term liabilities, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Accrued insurance liability $ 32,704 $ 32,128 Chef and Restaurant Managing Partner deferred compensation obligations 20,687 32,306 Deferred payroll tax liabilities (1) 27,302 55,204 Other long-term liabilities (2) 53,601 65,717 $ 134,294 $ 185,355 _______________ (1) During the twenty-six weeks ended June 27, 2021, the Company reclassified $27.3 million of payroll taxes deferred under the CARES Act to current. (2) The Company’s hedge liability decreased by $11.8 million during the twenty-six weeks ended June 27, 2021 primarily from the termination of certain interest rate swaps. See Note 13 - Derivative Instruments and Hedging Activities |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of accumulated other comprehensive loss | Following are the components of AOCL as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 Foreign currency translation adjustment $ (185,443) $ (188,883) Unrealized loss on derivatives, net of tax (16,745) (22,563) Accumulated other comprehensive loss $ (202,188) $ (211,446) |
Other comprehensive loss | Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Foreign currency translation adjustment $ 10,015 $ (29,146) $ 3,440 $ (36,443) Unrealized loss on derivatives, net of tax (1) (128) (1,556) (170) (14,892) Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2) 1,514 2,585 4,517 3,981 Amortization of terminated interest rate swaps, net of tax 1,471 — 1,471 — Total unrealized gain (loss) on derivatives, net of tax 2,857 1,029 5,818 (10,911) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 12,872 $ (28,117) $ 9,258 $ (47,354) ________________ (1) Unrealized loss on derivatives is net of tax of $0.5 million and $5.2 million for the thirteen and twenty-six weeks ended June 28, 2020, respectively. (2) Reclassifications of adjustments for loss on derivatives are net of tax. See Note 13 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table presents the fair value and classification of the Company’s swap agreements, as of the periods indicated: (dollars in thousands) JUNE 27, 2021 DECEMBER 27, 2020 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 7,437 $ 14,855 Accrued and other current liabilities Interest rate swaps - liability 3,821 15,640 Other long-term liabilities, net Total fair value of derivative instruments - liabilities (1) $ 11,258 $ 30,495 Accrued interest $ 697 $ 1,237 Accrued and other current liabilities ____________________ (1) See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivatives instruments statements of financial performance, location | The following table summarizes the effects of the swap agreements on Net income (loss) for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Interest rate swap expense recognized in Interest expense, net $ (2,038) $ (3,482) $ (6,082) $ (5,362) Income tax benefit recognized in Provision (benefit) for income taxes 524 897 1,565 1,381 Total effects on Net income (loss) $ (1,514) $ (2,585) $ (4,517) $ (3,981) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Leases [Abstract] | |
Assets and liabilities, lessee | The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION JUNE 27, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,161,650 $ 1,172,910 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 1,447 1,947 Total lease assets, net $ 1,163,097 $ 1,174,857 Current operating lease liabilities (2) Accrued and other current liabilities $ 177,807 $ 176,791 Current finance lease liabilities Current portion of long-term debt 1,022 1,210 Non-current operating lease liabilities (3) Non-current operating lease liabilities 1,206,269 1,216,666 Non-current finance lease liabilities Long-term debt, net 617 974 Total lease liabilities $ 1,385,715 $ 1,395,641 ________________ (1) Net of accumulated amortization of $2.8 million and $2.3 million as of June 27, 2021 and December 27, 2020, respectively. (2) Excludes COVID-19-related deferred rent accruals of $3.4 million and $12.8 million as of June 27, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.3 million and $2.7 million, as of June 27, 2021 and December 27, 2020, respectively. (3) Excludes COVID-19-related non-current deferred rent accruals of $0.8 million and $1.2 million as of June 27, 2021 and December 27, 2020, respectively. |
Lease, cost | Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Operating leases (1) Other restaurant operating $ 43,763 $ 42,776 $ 88,555 $ 88,658 Variable lease cost (2) Other restaurant operating 731 (1,046) 1,508 74 Finance leases Amortization of leased assets Depreciation and amortization 258 315 520 657 Interest on lease liabilities Interest expense, net 31 37 67 83 Sublease revenue (3) Franchise and other revenues (2,825) (109) (3,660) (1,786) Lease costs, net $ 41,958 $ 41,973 $ 86,990 $ 87,686 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.2 million and $3.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020, respectively, and $6.7 million and $6.9 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, respectively, which is included in General and administrative expense. Also excludes certain supply chain related rent expense of $0.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020 and $0.6 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, which is included in Food and beverage costs. (2) Includes COVID-19-related rent abatement for all periods presented. (3) Excludes immaterial rental income from Company-owned properties. |
Cash flow, operating activities | The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 105,323 $ 75,688 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value, financial instruments measured on nonrecurring basis, valuation techniques | Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: JUNE 27, 2021 DECEMBER 27, 2020 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 8,664 $ 8,664 $ — $ 15,404 $ 15,404 $ — Money market funds 14,054 14,054 — 16,494 16,494 — Restricted cash equivalents: Money market funds 1,790 1,790 — 428 428 — Total asset recurring fair value measurements $ 24,508 $ 24,508 $ — $ 32,326 $ 32,326 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 7,437 $ — $ 7,437 $ 14,855 $ — $ 14,855 Other long-term liabilities: Derivative instruments - interest rate swaps 3,821 — 3,821 15,640 — 15,640 Total liability recurring fair value measurements $ 11,258 $ — $ 11,258 $ 30,495 $ — $ 30,495 |
Fair value, assets measured on recurring basis, methods and assumptions | Fair value of each class of financial instrument is determined based on the following: FINANCIAL INSTRUMENT METHODS AND ASSUMPTIONS Fixed income funds and Money market funds Carrying value approximates fair value because maturities are less than three months. Derivative instruments The Company’s derivative instruments include interest rate swaps. Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. The Company also considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of June 27, 2021 and December 27, 2020, the Company has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. |
Fair value, assets and liabilities measured on a nonrecurring basis | The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Operating lease right-of-use assets (1) $ 5,687 $ 962 $ 32,404 $ 4,028 Property, fixtures and equipment (2) 8,192 4,460 9,992 19,595 Goodwill and other assets (3) — — 748 295 $ 13,879 $ 5,422 $ 43,144 $ 23,918 TWENTY-SIX WEEKS ENDED JUNE 27, 2021 JUNE 28, 2020 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ — $ — $ 1,182 $ 75 Operating lease right-of-use assets (1) 7,651 1,512 85,537 23,591 Property, fixtures and equipment (2) 8,928 6,052 28,390 37,993 Goodwill and other assets (3) — — 748 2,683 $ 16,579 $ 7,564 $ 115,857 $ 64,342 ____________________ (1) Asset carrying values measured using discounted cash flow models (Level 3). (2) Carrying values measured using Level 2 inputs to estimate fair value totaled $0.5 million and $2.2 million for the thirteen and twenty-six weeks ended June 28, 2020, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (3) Other assets generally measured using the quoted market value of comparable assets (Level 2). |
Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques | The following table presents quantitative information related to certain unobservable inputs used in the Company’s Level 3 fair value measurements of Operating lease right-of-use assets and Property, fixtures and equipment for the impairment losses incurred for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED UNOBSERVABLE INPUTS JUNE 28, 2020 JUNE 28, 2020 Weighted-average cost of capital 10.9% 10.4% to 10.9% Long-term growth rate 1.5% to 2.0% 1.5% to 2.0% |
Schedule of carrying value and fair value of senior secured credit facilities and other unsecured debt | The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: JUNE 27, 2021 DECEMBER 27, 2020 CARRYING VALUE FAIR VALUE LEVEL 2 CARRYING VALUE FAIR VALUE LEVEL 2 (dollars in thousands) Senior Secured Credit Facility: Term loan A $ 200,000 $ 196,250 $ — $ — Revolving credit facility $ 134,000 $ 128,850 $ — $ — Former Credit Facility: Term loan A $ — $ — $ 425,000 $ 412,250 Revolving credit facility $ — $ — $ 447,000 $ 419,612 2025 Notes $ 230,000 $ 559,450 $ 230,000 $ 413,818 2029 Notes $ 300,000 $ 307,503 $ — $ — |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Credit Loss [Abstract] | |
Allowance for credit losses rollforward | The following table is a rollforward of the Company’s trade receivables allowance for expected credit losses for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Allowance for expected credit losses, beginning of period $ 3,997 $ 4,551 $ 4,095 $ 199 Adjustment for adoption of ASU No. 2016-13 — — — 1,018 Provision for expected credit losses (1) — 15 — 3,349 Charge-off of accounts (8) — (106) — Allowance for expected credit losses, end of period $ 3,989 $ 4,566 $ 3,989 $ 4,566 ________________ (1) In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 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) Effective income tax rate 21.1 % 27.9 % 15.9 % 30.4 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 27, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following is a summary of reporting segments: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. |
Reconciliation of revenue from segments to consolidated | The following table is a summary of Total revenues by segment, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Total revenues U.S. $ 1,003,058 $ 537,080 $ 1,907,976 $ 1,431,577 International 74,308 41,379 156,863 155,219 Total revenues $ 1,077,366 $ 578,459 $ 2,064,839 $ 1,586,796 |
Reconciliation of operating profit from segments to consolidated | The following table is a reconciliation of Segment income (loss) from operations to Income (loss) before provision (benefit) for income taxes, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 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 (1) (43,130) (31,921) (77,404) (91,655) Total 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) ____________________ (1) 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 the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings. |
Reconciliation of segment depreciation and amortization and capital expenditures | The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 JUNE 27, 2021 JUNE 28, 2020 Depreciation and amortization U.S. $ 33,578 $ 37,308 $ 67,223 $ 74,948 International 5,566 5,884 11,286 12,642 Corporate 1,395 2,592 3,256 6,462 Total depreciation and amortization $ 40,539 $ 45,784 $ 81,765 $ 94,052 The following table is a summary of capital expenditures by segment for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 28, 2020 Capital expenditures U.S. $ 42,574 $ 30,692 International 5,531 10,914 Corporate 3,138 2,471 Total capital expenditures $ 51,243 $ 44,077 |
Description of the Business a_4
Description of the Business and Basis of Presentation - Description of the Business (Details) | Jun. 27, 2021restraurant_concept |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restaurant concepts in portfolio | 4 |
Description of the Business a_5
Description of the Business and Basis of Presentation (Recently Issued Financial Accounting Standards) (Details) - USD ($) $ in Thousands | Dec. 28, 2020 | Dec. 27, 2020 | Jun. 27, 2021 | Mar. 28, 2021 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reversal of separated equity component, net of tax | $ (10,957) | $ (152,907) | $ (45,405) | $ (29,198) | $ (100,143) | $ (177,481) | ||
Cumulative-effect from a change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reversal of separated equity component, net of tax | 42,953 | 4,292 | ||||||
Accumulated deficit | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reversal of separated equity component, net of tax | 918,096 | 762,319 | $ 844,864 | $ 886,248 | $ 793,992 | 755,089 | ||
Accumulated deficit | Cumulative-effect from a change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reversal of separated equity component, net of tax | (4,370) | $ 4,292 | ||||||
2025 Notes | Convertible debt | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Debt discount reclassification | 59,862 | $ 0 | [1] | |||||
2025 Notes | Convertible debt | Interest expense | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Debt discount amortization | $ 6,300 | |||||||
2025 Notes | Additional paid-in capital | Convertible debt | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Equity issuance cost reclassification | $ 2,100 | |||||||
Accounting standards update 2020-06 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deferred tax impact of cumulative-effect adjustment | 14,900 | |||||||
Accounting standards update 2020-06 | Additional paid-in capital | Cumulative-effect from a change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reversal of separated equity component, net of tax | (47,300) | |||||||
Accounting standards update 2020-06 | 2025 Notes | Long term debt, net | Convertible debt | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Debt discount reclassification | 59,900 | |||||||
Equity issuance cost reclassification | (2,100) | |||||||
Accounting standards update 2020-06 | 2025 Notes | Accumulated deficit | Convertible debt | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Debt discount amortization | $ 4,400 | |||||||
[1] | In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were de-recognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. |
COVID-19 Charges (Details)
COVID-19 Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Inventory obsolescence and spoilage | $ 0 | $ 6,413 | |||||
Allowance for expected credit losses | $ 0 | $ 15 | [1] | 0 | 3,349 | [1] | |
Total costs and expenses | 952,729 | 690,371 | 1,849,204 | 1,740,276 | |||
Provision for impaired assets and restaurant closings | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Goodwill and other impairment | $ 5,422 | 23,918 | $ 7,564 | 64,342 | |||
COVID-19 pandemic | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Total costs and expenses | 41,729 | 106,792 | |||||
COVID-19 pandemic | Food and beverage costs | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Inventory obsolescence and spoilage | 1,163 | 7,345 | [2] | ||||
COVID-19 pandemic | Labor and other related | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Compensation for idle employees | [3] | 11,388 | 27,574 | ||||
Employee retention tax credit | 13,700 | 13,700 | |||||
COVID-19 pandemic | Other restaurant operating | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Other operating charges | 2,467 | 2,467 | |||||
COVID-19 pandemic | General and administrative expense | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Other operating charges | 1,216 | 1,789 | |||||
Allowance for expected credit losses | [4] | 0 | 3,334 | ||||
COVID-19 pandemic | General and administrative expense | Property lease guarantee | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Lease guarantee contingent liabilities | [5] | 0 | 4,188 | ||||
COVID-19 pandemic | Provision for impaired assets and restaurant closings | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Right-of-use asset impairment | [6] | 5,273 | 25,757 | ||||
COVID-19 pandemic | Provision for impaired assets and restaurant closings | Property, fixtures and equipment, net | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Fixed asset impairment | [6] | 19,611 | 31,339 | ||||
COVID-19 pandemic | Provision for impaired assets and restaurant closings | Goodwill and other assets | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Goodwill and other impairment | $ 611 | $ 2,999 | [7] | ||||
[1] | In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. | ||||||
[2] | Includes the write-off of value-added tax credits during the twenty-six weeks ended June 28, 2020 related to the purchase of inventory by the Company’s Brazil subsidiary. | ||||||
[3] | Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $13.7 million of employee retention tax credits earned during the thirteen and twenty-six weeks ended June 28, 2020. | ||||||
[4] | Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. | ||||||
[5] | Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. | ||||||
[6] | Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then current economic conditions, restructuring charges and the closure of certain restaurants. | ||||||
[7] | Includes impairment of goodwill for the Company’s Hong Kong subsidiary during the twenty-six weeks ended June 28, 2020. |
Revenue Recognition (Principal
Revenue Recognition (Principal Revenue Transactions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | $ 1,077,366 | $ 578,459 | $ 2,064,839 | $ 1,586,796 | ||
Restaurant sales | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 1,055,227 | 576,261 | 2,034,678 | 1,572,498 | ||
Franchise and other revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 22,139 | 2,198 | 30,161 | 14,298 | ||
Franchise revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 12,221 | 1,951 | 19,010 | 11,500 | ||
Other revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 9,918 | [1] | $ 247 | 11,151 | [1] | $ 2,798 |
Recognized benefit related to Brazilian tax ruling | $ 6,300 | $ 6,300 | ||||
[1] | During the thirteen and twenty-six weeks ended June 27, 2021, the Company recognized $6.3 million of other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base of Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes. The amount recognized as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest, and will be recovered by offsetting future PIS and COFINS taxes due. |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | $ 1,077,366 | $ 578,459 | $ 2,064,839 | $ 1,586,796 | |
U.S. segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 1,003,058 | 537,080 | 1,907,976 | 1,431,577 | |
International segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 74,308 | 41,379 | 156,863 | 155,219 | |
Restaurant sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 1,055,227 | 576,261 | 2,034,678 | 1,572,498 | |
Restaurant sales | U.S. segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 990,293 | 536,767 | 1,890,352 | 1,421,656 | |
Restaurant sales | International segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 64,934 | 39,494 | 144,326 | 150,842 | |
Restaurant sales | Outback Steakhouse | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 579,096 | 346,553 | 1,126,291 | 877,238 | |
Restaurant sales | Carrabba's Italian Grill | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 171,408 | 93,738 | 329,094 | 240,613 | |
Restaurant sales | Bonefish Grill | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 149,036 | 63,744 | 276,010 | 198,816 | |
Restaurant sales | Fleming's Prime Steakhouse & Wine Bar | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 88,101 | 31,156 | 154,412 | 102,116 | |
Restaurant sales | Other - U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 2,652 | 1,576 | 4,545 | 2,873 | |
Restaurant sales | Outback Brazil | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 43,310 | 24,003 | 104,158 | 115,593 | |
Restaurant sales | Other - International | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | [1] | 21,624 | 15,491 | 40,168 | 35,249 |
Franchise revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 12,221 | 1,951 | 19,010 | 11,500 | |
Franchise revenue | U.S. segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 9,257 | 147 | 12,960 | 7,285 | |
Franchise revenue | International segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 2,964 | 1,804 | 6,050 | 4,215 | |
Franchise revenue | Outback Steakhouse | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 8,418 | 136 | 11,374 | 6,677 | |
Franchise revenue | Carrabba's Italian Grill | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 665 | 7 | 1,282 | 468 | |
Franchise revenue | Bonefish Grill | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 174 | 4 | 304 | 140 | |
Franchise revenue | Fleming's Prime Steakhouse & Wine Bar | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | 0 | |
Franchise revenue | Other - U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | 0 | |
Franchise revenue | Outback Brazil | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | 0 | |
Franchise revenue | Other - International | |||||
Disaggregation of Revenue [Line Items] | |||||
Restaurant sales, franchise and other revenues | [1] | $ 2,964 | $ 1,804 | $ 6,050 | $ 4,215 |
[1] | Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities Summary) (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 |
Revenue Recognition [Line Items] | ||||||
Deferred gift card sales commissions, current | $ 12,548 | $ 13,502 | $ 19,300 | $ 13,624 | $ 13,049 | $ 18,554 |
Unearned revenue | 302,996 | 381,616 | ||||
Deferred gift card revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 293,955 | $ 306,075 | 373,048 | $ 279,973 | $ 277,518 | $ 358,757 |
Other current assets, net | ||||||
Revenue Recognition [Line Items] | ||||||
Deferred gift card sales commissions, current | 12,548 | 19,300 | ||||
Unearned revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 302,996 | 381,616 | ||||
Unearned revenue | Deferred gift card revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 293,955 | 373,048 | ||||
Unearned revenue | Deferred loyalty revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 8,604 | 8,099 | ||||
Unearned revenue | Deferred franchise fees | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 437 | 469 | ||||
Other long-term liabilities, net | Deferred franchise fees | ||||||
Revenue Recognition [Line Items] | ||||||
Deferred franchise fees, noncurrent | $ 4,174 | $ 4,301 |
Revenue Recognition (Contract_2
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Commissions Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Balance, beginning of period | $ 13,502 | $ 13,049 | $ 19,300 | $ 18,554 |
Deferred gift card sales commissions amortization | (5,711) | (2,502) | (14,436) | (11,592) |
Deferred gift card sales commissions capitalization | 5,297 | 3,142 | 8,796 | 7,466 |
Other | (540) | (65) | (1,112) | (804) |
Balance, end of period | $ 12,548 | $ 13,624 | $ 12,548 | $ 13,624 |
Revenue Recognition (Contract_3
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Revenue Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Revenue Recognition [Line Items] | ||||
Balance, beginning of the period | $ 381,616 | |||
Balance, end of the period | $ 302,996 | 302,996 | ||
Deferred gift card revenue | ||||
Revenue Recognition [Line Items] | ||||
Balance, beginning of the period | 306,075 | $ 277,518 | 373,048 | $ 358,757 |
Gift card sales | 63,921 | 41,649 | 108,090 | 100,088 |
Gift card redemptions | (71,859) | (37,404) | (176,799) | (170,585) |
Gift card breakage | (4,182) | (1,790) | (10,384) | (8,287) |
Balance, end of the period | $ 293,955 | $ 279,973 | $ 293,955 | $ 279,973 |
Impairments and Exit Costs (Pro
Impairments and Exit Costs (Provision for Impaired Assets and Restaurant Closings) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Provision for impaired assets and restaurant closings | $ 5,177,000 | $ 24,959,000 | $ 7,377,000 | $ 66,277,000 | ||
Impairment charges | 0 | 0 | ||||
Outback Hong Kong | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment charges | 2,000,000 | |||||
Provision for impaired assets and restaurant closings | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment losses | 5,422,000 | 23,918,000 | 7,564,000 | 64,342,000 | ||
Restaurant closure expenses | (245,000) | 1,041,000 | (187,000) | 1,935,000 | ||
Corporate, non-segment | Provision for impaired assets and restaurant closings | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment losses | 209,000 | (119,000) | 238,000 | 6,161,000 | [1] | |
U.S. segment | Provision for impaired assets and restaurant closings | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment losses | 5,768,000 | 23,741,000 | [2] | 7,174,000 | 54,713,000 | [2] |
Restaurant closure expenses | (92,000) | 1,041,000 | [2] | (34,000) | 1,762,000 | [2] |
International segment | Provision for impaired assets and restaurant closings | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment losses | (555,000) | 296,000 | [2] | 152,000 | 3,468,000 | [2],[3] |
Restaurant closure expenses | $ (153,000) | $ 0 | [2] | $ (153,000) | $ 173,000 | [2] |
[1] | Corporate impairment charges for the twenty-six weeks ended June 28, 2020 primarily relate to transformational initiatives. | |||||
[2] | U.S. and international impairment and closure charges for the thirteen and twenty-six weeks ended June 28, 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. | |||||
[3] | Includes goodwill impairment charges of $2.0 million during the twenty-six weeks ended June 28, 2020. |
Impairments and Exit Costs (Res
Impairments and Exit Costs (Restructuring and Related Cost) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021USD ($) | Jun. 28, 2020USD ($)Restaurants | Jun. 27, 2021USD ($) | Jun. 28, 2020USD ($)Restaurants | |
Provision for impaired assets and restaurant closings | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment losses | $ 5,422 | $ 23,918 | $ 7,564 | $ 64,342 |
COVID-19 Restructuring | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of restaurants | Restaurants | 22 | 22 | ||
Restructuring charges | $ 22,012 | $ 22,012 | ||
COVID-19 Restructuring | Provision for impaired assets and restaurant closings | Facility closing | Property, fixtures and equipment, net | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment losses | 16,932 | 16,932 | ||
COVID-19 Restructuring | Provision for impaired assets and restaurant closings | Facility closing | Operating lease right-of-use assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment losses | 3,920 | 3,920 | ||
COVID-19 Restructuring | General and administrative expense | Employee severance | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Severance and other expenses | $ 1,160 | $ 1,160 |
Impairments and Exit Costs (Ann
Impairments and Exit Costs (Annual Goodwill and Intangible Asset Impairment Assessment - Text) (Details) - USD ($) | 3 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 |
Impairments and Exit Costs (Lea
Impairments and Exit Costs (Lease Liability Rollforward) (Details) - Facility closing $ in Thousands | 6 Months Ended | |
Jun. 27, 2021USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of the period | $ 12,879 | |
Cash payments | (2,239) | |
Accretion | 488 | |
Adjustments | (790) | |
Balance, end of the period | 10,338 | [1] |
Accrued and other current liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, current | 3,600 | |
Non-current operating lease liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, noncurrent | $ 6,700 | |
[1] | As of June 27, 2021, the Company had exit-related accruals related to certain closure and restructuring initiatives of $3.6 million recorded in Accrued and other current liabilities and $6.7 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share (2025
Earnings (Loss) Per Share (2025 Notes Impact) (Details) - 2025 Notes - Convertible debt | May 08, 2020$ / shares |
Debt Instrument [Line Items] | |
Debt instrument, convertible, conversion price | $ 11.89 |
Class of warrant or right, exercise price of warrants or rights | $ 16.64 |
Earnings (Loss) Per Share (Basi
Earnings (Loss) Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||||
Schedule of earnings per share, basic and diluted [Line Items] | |||||||
Net income (loss) attributable to Bloomin’ Brands | $ 82,545 | $ (92,256) | $ 151,407 | $ (126,867) | |||
Redemption of preferred stock in excess of carrying value | 0 | 0 | 0 | (3,496) | [1] | ||
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 | 0 | 0 | 691 | [2] | 0 | ||
Diluted net income (loss) attributable to common stockholders | $ 82,545 | $ (92,256) | $ 152,098 | $ (130,363) | |||
Basic weighted average common shares outstanding | 89,075 | 87,496 | 88,721 | 87,312 | |||
Effect of diluted securities: | |||||||
Convertible senior notes | 11,231 | 0 | [3] | 13,212 | [2] | 0 | [3] |
Warrants | 7,983 | 0 | [3] | 6,879 | 0 | [3] | |
Diluted weighted average common shares outstanding | 109,805 | 87,496 | 110,223 | 87,312 | |||
Basic earnings (loss) per share attributable to common stockholders | $ 0.93 | $ (1.05) | $ 1.71 | $ (1.49) | |||
Diluted earnings (loss) per share attributable to common stockholders | $ 0.75 | $ (1.05) | $ 1.38 | $ (1.49) | |||
Stock options | |||||||
Effect of diluted securities: | |||||||
Dilutive shares | 1,165 | 0 | 937 | 0 | |||
Nonvested restricted stock units | |||||||
Effect of diluted securities: | |||||||
Dilutive shares | 351 | 0 | 427 | 0 | |||
Performance-based share units | |||||||
Effect of diluted securities: | |||||||
Dilutive shares | 0 | 0 | 47 | 0 | |||
[1] | Consideration paid in excess of carrying value for the redemption of preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders for the twenty-six weeks ended June 28, 2020. See Note 12 - Stockholders’ Equity | ||||||
[2] | Adjustment for interest related to the 2025 Notes weighted for the portion of the period prior to the Company’s election under the 2025 Notes indenture to settle the principal portion of its 2025 Notes in cash. Effective with the Company’s election, there will be no further numerator adjustments for interest or denominator adjustments for shares required to settle the principal portion. | ||||||
[3] | Due to the Company’s net loss during the thirteen and twenty-six weeks ended June 28, 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted earnings per share as their effect would be antidilutive. |
Earnings (Loss) Per Share (Anti
Earnings (Loss) Per Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Stock options | ||||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of earnings (loss) per share | 0 | 5,352 | 682 | 5,009 |
Nonvested restricted stock units | ||||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of earnings (loss) per share | 9 | 990 | 41 | 821 |
Performance-based share units | ||||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of earnings (loss) per share | 465 | 624 | 448 | 578 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 9,751 | $ 5,071 | $ 14,451 | $ 8,285 | ||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 469 | 1,038 | 1,334 | 1,870 | ||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 1,964 | 2,340 | 4,330 | 4,023 | ||
Performance-based share units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 7,318 | [1] | $ 1,693 | $ 8,787 | [1] | $ 2,392 |
[1] | The thirteen and twenty-six weeks ended June 27, 2021 includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections of performance criteria set forth in the award agreements. |
Stock-based Compensation Plan_3
Stock-based Compensation Plans (Assumptions Used in the Monte Carlo Simulation Model and the Grant Date Fair Value of PSUs Granted) (Details) - Performance-based share units - $ / shares shares in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2021 | Jun. 27, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.3 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 1 | 75.00% | ||
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 2 | 100.00% | ||
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 3 | 125.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | [1] | 0.20% | |
Volatility | [2] | 48.45% | |
Grant date fair value per unit (in dollars per share) | [3] | $ 29.73 | |
Share-based compensation arrangement by share-based payment award, stock price premium, percentage | 14.30% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 200.00% | ||
[1] | Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit. | ||
[2] | Based on the historical volatility of the Company’s stock over the last seven years. | ||
[3] | Represents a 14.3% premium above the per share value of the Company’s common stock as of the grant date. |
Stock-based Compensation Plan_4
Stock-based Compensation Plans (Unrecognized Stock Compensation Expense and the Remaining Weighted-Average Vesting Period) (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2021USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock options | $ 1,556 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 10 months 24 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock-based awards other than options | $ 13,678 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 2 years 1 month 6 days |
Performance-based share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock-based awards other than options | $ 24,264 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 1 year 9 months 18 days |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Prepaid expenses | $ 22,668 | $ 12,148 | |||||
Deferred gift card sales commissions | 12,548 | $ 13,502 | 19,300 | $ 13,624 | $ 13,049 | $ 18,554 | |
Assets held for sale | 1,358 | 3,831 | |||||
Other current assets, net | 8,756 | 12,756 | |||||
Total other current assets, net | 84,984 | 151,518 | |||||
Accounts receivable - gift cards, net | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accounts receivable, net | [1] | 16,177 | 76,808 | ||||
Accounts receivable - vendors, net | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accounts receivable, net | [1] | 9,212 | 8,886 | ||||
Accounts receivable - franchisees, net | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accounts receivable, net | [1] | 887 | 1,007 | ||||
Accounts receivable - other, net | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accounts receivable, net | [1] | $ 13,378 | $ 16,782 | ||||
[1] | See Note 16 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 27, 2021 | Dec. 27, 2020 | ||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Accrued rent and current operating lease liabilities | $ 184,486 | $ 192,369 | |
Accrued payroll and other compensation | 116,951 | [1] | 79,291 |
Accrued insurance | 22,414 | 20,648 | |
Other current liabilities | 115,445 | [2] | 96,013 |
Accrued and other current liabilities | 439,296 | $ 388,321 | |
Increase in accrued taxes payable | 8,700 | ||
Increase in income tax payable | 6,400 | ||
COVID-19 pandemic | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Deferred payroll tax, employer portion, CARES Act, amount | $ 27,300 | ||
[1] | During the twenty-six weeks ended June 27, 2021, the Company reclassified $27.3 million of payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act (“CARES Act”) to current. | ||
[2] | During the twenty-six weeks ended June 27, 2021, sales tax payable and income tax payable increased by $8.7 million and $6.4 million, respectively, due to increased sales and pre-tax income during the period. |
Long-term Debt, net (Schedule o
Long-term Debt, net (Schedule of Long-term Debt, Net) (Details) - USD ($) $ in Thousands | Dec. 28, 2020 | Jun. 27, 2021 | Apr. 16, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | May 08, 2020 | |||
Debt Instrument [Line Items] | |||||||||
Finance lease liabilities | $ 1,794 | $ 2,405 | |||||||
Less: unamortized debt discount and issuance costs | (15,576) | [1] | (67,704) | ||||||
Less: finance lease interest | (155) | (221) | |||||||
Total debt, net | 850,063 | 1,036,480 | |||||||
Less: current portion of long-term debt | (11,022) | (38,710) | |||||||
Long-term debt, net | 839,041 | 997,770 | |||||||
Secured debt | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | 334,000 | 0 | |||||||
Secured debt | Former Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | 0 | 872,000 | |||||||
Secured debt | Term loan A facility | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 200,000 | 0 | |||||||
Secured debt | Term loan A facility | Senior Secured Credit Facility | Weighted average | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, effective interest rate | [2] | 2.59% | |||||||
Secured debt | Term loan A facility | Former Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 0 | $ 425,000 | |||||||
Secured debt | Term loan A facility | Former Credit Facility | Weighted average | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, effective interest rate | [2] | 2.88% | |||||||
Secured debt | Revolving credit facility | Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, amount outstanding | $ 134,000 | $ 0 | |||||||
Secured debt | Revolving credit facility | Senior Secured Credit Facility | Weighted average | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, effective interest rate | [2] | 2.59% | |||||||
Secured debt | Revolving credit facility | Former Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, amount outstanding | $ 0 | $ 447,000 | |||||||
Secured debt | Revolving credit facility | Former Credit Facility | Weighted average | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, effective interest rate | [2] | 2.88% | |||||||
Secured debt | Second Amended and Restated Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | 5,900 | ||||||||
Secured debt | Second Amended and Restated Credit Agreement | Long term debt, net | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 2,200 | ||||||||
Secured debt | Second Amended and Restated Credit Agreement | Other assets, net | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | 3,700 | ||||||||
Convertible debt | 2025 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | [3] | $ 230,000 | $ 230,000 | ||||||
Debt instrument, effective interest rate | 5.85% | ||||||||
Debt instrument, interest rate, stated percentage | 5.00% | [3] | 5.00% | [3] | 5.00% | ||||
Debt discount derecognized upon adoption of new accounting standard | $ 0 | [4] | $ 59,862 | ||||||
Convertible debt | 2025 Notes | Accounting standards update 2020-06 | Long term debt, net | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt discount derecognized upon adoption of new accounting standard | $ 59,900 | ||||||||
Equity issuance costs reclassified upon adoption of new accounting standard | $ (2,100) | ||||||||
Unsecured debt | 2029 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 300,000 | $ 0 | |||||||
Debt instrument, interest rate, stated percentage | 5.13% | 5.125% | |||||||
[1] | In connection with the adoption of ASU No. 2020-06, debt discount of $59.9 million related to the 2025 Notes was de-recognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. | ||||||||
[2] | Interest rate represents the weighted-average interest rate as of the respective periods. | ||||||||
[3] | See Note 10 - Convertible Senior Notes | ||||||||
[4] | In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were de-recognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. |
Long-term Debt, Net (2029 Notes
Long-term Debt, Net (2029 Notes Narrative) (Details) - 2029 Notes - Unsecured debt - USD ($) | Apr. 16, 2021 | Jun. 27, 2021 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 300,000,000 | |
Long-term debt, maturity date | Apr. 15, 2029 | |
Debt instrument, interest rate, stated percentage | 5.125% | 5.13% |
Proceeds from issuance of private placement | $ 294,500,000 | |
Debt instrument, redemption, equity offering redemption option | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage | 105.125% | |
Debt instrument, redemption, early redemption option | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage | 100.00% | |
Maximum | Debt instrument, redemption, equity offering redemption option | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage of principal amount redeemed | 40.00% |
Long-term Debt, Net Long-term D
Long-term Debt, Net Long-term Debt, Net (Second Amended and Restated Credit Agreement Narrative) (Details) | Apr. 16, 2021USD ($) | Nov. 30, 2017USD ($) |
Term loan A facility | ||
Debt Instrument [Line Items] | ||
Quarterly required amortization payments, period one | $ 2,500,000 | |
Quarterly required amortization payments, period two | 3,750,000 | |
Quarterly required amortization payments, period three | 5,000,000 | |
Secured debt | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Long-term debt, maturity date | Apr. 16, 2026 | |
Line of credit facility, maximum increase | $ 425,000,000 | |
Secured debt | Former Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |
Secured debt | Term loan A facility | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 200,000,000 | |
Secured debt | Term loan A facility | Minimum | Eurocurrency Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
Secured debt | Term loan A facility | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
Secured debt | Term loan A facility | Maximum | Eurocurrency Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% | |
Secured debt | Term loan A facility | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
Secured debt | Revolving credit facility | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |
Secured debt | Revolving credit facility | Minimum | Eurocurrency Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
Secured debt | Revolving credit facility | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
Secured debt | Revolving credit facility | Maximum | Eurocurrency Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% | |
Secured debt | Revolving credit facility | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
Secured debt | Second Amended and Restated Credit Agreement | ||
Debt Instrument [Line Items] | ||
Debt covenants compliance, quarterly total net leverage ratio, initial maximum ratio level for increase in borrowing | 3 | |
Debt instrument, covenant, prepayment requirement, percentage of benchmark | 50.00% | |
Secured debt | Second Amended and Restated Credit Agreement | Eurocurrency Rate Option 1 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | seven day Eurocurrency rate | |
Secured debt | Second Amended and Restated Credit Agreement | Eurocurrency Rate Option 2 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | 30-day Eurocurrency rate | |
Secured debt | Second Amended and Restated Credit Agreement | Eurocurrency Rate Option 3 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | 60-day Eurocurrency rate | |
Secured debt | Second Amended and Restated Credit Agreement | Eurocurrency Rate Option 4 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | 90-day Eurocurrency rate | |
Secured debt | Second Amended and Restated Credit Agreement | Eurocurrency Rate Option 5 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | 180-day Eurocurrency rate | |
Secured debt | Second Amended and Restated Credit Agreement | Base Rate Option 1 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | prime rate of Wells Fargo, National Association | |
Secured debt | Second Amended and Restated Credit Agreement | Base Rate Option 2 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | federal funds effective rate | |
Debt instrument, basis spread on variable rate | 50.00% | |
Secured debt | Second Amended and Restated Credit Agreement | Base Rate Option 3 | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | the Eurocurrency Rate with a one-month interest period | |
Debt instrument, basis spread on variable rate | 1.00% | |
Secured debt | Second Amended and Restated Credit Agreement | Minimum | Eurocurrency Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, floor | 0.00% | |
Secured debt | Second Amended and Restated Credit Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, covenant, aggregate capital expenditures | $ 200,000,000 | |
Secured debt | Letter of credit | Minimum | ||
Debt Instrument [Line Items] | ||
Letters of credit fee, percentage | 1.50% | |
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |
Secured debt | Letter of credit | Maximum | ||
Debt Instrument [Line Items] | ||
Letters of credit fee, percentage | 2.50% | |
Line of credit facility, unused capacity, commitment fee percentage | 0.40% |
Long-term Debt, Net Long-term_2
Long-term Debt, Net Long-term Debt, Net (Schedule of Maximum TNLR) (Details) - Second Amended and Restated Credit Agreement - Secured debt | Apr. 16, 2021 | |
Debt Instrument [Line Items] | ||
Debt covenants compliance, quarterly total net leverage ratio, initial maximum ratio level, period two | 5 | [1] |
Debt covenants compliance, quarterly total net leverage ratio, initial maximum ratio level, period three | 4.50 | [2] |
Annualization factor, period two | 58.50% | |
Annualization factor, period three | 77.00% | |
[1] | Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the two consecutive quarters ending June 27, 2021 divided by 58.5%. | |
[2] | Seasonally annualized Consolidated EBITDA calculated as Consolidated EBITDA for the three consecutive quarters ending September 26, 2021 divided by 77.0%. |
Long-term Debt, Net (Maturities
Long-term Debt, Net (Maturities-Table) (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 | |
Debt Disclosure [Abstract] | |||
Year 1 | $ 11,051 | ||
Year 2 | 10,250 | ||
Year 3 | 10,188 | ||
Year 4 | 245,175 | ||
Year 5 | 289,130 | ||
Thereafter | 300,000 | ||
Total payments | 865,794 | ||
Less: unamortized debt discount and issuance costs | (15,576) | [1] | $ (67,704) |
Less: finance lease interest | (155) | (221) | |
Total debt, net | $ 850,063 | $ 1,036,480 | |
[1] | In connection with the adoption of ASU No. 2020-06, debt discount of $59.9 million related to the 2025 Notes was de-recognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. |
Long-term Debt, Net (Deferred F
Long-term Debt, Net (Deferred Financing Fees) (Details) $ in Millions | Jun. 27, 2021USD ($) |
Unsecured debt | 2029 Notes | |
Debt Instrument [Line Items] | |
Debt issuance costs | $ 5.5 |
Secured debt | Second Amended and Restated Credit Agreement | |
Debt Instrument [Line Items] | |
Debt issuance costs | 5.9 |
Secured debt | Second Amended and Restated Credit Agreement | Other assets, net | |
Debt Instrument [Line Items] | |
Debt issuance costs | $ 3.7 |
Convertible Senior Notes (Conve
Convertible Senior Notes (Convertible Notes Text) (Details) - Convertible debt - 2025 Notes $ / shares in Units, shares in Thousands | May 08, 2020USD ($)day$ / shares | May 08, 2020USD ($)$ / sharesshares | Jun. 27, 2021USD ($) | Dec. 27, 2020USD ($) | May 12, 2020USD ($) | ||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | ||||
Debt instrument, interest rate, stated percentage | 5.00% | 5.00% | 5.00% | [1] | 5.00% | [1] | |
Long-term debt, maturity date | May 1, 2025 | May 1, 2025 | |||||
Proceeds from issuance of private placement | $ | $ 221,600,000 | ||||||
Debt instrument, convertible, conversion ratio | 84.122 | ||||||
Debt instrument, convertible principal amount | $ | $ 1,000 | $ 1,000 | |||||
Debt conversion, converted instrument, shares to be issued | shares | 19,348 | ||||||
Debt instrument, convertible, conversion price | $ / shares | $ 11.89 | $ 11.89 | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||||
Conversion option one | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||||||
Debt instrument, convertible, threshold trading days | 20 | ||||||
Debt instrument, convertible, threshold consecutive trading days | 30 | ||||||
Conversion option two | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 98.00% | ||||||
Debt instrument, convertible, threshold trading days | 5 | ||||||
Debt instrument, convertible, threshold consecutive trading days | 5 | ||||||
[1] | See Note 10 - Convertible Senior Notes |
Convertible Senior Notes (Con_2
Convertible Senior Notes (Convertible Senior Notes Balances) (Details) - 2025 Notes - Convertible debt - USD ($) | Dec. 28, 2020 | Jun. 27, 2021 | Dec. 27, 2020 | May 12, 2020 | ||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | |||
Debt discount | 0 | [1] | (59,862,000) | |||
Debt issuance costs | [2] | (6,688,000) | [1] | (5,427,000) | ||
Net carrying amount | 223,312,000 | 164,711,000 | ||||
Equity component | $ 0 | [1] | $ 64,367,000 | |||
Additional paid-in capital | ||||||
Debt Instrument [Line Items] | ||||||
Equity issuance costs reclassified upon adoption of new accounting standard | $ 2,100,000 | |||||
[1] | In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were de-recognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during the twenty-six weeks ended June 27, 2021. | |||||
[2] | Debt issuance costs are amortized to Interest expense, net using the effective interest method over the expected life of the 2025 Notes. |
Convertible Senior Notes (Con_3
Convertible Senior Notes (Convertible Senior Notes Interest Expense) (Details) - 2025 Notes - Convertible debt $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 27, 2021USD ($) | Jun. 27, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 5.85% | 5.85% |
Coupon interest | $ 2,875 | $ 5,750 |
Deferred issuance cost amortization | 386 | 767 |
Total interest expense | $ 3,261 | $ 6,517 |
Convertible Senior Notes (Con_4
Convertible Senior Notes (Convertible Notes Hedge Transactions) (Details) | May 08, 2020$ / shares |
Convertible debt | 2025 Notes | |
Debt Instrument [Line Items] | |
Class of warrant or right, exercise price of warrants or rights | $ 16.64 |
Other Long-term Liabilities, _3
Other Long-term Liabilities, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 27, 2021 | Dec. 27, 2020 | ||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Accrued insurance liability | $ 32,704 | $ 32,128 | |
Chef and Restaurant Managing Partner deferred compensation obligations | 20,687 | 32,306 | |
Deferred payroll tax liabilities | 27,302 | [1] | 55,204 |
Other long-term liabilities | 53,601 | [2] | 65,717 |
Other long-term liabilities, net | 134,294 | $ 185,355 | |
Decrease in derivative liabilities | (11,800) | ||
COVID-19 pandemic | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Deferred payroll tax, employer portion, CARES Act, amount | $ 27,300 | ||
[1] | During the twenty-six weeks ended June 27, 2021, the Company reclassified $27.3 million of payroll taxes deferred under the CARES Act to current. | ||
[2] | The Company’s hedge liability decreased by $11.8 million during the twenty-six weeks ended June 27, 2021 primarily from the termination of certain interest rate swaps. See Note 13 - Derivative Instruments and Hedging Activities |
Stockholders' Equity (Redeemabl
Stockholders' Equity (Redeemable Preferred Stock) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 29, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Accumulated other comprehensive loss [Line Items] | |||
Payments for repurchase of redeemable preferred stock | $ 1,000 | $ 0 | $ 1,475 |
Consideration for preferred stock in excess of carrying value, net of tax | 1,718 | ||
Additional paid-in capital | |||
Accumulated other comprehensive loss [Line Items] | |||
Consideration for preferred stock in excess of carrying value, net of tax | $ 3,500 | $ 3,496 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 |
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (202,188) | $ (211,446) |
Foreign currency translation adjustment | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | (185,443) | (188,883) |
Unrealized loss on derivatives, net of tax | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (16,745) | $ (22,563) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||
Accumulated other comprehensive loss [Line Items] | |||||
Unrealized loss on derivatives, net of tax | $ (128) | $ (1,556) | $ (170) | $ (14,892) | |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | 1,514 | 2,585 | 4,517 | 3,981 | |
Amortization of terminated interest rate swaps, net of tax | 1,471 | 0 | 1,471 | 0 | |
Other comprehensive income (loss) attributable to Bloomin’ Brands | 12,872 | (28,117) | 9,258 | (48,018) | |
Bloomin' Brands | |||||
Accumulated other comprehensive loss [Line Items] | |||||
Foreign currency translation adjustment | 10,015 | (29,146) | 3,440 | (36,443) | |
Unrealized loss on derivatives, net of tax | [1] | (128) | (1,556) | (170) | (14,892) |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | [2] | 1,514 | 2,585 | 4,517 | 3,981 |
Amortization of terminated interest rate swaps, net of tax | 1,471 | 0 | 1,471 | 0 | |
Total unrealized gain (loss) on derivatives, net of tax | 2,857 | 1,029 | 5,818 | (10,911) | |
Other comprehensive income (loss) attributable to Bloomin’ Brands | $ 12,872 | (28,117) | $ 9,258 | (47,354) | |
Other comprehensive loss, unrealized loss on derivatives arising during period, tax | $ (500) | $ (5,200) | |||
[1] | Unrealized loss on derivatives is net of tax of $0.5 million and $5.2 million for the thirteen and twenty-six weeks ended June 28, 2020, respectively. | ||||
[2] | Reclassifications of adjustments for loss on derivatives are net of tax. See Note 13 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Cash Flow Hedges of Interest Rate Risk) (Details) - Interest rate swap | Apr. 16, 2021USD ($)counterparty | Oct. 25, 2018USD ($)counterparty | Jun. 27, 2021USD ($) | Dec. 27, 2020USD ($) | |
Contract termination | |||||
Derivative [Line Items] | |||||
Derivative agreements, number of counterparties | counterparty | 7 | ||||
Derivative, notional amount | $ 275,000,000 | ||||
Payment for settlement of interest rate, cash flow hedge | 13,300,000 | ||||
Derivative, interest rate swaps, liabilities, fair value | $ 13,400,000 | ||||
Designated as hedging instrument | |||||
Derivative [Line Items] | |||||
Derivative agreements, number of counterparties | counterparty | 12 | ||||
Derivative, notional amount | $ 550,000,000 | ||||
Derivative, maturity date | Nov. 30, 2022 | ||||
Derivative, average fixed interest rate | 3.04% | ||||
Derivative, interest rate swaps, liabilities, fair value | [1] | $ 11,258,000 | $ 30,495,000 | ||
Designated as hedging instrument | Interest expense | |||||
Derivative [Line Items] | |||||
Cash flow hedge loss to be reclassified within twelve fiscal months | $ 16,000,000 | ||||
Designated as hedging instrument | London Interbank Offered Rate (LIBOR) swap rate | |||||
Derivative [Line Items] | |||||
Derivative, variable interest rate | one-month LIBOR | ||||
[1] | See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Fair Value and Classification of Interest Rate Swaps) (Details) - Interest rate swap - Designated as hedging instrument - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 | |
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | [1] | $ 11,258 | $ 30,495 |
Accrued and other current liabilities | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | 7,437 | 14,855 | |
Accrued interest | 697 | 1,237 | |
Other long-term liabilities, net | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | $ 3,821 | $ 15,640 | |
[1] | See Note 15 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Effects of the Interest Rate Swaps) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | Dec. 27, 2020 | |
Derivative [Line Items] | |||||
Total effects of the interest rate swaps on Net income (loss) | $ (1,514) | $ (2,585) | $ (4,517) | $ (3,981) | |
Interest rate swap | Designated as hedging instrument | |||||
Derivative [Line Items] | |||||
Total effects of the interest rate swaps on Net income (loss) | (1,514) | (2,585) | (4,517) | (3,981) | |
Derivative, net liability position, aggregate fair value | 12,000 | 12,000 | $ 32,200 | ||
Derivative, termination value | 12,000 | 12,000 | $ 32,200 | ||
Interest rate swap | Designated as hedging instrument | Interest expense | |||||
Derivative [Line Items] | |||||
Interest rate swap expense recognized in Interest expense, net | (2,038) | (3,482) | (6,082) | (5,362) | |
Interest rate swap | Designated as hedging instrument | Income tax expense | |||||
Derivative [Line Items] | |||||
Income tax benefit recognized in Provision (benefit) for income taxes | $ 524 | $ 897 | $ 1,565 | $ 1,381 |
Leases (Lessee, Lease Assets an
Leases (Lessee, Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 | |
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Operating lease right-of-use assets | $ 1,161,650 | $ 1,172,910 | |
Finance lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Property, fixtures and equipment, net | Property, fixtures and equipment, net | |
Finance lease right-of-use assets | [1] | $ 1,447 | $ 1,947 |
Total lease assets, net | $ 1,163,097 | $ 1,174,857 | |
Operating lease, liability, current, statement of financial position [Extensible Enumeration] | Accrued and other current liabilities | Accrued and other current liabilities | |
Current operating lease liabilities | [2] | $ 177,807 | $ 176,791 |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt | |
Current finance lease liabilities | $ 1,022 | $ 1,210 | |
Non-current operating lease liabilities | [3] | $ 1,206,269 | $ 1,216,666 |
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Long-term debt, net | Long-term debt, net | |
Non-current finance lease liabilities | $ 617 | $ 974 | |
Total lease liability | 1,385,715 | 1,395,641 | |
Accumulated amortization | (2,800) | (2,300) | |
Accrued contingent percentage rent | 3,300 | 2,700 | |
COVID-19 pandemic | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Accrued deferred rent | 3,400 | 12,800 | |
Accrued rent, noncurrent | $ 800 | $ 1,200 | |
[1] | Net of accumulated amortization of $2.8 million and $2.3 million as of June 27, 2021 and December 27, 2020, respectively. | ||
[2] | Excludes COVID-19-related deferred rent accruals of $3.4 million and $12.8 million as of June 27, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.3 million and $2.7 million, as of June 27, 2021 and December 27, 2020, respectively. | ||
[3] | Excludes COVID-19-related non-current deferred rent accruals of $0.8 million and $1.2 million as of June 27, 2021 and December 27, 2020, respectively. |
Leases (Lessee, Lease Costs) (D
Leases (Lessee, Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||
Schedule of Lease Costs [Line Items] | |||||
Operating leases | [1] | $ 43,763 | $ 42,776 | $ 88,555 | $ 88,658 |
Variable lease cost | [2] | 731 | (1,046) | 1,508 | 74 |
Amortization of leased assets | 258 | 315 | 520 | 657 | |
Interest on lease liabilities | 31 | 37 | 67 | 83 | |
Sublease revenue | [3] | (2,825) | (109) | (3,660) | (1,786) |
Lease costs, net | 41,958 | 41,973 | 86,990 | 87,686 | |
General and administrative expense | |||||
Schedule of Lease Costs [Line Items] | |||||
Operating leases | 3,200 | 3,300 | 6,700 | 6,900 | |
Food and beverage costs | |||||
Schedule of Lease Costs [Line Items] | |||||
Operating leases | $ 300 | $ 300 | $ 600 | $ 600 | |
[1] | Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.2 million and $3.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020, respectively, and $6.7 million and $6.9 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, respectively, which is included in General and administrative expense. Also excludes certain supply chain related rent expense of $0.3 million for the thirteen weeks ended June 27, 2021 and June 28, 2020 and $0.6 million for the twenty-six weeks ended June 27, 2021 and June 28, 2020, which is included in Food and beverage costs. | ||||
[2] | Includes COVID-19-related rent abatement for all periods presented. | ||||
[3] | Excludes immaterial rental income from Company-owned properties. |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 105,323 | $ 75,688 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Recurring Basis) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 |
Fair value, inputs, level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 24,508 | $ 32,326 |
Liabilities, fair value disclosure | 0 | 0 |
Fair value, inputs, level 1 | Accrued and other current liabilities | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 0 | 0 |
Fair value, inputs, level 1 | Other long-term liabilities, net | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, other long-term liabilities | 0 | 0 |
Fair value, inputs, level 1 | Fixed income funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 8,664 | 15,404 |
Fair value, inputs, level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 14,054 | 16,494 |
Restricted cash and cash equivalents, fair value disclosure | 1,790 | 428 |
Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Liabilities, fair value disclosure | 11,258 | 30,495 |
Fair value, inputs, level 2 | Accrued and other current liabilities | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 7,437 | 14,855 |
Fair value, inputs, level 2 | Other long-term liabilities, net | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, other long-term liabilities | 3,821 | 15,640 |
Fair value, inputs, level 2 | Fixed income funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Fair value, inputs, level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Restricted cash and cash equivalents, fair value disclosure | 0 | 0 |
Carrying value measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 24,508 | 32,326 |
Liabilities, fair value disclosure | 11,258 | 30,495 |
Carrying value measurement | Accrued and other current liabilities | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 7,437 | 14,855 |
Carrying value measurement | Other long-term liabilities, net | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, other long-term liabilities | 3,821 | 15,640 |
Carrying value measurement | Fixed income funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 8,664 | 15,404 |
Carrying value measurement | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 14,054 | 16,494 |
Restricted cash and cash equivalents, fair value disclosure | $ 1,790 | $ 428 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurements on a Nonrecurring Basis) (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses | $ 5,422 | $ 23,918 | $ 7,564 | $ 64,342 | |
Operating lease right-of-use assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Operating lease assets, impairment | 962 | 4,028 | 1,512 | 23,591 | |
Property, fixtures and equipment, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property, fixtures and equipment, impairment | 4,460 | 19,595 | 6,052 | 37,993 | |
Property, fixtures and equipment, net | Fair value, inputs, level 3 | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | 9,400 | 9,400 | |||
Property, fixtures and equipment, net | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | 26,200 | 26,200 | |||
Goodwill and other assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses | 0 | 295 | 0 | 2,683 | |
Assets held for sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets held for sale, impairment | 0 | 75 | |||
Carrying value measurement | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | 13,879 | 43,144 | 13,879 | 43,144 | |
Carrying value measurement | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | 16,579 | 115,857 | 16,579 | 115,857 | |
Carrying value measurement | Operating lease right-of-use assets | Fair value, inputs, level 3 | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [1] | 5,687 | 32,404 | 5,687 | 32,404 |
Carrying value measurement | Operating lease right-of-use assets | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [1] | 7,651 | 85,537 | 7,651 | 85,537 |
Carrying value measurement | Property, fixtures and equipment, net | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [2] | 9,992 | 9,992 | ||
Carrying value measurement | Property, fixtures and equipment, net | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [2] | 28,390 | 28,390 | ||
Carrying value measurement | Property, fixtures and equipment, net | Fair value, inputs, level 2 | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | 500 | 500 | |||
Carrying value measurement | Property, fixtures and equipment, net | Fair value, inputs, level 2 | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | 2,200 | 2,200 | |||
Carrying value measurement | Property, fixtures and equipment, net | Fair value, inputs, level 3 | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [2] | 8,192 | 8,192 | ||
Carrying value measurement | Property, fixtures and equipment, net | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [2] | 8,928 | 8,928 | ||
Carrying value measurement | Goodwill and other assets | Fair value, inputs, level 2 | Assets measured with impairment, quarter-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [3] | 0 | 748 | 0 | 748 |
Carrying value measurement | Goodwill and other assets | Fair value, inputs, level 2 | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [3] | 0 | 748 | 0 | 748 |
Carrying value measurement | Assets held for sale | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value disclosure | [1] | $ 0 | $ 1,182 | $ 0 | $ 1,182 |
[1] | Asset carrying values measured using discounted cash flow models (Level 3). | ||||
[2] | Carrying values measured using Level 2 inputs to estimate fair value totaled $0.5 million and $2.2 million for the thirteen and twenty-six weeks ended June 28, 2020, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. | ||||
[3] | Other assets generally measured using the quoted market value of comparable assets (Level 2). |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value Inputs on a Nonrecurring Basis) (Details) - Operating lease right-of-use-asset and property, fixtures and equipment - Fair value, measurements, nonrecurring - Fair value, inputs, level 3 | 3 Months Ended | 6 Months Ended |
Jun. 28, 2020 | Jun. 28, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, weighted-average cost of capital | 10.90% | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, weighted-average cost of capital | 10.90% | |
Fair value inputs, long-term growth rate | 2.00% | 2.00% |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, weighted-average cost of capital | 10.40% | |
Fair value inputs, long-term growth rate | 1.50% | 1.50% |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Debt by Hierarchy Level) (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Dec. 27, 2020 |
Secured debt | Senior Secured Credit Facility | Fair value, inputs, level 2 | Term loan A facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | $ 196,250 | $ 0 |
Secured debt | Senior Secured Credit Facility | Fair value, inputs, level 2 | Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 128,850 | 0 |
Secured debt | Senior Secured Credit Facility | Carrying value measurement | Term loan A facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 200,000 | 0 |
Secured debt | Senior Secured Credit Facility | Carrying value measurement | Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 134,000 | 0 |
Secured debt | Former Credit Facility | Fair value, inputs, level 2 | Term loan A facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 412,250 |
Secured debt | Former Credit Facility | Fair value, inputs, level 2 | Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans payable, fair value | 0 | 419,612 |
Secured debt | Former Credit Facility | Carrying value measurement | Term loan A facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 0 | 425,000 |
Secured debt | Former Credit Facility | Carrying value measurement | Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 0 | 447,000 |
Convertible debt | 2025 Notes | Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt, fair value | 559,450 | 413,818 |
Convertible debt | 2025 Notes | Carrying value measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 230,000 | 230,000 |
Unsecured debt | 2029 Notes | Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt, fair value | 307,503 | 0 |
Unsecured debt | 2029 Notes | Carrying value measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 300,000 | $ 0 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses (Allowance for Expected Credit Losses Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for expected credit losses, beginning of period | $ 3,997 | $ 4,551 | $ 4,095 | $ 199 | ||
Provision for expected credit losses | 0 | 15 | [1] | 0 | 3,349 | [1] |
Charge-off of accounts | (8) | 0 | (106) | 0 | ||
Allowance for expected credit losses, end of period | 3,989 | 4,566 | 3,989 | 4,566 | ||
ASU No. 2016-13 | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Adjustment for adoption of ASU No. 2016-13 | $ 0 | $ 0 | $ 0 | $ 1,018 | ||
[1] | In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 2 - COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. |
Income Taxes (Change in Effecti
Income Taxes (Change in Effective Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||||
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) |
Effective income tax rate | 21.10% | 27.90% | 15.90% | 30.40% |
Change in effective income tax rate | (6.80%) | (14.50%) | ||
Blended federal and state statutory income tax rate | 26.00% | 26.00% |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) - Internal Revenue Service (IRS) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2021 | Dec. 27, 2020 | |
Income Tax Contingency [Line Items] | ||
General business tax credit carryforwards | $ 155.3 | |
Maximum | ||
Income Tax Contingency [Line Items] | ||
General business tax credits, estimated period of use | 10 years |
Commitments and Contingencies (
Commitments and Contingencies (Litigation and Other Matters) (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Dec. 27, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated litigation liability | $ 5.9 | $ 4.6 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Guarantees) (Details) - Property lease guarantee $ in Millions | Jun. 27, 2021USD ($) |
Loss Contingencies [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 27.9 |
Guarantee obligations, maximum exposure at present value | 22.9 |
Lease guarantee contingent liabilities | $ 10.3 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 6 Months Ended |
Jun. 27, 2021reportableSegment | |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 1,077,366 | $ 578,459 | $ 2,064,839 | $ 1,586,796 |
U.S. segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 1,003,058 | 537,080 | 1,907,976 | 1,431,577 |
International segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 74,308 | $ 41,379 | $ 156,863 | $ 155,219 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
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 | 0 | 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) | ||
Operating segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income (loss) from operations | 167,767 | (79,991) | 293,039 | (61,825) | ||
Operating segments | U.S. segment | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income (loss) from operations | 165,297 | (62,921) | 287,032 | (51,542) | ||
Operating segments | International segment | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income (loss) from operations | 2,470 | (17,070) | 6,007 | (10,283) | ||
Corporate, non-segment | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Income (loss) from operations | $ (43,130) | (31,921) | [1] | $ (77,404) | (91,655) | [1] |
Corporate, non-segment | Impairment and general and administrative expense | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Restructuring charges | $ 2,400 | $ 24,600 | ||||
[1] | The thirteen and twenty-six weeks ended June 28, 2020 include $2.4 million and $24.6 million, respectively, of charges that were not allocated to the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings. |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | $ 40,539 | $ 45,784 | $ 81,765 | $ 94,052 |
Operating segments | U.S. segment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | 33,578 | 37,308 | 67,223 | 74,948 |
Operating segments | International segment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | 5,566 | 5,884 | 11,286 | 12,642 |
Corporate, non-segment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | $ 1,395 | $ 2,592 | $ 3,256 | $ 6,462 |
Segment Reporting (Capital Expe
Segment Reporting (Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | $ 51,398 | $ 53,205 |
Consolidated entity | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | 51,243 | 44,077 |
Corporate, non-segment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | 3,138 | 2,471 |
U.S. segment | Operating segments | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | 42,574 | 30,692 |
International segment | Operating segments | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | $ 5,531 | $ 10,914 |
Subsequent Events (Text) (Detai
Subsequent Events (Text) (Details) $ in Millions | Aug. 02, 2021USD ($) |
Other restaurant operating | Carrabba's Italian Grill | Subsequent event | |
Subsequent Event [Line Items] | |
Cash paid to settle royalty agreement | $ 61.9 |