Cover Page
Cover Page - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 26, 2021 | Feb. 18, 2022 | Jun. 25, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 26, 2021 | ||
Current Fiscal Year End Date | --12-26 | ||
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 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.4 | ||
Entity Common Stock, Shares Outstanding | 89,425,680 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001546417 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 26, 2021 | |
Audit Information [Abstract] | |
Auditor firm ID | 238 |
Auditor name | PricewaterhouseCoopers LLP |
Auditor location | Tampa, Florida |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Current assets | ||
Cash and cash equivalents | $ 87,585 | $ 109,980 |
Restricted cash and cash equivalents | 1,472 | 428 |
Inventories | 79,112 | 61,928 |
Other current assets, net | 184,623 | 151,518 |
Total current assets | 352,792 | 323,854 |
Property, fixtures and equipment, net | 842,012 | 887,687 |
Operating lease right-of-use assets | 1,130,873 | 1,172,910 |
Goodwill | 268,444 | 271,164 |
Intangible assets, net | 453,412 | 459,983 |
Deferred income tax assets, net | 168,068 | 153,883 |
Other assets, net | 78,670 | 92,626 |
Total assets | 3,294,271 | 3,362,107 |
Current liabilities | ||
Accounts payable | 167,978 | 141,457 |
Accrued and other current liabilities | 406,894 | 388,321 |
Unearned revenue | 398,795 | 381,616 |
Current portion of long-term debt | 10,958 | 38,710 |
Total current liabilities | 984,625 | 950,104 |
Non-current operating lease liabilities | 1,179,447 | 1,217,921 |
Long-term debt, net | 782,107 | 997,770 |
Other long-term liabilities, net | 125,242 | 185,355 |
Total liabilities | 3,071,421 | 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 December 26, 2021 and December 27, 2020 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 89,252,823 and 87,855,571 shares issued and outstanding as of December 26, 2021 and December 27, 2020, respectively | 893 | 879 |
Additional paid-in capital | 1,119,728 | 1,132,808 |
Accumulated deficit | (698,171) | (918,096) |
Accumulated other comprehensive loss | (205,989) | (211,446) |
Total Bloomin’ Brands stockholders’ equity | 216,461 | 4,145 |
Noncontrolling interests | 6,389 | 6,812 |
Total stockholders’ equity | 222,850 | 10,957 |
Total liabilities and stockholders’ equity | $ 3,294,271 | $ 3,362,107 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 26, 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 outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (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) | 89,252,823 | 87,855,571 |
Common stock, shares outstanding (in shares) | 89,252,823 | 87,855,571 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 4,122,385 | $ 3,170,561 | $ 4,139,389 | |
Costs and expenses | ||||
Food and beverage costs | 1,229,689 | 982,702 | 1,277,824 | |
Labor and other related | 1,154,623 | 1,005,295 | 1,207,289 | |
Other restaurant operating | 1,006,371 | 846,566 | 982,051 | |
Depreciation and amortization | 163,391 | 180,261 | 196,811 | |
General and administrative | 245,616 | 254,356 | 275,239 | |
Provision for impaired assets and restaurant closings | 13,737 | 76,354 | 9,085 | |
Total costs and expenses | 3,813,427 | 3,345,534 | 3,948,299 | |
Income (loss) from operations | 308,958 | (174,973) | 191,090 | |
Loss on extinguishment and modification of debt | (2,073) | (237) | 0 | |
Other income (expense), net | 26 | 131 | (143) | |
Interest expense, net | (57,614) | (64,442) | (49,257) | |
Income (loss) before provision (benefit) for income taxes | 249,297 | (239,521) | 141,690 | |
Provision (benefit) for income taxes | 26,384 | (80,726) | 7,573 | |
Net income (loss) | 222,913 | (158,795) | 134,117 | |
Less: net income (loss) attributable to noncontrolling interests | 7,358 | (80) | 3,544 | |
Net income (loss) attributable to Bloomin’ Brands | 215,555 | (158,715) | 130,573 | |
Redemption of preferred stock in excess of carrying value | 0 | (3,496) | [1] | 0 |
Net income (loss) attributable to common stockholders | 215,555 | (162,211) | 130,573 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (6,597) | (37,516) | (16,625) | |
Unrealized gain (loss) on derivatives, net of tax | 86 | (14,741) | (11,944) | |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | 7,392 | 9,923 | 1,805 | |
Amortization of terminated interest rate swaps, net of tax | 4,576 | 0 | 0 | |
Comprehensive income (loss) | 228,370 | (201,129) | 107,353 | |
Less: comprehensive income (loss) attributable to noncontrolling interests | 7,358 | (744) | 3,801 | |
Comprehensive income (loss) attributable to Bloomin’ Brands | $ 221,012 | $ (200,385) | $ 103,552 | |
Earnings (loss) per share attributable to common stockholders: | ||||
Basic (in USD per share) | $ 2.42 | $ (1.85) | $ 1.47 | |
Diluted (in USD per share) | $ 2 | $ (1.85) | $ 1.45 | |
Weighted average common shares outstanding: | ||||
Basic (shares) | 88,981 | 87,468 | 88,839 | |
Diluted (shares) | 107,803 | 87,468 | 89,777 | |
Cash dividends declared per common share | $ 0 | $ 0.20 | $ 0.40 | |
Restaurant sales | ||||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 4,061,093 | $ 3,144,636 | $ 4,075,014 | |
Franchise and other revenues | ||||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 61,292 | $ 25,925 | $ 64,375 | |
[1] | Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders. See Note 16 - 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 | Retained earnings | Retained earningsCumulative-effect from a change in accounting principle | Accumulated other comprehensive loss | Noncontrolling interests | |
Balance (in shares) at Dec. 30, 2018 | 91,272,000 | |||||||||
Balance at Dec. 30, 2018 | $ 54,817 | $ 141,285 | $ 913 | $ 1,107,582 | $ (920,010) | $ 141,285 | $ (142,755) | $ 9,087 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 134,117 | 130,573 | 3,544 | |||||||
Other comprehensive income (loss), net of tax | (26,764) | (27,055) | 291 | |||||||
Cash dividends declared, per common share | (35,734) | (35,734) | ||||||||
Repurchase and retirement of common stock (in shares) | (5,469,000) | |||||||||
Repurchase and retirement of common stock | (106,992) | $ (55) | (106,937) | |||||||
Stock-based compensation | 19,951 | 19,951 | ||||||||
Common stock issued under stock plans, shares | [1] | 1,143,000 | ||||||||
Common stock issued under stock plans | [1] | 2,707 | $ 11 | 2,696 | ||||||
Purchase of noncontrolling interests | (41) | (157) | 34 | 82 | ||||||
Distributions to noncontrolling interests | (7,214) | (7,214) | ||||||||
Contributions from noncontrolling interests | 1,349 | 1,349 | ||||||||
Balance (in shares) at Dec. 29, 2019 | 86,946,000 | |||||||||
Balance 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] | Accounting Standards Update 2016-02 [Member] | |||||||||
Net income (loss) | $ (158,795) | (158,715) | (80) | |||||||
Other comprehensive income (loss), net of tax | (42,334) | (42,187) | (147) | |||||||
Cash dividends declared, per common share | (17,480) | (17,480) | ||||||||
Stock-based compensation | 14,802 | 14,802 | ||||||||
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, shares | [1] | 910,000 | ||||||||
Common stock issued under stock plans | [1] | (7) | $ 10 | (17) | ||||||
Purchase of noncontrolling interests | (60) | (156) | 96 | |||||||
Distributions to noncontrolling interests | (1,908) | (1,908) | ||||||||
Contributions from noncontrolling interests | 451 | 451 | ||||||||
Equity component value of convertible note issuance, net of tax | 64,367 | 64,367 | ||||||||
Sale of common stock warrant | 46,690 | 46,690 | ||||||||
Purchase of convertible note hedge | $ (66,240) | (66,240) | ||||||||
Balance (in shares) at Dec. 27, 2020 | 87,855,571 | 87,856,000 | ||||||||
Balance 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] | ASU No. 2016-13 | |||||||||
Net income (loss) | $ 222,913 | 215,555 | 7,358 | |||||||
Other comprehensive income (loss), net of tax | 5,457 | 5,457 | ||||||||
Stock-based compensation | 24,405 | 24,405 | ||||||||
Common stock issued under stock plans, shares | [1] | 1,397,000 | ||||||||
Common stock issued under stock plans | [1] | 9,850 | $ 14 | 9,836 | ||||||
Purchase of noncontrolling interests | (3) | 2 | (5) | |||||||
Distributions to noncontrolling interests | (9,123) | (9,123) | ||||||||
Contributions from noncontrolling interests | $ 1,347 | 1,347 | ||||||||
Balance (in shares) at Dec. 26, 2021 | 89,252,823 | 89,253,000 | ||||||||
Balance at Dec. 26, 2021 | $ 222,850 | $ 893 | $ 1,119,728 | $ (698,171) | $ (205,989) | $ 6,389 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting standards updated 2020-06 | |||||||||
[1] | Net of forfeitures and shares withheld for employee taxes. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 27, 2020USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends declared per common share (in USD per share) | $ / shares | $ 0.20 |
Equity component value of convertible note issuance, tax effect | $ | $ 650 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Cash flows provided by operating activities: | |||
Net income (loss) | $ 222,913 | $ (158,795) | $ 134,117 |
Adjustments to reconcile Net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 163,391 | 180,261 | 196,811 |
Amortization of debt discounts and issuance costs | 4,494 | 10,142 | 2,517 |
Amortization of deferred gift card sales commissions | 26,012 | 20,927 | 26,094 |
Provision for impaired assets and restaurant closings | 13,737 | 76,354 | 9,085 |
Amortization of unrealized loss on terminated interest rate swaps | 6,160 | 0 | 0 |
Non-cash operating lease costs | 78,272 | 74,436 | 73,357 |
Provision for expected credit losses and contingent lease liabilities | 946 | 7,225 | 0 |
Inventory obsolescence and spoilage | 0 | 10,169 | 0 |
Stock-based and other non-cash compensation expense | 24,405 | 14,802 | 24,651 |
Deferred income tax benefit | (3,346) | (88,256) | (25,890) |
(Gain) loss on disposal of property, fixtures and equipment | (1,322) | 1,261 | (2,984) |
Other, net | 1,516 | (4,956) | (10,265) |
Change in assets and liabilities: | |||
(Increase) decrease in inventories | (18,210) | 19,857 | (15,388) |
(Increase) decrease in other current assets | (58,397) | 14,392 | (40,519) |
(Increase) decrease in other assets | (2,073) | 3,688 | (890) |
Decrease in operating right-of-use assets, net | 160 | 412 | 391 |
Increase (decrease) in accounts payable and accrued and other current liabilities | 25,619 | (61,638) | (23,497) |
Increase in unearned revenue | 17,225 | 10,569 | 26,676 |
Decrease in operating lease liabilities | (90,387) | (50,626) | (69,886) |
(Decrease) increase in other long-term liabilities | (8,660) | 58,625 | 13,223 |
Net cash provided by operating activities | 402,455 | 138,849 | 317,603 |
Cash flows used in investing activities: | |||
Proceeds from disposal of property, fixtures and equipment | 9,322 | 2,178 | 18,291 |
Proceeds from sale-leaseback transactions, net | 0 | 0 | 7,085 |
Capital expenditures | (122,830) | (87,842) | (161,926) |
Other investments, net | 8,763 | 9,025 | 5,259 |
Net cash used in investing activities | (104,745) | (76,639) | (131,291) |
Cash flows used in financing activities: | |||
Proceeds from issuance of long-term debt | 200,000 | 0 | 0 |
Repayments of long-term debt and finance lease obligations | (431,166) | (26,326) | (27,259) |
Proceeds from borrowings on revolving credit facilities | 470,000 | 505,000 | 670,800 |
Repayments of borrowings on revolving credit facilities | (837,000) | (657,000) | (671,300) |
Financing fees | (5,868) | (3,096) | 0 |
Proceeds from issuance of senior notes | 300,000 | 0 | 0 |
Proceeds from issuance of convertible senior notes | 0 | 230,000 | 0 |
Proceeds from issuance of warrants | 0 | 46,690 | 0 |
Purchase of convertible note hedge | 0 | (66,240) | 0 |
Issuance costs related to senior notes | (5,546) | (8,416) | 0 |
Proceeds (payments of taxes) from share-based compensation, net | 9,850 | (7) | 2,707 |
Distributions to noncontrolling interests | (9,123) | (1,908) | (7,214) |
Contributions from noncontrolling interests | 1,347 | 451 | 1,349 |
Purchase of limited partnership and noncontrolling interests | (3) | (60) | (41) |
Payments for partner equity plan | (9,910) | (16,906) | (15,675) |
Repurchase of common stock | 0 | 0 | (106,992) |
Cash dividends paid on common stock | 0 | (17,480) | (35,734) |
Redemption of subsidiary preferred stock | 0 | (1,475) | 0 |
Net cash used in financing activities | (317,419) | (16,773) | (189,359) |
Effect of exchange rate changes on cash and cash equivalents | (1,642) | (2,174) | (1,631) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (21,351) | 43,263 | (4,678) |
Cash, cash equivalents and restricted cash as of the beginning of the period | 110,408 | 67,145 | 71,823 |
Cash, cash equivalents and restricted cash as of the end of the period | 89,057 | 110,408 | 67,145 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 47,036 | 52,630 | 47,893 |
Cash paid for income taxes, net of refunds | 36,336 | 8,415 | 23,995 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Leased assets obtained in exchange for new operating lease liabilities | 43,363 | 19,451 | 67,955 |
Leased assets obtained in exchange for new finance lease liabilities | 1,238 | 1,367 | 208 |
Increase (decrease) in liabilities from the acquisition of property, fixtures and equipment | $ 2,344 | $ 1,152 | $ (2,899) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 26, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Bloomin’ Brands, Inc. (“Bloomin’ Brands” or the “Company”), a holding company that conducts its operations through its subsidiaries, is one of the largest casual dining restaurant companies in the world, with a portfolio of leading, differentiated restaurant concepts. OSI Restaurant Partners, LLC (“OSI”) is the Company’s primary operating entity. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation - The Company’s consolidated financial statements include the accounts and operations of Bloomin’ Brands and its subsidiaries. To ensure timely reporting, the Company consolidates the results of its Brazil operations on a one-month calendar lag. There were no intervening events that would materially affect the Company’s consolidated financial position, results of operations or cash flows as of and for the year ended December 26, 2021. COVID-19 Pandemic - In March 2020, the Company temporarily closed all restaurant dining rooms to comply with state and local regulations in response to the COVID-19 pandemic (“COVID-19”). In early May 2020, the Company began to reopen its restaurant dining rooms with limited seating capacity in compliance with state and local regulations. The temporary closure of the Company’s dining rooms and the limitations on seating capacity due to the COVID-19 pandemic resulted in significantly reduced traffic in its restaurants which negatively impacted its operating results during 2020. See Note 3 - 2020 COVID-19 Charges for details regarding certain charges resulting from the COVID-19 pandemic. During 2021, the recovery of in-restaurant dining continued as COVID-19 capacity restrictions were eased or eliminated. Concerns over the variants of COVID-19 impacted this recovery, however, the Company continued to retain a significant portion of the incremental off-premises volume achieved while its dining rooms were closed last year. Principles of Consolidation - All intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities’ operations. The Company is a franchisor of 329 full-service restaurants and off-premises kitchens as of December 26, 2021, but does not possess any ownership interests in its franchisees and does not provide material direct financial support to its franchisees. These franchise relationships are not deemed variable interest entities and are not consolidated. Investments in entities the Company does not control, but where the Company’s interest is generally between 20% and 50% and the Company has the ability to exercise significant influence over the entity, are accounted for under the equity method. Fiscal Year - The Company utilizes a 52-53-week year ending on the last Sunday in December. In a 52-week fiscal year, each quarterly period is comprised of 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter. All periods presented consisted of 52 weeks. Use of Estimates - The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated. Cash and Cash Equivalents - Cash equivalents consist of investments that are readily convertible to cash with an original maturity date of three months or less. Cash and cash equivalents include $41.3 million and $37.1 million, as of December 26, 2021 and December 27, 2020, respectively, for amounts in transit from credit card companies since settlement is reasonably assured. Concentrations of Credit and Counterparty Risk - Financial instruments that potentially subject the Company to a concentration of credit risk and credit losses are through credit card and trade receivables consisting primarily of amounts due for gift card, vendor, franchise and other receivables. Gift card, vendor and other receivables consist primarily of amounts due from gift card resellers and vendor rebates. The Company considers the concentration of credit risk for gift card, vendor and other receivables to be minimal due to the payment histories and general financial condition of its gift card resellers and vendors. Amounts due from franchisees consist of initial franchise fees, royalty income and advertising fees. See Note 8 - Other Current Assets, Net for disclosure of trade receivables by category as of December 26, 2021 and December 27, 2020. Financial instruments that potentially subject the Company to concentrations of counterparty risk are cash and cash equivalents, restricted cash and derivatives. The Company attempts to limit its counterparty risk by investing in certificates of deposit, money market funds, noninterest-bearing accounts and other highly rated investments. Whenever possible, the Company selects investment grade counterparties and rated money market funds in order to mitigate its counterparty risk. At times, cash balances may be in excess of FDIC insurance limits. See Note 17 - Derivative Instruments and Hedging Activities for a discussion of the Company’s use of derivative instruments and management of credit risk inherent in derivative instruments. Allowance for Expected Credit Losses - The Company evaluates the collectability of credit card and trade receivables based on historical loss experience by risk pool and records periodic adjustments for factors such as deterioration of economic conditions, specific customer circumstances and changes in the aging of accounts receivable balances. Losses are charged off in the period in which they are determined to be uncollectible. See Note 20 - Allowance for Expected Credit Losses for a discussion of the Company’s allowance for expected credit losses. The Company assigned its interest, and is contingently liable, under certain real estate leases, primarily related to divested restaurant properties. Contingent lease liabilities related to these guarantees are calculated based on management’s estimate of exposure to losses which includes historical analysis of credit losses, including known instances of default, and existing economic conditions. See Note 22 - Commitments and Contingencies for a discussion of the Company’s contingent lease liabilities. In instances where there is no established loss history, S&P speculative-grade default rates are utilized as an estimated expected credit loss rate. Fair Value - 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 Inventories - Inventories consist of food and beverages and are stated at the lower of cost (first-in, first-out) or net realizable value. Restricted Cash - From time to time, the Company may have short-term restricted cash balances consisting of amounts pledged for settlement of deferred compensation plan obligations. Property, Fixtures and Equipment - Property, fixtures and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful life of the assets. Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 3 to 7 years ____________________ (1) Includes improvements to leased properties which are depreciated over the shorter of their useful life or the reasonably certain lease term, including renewal periods that are reasonably certain. Repair and maintenance costs that maintain the appearance and functionality of the restaurant, but do not extend the useful life of any restaurant asset are expensed as incurred. The Company suspends depreciation and amortization for assets held for sale. The cost and related accumulated depreciation of assets sold or disposed of are removed from the Company’s Consolidated Balance Sheets, and any resulting gain or loss is generally recognized in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss). The Company capitalizes direct and indirect internal costs associated with the acquisition, development, design and construction of Company-owned restaurant locations as these costs have a future benefit to the Company. Upon restaurant opening, these costs are depreciated and charged to depreciation and amortization expense. Internal costs of $3.7 million, $2.7 million and $6.4 million were capitalized during 2021, 2020 and 2019, respectively. For 2021 and 2020, computer equipment and software costs of $3.4 million and $1.4 million, respectively, were capitalized. As of December 26, 2021 and December 27, 2020, there was $6.4 million and $8.8 million, respectively, of unamortized computer equipment and software included in Property, fixtures and equipment, net on the Company’s Consolidated Balance Sheets. Goodwill and Intangible Assets - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate. The Company’s indefinite-lived intangible assets consist of trade names and are recorded at fair value as of the date of acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the fair value of the reporting unit is calculated. The carrying value of the reporting unit is compared to its estimated fair value, with any excess of carrying value over fair value deemed to be an indicator of impairment. Definite-lived intangible assets, which consist primarily of trademarks and reacquired franchise rights, are recorded at fair value as of the date of acquisition, amortized over their estimated useful lives and tested for impairment, using the relief from royalty method, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Derivatives - The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. If the derivative qualifies for hedge accounting treatment, any gain or loss on the derivative instrument is recognized in equity as a change to Accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements, foreign currency exchange rate movements, changes in energy prices and other identified risks. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. Deferred Debt Issuance Costs - For its revolving credit facility, the Company records deferred debt issuance costs related to the issuance of debt obligations in Other assets, net on its Consolidated Balance Sheets. For fees associated with all other debt obligations, the Company records deferred debt issuance costs as a reduction of Long-term debt, net. The Company amortizes deferred debt issuance costs to interest expense over the term of the respective financing arrangement, primarily using the effective interest method. The Company amortized deferred debt issuance costs of $4.5 million, $3.9 million and $2.5 million to Interest expense, net for 2021, 2020 and 2019, respectively. Liquor Licenses - The fees from obtaining non-transferable liquor licenses directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in Other assets, net on the Company’s Consolidated Balance Sheets. Insurance Reserves - The Company carries insurance programs with specific retention levels or high per-claim deductibles for a significant portion of expected losses under its workers’ compensation, general or liquor liability, health, property and management liability insurance programs. The Company records a liability for all unresolved claims and for an estimate of incurred but not reported claims at the anticipated cost that falls below its specified retention levels or per-claim deductible amounts. In establishing reserves, the Company considers actuarial assumptions and judgments regarding economic conditions, and the frequency and severity of claims. Reserves recorded for workers’ compensation and general liability claims are discounted using the average of the one-year and five-year risk-free rate of monetary assets that have comparable maturities. Share Repurchase - Shares repurchased are retired. The par value of the repurchased shares is deducted from common stock and the excess of the purchase price over the par value of the shares is recorded to Accumulated deficit. Revenue Recognition - The Company records food and beverage revenues, net of discounts and taxes, upon delivery to the customer. Franchise-related revenues are included in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Royalties, which are a percentage of net sales of the franchisee, are recognized as revenue in the period which the sales are reported to have occurred provided collectability is reasonably assured. Proceeds from the sale of gift cards, which do not have expiration dates, are recorded as deferred revenue and recognized as revenue upon redemption by the customer. The Company applies the portfolio approach practical expedient to account for gift card contracts and performance obligations. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized using estimates based on historical redemption patterns. If actual redemptions vary from assumptions used to estimate breakage, gift card breakage income may differ from the amount recorded. The Company periodically updates its estimates used for breakage. Breakage revenue is recorded as a component of Restaurant sales in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Approximately 84% of deferred gift card revenue is expected to be recognized within 12 months of inception. Gift card sales commissions paid to third-party providers are capitalized and subsequently amortized to Other restaurant operating expense based on historical gift card redemption patterns. See Note 4 - Revenue Recognition for rollforwards of deferred gift card sales commissions and unearned gift card revenue. Advertising fees charged to franchisees are recognized in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) provided collectability is reasonably assured. Initial franchise and renewal fees are recognized over the term of the franchise agreement and renewal period, respectively. The weighted average remaining term of franchise agreements and renewal periods was approximately 12 years as of December 26, 2021. The Company maintains a customer loyalty program, Dine Rewards, in the U.S., where customers earn a reward after attaining qualified spend amounts. The Company’s estimate of the value of the reward is recorded as deferred revenue. Each reward must be redeemed within specified time limits of earning such reward. The revenue associated with the fair value of the reward is recognized upon the earlier of redemption or expiration of the reward. The Company applies the practical expedient to exclude disclosures regarding loyalty program remaining performance obligations, which have original expected durations of less than one year. The Company collects and remits sales, food and beverage, alcoholic beverage and hospitality taxes on transactions with customers and reports revenue net of taxes in its Consolidated Statements of Operations and Comprehensive Income (Loss). Leases - The Company’s determination of whether an arrangement contains a lease is based on an evaluation of whether the arrangement conveys the right to use and control specific property or equipment. The Company leases restaurant and office facilities and certain equipment under operating leases primarily having initial terms between one five The Company accounts for fixed lease and non-lease components of a restaurant facility lease as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to account for the lease assets and liabilities. Leases with an initial term of 12 months or less are not recorded on its Consolidated Balance Sheets and are recognized on a straight-line basis over the lease term within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Rent expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease and may include rent holidays, is recorded on a straight-line basis over the initial lease term and those renewal periods that are reasonably certain. Rent expense is recorded in Other restaurant operating in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Payments received from landlords as incentives for leasehold improvements are recorded as a reduction of the right-of-use asset and amortized on a straight-line basis over the term of the lease as a reduction of rent expense. In April 2020, the FASB issued a question-and-answer document focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19 (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Company elected this practical expedient for COVID-19-related rent concessions, primarily rent deferrals or rent abatements, and has elected not to remeasure the related lease liability and right-of-use asset for those leases. Rent deferrals are accrued with no impact to straight-line rent expense. Rent abatements are recognized as a reduction of variable rent expense in the month they occur. This election will continue while these concessions are in effect. Pre-Opening Expenses - Non-capital expenditures associated with opening new restaurants are expensed as incurred and are included in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Consideration Received from Vendors - The Company receives consideration for a variety of vendor-sponsored programs, such as volume rebates, promotions and advertising allowances. Advertising allowances are intended to offset the Company’s costs of promoting and selling menu items in its restaurants. Vendor consideration is recorded as a reduction of Food and beverage costs or Other restaurant operating expense when recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment of Long-Lived Assets and Costs Associated with Exit Activities - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows independent of other assets. For long-lived assets deployed at its restaurants, the Company reviews for impairment at the individual restaurant level. When evaluating for impairment, the total future undiscounted cash flows expected to be generated by the asset are compared to the carrying amount. If the total future undiscounted cash flows of the asset are less than its carrying amount, recoverability is measured by comparing the fair value of the assets to the carrying amount. An impairment loss is recognized in earnings when the asset’s carrying value exceeds its estimated fair value. Fair value is generally estimated using a discounted cash flow model. Restaurant closure costs, including lease termination fees, are expensed as incurred. When the Company ceases using the property rights under a non-cancelable operating lease, it records a liability for the net present value of any remaining non-rent lease-related obligations, less the estimated subtenant cost recovery that can reasonably be obtained for the property. Any subsequent adjustment to that liability as a result of lease termination or changes in estimates of cost recovery is recorded in the period incurred. The associated expense is recorded in Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Restaurant sites and certain other assets to be sold are included in assets held for sale when certain criteria are met, including the requirement that the likelihood of selling the assets within one year is probable. Advertising Costs - Advertising production costs are expensed in the period when the advertising first occurs. All other advertising costs are expensed in the period in which the costs are incurred. Advertising expense of $59.7 million, $67.3 million and $146.1 million for 2021, 2020 and 2019, respectively, was recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Legal Costs - Settlement costs are accrued when they are deemed probable and reasonably estimable. Legal fees are recognized as incurred and are reported in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Research and Development Expenses (“R&D”) - R&D is expensed as incurred in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). R&D primarily consists of payroll and benefit costs. R&D was $2.6 million, $2.4 million and $3.4 million for 2021, 2020 and 2019, respectively. Partner Compensation - In addition to base salary, Area Operating Partners, Restaurant Managing Partners and Chef Partners generally receive performance-based bonuses for providing management and supervisory services to their restaurants, certain of which may be based on a percentage of their restaurants’ monthly operating results or cash flows and/or total controllable income (“Monthly Payments”). Certain Restaurant Managing Partners and Chef Partners in the U.S. (“U.S. Partners”) may also participate in deferred compensation programs and other performance-based compensation programs. The Company may invest in corporate-owned life insurance policies, which are held within an irrevocable grantor or “rabbi” trust account for settlement of certain of the Company’s obligations under the deferred compensation plans. Many of the Company’s international Restaurant Managing Partners are given the option to purchase participation interests in the cash distributions of the restaurants they manage. The amount, terms and availability vary by country. The Company estimates future bonuses and deferred compensation obligations to U.S. Partners and Area Operating Partners, using current and historical information on restaurant performance and records the long-term portion of partner obligations in Other long-term liabilities, net on its Consolidated Balance Sheets. Monthly Payments and deferred compensation expenses for U.S. Partners are included in Labor and other related expenses and Monthly Payments and bonus expense for Area Operating Partners are included in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Stock-based Compensation - Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting or service periods. Stock-based compensation expense is recognized only for those awards expected to vest. The expense, net of forfeitures, is recognized using the straight-line method. Forfeitures of share-based compensation awards are recognized as they occur. During 2021, the Company issued performance-based share units (“PSUs”) that included a relative total shareholder return (“Relative TSR”) modifier to the final payout outcome, which can adjust the payout percentage based on the achieved performance metric. The Relative TSR is measured by comparing the Company’s Relative TSR to that of the constituents of the S&P 1500 Restaurants index. Basic and Diluted Earnings (Loss) per Share - The Company computes basic earnings (loss) per share based on the weighted average number of common shares that were outstanding during the period. Except where the result would be antidilutive, diluted earnings per share includes the dilutive effect of common stock equivalents, consisting of stock options, restricted stock units and performance-based share units, measured using the treasury stock method, and the Company’s convertible senior notes and related warrants, measured using the if-converted method. Performance-based share units are considered dilutive when the related performance criterion has been met. The Company has 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. As a result, only the amounts in excess of the principal amount, if applicable, are considered in diluted earnings per share. Foreign Currency Translation and Transactions - For non-U.S. operations, the functional currency is the local currency. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date with the translation adjustments recorded in Accumulated other comprehensive loss in the Company’s Consolidated Statements of Changes in Stockholders’ Equity. Results of operations are translated using the average exchange rates for the reporting period. Foreign currency exchange transaction losses are recorded in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Income Taxes - Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. A valuation allowance may reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company records a tax benefit for an uncertain tax position using the highest cumulative tax benefit that is more likely than not to be realized. The Company adjusts its liability for unrecognized tax benefits in the period in which it determines the issue is effectively settled, the statute of limitations expires or when more information becomes available. Liabilities for unrecognized tax benefits, including penalties and interest, are recorded in Accrued and other current liabilities and Other long-term liabilities, net on the Company’s Consolidated Balance Sheets. 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 (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an 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 available. 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. On December 31, 2018, the Company adopted ASU No. 2016-02: Leases (Topic 842) (“ASU No. 2016-02”), ASU No. 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transitioning to Topic 842,” (“ASU No. 2018-01”) and ASU No. 2018-11: Leases (Topic 842): Targeted Improvements (“ASU No. 2018-11”). ASU No. 2016-02 requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU No. 2018-01 allows an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the Company’s adoption of ASU No. 2016-02. ASU No. 2018-11 allows for an additional transition method, which permits use of the effective date of adoption as the date of initial application of ASU No. 2016-02 without restating comparative period financial statements and provides entities with a practical expedient that allows entities to elect not to separate lease and non-lease components when certain conditions are met. The Company adopted ASU No. 2016-02 using December 31, 2018 as the date of initial application and recorded a reduction in Accumulated deficit of $141.3 million primarily related to the derecognition of deferred gains on sale-leaseback transactions, net of related deferred tax assets. Consequently, financial information and the disclosures required under the new standard were not provided for dates and periods before December 31, 2018. The Company al |
COVID-19 Charges
COVID-19 Charges | 12 Months Ended |
Dec. 26, 2021 | |
COVID-19 Impact [Abstract] | |
COVID-19 Charges | 2020 COVID-19 Charges Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated (dollars in thousands): CHARGES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR 2020 Inventory obsolescence and spoilage Food and beverage costs $ 10,450 Compensation for idle employees (1) Labor and other related 29,993 Other operating charges Other restaurant operating 3,219 Lease guarantee contingent liabilities (2) General and administrative 4,188 Allowance for expected credit losses (3) General and administrative 3,334 Other charges General and administrative 2,719 Right-of-use asset impairment (4) Provision for impaired assets and restaurant closings 32,992 Fixed asset impairment (4) Provision for impaired assets and restaurant closings 34,423 Goodwill and other impairment (5) Provision for impaired assets and restaurant closings 3,190 $ 124,508 ________________ (1) Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $14.9 million of employee retention tax credits earned. (2) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (3) Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. (4) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments, Exit Costs and Disposals and Note 4 - Revenue Recognition , for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively. (5) Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 26, 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Revenues Restaurant sales $ 4,061,093 $ 3,144,636 $ 4,075,014 Franchise and other revenues Franchise revenues 45,520 21,195 52,147 Other revenues (1) 15,772 4,730 12,228 Total Franchise and other revenues 61,292 25,925 64,375 Total revenues $ 4,122,385 $ 3,170,561 $ 4,139,389 ________________ (1) For 2021, includes a $3.1 million benefit from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base. The amount recognized 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 table includes the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market, for the periods indicated: FISCAL YEAR 2021 2020 2019 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 2,175,909 $ 29,725 $ 1,760,071 $ 9,898 $ 2,135,776 $ 38,614 Carrabba’s Italian Grill 653,231 2,439 497,212 1,309 613,031 2,112 Bonefish Grill 544,068 641 396,193 346 574,004 787 Fleming’s Prime Steakhouse & Wine Bar 332,607 — 209,564 — 307,199 — Other 9,033 9 6,507 — 4,658 — U.S. total 3,714,848 32,814 2,869,547 11,553 3,634,668 41,513 International Outback Steakhouse Brazil 258,997 — 206,280 — 355,837 — Other (1) 87,248 12,706 68,809 9,642 84,509 10,634 International total 346,245 12,706 275,089 9,642 440,346 10,634 Total $ 4,061,093 $ 45,520 $ 3,144,636 $ 21,195 $ 4,075,014 $ 52,147 ____________________ (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) DECEMBER 26, 2021 DECEMBER 27, 2020 Other current assets, net Deferred gift card sales commissions $ 17,793 $ 19,300 Unearned revenue Deferred gift card revenue $ 387,945 $ 373,048 Deferred loyalty revenue 9,386 8,026 Deferred franchise fees - current 443 469 Other 1,021 73 Total Unearned revenue $ 398,795 $ 381,616 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,280 $ 4,301 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Balance, beginning of period $ 19,300 $ 18,554 $ 16,431 Deferred gift card sales commissions amortization (26,012) (20,927) (26,094) Deferred gift card sales commissions capitalization 26,625 22,923 29,894 Other (2,120) (1,250) (1,677) Balance, end of period $ 17,793 $ 19,300 $ 18,554 The following table is a rollforward of unearned gift card revenue for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Balance, beginning of period $ 373,048 $ 358,757 $ 333,794 Gift card sales 330,841 306,016 420,229 Gift card redemptions (298,397) (277,675) (376,477) Gift card breakage (17,547) (14,050) (18,789) Balance, end of period $ 387,945 $ 373,048 $ 358,757 Franchisee Deferred Payment Agreement - On December 27, 2020, the Company entered into an agreement (the “Resolution Agreement”) with Cerca Trova Southwest Restaurant Group, LLC (d/b/a Out West Restaurant Group) and certain of its affiliates (collectively, “Out West”), who currently franchises approximately 80 Outback Steakhouse restaurants in the western United States, primarily in California. The Resolution Agreement ends on December 31, 2023 or upon the earlier occurrence of certain specified events, including the sale of all or substantially all of the assets or equity of Out West, bankruptcy or a liquidation event (“Qualifying Event”) (the “Forbearance Period”). Prior to the Resolution Agreement, Out West was in default of its franchise agreements for nonpayment of certain amounts due, and simultaneously in default of its credit agreement with its lenders primarily due to the significant impact of the COVID-19 pandemic. Under the terms of the Resolution Agreement, the Company agreed to: • not call upon any previous default under the existing franchise agreements during the Forbearance Period; • reduce future advertising fees to 2.25% of gross sales during the Forbearance Period; • permanently waive unpaid royalty and advertising fees for the period of February 24, 2020 to July 26, 2020; • allow for closure of four restaurants and certain sublease modifications (the “Property Concessions”); • allow for closure of up to ten additional restaurants during the first 12 months of the Resolution Agreement, without imposition of any penalties or accelerated royalties; • defer all non-waived past due royalties and advertising fees through November 22, 2020, and for certain permitted restaurant closings in connection with the Property Concessions, defer accelerated rent and royalties that otherwise would have been due under the terms and conditions of the respective franchise agreements and leases or subleases (the “Initial Deferred Balance”); and • defer all past due rents through December 27, 2020 on subleased properties totaling $3.6 million until April 2021 when the balance will be repaid over an 18-month period. In connection with the Property Concessions, the Company recognized $4.7 million of lease right-of-use asset impairment during the thirteen weeks ended December 27, 2020, within the U.S. segment. At the time of the Resolution Agreement, no deferred or previously waived amounts had been recorded as revenue, with the exception of a $3.1 million receivable balance that had been previously fully reserved. Collections of deferred amounts, and any future amounts due under the Resolution Agreement or the Company’s franchise agreements after November 22, 2020, will be recognized when collectability is reasonably assured. |
Impairment, Exit Costs and Disp
Impairment, Exit Costs and Disposals | 12 Months Ended |
Dec. 26, 2021 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Impairment, Exit Costs and Disposals | Impairments, Exit Costs and Disposals The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Impairment losses U.S. (1) $ 11,945 $ 65,129 $ 6,381 International (1)(2) 1,186 3,468 2,026 Corporate (3) 270 6,226 727 Total impairment losses 13,401 74,823 9,134 Restaurant closure charges (benefits) U.S. (1) 422 1,358 (105) International (1) (86) 173 56 Total restaurant closure charges (benefits) 336 1,531 (49) Provision for impaired assets and restaurant closings $ 13,737 $ 76,354 $ 9,085 ____________________ (1) U.S. and international impairment and closure charges during 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - 2020 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 2020. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. (3) Corporate impairment charges during 2020 primarily relate to transformational initiatives. COVID-19 Restructuring - During 2020, the Company recognized pre-tax asset impairments and closure charges in connection with the closure of 22 U.S. 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 period indicated (dollars in thousands): CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR DESCRIPTION 2020 Property, fixtures and equipment impairments Provision for impaired assets and restaurant closings $ 18,766 Lease right-of-use asset impairments and closure charges Provision for impaired assets and restaurant closings 5,003 Severance and other expenses General and administrative 1,097 $ 24,866 The remaining impairment and closure charges during the periods presented resulted primarily from locations identified for closure or relocation. 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 closure and restructuring initiatives for the period indicated: FISCAL YEAR (dollars in thousands) 2021 Beginning of the year $ 12,879 Cash payments (4,739) Accretion 906 Adjustments (561) End of the year (1) $ 8,485 ________________ (1) As of December 26, 2021, the Company had exit-related accruals associated with closure and restructuring initiatives of $2.9 million recorded in Accrued and other current liabilities and $5.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. Surplus Property Disposals - During 2019 , the Company completed the sale of five of its U.S. surplus properties to a franchisee for cash proceeds of $12.7 million, net of certain purchase price adjustments. The transaction resulted in a net gain of $3.6 million, recorded within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Refranchising - During 2019, the Company completed the sale of 18 of its existing U.S. Company-owned Carrabba’s Italian Grill restaurants to an existing franchisee for cash proceeds of $3.6 million, net of certain purchase price adjustments. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 26, 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. To the extent the Company has 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 14 - Convertible Senior Notes. However, the Convertible Note Hedge Transactions are not considered when calculating dilutive shares given their anti-dilutive impact as an offset to dilution of shares underlying the 2025 Notes. The Warrant Transactions have a dilutive effect on the Company’s common stock to the extent the price of its common stock exceeds the $16.64 strike price of the Warrant Transactions. See Note 14 - 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: FISCAL YEAR (in thousands, except per share data) 2021 2020 2019 Net income (loss) attributable to Bloomin’ Brands $ 215,555 $ (158,715) $ 130,573 Redemption of preferred stock in excess of carrying value (1) — (3,496) — Net income (loss) attributable to common stockholders 215,555 (162,211) 130,573 Convertible senior notes if-converted method interest adjustment, net of tax (2) 345 — — Diluted net income (loss) attributable to common stockholders $ 215,900 $ (162,211) $ 130,573 Basic weighted average common shares outstanding 88,981 87,468 88,839 Effect of dilutive securities: Stock options 779 — 571 Nonvested restricted stock units 355 — 295 Nonvested performance-based share units 61 — 72 Convertible senior notes (2)(3) 11,377 — — Warrants (3) 6,250 — — Diluted weighted average common shares outstanding 107,803 87,468 89,777 Basic earnings (loss) per share attributable to common stockholders $ 2.42 $ (1.85) $ 1.47 Diluted earnings (loss) per share attributable to common stockholders $ 2.00 $ (1.85) $ 1.45 ________________ (1) Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders. See Note 16 - 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 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: FISCAL YEAR (shares in thousands) 2021 2020 2019 Stock options 751 5,155 4,003 Nonvested restricted stock units 128 682 158 Nonvested performance-based share units 377 514 277 |
Stock-based and Deferred Compen
Stock-based and Deferred Compensation Plans | 12 Months Ended |
Dec. 26, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments and Deferred Compensation [Abstract] | |
Stock-based and Deferred Compensation Plans | Stock-based and Deferred Compensation Plans Stock-based Compensation Plans The Company recognized stock-based compensation expense as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Stock options $ 2,286 $ 3,743 $ 5,270 Restricted stock units 8,184 8,559 8,949 Performance-based share units (1) 13,821 2,414 5,471 $ 24,291 $ 14,716 $ 19,690 ________________ (1) For 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 Options - Stock options generally vest and become exercisable over a period of four years in an equal number of shares each year. Stock options have an exercisable life of no more than ten years from the date of grant. The Company settles stock option exercises with authorized but unissued shares of the Company’s common stock. The following table presents a summary of the Company’s stock option activity: (in thousands, except exercise price and contractual life) OPTIONS WEIGHTED WEIGHTED AGGREGATE Outstanding as of December 27, 2020 5,422 $ 19.76 5.1 $ 6,575 Exercised (936) $ 15.98 Forfeited or expired (210) $ 23.34 Outstanding as of December 26, 2021 4,276 $ 20.42 4.7 $ 7,304 Exercisable as of December 26, 2021 3,905 $ 20.36 4.4 $ 7,032 Assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted were as follows for the period indicated: FISCAL YEAR 2019 Assumptions: Risk-free interest rate (1) 2.34 % Dividend yield (2) 1.94 % Expected term (3) 4.8 years Weighted average volatility (4) 31.05 % Weighted average grant date fair value per option $ 5.07 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. (2) Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option. (3) Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options. (4) Based on the historical volatility of the Company’s stock. The following represents stock option compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Intrinsic value of options exercised $ 8,419 $ 2,201 $ 7,929 Cash received from option exercises, net of tax withholding $ 14,951 $ 4,609 $ 6,501 Fair value of stock options vested $ 19,246 $ 16,468 $ 18,136 Tax benefits for stock option compensation expense $ 1,942 $ 535 $ 1,932 Unrecognized stock option expense $ 525 Remaining weighted average vesting period 0.6 years Restricted Stock Units - Beginning in 2019, restricted stock units granted generally vest over a period of three years and restricted stock units granted prior to 2019 generally vest over a period of four years, in an equal number of shares each year. Following is a summary of the Company’s restricted stock unit activity: (shares in thousands) NUMBER OF RESTRICTED STOCK UNIT AWARDS WEIGHTED AVERAGE Outstanding as of December 27, 2020 1,034 $ 18.12 Granted 319 $ 25.93 Vested (508) $ 18.57 Forfeited (115) $ 18.47 Outstanding as of December 26, 2021 730 $ 21.16 The following represents restricted stock unit compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Fair value of restricted stock vested $ 9,434 $ 8,973 $ 8,200 Tax benefits for restricted stock compensation expense $ 1,592 $ 1,614 $ 1,672 Unrecognized restricted stock expense $ 9,315 Remaining weighted average vesting period 1.8 years Performance-based Share Units - The number of PSUs that vest is determined for each year based on the achievement of certain performance criteria as set forth in the award agreement and may range from zero to 200% of the annual target grant. The PSUs are settled in shares of common stock, with holders receiving one share of common stock for each performance-based share unit that vests. The fair value of PSUs is based on the closing price of the Company’s common stock on the grant date. Compensation expense for PSUs is recognized over the vesting period when it is probable the performance criteria will be achieved. The following table presents a summary of the Company’s PSU activity: (shares in thousands) PERFORMANCE-BASED SHARE UNITS WEIGHTED AVERAGE Outstanding as of December 27, 2020 673 $ 20.37 Granted 328 $ 28.98 Vested (147) $ 23.05 Forfeited (95) $ 24.11 Outstanding as of December 26, 2021 759 $ 23.11 In February 2021, the Company granted 0.3 million PSUs with a three-year cliff vesting period and adjusted diluted earnings per share performance metric. These grants include a 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 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 is 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: FISCAL YEAR 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 PSU compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Tax benefits for PSU compensation expense $ 134 $ 1,570 $ 857 Unrecognized PSU expense $ 16,522 Remaining weighted average vesting period (1) 1.4 years ________________ (1) PSUs typically vest after three years. As of December 26, 2021, the maximum number of shares of common stock available for issuance for equity instruments pursuant to the 2020 Omnibus Incentive Compensation Plan was 8,910,835. Deferred Compensation Plans U.S. Partner Deferred Compensations Plans - Certain U.S. Partners may participate in deferred compensation programs that are subject to the rules of Section 409A of the Internal Revenue Code. The Company may invest in corporate-owned life insurance policies, which are held within an irrevocable grantor or rabbi trust account for settlement of certain of the obligations under the deferred compensation plans. The deferred compensation obligation due to U.S. Partners under these plans was $15.5 million and $28.1 million as of December 26, 2021 and December 27, 2020, respectively. The rabbi trust is funded through the Company’s voluntary contributions and was fully funded as of December 26, 2021. 401(k) Plan - The Company has a qualified defined contribution plan that qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended. The Company incurred contribution costs of $6.1 million, $5.5 million and $5.4 million for the 401(k) Plan for 2021, 2020 and 2019, respectively. Highly Compensated Employee Plan - The Company provides a deferred compensation plan for its highly compensated employees who are not eligible to participate in the 401(k) Plan. The deferred compensation plan allows these employees to contribute a percentage of their base salary and cash bonus on a pre-tax basis. The deferred compensation plan is unsecured and funded through the Company’s voluntary contributions. |
Other Current Assets, Net
Other Current Assets, Net | 12 Months Ended |
Dec. 26, 2021 | |
Other Assets [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) DECEMBER 26, 2021 DECEMBER 27, 2020 Prepaid expenses $ 21,194 $ 12,148 Accounts receivable - gift cards, net (1) 91,248 76,808 Accounts receivable - vendors, net (1) 11,793 8,886 Accounts receivable - franchisees, net (1) 1,701 1,007 Accounts receivable - other, net (1) 18,353 16,782 Deferred gift card sales commissions 17,793 19,300 Assets held for sale 100 3,831 Other current assets, net 22,441 12,756 $ 184,623 $ 151,518 ________________ (1) See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Property, Fixtures and Equipmen
Property, Fixtures and Equipment, Net | 12 Months Ended |
Dec. 26, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Fixtures and Equipment, Net | Property, Fixtures and Equipment, Net Property, fixtures and equipment, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Land $ 38,417 $ 40,498 Buildings 1,167,811 1,158,257 Furniture and fixtures 460,768 450,508 Equipment 641,715 623,982 Construction in progress 47,822 27,102 Less: accumulated depreciation (1,514,521) (1,412,660) $ 842,012 $ 887,687 Surplus Properties - The Company owns certain U.S. restaurant properties and assets that are no longer utilized to operate its restaurants (“surplus properties”). Surplus properties primarily consist of closed properties, which include land and a building, and liquor licenses no longer needed for operations. Surplus properties may be classified on the Consolidated Balance Sheets as assets held for sale or as assets held and used when the Company does not expect to sell these assets within the next 12 months. Following is a summary of the carrying value and number of surplus properties as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION DECEMBER 26, 2021 DECEMBER 27, 2020 Surplus properties - assets held for sale Other current assets, net $ 100 $ 3,831 Surplus properties - assets held and used Property, fixtures and equipment, net 4,505 7,955 Total surplus properties $ 4,605 $ 11,786 Number of surplus properties owned 6 12 Depreciation and repair and maintenance expense are as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Depreciation expense $ 157,386 $ 173,342 $ 188,190 Repair and maintenance expense $ 104,209 $ 88,829 $ 106,943 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 26, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill - The following table is a rollforward of goodwill: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 29, 2019 $ 170,657 $ 117,782 $ 288,439 Translation adjustments — (15,302) (15,302) Impairment charges — (1,973) (1,973) Balance as of December 27, 2020 170,657 100,507 271,164 Translation adjustments — (2,720) (2,720) Balance as of December 26, 2021 $ 170,657 $ 97,787 $ 268,444 The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated: DECEMBER 26, 2021 DECEMBER 27, 2020 DECEMBER 29, 2019 (dollars in thousands) GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS U.S. $ 838,827 $ (668,170) $ 838,827 $ (668,170) $ 838,827 $ (668,170) International 217,670 (119,883) 220,390 (119,883) 235,692 (117,910) Total goodwill $ 1,056,497 $ (788,053) $ 1,059,217 $ (788,053) $ 1,074,519 $ (786,080) T he COVID-19 outbreak was considered a triggering event during the first quarter of 2020, indicating that the carrying amount of goodwill may not be recoverable. As a result, the Company performed a quantitative assessment for its four U.S. and three international reporting units to determine whether a reporting unit was impaired. Based on this assessment, which utilized a discounted cash flow analysis, the Company recorded full impairment of goodwill related to its Hong Kong reporting unit of $2.0 million, within the international segment, during the first quarter of 2020. Impairment was not recorded for any of the Company’s other reporting units as a result of the quantitative assessment. The Company performs its annual assessment for impairment of goodwill and other indefinite-lived intangible assets each year during the second quarter. The Company’s 2021 and 2019 assessments utilized a qualitative approach. As a result of these assessments, the Company did not record any goodwill asset impairment charges during 2021 or 2019. Since the Company performed a quantitative assessment on the last day of the first quarter of 2020, as described above, the Company utilized the same assumptions and analysis in performing a quantitative annual assessment in its second quarter and concluded that no additional impairment was required. Intangible Assets, net - Intangible assets, net, consisted of the following as of the periods indicated: WEIGHTED AVERAGE REMAINING AMORTIZATION PERIOD DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE Trade names Indefinite $ 414,716 $ 414,716 $ 414,716 $ 414,716 Trademarks 7 81,951 $ (55,736) 26,215 81,951 $ (51,797) 30,154 Franchise agreements 0 — — — 14,881 (14,881) — Reacquired franchise rights 9 31,944 (19,463) 12,481 33,520 (18,407) 15,113 Total intangible assets 8 $ 528,611 $ (75,199) $ 453,412 $ 545,068 $ (85,085) $ 459,983 The Company did not record any indefinite-lived intangible asset impairment charges during the periods presented. Definite-lived intangible assets are amortized on a straight-line basis. The following table presents the aggregate expense related to the amortization of the Company’s trademarks, franchise agreements and reacquired franchise rights for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Amortization expense $ 6,005 $ 6,919 $ 8,621 The following table presents expected annual amortization of intangible assets as of December 26, 2021: (dollars in thousands) 2022 $ 5,807 2023 $ 5,741 2024 $ 5,613 2025 $ 5,378 2026 $ 5,294 |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Dec. 26, 2021 | |
Other Assets [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Company-owned life insurance (1) $ 30,970 $ 44,814 Deferred debt issuance costs (2) 5,861 4,694 Liquor licenses 23,266 24,250 Other assets 18,573 18,868 $ 78,670 $ 92,626 ________________ (1) During 2021, the Company withdrew $9.1 million from its Company-owned life insurance policies to pay deferred compensation obligations. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Dec. 26, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 Accrued rent and current operating lease liabilities $ 181,636 $ 192,369 Accrued payroll and other compensation (1) 105,095 79,291 Accrued insurance 22,017 20,648 Other current liabilities 98,146 96,013 $ 406,894 $ 388,321 ________________ (1) During 2021, accrued payroll and other compensation increased primarily due to an increase in incentive compensation as a result of increased restaurant sales in 2021 due to the impact of COVID-19 during 2020. |
Long-term Debt, Net
Long-term Debt, Net | 12 Months Ended |
Dec. 26, 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: DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 195,000 1.60 % $ — Revolving credit facility (2) 80,000 3.75 % — Total Senior Secured Credit Facility 275,000 — 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 (3) 230,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % — Finance lease liabilities 2,376 2,405 Less: unamortized debt discount and issuance costs (4) (14,157) (67,704) Less: finance lease interest (154) (221) Total debt, net 793,065 1,036,480 Less: current portion of long-term debt (10,958) (38,710) Long-term debt, net $ 782,107 $ 997,770 ________________ (1) Interest rate represents the weighted average interest rate as of the respective periods. (2) Interest rate represents the Base Rate option elected in anticipation of impending repayment. Subsequent to December 26, 2021, the Company repaid the remaining $80.0 million balance on its revolving credit facility. (3) See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. (4) In connection with the adoption of ASU No. 2020-06, debt discount of $59.9 million related to the 2025 Notes was derecognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during 2021. Bloomin’ Brands, Inc. is a holding company and conducts its operations through its subsidiaries, certain of which have incurred indebtedness as described below. 2029 Notes - On April 16, 2021, the Company and its wholly-owned subsidiary 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 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. 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. Credit Agreement - On April 16, 2021, the Company and OSI, as co-borrowers, entered into the Second Amended and Restated Credit Agreement (the “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 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 are 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 March 27, 2022 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 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 Credit Agreement). The Credit Agreement requires a TNLR not to exceed 4.50 to 1.00. The 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 was also limited to $200.0 million of aggregate capital expenditures during the year ended December 26, 2021. As of December 26, 2021 and December 27, 2020, the Company was in compliance with its debt covenants. Maturities - Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated: (dollars in thousands) DECEMBER 26, 2021 2022 $ 10,976 2023 10,739 2024 12,944 2025 247,674 2026 225,043 Thereafter 300,000 Total payments 807,376 Less: unamortized debt discount and issuance costs (14,157) Less: finance lease interest (154) Total principal payments $ 793,065 Debt Issuance Costs - During 2021, the Company deferred $5.5 million and $5.9 million of financing costs incurred in connection with the 2029 Notes and Credit Agreement, respectively. Debt issuance costs of $3.7 million associated with the revolving credit facility portion of the Credit Agreement were recorded in Other assets, net and all other debt issuance costs were recorded in Long-term debt, net. |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 26, 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 unsecured 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 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 . Based on the daily closing prices of the Company’s stock during the quarter ended December 26, 2021, holders of the 2025 Notes are eligible to convert their 2025 Notes during the first quarter of 2022. The Company has 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. The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated: (dollars in thousands) DECEMBER 26, 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) (5,898) (5,427) Net carrying amount $ 224,102 $ 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 derecognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during 2021. (2) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 Coupon interest $ 11,500 $ 7,443 Deferred discount amortization — 6,275 Deferred issuance cost amortization 1,557 569 Total interest expense (1) $ 13,057 $ 14,287 ________________ (1) The effective rate of the 2025 Notes over their expected life was 5.85% and 13.73% for 2021 and 2020, respectively . 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 portion of the net proceeds to the Company from the offering of the 2025 Notes that was used to pay the premium on the Convertible Note Hedge Transactions, net of the proceeds to the Company from the Warrant Transactions, was approximately $19.6 million. The net costs incurred in connection with the Convertible Note Hedge Transactions and Warrant Transactions were recorded as a reduction to Additional paid-in capital on the Company’s Consolidated Balance Sheet during 2020. 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. The |
Other Long-term Liabilities, Ne
Other Long-term Liabilities, Net | 12 Months Ended |
Dec. 26, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 Accrued insurance liability $ 31,517 $ 32,128 Chef and Restaurant Managing Partner deferred compensation obligations 13,971 32,306 Deferred payroll tax liabilities (1) 27,302 55,204 Other long-term liabilities (2) 52,452 65,717 $ 125,242 $ 185,355 _______________ (1) During 2021, the Company made a payment of $27.3 million related to payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act. (2) The Company’s hedge liability decreased by $15.6 million during 2021 primarily from the termination of certain interest rate swaps. See Note 17 - Derivative Instruments and Hedging Activities |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 26, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchases - On February 8, 2022, the Company’s Board of Directors (the “Board”) approved a share repurchase program (the “2022 Share Repurchase Program”) under which the Company was authorized to repurchase up to $125.0 million of its outstanding common stock. The 2022 Share Repurchase Program will expire on August 9, 2023. Dividends - The Company declared and paid dividends per share during the period presented as follows: FISCAL YEAR 2020 (dollars in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.20 $ 17,480 In February 2022, the Board declared a quarterly cash dividend of $0.14 per share, payable on March 16, 2022 to shareholders of record at the close of business on March 2, 2022. 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 concept (“Abbraccio Shares”) to certain investors. During 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) DECEMBER 26, 2021 DECEMBER 27, 2020 Foreign currency translation adjustment $ (195,480) $ (188,883) Unrealized loss on derivatives, net of tax (10,509) (22,563) Accumulated other comprehensive loss $ (205,989) $ (211,446) Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Bloomin’ Brands: Foreign currency translation adjustment $ (6,597) $ (36,852) $ (16,882) Unrealized gain (loss) on derivatives, net of tax (1) 86 (14,741) (11,944) Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2) 7,392 9,923 1,805 Amortization of terminated interest rate swaps, net of tax 4,576 — — Total unrealized gain (loss) on derivatives, net of tax 12,054 (4,818) (10,139) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 5,457 $ (41,670) $ (27,021) ________________ (1) Unrealized loss on derivatives is net of tax of $5.1 million and $4.1 million for 2020 and 2019, respectively. (2) Reclassifications of adjustments for loss on derivatives are net of tax. See Note 17 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 26, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Interest Rate Risk - The Company manages economic risks, including interest rate variability, primarily by managing the amount, sources and duration of its debt funding and through the use of derivative financial instruments. The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps. Designated Hedges 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 “2018 Swap Agreements”). The 2018 Swap Agreements have an aggregate notional amount of $550.0 million and mature on November 30, 2022. Under the terms of the 2018 Swap Agreements, the Company pays a weighted average fixed rate of 3.04% on the notional amount and receives payments from the counterparties based on the one-month London Inter-Bank Offered Rate (“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. As a result of the Company’s anticipated decrease in variable rate debt balances due to significant voluntary debt payments, on December 9, 2021 the Company terminated its variable-to-fixed interest rate swap agreements with three counterparties having an aggregate notional amount of $150.0 million for a payment of approximately $4.1 million, including accrued interest. Following these terminations, $4.1 million of unrealized losses related to the terminated swap agreements included in AOCL will be amortized to Interest expense, net during 2022. 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 December 26, 2021, the Company estimated $14.4 million will be reclassified to Interest expense, net through the November 2022 maturity date of the swaps, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 3,056 $ 14,855 Accrued and other current liabilities Interest rate swaps - liability — 15,640 Other long-term liabilities, net Total fair value of derivative instruments - liabilities (1) $ 3,056 $ 30,495 Accrued interest $ 276 $ 1,237 Accrued and other current liabilities ____________________ (1) See Note 19 - 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Interest rate swap expense recognized in Interest expense, net $ (9,951) $ (13,370) $ (2,436) Income tax benefit recognized in Provision (benefit) for income taxes 2,559 3,447 631 Total effects on Net income (loss) $ (7,392) $ (9,923) $ (1,805) The Company records its derivatives on its Consolidated Balance Sheets on a gross balance basis. The Company’s interest rate swaps are subject to master netting arrangements. As of December 26, 2021, the Company did not have more than one derivative between the same counterparties and as such, there was no netting. 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 December 26, 2021 and December 27, 2020, 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. As of December 26, 2021 and December 27, 2020, the fair value of the Company’s interest rate swaps was in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk, of $3.3 million and $32.2 million, respectively. As of December 26, 2021 and December 27, 2020, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of December 26, 2021 and December 27, 2020, it could have been required to settle its obligations under the agreements at their termination value of $3.3 million and $32.2 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 26, 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 DECEMBER 26, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,130,873 $ 1,172,910 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 2,074 1,947 Total lease assets, net $ 1,132,947 $ 1,174,857 Current operating lease liabilities (2) Accrued and other current liabilities $ 177,028 $ 176,791 Current finance lease liabilities Current portion of long-term debt 958 1,210 Non-current operating lease liabilities (3) Non-current operating lease liabilities 1,178,998 1,216,666 Non-current finance lease liabilities Long-term debt, net 1,264 974 Total lease liabilities $ 1,358,248 $ 1,395,641 ________________ (1) Net of accumulated amortization of $3.3 million and $2.3 million as December 26, 2021 and December 27, 2020, respectively. (2) Excludes COVID-19-related deferred rent accruals of $1.1 million and $12.8 million as of December 26, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.5 million and $2.7 million, as of December 26, 2021 and December 27, 2020, respectively. (3) Excludes COVID-19-related non-current deferred rent accruals of $0.4 million and $1.2 million as of December 26, 2021 and December 27, 2020, respectively. Following is a summary of expenses and income related to leases recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR (dollars in thousands) 2021 2020 2019 Operating leases (1) Other restaurant operating $ 178,733 $ 178,740 $ 181,397 Variable lease cost (2) Other restaurant operating 4,350 (2,326) 3,504 Finance leases: Amortization of leased assets Depreciation and amortization 1,079 1,248 1,400 Interest on lease liabilities Interest expense, net 129 160 264 Sublease revenue Franchise and other revenues (9,396) (3,121) (6,542) Lease costs, net $ 174,895 $ 174,701 $ 180,023 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.9 million, $13.8 million and $14.6 million for 2021, 2020 and 2019, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs. (2) Includes COVID-19-related rent abatements for 2021 and 2020. As of December 26, 2021, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2022 (2) $ 185,093 $ 976 $ (5,130) 2023 189,010 739 (5,212) 2024 183,170 444 (5,182) 2025 171,317 174 (4,983) 2026 164,111 43 (4,971) Thereafter 1,490,634 — (42,823) Total minimum lease payments (receipts) (3) 2,383,335 2,376 $ (68,301) Less: Interest (1,025,773) (154) Present value of future lease payments $ 1,357,562 $ 2,222 ____________________ (1) Includes COVID-19-related current and non-current deferred rent accruals of $1.1 million and $0.4 million, respectively, as of December 26, 2021. (2) Net of operating lease prepaid rent of $5.6 million. (3) Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $80.9 million of signed operating leases that have not yet commenced. The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated: DECEMBER 26, 2021 DECEMBER 27, 2020 Weighted average remaining lease term (1): Operating leases 13.7 years 14.0 years Finance leases 2.8 years 2.7 years Weighted average discount rate (2): Operating leases 8.42 % 8.54 % Finance leases 5.01 % 7.21 % ____________________ (1) Includes lease renewal options that are reasonably certain of exercise. (2) Based on the Company’s incremental borrowing rate at lease commencement. The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 205,253 $ 177,961 $ 191,855 Properties Leased to Third Parties - The Company leases certain owned land and buildings to third parties, generally related to closed or refranchised restaurants. The following table is a summary of assets leased to third parties as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Land $ 5,021 $ 9,341 Buildings $ 4,987 $ 10,172 Less: accumulated depreciation (3,746) (6,181) Buildings, net $ 1,241 $ 3,991 |
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 DECEMBER 26, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,130,873 $ 1,172,910 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 2,074 1,947 Total lease assets, net $ 1,132,947 $ 1,174,857 Current operating lease liabilities (2) Accrued and other current liabilities $ 177,028 $ 176,791 Current finance lease liabilities Current portion of long-term debt 958 1,210 Non-current operating lease liabilities (3) Non-current operating lease liabilities 1,178,998 1,216,666 Non-current finance lease liabilities Long-term debt, net 1,264 974 Total lease liabilities $ 1,358,248 $ 1,395,641 ________________ (1) Net of accumulated amortization of $3.3 million and $2.3 million as December 26, 2021 and December 27, 2020, respectively. (2) Excludes COVID-19-related deferred rent accruals of $1.1 million and $12.8 million as of December 26, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.5 million and $2.7 million, as of December 26, 2021 and December 27, 2020, respectively. (3) Excludes COVID-19-related non-current deferred rent accruals of $0.4 million and $1.2 million as of December 26, 2021 and December 27, 2020, respectively. Following is a summary of expenses and income related to leases recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR (dollars in thousands) 2021 2020 2019 Operating leases (1) Other restaurant operating $ 178,733 $ 178,740 $ 181,397 Variable lease cost (2) Other restaurant operating 4,350 (2,326) 3,504 Finance leases: Amortization of leased assets Depreciation and amortization 1,079 1,248 1,400 Interest on lease liabilities Interest expense, net 129 160 264 Sublease revenue Franchise and other revenues (9,396) (3,121) (6,542) Lease costs, net $ 174,895 $ 174,701 $ 180,023 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.9 million, $13.8 million and $14.6 million for 2021, 2020 and 2019, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs. (2) Includes COVID-19-related rent abatements for 2021 and 2020. As of December 26, 2021, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2022 (2) $ 185,093 $ 976 $ (5,130) 2023 189,010 739 (5,212) 2024 183,170 444 (5,182) 2025 171,317 174 (4,983) 2026 164,111 43 (4,971) Thereafter 1,490,634 — (42,823) Total minimum lease payments (receipts) (3) 2,383,335 2,376 $ (68,301) Less: Interest (1,025,773) (154) Present value of future lease payments $ 1,357,562 $ 2,222 ____________________ (1) Includes COVID-19-related current and non-current deferred rent accruals of $1.1 million and $0.4 million, respectively, as of December 26, 2021. (2) Net of operating lease prepaid rent of $5.6 million. (3) Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $80.9 million of signed operating leases that have not yet commenced. The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated: DECEMBER 26, 2021 DECEMBER 27, 2020 Weighted average remaining lease term (1): Operating leases 13.7 years 14.0 years Finance leases 2.8 years 2.7 years Weighted average discount rate (2): Operating leases 8.42 % 8.54 % Finance leases 5.01 % 7.21 % ____________________ (1) Includes lease renewal options that are reasonably certain of exercise. (2) Based on the Company’s incremental borrowing rate at lease commencement. The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 205,253 $ 177,961 $ 191,855 Properties Leased to Third Parties - The Company leases certain owned land and buildings to third parties, generally related to closed or refranchised restaurants. The following table is a summary of assets leased to third parties as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Land $ 5,021 $ 9,341 Buildings $ 4,987 $ 10,172 Less: accumulated depreciation (3,746) (6,181) Buildings, net $ 1,241 $ 3,991 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 26, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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: DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 6,714 $ 6,714 $ — $ 15,404 $ 15,404 $ — Money market funds 9,039 9,039 — 16,494 16,494 — Restricted cash equivalents: Money market funds 1,472 1,472 — 428 428 — Total asset recurring fair value measurements $ 17,225 $ 17,225 $ — $ 32,326 $ 32,326 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 3,056 $ — $ 3,056 $ 14,855 $ — $ 14,855 Other long-term liabilities: Derivative instruments - interest rate swaps — — — 15,640 — 15,640 Total liability recurring fair value measurements $ 3,056 $ — $ 3,056 $ 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 December 26, 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: 2021 2020 2019 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ — $ — $ 1,934 $ 123 $ 2,049 $ 315 Operating lease right-of-use assets (2) 8,647 3,950 72,615 30,940 6,597 4,284 Property, fixtures and equipment (3) 11,647 8,445 26,311 41,077 3,915 4,535 Goodwill and other assets (4) — 1,006 748 2,683 — — $ 20,294 $ 13,401 $ 101,608 $ 74,823 $ 12,561 $ 9,134 ________________ (1) Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (2) Carrying values measured using Level 2 inputs to estimate fair value totaled $0.2 million during 2019. 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. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments. (3) Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million, $2.2 million and $2.3 million for 2021, 2020 and 2019, 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 the fair value. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments. (4) Other assets generally measured using the quoted market value of comparable assets (Level 2). See Note 5 - Impairments, Exit Costs and Disposals for information regarding impairment charges resulting from the fair value measurement performed on a nonrecurring basis during 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 during the period indicated: FISCAL YEAR UNOBSERVABLE INPUTS 2020 Weighted average cost of capital 10.4% to 11.3% Long-term growth rate 1.5% to 2.0% Fair Value of Financial Instruments - The Company’s non-derivative financial instruments as of December 26, 2021 and December 27, 2020 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: DECEMBER 26, 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 $ 195,000 $ 190,125 $ — $ — Revolving credit facility $ 80,000 $ 76,926 $ — $ — Former Credit Facility: Term loan A $ — $ — $ 425,000 $ 412,250 Revolving credit facility $ — $ — $ 447,000 $ 419,612 2025 Notes $ 230,000 $ 447,615 $ 230,000 $ 413,818 2029 Notes $ 300,000 $ 304,395 $ — $ — |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 12 Months Ended |
Dec. 26, 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: FISCAL YEAR (dollars in thousands) 2021 2020 Allowance for expected credit losses, beginning of period $ 4,095 $ 199 Adjustment for adoption of ASU No. 2016-13 — 1,018 Provision for expected credit losses (1) 64 3,472 Charge-off of accounts (109) (594) Allowance for expected credit losses, end of period $ 4,050 $ 4,095 ________________ (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 3 - 2020 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 22 - Commitments and Contingencies |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the domestic and foreign components of Income (loss) before provision (benefit) for income taxes for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Domestic $ 258,202 $ (206,941) $ 129,826 Foreign (8,905) (32,580) 11,864 $ 249,297 $ (239,521) $ 141,690 Provision (benefit) for income taxes consisted of the following for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Current provision: Federal $ 16,951 $ 2,606 $ 13,265 State 10,917 2,301 9,696 Foreign 1,862 2,623 10,502 29,730 7,530 33,463 Deferred (benefit) provision: Federal (2,057) (66,498) (21,407) State 1,194 (12,527) (1,986) Foreign (2,483) (9,231) (2,497) (3,346) (88,256) (25,890) Provision (benefit) for income taxes $ 26,384 $ (80,726) $ 7,573 Effective Income Tax Rate - The reconciliation of income taxes calculated at the United States federal tax statutory rate to the Company’s effective income tax rate is as follows for the periods indicated: FISCAL YEAR 2021 2020 (1) 2019 Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 3.8 3.3 4.4 Employment-related credits, net (13.2) 9.9 (24.7) Tax settlements and related adjustments (1.7) 0.1 — Net changes in deferred tax valuation allowances (0.7) (0.6) (1.6) Foreign tax rate differential (0.2) 1.1 3.2 Nondeductible expenses 2.3 (1.4) 3.9 Other, net (0.7) 0.3 (0.9) Total 10.6 % 33.7 % 5.3 % ________________ (1) Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. The net decrease in the effective income tax rate in 2021 as compared to 2020 was primarily due to the benefit of FICA tax credits on certain employees’ tips reducing the effective income tax rate in 2021 as a result of pre-tax book income as compared to increasing the effective income tax rate in 2020 as a result of pre-tax book loss. The net increase in the effective income tax rate in 2020 as compared to 2019 was primarily due to the benefit of the tax credits for FICA taxes on certain employees’ tips in 2020 and the 2020 pre-tax book loss. The Company has a blended federal and state statutory rate of approximately 26%. The effective income tax rate for 2021 was lower than the blended federal and state statutory rate primarily due to the benefit of tax credits for FICA taxes on certain employees’ tips. The effective income tax rate for 2020 was higher than the blended federal and state statutory rate primarily due to the benefit of tax credits for FICA taxes on certain employees’ tips. On December 28, 2021, the U.S. Treasury and the Internal Revenue Service released final regulations that, among other things, provide guidance on several aspects of the foreign tax credit rules. These regulations are applicable for years beginning on or after December 28, 2021 and were issued after the Company’s 52-53 week year end. The impact, if any, of these highly technical regulations is being evaluated and will be reflected in the Company’s 2022 tax provision. Deferred Tax Assets and Liabilities - The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Deferred income tax assets: Operating lease liabilities $ 352,041 $ 360,690 Insurance reserves 14,329 13,695 Unearned revenue 50,284 44,039 Deferred compensation 25,164 32,779 Net operating loss carryforwards 18,227 19,285 Federal tax credit carryforwards 146,734 142,055 Other, net (1) 21,222 28,241 Gross deferred income tax assets 628,001 640,784 Less: valuation allowance (16,998) (18,509) Deferred income tax assets, net of valuation allowance 611,003 622,275 Deferred income tax liabilities: Less: operating lease right-of-use asset basis differences (290,697) (300,387) Less: property, fixtures and equipment basis differences (48,284) (54,725) Less: intangible asset basis differences (103,954) (113,280) Deferred income tax assets, net $ 168,068 $ 153,883 ________________ (1) As of December 26, 2021 and December 27, 2020, the Company maintained deferred tax liabilities for state income taxes on historical earnings of $0.2 million. As of December 26, 2021, valuation allowances against deferred tax assets in the U.S. and in certain foreign jurisdictions totaled $3.2 million and $13.8 million, respectively. The Company will maintain the valuation allowances in each applicable tax jurisdiction until it determines it is more likely than not the deferred tax assets will be realized. The net change in the deferred tax valuation allowance in 2021 is primarily attributable to net operating loss carryforwards in certain foreign jurisdictions with full valuation allowances recorded that expired or are no longer available to the Company. The Company has considered the impact of the COVID-19 pandemic on the Company’s Brazilian operating subsidiary, including assessing the realizability of Brazilian deferred tax assets. As part of the Company’s evaluation of positive and negative evidence, management considered whether there has been cumulative income or loss in the past three years, the impact of non-deductible amounts, the scheduled reversal of deferred tax assets and liabilities, projected future taxable income and the state of the Company’s business in Brazil. As of December 26, 2021, the Company has concluded that no valuation allowance is required against the deferred tax assets of its Brazilian operating subsidiary. Although management uses the best information available, it is reasonably possible that the estimates used by the Company could be materially different from the actual results. These differences could result in a material adjustment to the Company’s valuation allowance in a future reporting period. Undistributed Earnings - As of December 26, 2021, the Company had aggregate accumulated foreign earnings of approximately $28.8 million. This amount consisted primarily of historical earnings from 2017 and prior that were previously taxed in the U.S. under the Tax Cuts and Jobs Act and post-2017 foreign earnings, which the Company may repatriate to the U.S. without additional material U.S. federal income taxes. These amounts are no longer considered indefinitely reinvested in the Company’s foreign subsidiaries. The Company has not recorded a deferred tax liability on the financial statement carrying amount over the tax basis of its investments in foreign subsidiaries because the Company continues to assert that it is indefinitely reinvested in its underlying investments in foreign subsidiaries. The determination of any unrecorded deferred tax liability on this amount is not practicable due to the uncertainty of how these investments would be recovered. Tax Carryforwards - The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 26, 2021 are as follows: (dollars in thousands) EXPIRATION DATE AMOUNT Federal tax credit carryforwards 2026 - 2041 $ 158,878 Foreign loss carryforwards 2022 - Indefinite $ 71,724 Foreign credit carryforwards Indefinite $ 864 As of December 26, 2021, the Company had $155.7 million in general business tax credit carryforwards, which have a 20-year carryforward period and are utilized on a first-in, first-out basis. The Company 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. Unrecognized Tax Benefits - As of December 26, 2021 and December 27, 2020, the liability for unrecognized tax benefits was $19.2 million and $25.5 million, respectively. Of the total amount of unrecognized tax benefits, including accrued interest and penalties, $18.8 million and $25.5 million, respectively, if recognized, would impact the Company’s effective income tax rate. The following table summarizes the activity related to the Company’s unrecognized tax benefits for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Balance as of beginning of year $ 25,524 $ 27,201 $ 25,190 Additions for tax positions taken during a prior period 166 1,061 869 Reductions for tax positions taken during a prior period (4,209) (324) (255) Additions for tax positions taken during the current period 1,292 762 2,237 Settlements with taxing authorities (2,674) (1,290) (44) Lapses in the applicable statutes of limitations (854) (1,857) (749) Translation adjustments (7) (29) (47) Balance as of end of year $ 19,238 $ 25,524 $ 27,201 The Company had approximately $0.9 million and $1.9 million accrued for the payment of interest and penalties as of December 26, 2021 and December 27, 2020, respectively. The Company recognized immaterial interest and penalties related to uncertain tax positions in the Provision (benefit) for income taxes, for all periods presented. In many cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by relevant taxable authorities. Based on the outcome of these examinations, or a result of the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the related recorded unrecognized tax benefits for tax positions taken on previously filed tax returns will change by approximately $1.0 million to $2.0 million within the next 12 months. Open Tax Years - Following is a summary of the open audit years by jurisdiction as of December 26, 2021: OPEN AUDIT YEARS United States - federal 2007 - 2020 United States - state 2009 - 2020 Foreign 2015 - 2020 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Guarantees - The Company assigned its interest, and is contingently liable, under certain real estate leases. These leases have varying terms, the latest of which expires in 2032. As of December 26, 2021, the undiscounted payments the Company could be required to make in the event of non-payment by the primary lessees was approximately $25.1 million. The present value of these potential payments discounted at the Company’s incremental borrowing rate as of December 26, 2021 was approximately $21.2 million. In the event of default, the indemnity clauses in the Company’s purchase and sale agreements govern its ability to pursue and recover damages incurred. As of December 26, 2021 and December 27, 2020, the Company’s recorded contingent lease liability was $8.7 million and $9.6 million, respectively, Purchase Obligations - Purchase obligations were $206.6 million and $230.6 million as of December 26, 2021 and December 27, 2020, respectively. These purchase obligations are primarily due within five years, however, commitments with various vendors extend through December 2030. Outstanding commitments consist primarily of food and beverage products related to normal business operations, technology, restaurant-level service contracts and advertising. In 2021, the Company purchased more than 90% of its U.S. beef raw materials from four beef suppliers that represent more than 80% of the total beef marketplace in the U.S. 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 unspecified amounts 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 $7.1 million and $4.6 million for certain of its outstanding legal proceedings as of December 26, 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. During 2021, 2020 and 2019, the Company recognized $5.4 million, $2.3 million and $1.3 million, respectively, in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for certain legal settlements. The Company intends to defend itself in legal matters. Some of these matters may be covered, at least in part, by insurance if they exceed specified retention or deductible amounts. However, it is possible that claims may be denied by the Company’s insurance carriers, the Company may be required by its insurance carriers to contribute to the payment of claims, or the Company’s insurance coverage may not continue to be available on acceptable terms or in sufficient amounts. The Company records receivables from third party insurers when recovery has been determined to be probable. The Company believes that the ultimate determination of liability in connection with legal claims pending against the Company, if any, in excess of amounts already provided for such matters in the consolidated financial statements, will not have a material adverse effect on its business, annual results of operations, liquidity or financial position. However, it is possible that the Company’s business, results of operations, liquidity, or financial condition could be materially affected in a particular future reporting period by the unfavorable resolution of one or more matters or contingencies during such period. Royalty Termination - On 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 (and Abbraccio) 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 2021. Insurance - As of December 26, 2021, the future undiscounted payments the Company expects for workers’ compensation, general liability and health insurance claims are as follows: (dollars in thousands) 2022 $ 22,071 2023 10,819 2024 6,759 2025 3,486 2026 1,838 Thereafter 9,691 $ 54,664 The following is a reconciliation of the expected aggregate undiscounted reserves to the discounted reserves for insurance claims recognized on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Undiscounted reserves $ 54,664 $ 53,217 Discount (1) (1,130) (441) Discounted reserves $ 53,534 $ 52,776 Discounted reserves recognized on the Company’s Consolidated Balance Sheets: Accrued and other current liabilities $ 22,017 $ 20,648 Other long-term liabilities, net 31,517 32,128 $ 53,534 $ 52,776 ____________________ (1) Discount rates of 0.69% and 0.26% were used for December 26, 2021 and December 27, 2020, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 26, 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, whom the Company has determined to be its Chief Operating Decision Maker. 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 as of December 26, 2021: 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 . 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Total revenues U.S. $ 3,759,981 $ 2,885,542 $ 3,687,918 International 362,404 285,019 451,471 Total revenues $ 4,122,385 $ 3,170,561 $ 4,139,389 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Segment income (loss) from operations U.S. $ 443,887 $ (1,630) $ 311,666 International 16,657 (13,479) 44,428 Total segment income (loss) from operations 460,544 (15,109) 356,094 Unallocated corporate operating expense (1) (151,586) (159,864) (165,004) Total income (loss) from operations 308,958 (174,973) 191,090 Loss on extinguishment and modification of debt (2,073) (237) — Other income (expense), net 26 131 (143) Interest expense, net (57,614) (64,442) (49,257) Income (loss) before provision (benefit) for income taxes $ 249,297 $ (239,521) $ 141,690 ____________________ (1) Includes $32.4 million of charges for 2020 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Depreciation and amortization U.S. $ 134,243 $ 144,298 $ 152,881 International 22,649 23,723 27,491 Corporate 6,499 12,240 16,439 Total depreciation and amortization $ 163,391 $ 180,261 $ 196,811 The following table is a summary of capital expenditures by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Capital expenditures U.S. $ 103,303 $ 64,516 $ 121,646 International 14,074 18,542 28,496 Corporate 9,035 5,936 8,885 Total capital expenditures $ 126,412 $ 88,994 $ 159,027 The following table sets forth Total assets by segment as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Assets U.S. $ 2,626,808 $ 2,672,778 International 383,075 410,322 Corporate 284,388 279,007 Total assets $ 3,294,271 $ 3,362,107 Geographic areas — International assets are defined as assets residing in a country other than the U.S. The following table details long-lived assets, excluding goodwill, operating lease right-of-use assets, intangible assets and deferred tax assets, by major geographic area as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 U.S. $ 831,634 $ 879,392 International Brazil 73,706 83,041 Other 15,342 17,880 Total assets $ 920,682 $ 980,313 International revenues are defined as revenues generated from restaurant sales originating in a country other than the U.S. The following table details Total revenues by major geographic area for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 U.S. $ 3,759,981 $ 2,885,542 $ 3,687,918 International Brazil 297,167 222,283 393,700 Other 65,237 62,736 57,771 Total revenues $ 4,122,385 $ 3,170,561 $ 4,139,389 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation - The Company’s consolidated financial statements include the accounts and operations of Bloomin’ Brands and its subsidiaries. To ensure timely reporting, the Company consolidates the results of its Brazil operations on a one-month calendar lag. There were no intervening events that would materially affect the Company’s consolidated financial position, results of operations or cash flows as of and for the year ended December 26, 2021. |
Principles of consolidation | Principles of Consolidation - All intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities’ operations. The Company is a franchisor of 329 full-service restaurants and off-premises kitchens as of December 26, 2021, but does not possess any ownership interests in its franchisees and does not provide material direct financial support to its franchisees. These franchise relationships are not deemed variable interest entities and are not consolidated. |
Fiscal year | Fiscal Year - The Company utilizes a 52-53-week year ending on the last Sunday in December. In a 52-week fiscal year, each quarterly period is comprised of 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter. All periods presented consisted of 52 weeks. |
Use of estimates | Use of Estimates - The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the |
Cash and cash equivalents | Cash and Cash Equivalents - Cash equivalents consist of investments that are readily convertible to cash with an original maturity date of three months or less. Cash and cash equivalents include $41.3 million and $37.1 million, as of December 26, 2021 and December 27, 2020, respectively, for amounts in transit from credit card companies since settlement is reasonably assured. |
Concentration of credit risk | Concentrations of Credit and Counterparty Risk - Financial instruments that potentially subject the Company to a concentration of credit risk and credit losses are through credit card and trade receivables consisting primarily of amounts due for gift card, vendor, franchise and other receivables. Gift card, vendor and other receivables consist primarily of amounts due from gift card resellers and vendor rebates. The Company considers the concentration of credit risk for gift card, vendor and other receivables to be minimal due to the payment histories and general financial condition of its gift card resellers and vendors. Amounts due from franchisees consist of initial franchise fees, royalty income and advertising fees. See Note 8 - Other Current Assets, Net for disclosure of trade receivables by category as of December 26, 2021 and December 27, 2020. |
Concentration of counterparty risk | Financial instruments that potentially subject the Company to concentrations of counterparty risk are cash and cash equivalents, restricted cash and derivatives. The Company attempts to limit its counterparty risk by investing in certificates of deposit, money market funds, noninterest-bearing accounts and other highly rated investments. Whenever possible, the Company selects investment grade counterparties and rated money market funds in order to mitigate its counterparty risk. At times, cash balances may be in excess of FDIC insurance limits. See Note 17 - Derivative Instruments and Hedging Activities for a discussion of the Company’s use of derivative instruments and management of credit risk inherent in derivative instruments. |
Allowance for expected credit losses | Allowance for Expected Credit Losses - The Company evaluates the collectability of credit card and trade receivables based on historical loss experience by risk pool and records periodic adjustments for factors such as deterioration of economic conditions, specific customer circumstances and changes in the aging of accounts receivable balances. Losses are charged off in the period in which they are determined to be uncollectible. See Note 20 - Allowance for Expected Credit Losses for a discussion of the Company’s allowance for expected credit losses. The Company assigned its interest, and is contingently liable, under certain real estate leases, primarily related to divested restaurant properties. Contingent lease liabilities related to these guarantees are calculated based on management’s estimate of exposure to losses which includes historical analysis of credit losses, including known instances of default, and existing economic conditions. See Note 22 - Commitments and Contingencies for a discussion of the Company’s contingent lease liabilities. |
Fair value | Fair Value - 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 |
Inventories | Inventories - Inventories consist of food and beverages and are stated at the lower of cost (first-in, first-out) or net realizable value. |
Restricted cash | Restricted Cash - From time to time, the Company may have short-term restricted cash balances consisting of amounts pledged for settlement of deferred compensation plan obligations. |
Property, fixtures and equipment | Property, Fixtures and Equipment - Property, fixtures and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful life of the assets. Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 3 to 7 years ____________________ (1) Includes improvements to leased properties which are depreciated over the shorter of their useful life or the reasonably certain lease term, including renewal periods that are reasonably certain. Repair and maintenance costs that maintain the appearance and functionality of the restaurant, but do not extend the useful life of any restaurant asset are expensed as incurred. The Company suspends depreciation and amortization for assets held for sale. The cost and related accumulated depreciation of assets sold or disposed of are removed from the Company’s Consolidated Balance Sheets, and any resulting gain or loss is generally recognized in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss). The Company capitalizes direct and indirect internal costs associated with the acquisition, development, design and construction of Company-owned restaurant locations as these costs have a future benefit to the Company. Upon restaurant opening, these costs are depreciated and charged to depreciation and amortization expense. Internal costs of $3.7 million, $2.7 million and $6.4 million were capitalized during 2021, 2020 and 2019, respectively. For 2021 and 2020, computer equipment and software costs of $3.4 million and $1.4 million, respectively, were capitalized. As of December 26, 2021 and December 27, 2020, there was $6.4 million and $8.8 million, respectively, of unamortized computer equipment and software included in Property, fixtures and equipment, net on the Company’s Consolidated Balance Sheets. |
Goodwill and intangible assets | Goodwill and Intangible Assets - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate. The Company’s indefinite-lived intangible assets consist of trade names and are recorded at fair value as of the date of acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the fair value of the reporting unit is calculated. The carrying value of the reporting unit is compared to its estimated fair value, with any excess of carrying value over fair value deemed to be an indicator of impairment. Definite-lived intangible assets, which consist primarily of trademarks and reacquired franchise rights, are recorded at fair value as of the date of acquisition, amortized over their estimated useful lives and tested for impairment, using the relief from royalty method, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. |
Derivatives | Derivatives - The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. If the derivative qualifies for hedge accounting treatment, any gain or loss on the derivative instrument is recognized in equity as a change to Accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements, foreign currency exchange rate movements, changes in energy prices and other identified risks. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. |
Deferred debt issuance costs | Deferred Debt Issuance Costs - For its revolving credit facility, the Company records deferred debt issuance costs related to the issuance of debt obligations in Other assets, net on its Consolidated Balance Sheets. For fees associated with all other debt obligations, the Company records deferred debt issuance costs as a reduction of Long-term debt, net. The Company amortizes deferred debt issuance costs to interest expense over the term of the respective financing arrangement, primarily using the effective interest method. The Company amortized deferred debt issuance costs of $4.5 million, $3.9 million and $2.5 million to Interest expense, net for 2021, 2020 and 2019, respectively. |
Liquor licenses | Liquor Licenses - The fees from obtaining non-transferable liquor licenses directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in Other assets, net on the Company’s Consolidated Balance Sheets. |
Insurance reserves | Insurance Reserves - The Company carries insurance programs with specific retention levels or high per-claim deductibles for a significant portion of expected losses under its workers’ compensation, general or liquor liability, health, property and management liability insurance programs. The Company records a liability for all unresolved claims and for an estimate of incurred but not reported claims at the anticipated cost that falls below its specified retention levels or per-claim deductible amounts. In establishing reserves, the Company considers actuarial assumptions and judgments regarding economic conditions, and the frequency and severity of claims. Reserves recorded for workers’ compensation and general liability claims are discounted using the average of the one-year and five-year risk-free rate of monetary assets that have comparable maturities. |
Share repurchase | Share Repurchase - Shares repurchased are retired. The par value of the repurchased shares is deducted from common stock and the excess of the purchase price over the par value of the shares is recorded to Accumulated deficit. |
Revenue recognition | Revenue Recognition - The Company records food and beverage revenues, net of discounts and taxes, upon delivery to the customer. Franchise-related revenues are included in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Royalties, which are a percentage of net sales of the franchisee, are recognized as revenue in the period which the sales are reported to have occurred provided collectability is reasonably assured. Proceeds from the sale of gift cards, which do not have expiration dates, are recorded as deferred revenue and recognized as revenue upon redemption by the customer. The Company applies the portfolio approach practical expedient to account for gift card contracts and performance obligations. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized using estimates based on historical redemption patterns. If actual redemptions vary from assumptions used to estimate breakage, gift card breakage income may differ from the amount recorded. The Company periodically updates its estimates used for breakage. Breakage revenue is recorded as a component of Restaurant sales in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Approximately 84% of deferred gift card revenue is expected to be recognized within 12 months of inception. Gift card sales commissions paid to third-party providers are capitalized and subsequently amortized to Other restaurant operating expense based on historical gift card redemption patterns. See Note 4 - Revenue Recognition for rollforwards of deferred gift card sales commissions and unearned gift card revenue. Advertising fees charged to franchisees are recognized in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) provided collectability is reasonably assured. Initial franchise and renewal fees are recognized over the term of the franchise agreement and renewal period, respectively. The weighted average remaining term of franchise agreements and renewal periods was approximately 12 years as of December 26, 2021. The Company maintains a customer loyalty program, Dine Rewards, in the U.S., where customers earn a reward after attaining qualified spend amounts. The Company’s estimate of the value of the reward is recorded as deferred revenue. Each reward must be redeemed within specified time limits of earning such reward. The revenue associated with the fair value of the reward is recognized upon the earlier of redemption or expiration of the reward. The Company applies the practical expedient to exclude disclosures regarding loyalty program remaining performance obligations, which have original expected durations of less than one year. The Company collects and remits sales, food and beverage, alcoholic beverage and hospitality taxes on transactions with customers and reports revenue net of taxes in its Consolidated Statements of Operations and Comprehensive Income (Loss). |
Leases | Leases - The Company’s determination of whether an arrangement contains a lease is based on an evaluation of whether the arrangement conveys the right to use and control specific property or equipment. The Company leases restaurant and office facilities and certain equipment under operating leases primarily having initial terms between one five The Company accounts for fixed lease and non-lease components of a restaurant facility lease as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to account for the lease assets and liabilities. Leases with an initial term of 12 months or less are not recorded on its Consolidated Balance Sheets and are recognized on a straight-line basis over the lease term within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Rent expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease and may include rent holidays, is recorded on a straight-line basis over the initial lease term and those renewal periods that are reasonably certain. Rent expense is recorded in Other restaurant operating in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Payments received from landlords as incentives for leasehold improvements are recorded as a reduction of the right-of-use asset and amortized on a straight-line basis over the term of the lease as a reduction of rent expense. In April 2020, the FASB issued a question-and-answer document focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19 (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Company elected this practical expedient for COVID-19-related rent concessions, primarily rent deferrals or rent abatements, and has elected not to remeasure the related lease liability and right-of-use asset for those leases. Rent deferrals are accrued with no impact to straight-line rent expense. Rent abatements are recognized as a reduction of variable rent expense in the month they occur. This election will continue while these concessions are in effect. |
Pre-opening expenses | Pre-Opening Expenses - Non-capital expenditures associated with opening new restaurants are expensed as incurred and are included in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Consideration received from vendors | Consideration Received from Vendors - The Company receives consideration for a variety of vendor-sponsored programs, such as volume rebates, promotions and advertising allowances. Advertising allowances are intended to offset the Company’s costs of promoting and selling menu items in its restaurants. Vendor consideration is recorded as a reduction of Food and beverage costs or Other restaurant operating expense when recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Impairment of long-lived assets and costs associated with exit activities | Impairment of Long-Lived Assets and Costs Associated with Exit Activities - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows independent of other assets. For long-lived assets deployed at its restaurants, the Company reviews for impairment at the individual restaurant level. When evaluating for impairment, the total future undiscounted cash flows expected to be generated by the asset are compared to the carrying amount. If the total future undiscounted cash flows of the asset are less than its carrying amount, recoverability is measured by comparing the fair value of the assets to the carrying amount. An impairment loss is recognized in earnings when the asset’s carrying value exceeds its estimated fair value. Fair value is generally estimated using a discounted cash flow model. Restaurant closure costs, including lease termination fees, are expensed as incurred. When the Company ceases using the property rights under a non-cancelable operating lease, it records a liability for the net present value of any remaining non-rent lease-related obligations, less the estimated subtenant cost recovery that can reasonably be obtained for the property. Any subsequent adjustment to that liability as a result of lease termination or changes in estimates of cost recovery is recorded in the period incurred. The associated expense is recorded in Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Restaurant sites and certain other assets to be sold are included in assets held for sale when certain criteria are met, including the requirement that the likelihood of selling the assets within one year is probable. |
Advertising costs | Advertising Costs - Advertising production costs are expensed in the period when the advertising first occurs. All other advertising costs are expensed in the period in which the costs are incurred. Advertising expense of $59.7 million, $67.3 million and $146.1 million for 2021, 2020 and 2019, respectively, was recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Legal costs | Legal Costs - Settlement costs are accrued when they are deemed probable and reasonably estimable. Legal fees are recognized as incurred and are reported in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Research and development expenses | Research and Development Expenses (“R&D”) - R&D is expensed as incurred in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). R&D primarily consists of payroll and benefit costs. R&D was $2.6 million, $2.4 million and $3.4 million for 2021, 2020 and 2019, respectively. |
Partner compensation | Partner Compensation - In addition to base salary, Area Operating Partners, Restaurant Managing Partners and Chef Partners generally receive performance-based bonuses for providing management and supervisory services to their restaurants, certain of which may be based on a percentage of their restaurants’ monthly operating results or cash flows and/or total controllable income (“Monthly Payments”). Certain Restaurant Managing Partners and Chef Partners in the U.S. (“U.S. Partners”) may also participate in deferred compensation programs and other performance-based compensation programs. The Company may invest in corporate-owned life insurance policies, which are held within an irrevocable grantor or “rabbi” trust account for settlement of certain of the Company’s obligations under the deferred compensation plans. Many of the Company’s international Restaurant Managing Partners are given the option to purchase participation interests in the cash distributions of the restaurants they manage. The amount, terms and availability vary by country. The Company estimates future bonuses and deferred compensation obligations to U.S. Partners and Area Operating Partners, using current and historical information on restaurant performance and records the long-term portion of partner obligations in Other long-term liabilities, net on its Consolidated Balance Sheets. Monthly Payments and deferred compensation expenses for U.S. Partners are included in Labor and other related expenses and Monthly Payments and bonus expense for Area Operating Partners are included in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Stock-based compensation | Stock-based Compensation - Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting or service periods. Stock-based compensation expense is recognized only for those awards expected to vest. The expense, net of forfeitures, is recognized using the straight-line method. Forfeitures of share-based compensation awards are recognized as they occur. |
Basic and diluted earnings (loss) per share | Basic and Diluted Earnings (Loss) per Share - The Company computes basic earnings (loss) per share based on the weighted average number of common shares that were outstanding during the period. Except where the result would be antidilutive, diluted earnings per share includes the dilutive effect of common stock equivalents, consisting of stock options, restricted stock units and performance-based share units, measured using the treasury stock method, and the Company’s convertible senior notes and related warrants, measured using the if-converted method. Performance-based share units are considered dilutive when the related performance criterion has been met. The Company has provided the trustee of the 2025 Notes notice of its irrevocable election under the 2025 Notes indenture to settle the principal portion of the |
Foreign currency translation and transactions | Foreign Currency Translation and Transactions - For non-U.S. operations, the functional currency is the local currency. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date with the translation adjustments recorded in Accumulated other comprehensive loss in the Company’s Consolidated Statements of Changes in Stockholders’ Equity. Results of operations are translated using the average exchange rates for the reporting period. Foreign currency exchange transaction losses are recorded in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Income taxes | Income Taxes - Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. A valuation allowance may reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company records a tax benefit for an uncertain tax position using the highest cumulative tax benefit that is more likely than not to be realized. The Company adjusts its liability for unrecognized tax benefits in the period in which it determines the issue is effectively settled, the statute of limitations expires or when more information becomes available. Liabilities for unrecognized tax benefits, including penalties and interest, are recorded in Accrued and other current liabilities and Other long-term liabilities, net on the Company’s Consolidated Balance Sheets. |
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 (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an 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 available. 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. On December 31, 2018, the Company adopted ASU No. 2016-02: Leases (Topic 842) (“ASU No. 2016-02”), ASU No. 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transitioning to Topic 842,” (“ASU No. 2018-01”) and ASU No. 2018-11: Leases (Topic 842): Targeted Improvements (“ASU No. 2018-11”). ASU No. 2016-02 requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU No. 2018-01 allows an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Accounting Policies [Abstract] | |
Fair value measurements, recurring and nonrecurring, 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 |
Property, fixtures and equipment, useful lives | Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 3 to 7 years ____________________ Property, fixtures and equipment, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Land $ 38,417 $ 40,498 Buildings 1,167,811 1,158,257 Furniture and fixtures 460,768 450,508 Equipment 641,715 623,982 Construction in progress 47,822 27,102 Less: accumulated depreciation (1,514,521) (1,412,660) $ 842,012 $ 887,687 |
Schedule of material reclassification adjustments from the adoption of ASU 2020-06 | 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) | 12 Months Ended |
Dec. 26, 2021 | |
COVID-19 Impact [Abstract] | |
Impact from COVID-19 | Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated (dollars in thousands): CHARGES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR 2020 Inventory obsolescence and spoilage Food and beverage costs $ 10,450 Compensation for idle employees (1) Labor and other related 29,993 Other operating charges Other restaurant operating 3,219 Lease guarantee contingent liabilities (2) General and administrative 4,188 Allowance for expected credit losses (3) General and administrative 3,334 Other charges General and administrative 2,719 Right-of-use asset impairment (4) Provision for impaired assets and restaurant closings 32,992 Fixed asset impairment (4) Provision for impaired assets and restaurant closings 34,423 Goodwill and other impairment (5) Provision for impaired assets and restaurant closings 3,190 $ 124,508 ________________ (1) Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $14.9 million of employee retention tax credits earned. (2) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (3) Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. (4) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments, Exit Costs and Disposals and Note 4 - Revenue Recognition , for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively. (5) Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 26, 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Revenues Restaurant sales $ 4,061,093 $ 3,144,636 $ 4,075,014 Franchise and other revenues Franchise revenues 45,520 21,195 52,147 Other revenues (1) 15,772 4,730 12,228 Total Franchise and other revenues 61,292 25,925 64,375 Total revenues $ 4,122,385 $ 3,170,561 $ 4,139,389 ________________ |
Disaggregation of revenue | The following table includes the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market, for the periods indicated: FISCAL YEAR 2021 2020 2019 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 2,175,909 $ 29,725 $ 1,760,071 $ 9,898 $ 2,135,776 $ 38,614 Carrabba’s Italian Grill 653,231 2,439 497,212 1,309 613,031 2,112 Bonefish Grill 544,068 641 396,193 346 574,004 787 Fleming’s Prime Steakhouse & Wine Bar 332,607 — 209,564 — 307,199 — Other 9,033 9 6,507 — 4,658 — U.S. total 3,714,848 32,814 2,869,547 11,553 3,634,668 41,513 International Outback Steakhouse Brazil 258,997 — 206,280 — 355,837 — Other (1) 87,248 12,706 68,809 9,642 84,509 10,634 International total 346,245 12,706 275,089 9,642 440,346 10,634 Total $ 4,061,093 $ 45,520 $ 3,144,636 $ 21,195 $ 4,075,014 $ 52,147 ____________________ (1) Includes Restaurant sales for the Company’s Abbraccio concept in Brazil. |
Contract with customer, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 Other current assets, net Deferred gift card sales commissions $ 17,793 $ 19,300 Unearned revenue Deferred gift card revenue $ 387,945 $ 373,048 Deferred loyalty revenue 9,386 8,026 Deferred franchise fees - current 443 469 Other 1,021 73 Total Unearned revenue $ 398,795 $ 381,616 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,280 $ 4,301 |
Other current assets, net | |
Revenue Recognition [Line Items] | |
Contract with customer, asset and liability | The following table is a rollforward of deferred gift card sales commissions for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Balance, beginning of period $ 19,300 $ 18,554 $ 16,431 Deferred gift card sales commissions amortization (26,012) (20,927) (26,094) Deferred gift card sales commissions capitalization 26,625 22,923 29,894 Other (2,120) (1,250) (1,677) Balance, end of period $ 17,793 $ 19,300 $ 18,554 |
Unearned revenue | |
Revenue Recognition [Line Items] | |
Contract with customer, asset and liability | The following table is a rollforward of unearned gift card revenue for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Balance, beginning of period $ 373,048 $ 358,757 $ 333,794 Gift card sales 330,841 306,016 420,229 Gift card redemptions (298,397) (277,675) (376,477) Gift card breakage (17,547) (14,050) (18,789) Balance, end of period $ 387,945 $ 373,048 $ 358,757 |
Impairments, Exit Costs and Dis
Impairments, Exit Costs and Disposals (Tables) | 12 Months Ended |
Dec. 26, 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Impairment losses U.S. (1) $ 11,945 $ 65,129 $ 6,381 International (1)(2) 1,186 3,468 2,026 Corporate (3) 270 6,226 727 Total impairment losses 13,401 74,823 9,134 Restaurant closure charges (benefits) U.S. (1) 422 1,358 (105) International (1) (86) 173 56 Total restaurant closure charges (benefits) 336 1,531 (49) Provision for impaired assets and restaurant closings $ 13,737 $ 76,354 $ 9,085 ____________________ (1) U.S. and international impairment and closure charges during 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - 2020 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 2020. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. (3) Corporate impairment charges during 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 period indicated (dollars in thousands): CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR DESCRIPTION 2020 Property, fixtures and equipment impairments Provision for impaired assets and restaurant closings $ 18,766 Lease right-of-use asset impairments and closure charges Provision for impaired assets and restaurant closings 5,003 Severance and other expenses General and administrative 1,097 $ 24,866 |
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 closure and restructuring initiatives for the period indicated: FISCAL YEAR (dollars in thousands) 2021 Beginning of the year $ 12,879 Cash payments (4,739) Accretion 906 Adjustments (561) End of the year (1) $ 8,485 ________________ (1) As of December 26, 2021, the Company had exit-related accruals associated with closure and restructuring initiatives of $2.9 million recorded in Accrued and other current liabilities and $5.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 26, 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: FISCAL YEAR (in thousands, except per share data) 2021 2020 2019 Net income (loss) attributable to Bloomin’ Brands $ 215,555 $ (158,715) $ 130,573 Redemption of preferred stock in excess of carrying value (1) — (3,496) — Net income (loss) attributable to common stockholders 215,555 (162,211) 130,573 Convertible senior notes if-converted method interest adjustment, net of tax (2) 345 — — Diluted net income (loss) attributable to common stockholders $ 215,900 $ (162,211) $ 130,573 Basic weighted average common shares outstanding 88,981 87,468 88,839 Effect of dilutive securities: Stock options 779 — 571 Nonvested restricted stock units 355 — 295 Nonvested performance-based share units 61 — 72 Convertible senior notes (2)(3) 11,377 — — Warrants (3) 6,250 — — Diluted weighted average common shares outstanding 107,803 87,468 89,777 Basic earnings (loss) per share attributable to common stockholders $ 2.42 $ (1.85) $ 1.47 Diluted earnings (loss) per share attributable to common stockholders $ 2.00 $ (1.85) $ 1.45 ________________ (1) Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders. See Note 16 - 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 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: FISCAL YEAR (shares in thousands) 2021 2020 2019 Stock options 751 5,155 4,003 Nonvested restricted stock units 128 682 158 Nonvested performance-based share units 377 514 277 |
Stock-based and Deferred Comp_2
Stock-based and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by award type | The Company recognized stock-based compensation expense as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Stock options $ 2,286 $ 3,743 $ 5,270 Restricted stock units 8,184 8,559 8,949 Performance-based share units (1) 13,821 2,414 5,471 $ 24,291 $ 14,716 $ 19,690 ________________ (1) For 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 share-based compensation, stock options, activity | The following table presents a summary of the Company’s stock option activity: (in thousands, except exercise price and contractual life) OPTIONS WEIGHTED WEIGHTED AGGREGATE Outstanding as of December 27, 2020 5,422 $ 19.76 5.1 $ 6,575 Exercised (936) $ 15.98 Forfeited or expired (210) $ 23.34 Outstanding as of December 26, 2021 4,276 $ 20.42 4.7 $ 7,304 Exercisable as of December 26, 2021 3,905 $ 20.36 4.4 $ 7,032 |
Schedule of stock-based compensation information, stock options | The following represents stock option compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Intrinsic value of options exercised $ 8,419 $ 2,201 $ 7,929 Cash received from option exercises, net of tax withholding $ 14,951 $ 4,609 $ 6,501 Fair value of stock options vested $ 19,246 $ 16,468 $ 18,136 Tax benefits for stock option compensation expense $ 1,942 $ 535 $ 1,932 Unrecognized stock option expense $ 525 Remaining weighted average vesting period 0.6 years |
Schedule of stock-based compensation, restricted stock units, activity | Following is a summary of the Company’s restricted stock unit activity: (shares in thousands) NUMBER OF RESTRICTED STOCK UNIT AWARDS WEIGHTED AVERAGE Outstanding as of December 27, 2020 1,034 $ 18.12 Granted 319 $ 25.93 Vested (508) $ 18.57 Forfeited (115) $ 18.47 Outstanding as of December 26, 2021 730 $ 21.16 |
Schedule of stock-based compensation information, restricted stock units | The following represents restricted stock unit compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Fair value of restricted stock vested $ 9,434 $ 8,973 $ 8,200 Tax benefits for restricted stock compensation expense $ 1,592 $ 1,614 $ 1,672 Unrecognized restricted stock expense $ 9,315 Remaining weighted average vesting period 1.8 years |
Schedule of nonvested performance-based units, activity | The following table presents a summary of the Company’s PSU activity: (shares in thousands) PERFORMANCE-BASED SHARE UNITS WEIGHTED AVERAGE Outstanding as of December 27, 2020 673 $ 20.37 Granted 328 $ 28.98 Vested (147) $ 23.05 Forfeited (95) $ 24.11 Outstanding as of December 26, 2021 759 $ 23.11 |
Schedule of employee service share-based compensation, allocation of recognized period costs | The following represents PSU compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Tax benefits for PSU compensation expense $ 134 $ 1,570 $ 857 Unrecognized PSU expense $ 16,522 Remaining weighted average vesting period (1) 1.4 years ________________ (1) PSUs typically vest after three years. |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Black-Scholes and Monte Carlo schedule of assumptions used to calculate fair value of options | Assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted were as follows for the period indicated: FISCAL YEAR 2019 Assumptions: Risk-free interest rate (1) 2.34 % Dividend yield (2) 1.94 % Expected term (3) 4.8 years Weighted average volatility (4) 31.05 % Weighted average grant date fair value per option $ 5.07 ________________ (1) Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. (2) Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option. (3) Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options. (4) Based on the historical volatility of the Company’s stock. |
Performance-based share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Black-Scholes and Monte Carlo schedule of assumptions used to calculate fair value of options | Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the period indicated: FISCAL YEAR 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. |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Other Assets [Abstract] | |
Schedule of other current assets, net | Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Prepaid expenses $ 21,194 $ 12,148 Accounts receivable - gift cards, net (1) 91,248 76,808 Accounts receivable - vendors, net (1) 11,793 8,886 Accounts receivable - franchisees, net (1) 1,701 1,007 Accounts receivable - other, net (1) 18,353 16,782 Deferred gift card sales commissions 17,793 19,300 Assets held for sale 100 3,831 Other current assets, net 22,441 12,756 $ 184,623 $ 151,518 ________________ (1) See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Property, Fixtures and Equipm_2
Property, Fixtures and Equipment, Net (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, fixtures and equipment, net | Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 3 to 7 years ____________________ Property, fixtures and equipment, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Land $ 38,417 $ 40,498 Buildings 1,167,811 1,158,257 Furniture and fixtures 460,768 450,508 Equipment 641,715 623,982 Construction in progress 47,822 27,102 Less: accumulated depreciation (1,514,521) (1,412,660) $ 842,012 $ 887,687 |
Schedule of surplus properties | Following is a summary of the carrying value and number of surplus properties as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION DECEMBER 26, 2021 DECEMBER 27, 2020 Surplus properties - assets held for sale Other current assets, net $ 100 $ 3,831 Surplus properties - assets held and used Property, fixtures and equipment, net 4,505 7,955 Total surplus properties $ 4,605 $ 11,786 Number of surplus properties owned 6 12 |
Schedule of other operating cost and expense, depreciation and repairs and maintenance expense | Depreciation and repair and maintenance expense are as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Depreciation expense $ 157,386 $ 173,342 $ 188,190 Repair and maintenance expense $ 104,209 $ 88,829 $ 106,943 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Goodwill [Line Items] | |
Goodwill rollforward | The following table is a rollforward of goodwill: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 29, 2019 $ 170,657 $ 117,782 $ 288,439 Translation adjustments — (15,302) (15,302) Impairment charges — (1,973) (1,973) Balance as of December 27, 2020 170,657 100,507 271,164 Translation adjustments — (2,720) (2,720) Balance as of December 26, 2021 $ 170,657 $ 97,787 $ 268,444 |
Finite-lived intangible assets amortization expense | The following table presents the aggregate expense related to the amortization of the Company’s trademarks, franchise agreements and reacquired franchise rights for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Amortization expense $ 6,005 $ 6,919 $ 8,621 |
Schedule of finite-lived intangible assets, future amortization expense | The following table presents expected annual amortization of intangible assets as of December 26, 2021: (dollars in thousands) 2022 $ 5,807 2023 $ 5,741 2024 $ 5,613 2025 $ 5,378 2026 $ 5,294 |
Goodwill | |
Goodwill [Line Items] | |
Schedule of goodwill and intangible assets | The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated: DECEMBER 26, 2021 DECEMBER 27, 2020 DECEMBER 29, 2019 (dollars in thousands) GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS U.S. $ 838,827 $ (668,170) $ 838,827 $ (668,170) $ 838,827 $ (668,170) International 217,670 (119,883) 220,390 (119,883) 235,692 (117,910) Total goodwill $ 1,056,497 $ (788,053) $ 1,059,217 $ (788,053) $ 1,074,519 $ (786,080) |
Intangible assets, net | |
Goodwill [Line Items] | |
Schedule of goodwill and intangible assets | Intangible assets, net, consisted of the following as of the periods indicated: WEIGHTED AVERAGE REMAINING AMORTIZATION PERIOD DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE Trade names Indefinite $ 414,716 $ 414,716 $ 414,716 $ 414,716 Trademarks 7 81,951 $ (55,736) 26,215 81,951 $ (51,797) 30,154 Franchise agreements 0 — — — 14,881 (14,881) — Reacquired franchise rights 9 31,944 (19,463) 12,481 33,520 (18,407) 15,113 Total intangible assets 8 $ 528,611 $ (75,199) $ 453,412 $ 545,068 $ (85,085) $ 459,983 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Other Assets [Abstract] | |
Schedule of other assets, noncurrent | Other assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Company-owned life insurance (1) $ 30,970 $ 44,814 Deferred debt issuance costs (2) 5,861 4,694 Liquor licenses 23,266 24,250 Other assets 18,573 18,868 $ 78,670 $ 92,626 ________________ (1) During 2021, the Company withdrew $9.1 million from its Company-owned life insurance policies to pay deferred compensation obligations. |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 26, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 Accrued rent and current operating lease liabilities $ 181,636 $ 192,369 Accrued payroll and other compensation (1) 105,095 79,291 Accrued insurance 22,017 20,648 Other current liabilities 98,146 96,013 $ 406,894 $ 388,321 ________________ (1) During 2021, accrued payroll and other compensation increased primarily due to an increase in incentive compensation as a result of increased restaurant sales in 2021 due to the impact of COVID-19 during 2020. |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding long-term debt, as of the periods indicated: DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) OUTSTANDING BALANCE INTEREST RATE OUTSTANDING BALANCE INTEREST RATE Senior Secured Credit Facility: Term loan A (1) $ 195,000 1.60 % $ — Revolving credit facility (2) 80,000 3.75 % — Total Senior Secured Credit Facility 275,000 — 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 (3) 230,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % — Finance lease liabilities 2,376 2,405 Less: unamortized debt discount and issuance costs (4) (14,157) (67,704) Less: finance lease interest (154) (221) Total debt, net 793,065 1,036,480 Less: current portion of long-term debt (10,958) (38,710) Long-term debt, net $ 782,107 $ 997,770 ________________ (1) Interest rate represents the weighted average interest rate as of the respective periods. (2) Interest rate represents the Base Rate option elected in anticipation of impending repayment. Subsequent to December 26, 2021, the Company repaid the remaining $80.0 million balance on its revolving credit facility. (3) See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. (4) In connection with the adoption of ASU No. 2020-06, debt discount of $59.9 million related to the 2025 Notes was derecognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during 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 March 27, 2022 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 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) DECEMBER 26, 2021 2022 $ 10,976 2023 10,739 2024 12,944 2025 247,674 2026 225,043 Thereafter 300,000 Total payments 807,376 Less: unamortized debt discount and issuance costs (14,157) Less: finance lease interest (154) Total principal payments $ 793,065 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 26, 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) DECEMBER 26, 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) (5,898) (5,427) Net carrying amount $ 224,102 $ 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 derecognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during 2021. (2) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. |
Convertible senior notes interest expense | Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 Coupon interest $ 11,500 $ 7,443 Deferred discount amortization — 6,275 Deferred issuance cost amortization 1,557 569 Total interest expense (1) $ 13,057 $ 14,287 ________________ (1) The effective rate of the 2025 Notes over their expected life was 5.85% and 13.73% for 2021 and 2020, respectively . |
Other Long-term Liabilities, _2
Other Long-term Liabilities, Net (Tables) | 12 Months Ended |
Dec. 26, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 Accrued insurance liability $ 31,517 $ 32,128 Chef and Restaurant Managing Partner deferred compensation obligations 13,971 32,306 Deferred payroll tax liabilities (1) 27,302 55,204 Other long-term liabilities (2) 52,452 65,717 $ 125,242 $ 185,355 _______________ (1) During 2021, the Company made a payment of $27.3 million related to payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act. (2) The Company’s hedge liability decreased by $15.6 million during 2021 primarily from the termination of certain interest rate swaps. See Note 17 - Derivative Instruments and Hedging Activities |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Stockholders' Equity Note [Abstract] | |
Dividends declared and paid | The Company declared and paid dividends per share during the period presented as follows: FISCAL YEAR 2020 (dollars in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.20 $ 17,480 |
Schedule of accumulated other comprehensive loss | Following are the components of AOCL as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Foreign currency translation adjustment $ (195,480) $ (188,883) Unrealized loss on derivatives, net of tax (10,509) (22,563) Accumulated other comprehensive loss $ (205,989) $ (211,446) |
Comprehensive income (loss) | Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Bloomin’ Brands: Foreign currency translation adjustment $ (6,597) $ (36,852) $ (16,882) Unrealized gain (loss) on derivatives, net of tax (1) 86 (14,741) (11,944) Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2) 7,392 9,923 1,805 Amortization of terminated interest rate swaps, net of tax 4,576 — — Total unrealized gain (loss) on derivatives, net of tax 12,054 (4,818) (10,139) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 5,457 $ (41,670) $ (27,021) ________________ (1) Unrealized loss on derivatives is net of tax of $5.1 million and $4.1 million for 2020 and 2019, respectively. (2) Reclassifications of adjustments for loss on derivatives are net of tax. See Note 17 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 26, 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) DECEMBER 26, 2021 DECEMBER 27, 2020 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability $ 3,056 $ 14,855 Accrued and other current liabilities Interest rate swaps - liability — 15,640 Other long-term liabilities, net Total fair value of derivative instruments - liabilities (1) $ 3,056 $ 30,495 Accrued interest $ 276 $ 1,237 Accrued and other current liabilities ____________________ (1) See Note 19 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivatives instruments statements of financial performance and financial position, location | The following table summarizes the effects of the swap agreements on Net income (loss) for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Interest rate swap expense recognized in Interest expense, net $ (9,951) $ (13,370) $ (2,436) Income tax benefit recognized in Provision (benefit) for income taxes 2,559 3,447 631 Total effects on Net income (loss) $ (7,392) $ (9,923) $ (1,805) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 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 DECEMBER 26, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,130,873 $ 1,172,910 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 2,074 1,947 Total lease assets, net $ 1,132,947 $ 1,174,857 Current operating lease liabilities (2) Accrued and other current liabilities $ 177,028 $ 176,791 Current finance lease liabilities Current portion of long-term debt 958 1,210 Non-current operating lease liabilities (3) Non-current operating lease liabilities 1,178,998 1,216,666 Non-current finance lease liabilities Long-term debt, net 1,264 974 Total lease liabilities $ 1,358,248 $ 1,395,641 ________________ (1) Net of accumulated amortization of $3.3 million and $2.3 million as December 26, 2021 and December 27, 2020, respectively. (2) Excludes COVID-19-related deferred rent accruals of $1.1 million and $12.8 million as of December 26, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.5 million and $2.7 million, as of December 26, 2021 and December 27, 2020, respectively. (3) Excludes COVID-19-related non-current deferred rent accruals of $0.4 million and $1.2 million as of December 26, 2021 and December 27, 2020, respectively. |
Lease, cost | Following is a summary of expenses and income related to leases recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR (dollars in thousands) 2021 2020 2019 Operating leases (1) Other restaurant operating $ 178,733 $ 178,740 $ 181,397 Variable lease cost (2) Other restaurant operating 4,350 (2,326) 3,504 Finance leases: Amortization of leased assets Depreciation and amortization 1,079 1,248 1,400 Interest on lease liabilities Interest expense, net 129 160 264 Sublease revenue Franchise and other revenues (9,396) (3,121) (6,542) Lease costs, net $ 174,895 $ 174,701 $ 180,023 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.9 million, $13.8 million and $14.6 million for 2021, 2020 and 2019, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs. (2) Includes COVID-19-related rent abatements for 2021 and 2020. |
Lessee, operating lease, liability, maturity | As of December 26, 2021, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2022 (2) $ 185,093 $ 976 $ (5,130) 2023 189,010 739 (5,212) 2024 183,170 444 (5,182) 2025 171,317 174 (4,983) 2026 164,111 43 (4,971) Thereafter 1,490,634 — (42,823) Total minimum lease payments (receipts) (3) 2,383,335 2,376 $ (68,301) Less: Interest (1,025,773) (154) Present value of future lease payments $ 1,357,562 $ 2,222 ____________________ (1) Includes COVID-19-related current and non-current deferred rent accruals of $1.1 million and $0.4 million, respectively, as of December 26, 2021. (2) Net of operating lease prepaid rent of $5.6 million. (3) Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $80.9 million of signed operating leases that have not yet commenced. |
Finance lease, liability, maturity | As of December 26, 2021, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2022 (2) $ 185,093 $ 976 $ (5,130) 2023 189,010 739 (5,212) 2024 183,170 444 (5,182) 2025 171,317 174 (4,983) 2026 164,111 43 (4,971) Thereafter 1,490,634 — (42,823) Total minimum lease payments (receipts) (3) 2,383,335 2,376 $ (68,301) Less: Interest (1,025,773) (154) Present value of future lease payments $ 1,357,562 $ 2,222 ____________________ (1) Includes COVID-19-related current and non-current deferred rent accruals of $1.1 million and $0.4 million, respectively, as of December 26, 2021. (2) Net of operating lease prepaid rent of $5.6 million. (3) Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $80.9 million of signed operating leases that have not yet commenced. |
Lessee, weighted average remaining lease term and weighted average discount rate | The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated: DECEMBER 26, 2021 DECEMBER 27, 2020 Weighted average remaining lease term (1): Operating leases 13.7 years 14.0 years Finance leases 2.8 years 2.7 years Weighted average discount rate (2): Operating leases 8.42 % 8.54 % Finance leases 5.01 % 7.21 % ____________________ (1) Includes lease renewal options that are reasonably certain of exercise. (2) Based on the Company’s incremental borrowing rate at lease commencement. |
Cash flow, operating activities, lessee | The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 205,253 $ 177,961 $ 191,855 |
Schedule of property subject to or available for operating leases | The following table is a summary of assets leased to third parties as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Land $ 5,021 $ 9,341 Buildings $ 4,987 $ 10,172 Less: accumulated depreciation (3,746) (6,181) Buildings, net $ 1,241 $ 3,991 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Fair Value Disclosures [Abstract] | |
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: DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 6,714 $ 6,714 $ — $ 15,404 $ 15,404 $ — Money market funds 9,039 9,039 — 16,494 16,494 — Restricted cash equivalents: Money market funds 1,472 1,472 — 428 428 — Total asset recurring fair value measurements $ 17,225 $ 17,225 $ — $ 32,326 $ 32,326 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ 3,056 $ — $ 3,056 $ 14,855 $ — $ 14,855 Other long-term liabilities: Derivative instruments - interest rate swaps — — — 15,640 — 15,640 Total liability recurring fair value measurements $ 3,056 $ — $ 3,056 $ 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 December 26, 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: 2021 2020 2019 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ — $ — $ 1,934 $ 123 $ 2,049 $ 315 Operating lease right-of-use assets (2) 8,647 3,950 72,615 30,940 6,597 4,284 Property, fixtures and equipment (3) 11,647 8,445 26,311 41,077 3,915 4,535 Goodwill and other assets (4) — 1,006 748 2,683 — — $ 20,294 $ 13,401 $ 101,608 $ 74,823 $ 12,561 $ 9,134 ________________ (1) Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (2) Carrying values measured using Level 2 inputs to estimate fair value totaled $0.2 million during 2019. 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. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments. (3) Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million, $2.2 million and $2.3 million for 2021, 2020 and 2019, 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 the fair value. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments. (4) 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 during the period indicated: FISCAL YEAR UNOBSERVABLE INPUTS 2020 Weighted average cost of capital 10.4% to 11.3% Long-term growth rate 1.5% to 2.0% |
Schedule of carrying value and fair value of senior secured credit facilities | The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: DECEMBER 26, 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 $ 195,000 $ 190,125 $ — $ — Revolving credit facility $ 80,000 $ 76,926 $ — $ — Former Credit Facility: Term loan A $ — $ — $ 425,000 $ 412,250 Revolving credit facility $ — $ — $ 447,000 $ 419,612 2025 Notes $ 230,000 $ 447,615 $ 230,000 $ 413,818 2029 Notes $ 300,000 $ 304,395 $ — $ — |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 26, 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: FISCAL YEAR (dollars in thousands) 2021 2020 Allowance for expected credit losses, beginning of period $ 4,095 $ 199 Adjustment for adoption of ASU No. 2016-13 — 1,018 Provision for expected credit losses (1) 64 3,472 Charge-off of accounts (109) (594) Allowance for expected credit losses, end of period $ 4,050 $ 4,095 ________________ (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 3 - 2020 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) | 12 Months Ended |
Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income tax, domestic and foreign | The following table presents the domestic and foreign components of Income (loss) before provision (benefit) for income taxes for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Domestic $ 258,202 $ (206,941) $ 129,826 Foreign (8,905) (32,580) 11,864 $ 249,297 $ (239,521) $ 141,690 |
Schedule of components of income tax expense (benefit) | Provision (benefit) for income taxes consisted of the following for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Current provision: Federal $ 16,951 $ 2,606 $ 13,265 State 10,917 2,301 9,696 Foreign 1,862 2,623 10,502 29,730 7,530 33,463 Deferred (benefit) provision: Federal (2,057) (66,498) (21,407) State 1,194 (12,527) (1,986) Foreign (2,483) (9,231) (2,497) (3,346) (88,256) (25,890) Provision (benefit) for income taxes $ 26,384 $ (80,726) $ 7,573 |
Schedule of effective income tax rate reconciliation | The reconciliation of income taxes calculated at the United States federal tax statutory rate to the Company’s effective income tax rate is as follows for the periods indicated: FISCAL YEAR 2021 2020 (1) 2019 Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 3.8 3.3 4.4 Employment-related credits, net (13.2) 9.9 (24.7) Tax settlements and related adjustments (1.7) 0.1 — Net changes in deferred tax valuation allowances (0.7) (0.6) (1.6) Foreign tax rate differential (0.2) 1.1 3.2 Nondeductible expenses 2.3 (1.4) 3.9 Other, net (0.7) 0.3 (0.9) Total 10.6 % 33.7 % 5.3 % ________________ (1) Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. |
Schedule of deferred tax assets and liabilities | The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Deferred income tax assets: Operating lease liabilities $ 352,041 $ 360,690 Insurance reserves 14,329 13,695 Unearned revenue 50,284 44,039 Deferred compensation 25,164 32,779 Net operating loss carryforwards 18,227 19,285 Federal tax credit carryforwards 146,734 142,055 Other, net (1) 21,222 28,241 Gross deferred income tax assets 628,001 640,784 Less: valuation allowance (16,998) (18,509) Deferred income tax assets, net of valuation allowance 611,003 622,275 Deferred income tax liabilities: Less: operating lease right-of-use asset basis differences (290,697) (300,387) Less: property, fixtures and equipment basis differences (48,284) (54,725) Less: intangible asset basis differences (103,954) (113,280) Deferred income tax assets, net $ 168,068 $ 153,883 ________________ (1) As of December 26, 2021 and December 27, 2020, the Company maintained deferred tax liabilities for state income taxes on historical earnings of $0.2 million. |
Summary of operating loss carryforwards | The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 26, 2021 are as follows: (dollars in thousands) EXPIRATION DATE AMOUNT Federal tax credit carryforwards 2026 - 2041 $ 158,878 Foreign loss carryforwards 2022 - Indefinite $ 71,724 Foreign credit carryforwards Indefinite $ 864 |
Schedule of unrecognized tax benefits roll forward | The following table summarizes the activity related to the Company’s unrecognized tax benefits for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Balance as of beginning of year $ 25,524 $ 27,201 $ 25,190 Additions for tax positions taken during a prior period 166 1,061 869 Reductions for tax positions taken during a prior period (4,209) (324) (255) Additions for tax positions taken during the current period 1,292 762 2,237 Settlements with taxing authorities (2,674) (1,290) (44) Lapses in the applicable statutes of limitations (854) (1,857) (749) Translation adjustments (7) (29) (47) Balance as of end of year $ 19,238 $ 25,524 $ 27,201 |
Summary of open audit years by jurisdiction | Following is a summary of the open audit years by jurisdiction as of December 26, 2021: OPEN AUDIT YEARS United States - federal 2007 - 2020 United States - state 2009 - 2020 Foreign 2015 - 2020 |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 12 Months Ended |
Dec. 26, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum expected insurance payments | As of December 26, 2021, the future undiscounted payments the Company expects for workers’ compensation, general liability and health insurance claims are as follows: (dollars in thousands) 2022 $ 22,071 2023 10,819 2024 6,759 2025 3,486 2026 1,838 Thereafter 9,691 $ 54,664 |
Schedule of liability for unpaid claims and claims adjustment expense | The following is a reconciliation of the expected aggregate undiscounted reserves to the discounted reserves for insurance claims recognized on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Undiscounted reserves $ 54,664 $ 53,217 Discount (1) (1,130) (441) Discounted reserves $ 53,534 $ 52,776 Discounted reserves recognized on the Company’s Consolidated Balance Sheets: Accrued and other current liabilities $ 22,017 $ 20,648 Other long-term liabilities, net 31,517 32,128 $ 53,534 $ 52,776 ____________________ (1) Discount rates of 0.69% and 0.26% were used for December 26, 2021 and December 27, 2020, respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 26, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following is a summary of reporting segments as of December 26, 2021: 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Total revenues U.S. $ 3,759,981 $ 2,885,542 $ 3,687,918 International 362,404 285,019 451,471 Total revenues $ 4,122,385 $ 3,170,561 $ 4,139,389 |
Reconciliation of operating profit (loss) 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Segment income (loss) from operations U.S. $ 443,887 $ (1,630) $ 311,666 International 16,657 (13,479) 44,428 Total segment income (loss) from operations 460,544 (15,109) 356,094 Unallocated corporate operating expense (1) (151,586) (159,864) (165,004) Total income (loss) from operations 308,958 (174,973) 191,090 Loss on extinguishment and modification of debt (2,073) (237) — Other income (expense), net 26 131 (143) Interest expense, net (57,614) (64,442) (49,257) Income (loss) before provision (benefit) for income taxes $ 249,297 $ (239,521) $ 141,690 ____________________ (1) Includes $32.4 million of charges for 2020 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: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Depreciation and amortization U.S. $ 134,243 $ 144,298 $ 152,881 International 22,649 23,723 27,491 Corporate 6,499 12,240 16,439 Total depreciation and amortization $ 163,391 $ 180,261 $ 196,811 The following table is a summary of capital expenditures by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 Capital expenditures U.S. $ 103,303 $ 64,516 $ 121,646 International 14,074 18,542 28,496 Corporate 9,035 5,936 8,885 Total capital expenditures $ 126,412 $ 88,994 $ 159,027 |
Schedule of segment total assets | The following table sets forth Total assets by segment as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 Assets U.S. $ 2,626,808 $ 2,672,778 International 383,075 410,322 Corporate 284,388 279,007 Total assets $ 3,294,271 $ 3,362,107 |
Schedule of long-lived assets, by geographic area | The following table details long-lived assets, excluding goodwill, operating lease right-of-use assets, intangible assets and deferred tax assets, by major geographic area as of the periods indicated: (dollars in thousands) DECEMBER 26, 2021 DECEMBER 27, 2020 U.S. $ 831,634 $ 879,392 International Brazil 73,706 83,041 Other 15,342 17,880 Total assets $ 920,682 $ 980,313 |
Schedule of revenues, by geographic area | International revenues are defined as revenues generated from restaurant sales originating in a country other than the U.S. The following table details Total revenues by major geographic area for the periods indicated: FISCAL YEAR (dollars in thousands) 2021 2020 2019 U.S. $ 3,759,981 $ 2,885,542 $ 3,687,918 International Brazil 297,167 222,283 393,700 Other 65,237 62,736 57,771 Total revenues $ 4,122,385 $ 3,170,561 $ 4,139,389 |
Description of Business (Detail
Description of Business (Details) | Dec. 26, 2021restraurant_concept |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of restaurant concepts in portfolio | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Basis of Presentation) (Details) | 12 Months Ended |
Dec. 26, 2021 | |
Accounting Policies [Abstract] | |
Reporting lag for Brazil operations in financial statements | 1 month |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Principles of Consolidation) (Details) | Dec. 26, 2021restaurant |
Minimum | |
Principles of Consolidation [Line Items] | |
Equity method investment, ownership percentage | 20.00% |
Maximum | |
Principles of Consolidation [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Franchised units | |
Principles of Consolidation [Line Items] | |
Number of restaurants | 329 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Dec. 26, 2021 | Dec. 27, 2020 |
Cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, amounts in transit from credit card companies | $ 41.3 | $ 37.1 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Property, Fixtures and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Property, Plant and Equipment [Line Items] | ||||
Capitalized internal costs for construction in progress | $ 3.7 | $ 2.7 | $ 6.4 | |
Capitalized computer equipment and software, additions | 3.4 | 1.4 | ||
Property, fixtures and equipment, net | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized computer equipment and software, net | $ 6.4 | $ 8.8 | ||
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | [1] | 5 years | ||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | [1] | 30 years | ||
Furniture and fixtures | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Furniture and fixtures | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Computer equipment and software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Computer equipment and software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
[1] | Includes improvements to leased properties which are depreciated over the shorter of their useful life or the reasonably certain lease term, including renewal periods that are reasonably certain. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Deferred Debt Issuance Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Interest expense | |||
Deferred debt issuance costs [Line Items] | |||
Deferred issuance cost amortization | $ 4.5 | $ 3.9 | $ 2.5 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Insurance Reserves) (Details) - Workers' compensation and general liability | 12 Months Ended |
Dec. 26, 2021 | |
Minimum | |
Insurance [Line Items] | |
Insurance, annual risk free rate, period | 1 year |
Maximum | |
Insurance [Line Items] | |
Insurance, annual risk free rate, period | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Revenue Recognition) (Details) | Dec. 26, 2021 |
Revenue Recognition [Line Items] | |
Revenue, remaining performance obligation, expected satisfaction within 12 months of inception, percentage | 84.00% |
Deferred franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-26 | |
Revenue Recognition [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Leases) (Details) | Dec. 26, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Lessee, operating lease, renewal term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 30 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Other restaurant operating | |||
Schedule of Advertising Costs [Line Items] | |||
Advertising expense | $ 59.7 | $ 67.3 | $ 146.1 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Research and Development Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
General and administrative expense | |||
Schedule of research and development expense [Line Items] | |||
Research and development expense | $ 2.6 | $ 2.4 | $ 3.4 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Recently Issued Financial Accounting Standards) (Details) - USD ($) $ in Thousands | Dec. 28, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred tax impact of cumulative-effect adjustment | $ 611,003 | $ 622,275 | ||||
Reversal of separated equity component, net of tax | (222,850) | (10,957) | $ (177,481) | $ (54,817) | ||
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 | (141,285) | |||
2025 Notes | Convertible debt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt discount reclassification | 0 | [1] | 59,862 | |||
Debt discount amortization | 0 | (6,275) | ||||
2025 Notes | Convertible debt | Interest expense | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt discount amortization | 6,300 | |||||
2025 Notes | Convertible debt | Additional paid-in capital | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity issuance costs reclassification | $ 2,100 | |||||
Accounting standards updated 2020-06 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred tax impact of cumulative-effect adjustment | 14,900 | |||||
Accounting standards updated 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 updated 2020-06 | 2025 Notes | Convertible debt | Long-term debt, net | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt discount reclassification | 59,900 | |||||
Equity issuance costs reclassification | (2,100) | |||||
Accounting standards updated 2020-06 | 2025 Notes | Convertible debt | Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt discount amortization | $ 4,400 | |||||
Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reversal of separated equity component, net of tax | $ 698,171 | 918,096 | 755,089 | 920,010 | ||
Retained earnings | 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 | $ (141,285) | |||
[1] | In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were derecognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during 2021. |
COVID-19 Charges (Details)
COVID-19 Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Inventory obsolescence and spoilage | $ 0 | $ 10,169 | $ 0 | ||
Allowance for expected credit losses | 64 | 3,472 | [1] | ||
Total costs and expenses | 3,813,427 | 3,345,534 | 3,948,299 | ||
Provision for impaired assets and restaurant closings | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Goodwill and other impairment | $ 13,401 | 74,823 | $ 9,134 | ||
COVID-19 pandemic | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total costs and expenses | 124,508 | ||||
COVID-19 pandemic | Food and beverage costs | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Inventory obsolescence and spoilage | 10,450 | ||||
COVID-19 pandemic | Labor and other related | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Compensation for idle employees | [2] | 29,993 | |||
Employee retention tax credit | 14,900 | ||||
COVID-19 pandemic | Other restaurant operating | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Other operating charges | 3,219 | ||||
COVID-19 pandemic | General and administrative expense | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Other operating charges | 2,719 | ||||
Allowance for expected credit losses | [3] | 3,334 | |||
COVID-19 pandemic | General and administrative expense | Property lease guarantee | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Lease guarantee contingent liabilities | [4] | 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 | [5] | 32,992 | |||
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 | [5] | 34,423 | |||
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 | [6] | $ 3,190 | |||
[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 3 - 2020 COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. | ||||
[2] | Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $14.9 million of employee retention tax credits earned. | ||||
[3] | Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. | ||||
[4] | Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. | ||||
[5] | Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments, Exit Costs and Disposals and Note 4 - Revenue Recognition , for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively. | ||||
[6] | Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net |
Revenue Recognition (Principal
Revenue Recognition (Principal Revenue Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | $ 4,122,385 | $ 3,170,561 | $ 4,139,389 | |
Restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 4,061,093 | 3,144,636 | 4,075,014 | |
Franchise and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 61,292 | 25,925 | 64,375 | |
Franchise revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 45,520 | 21,195 | 52,147 | |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 15,772 | [1] | $ 4,730 | $ 12,228 |
Recognized benefit related to Brazilian tax ruling | $ 3,100 | |||
[1] | For 2021, includes a $3.1 million benefit from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base. The amount recognized primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest, and will be recovered by offsetting future PIS and COFINS taxes due. |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | $ 4,122,385 | $ 3,170,561 | $ 4,139,389 | |
U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 3,759,981 | 2,885,542 | 3,687,918 | |
International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 362,404 | 285,019 | 451,471 | |
Restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 4,061,093 | 3,144,636 | 4,075,014 | |
Restaurant sales | U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 3,714,848 | 2,869,547 | 3,634,668 | |
Restaurant sales | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 346,245 | 275,089 | 440,346 | |
Restaurant sales | Outback Steakhouse | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 2,175,909 | 1,760,071 | 2,135,776 | |
Restaurant sales | Carrabba's Italian Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 653,231 | 497,212 | 613,031 | |
Restaurant sales | Bonefish Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 544,068 | 396,193 | 574,004 | |
Restaurant sales | Fleming's Prime Steakhouse & Wine Bar | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 332,607 | 209,564 | 307,199 | |
Restaurant sales | Other - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 9,033 | 6,507 | 4,658 | |
Restaurant sales | Outback Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 258,997 | 206,280 | 355,837 | |
Restaurant sales | Other - International | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | [1] | 87,248 | 68,809 | 84,509 |
Franchise revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 45,520 | 21,195 | 52,147 | |
Franchise revenue | U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 32,814 | 11,553 | 41,513 | |
Franchise revenue | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 12,706 | 9,642 | 10,634 | |
Franchise revenue | Outback Steakhouse | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 29,725 | 9,898 | 38,614 | |
Franchise revenue | Carrabba's Italian Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 2,439 | 1,309 | 2,112 | |
Franchise revenue | Bonefish Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 641 | 346 | 787 | |
Franchise revenue | Fleming's Prime Steakhouse & Wine Bar | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | |
Franchise revenue | Other - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 9 | 0 | 0 | |
Franchise revenue | Outback Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | |
Franchise revenue | Other - International | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | $ 12,706 | $ 9,642 | $ 10,634 | |
[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 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 30, 2018 |
Revenue Recognition [Line Items] | ||||
Deferred gift card sales commissions, current | $ 17,793 | $ 19,300 | $ 18,554 | $ 16,431 |
Unearned revenue | 398,795 | 381,616 | ||
Deferred gift card revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 387,945 | 373,048 | $ 358,757 | $ 333,794 |
Other current assets, net | ||||
Revenue Recognition [Line Items] | ||||
Deferred gift card sales commissions, current | 17,793 | 19,300 | ||
Unearned revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 398,795 | 381,616 | ||
Unearned revenue | Deferred gift card revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 387,945 | 373,048 | ||
Unearned revenue | Deferred loyalty revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 9,386 | 8,026 | ||
Unearned revenue | Deferred franchise fees | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 443 | 469 | ||
Unearned revenue | Other | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 1,021 | 73 | ||
Other long-term liabilities, net | Deferred franchise fees | ||||
Revenue Recognition [Line Items] | ||||
Deferred franchise fees, noncurrent | $ 4,280 | $ 4,301 |
Revenue Recognition (Contract_2
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Commissions Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Balance, beginning of period | $ 19,300 | $ 18,554 | $ 16,431 |
Deferred gift card sales commissions amortization | (26,012) | (20,927) | (26,094) |
Deferred gift card sales commissions capitalization | 26,625 | 22,923 | 29,894 |
Other | (2,120) | (1,250) | (1,677) |
Balance, end of period | $ 17,793 | $ 19,300 | $ 18,554 |
Revenue Recognition (Contract_3
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Revenue Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Revenue Recognition [Line Items] | |||
Balance, beginning of the period | $ 381,616 | ||
Balance, end of the period | 398,795 | $ 381,616 | |
Deferred gift card revenue | |||
Revenue Recognition [Line Items] | |||
Balance, beginning of the period | 373,048 | 358,757 | $ 333,794 |
Gift card sales | 330,841 | 306,016 | 420,229 |
Gift card redemptions | (298,397) | (277,675) | (376,477) |
Gift card breakage | (17,547) | (14,050) | (18,789) |
Balance, end of the period | $ 387,945 | $ 373,048 | $ 358,757 |
Revenue Recognition (Franchisee
Revenue Recognition (Franchisee Deferred Payment Agreement) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2020USD ($)Restaurants | Dec. 27, 2020USD ($)Restaurants | Dec. 26, 2021USD ($)restaurantRestaurants | ||
Accounts receivable - franchisees, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Accounts receivable, net | [1] | $ 1,007 | $ 1,007 | $ 1,701 |
Franchisee Resolution Agreement | Out West | ||||
Disaggregation of Revenue [Line Items] | ||||
Franchise advertising fee gross sales percentage | 2.25% | 2.25% | ||
Increase in deferred rent | $ 3,600 | |||
Franchisee Resolution Agreement | Out West | Accounts receivable - franchisees, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Accounts receivable, net | $ 3,100 | $ 3,100 | ||
U.S. segment | Franchisee Resolution Agreement | Outback Steakhouse Property Concessions | Operating lease, right-of-use-asset | Out West | ||||
Disaggregation of Revenue [Line Items] | ||||
Impairment losses | $ 4,700 | |||
Franchised units | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of restaurants | restaurant | 329 | |||
Franchised units | Franchisee Resolution Agreement | Outback Steakhouse Property Concessions | Out West | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of restaurants | Restaurants | 4 | 4 | ||
Franchised units | Franchisee Resolution Agreement | Outback Steakhouse Property Concessions | Maximum | Out West | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of restaurants | Restaurants | 10 | 10 | ||
Franchised units | Outback Steakhouse | U.S. segment | Out West | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of restaurants | Restaurants | 80 | |||
[1] | See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Impairments, Exit Costs and D_2
Impairments, Exit Costs and Disposals (Provision for Impaired Assets and Restaurant Closings) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Provision for impaired assets and restaurant closings | $ 13,737,000 | $ 76,354,000 | $ 9,085,000 | ||||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | 1,973,000 | |||
U.S. segment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Goodwill, impairment loss | 0 | ||||||
International segment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Goodwill, impairment loss | 1,973,000 | ||||||
Provision for impaired assets and restaurant closings | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 13,401,000 | 74,823,000 | 9,134,000 | ||||
Restaurant closure charges (benefits) | 336,000 | 1,531,000 | (49,000) | ||||
Provision for impaired assets and restaurant closings | Corporate | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 270,000 | 6,226,000 | [1] | 727,000 | |||
Provision for impaired assets and restaurant closings | U.S. segment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 11,945,000 | 65,129,000 | [2] | 6,381,000 | |||
Restaurant closure charges (benefits) | 422,000 | 1,358,000 | [2] | (105,000) | |||
Provision for impaired assets and restaurant closings | International segment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 1,186,000 | 3,468,000 | [2],[3] | 2,026,000 | |||
Restaurant closure charges (benefits) | $ (86,000) | $ 173,000 | [2] | $ 56,000 | |||
[1] | Corporate impairment charges during 2020 primarily relate to transformational initiatives. | ||||||
[2] | U.S. and international impairment and closure charges during 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - 2020 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 2020. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. |
Impairments, Exit Costs and D_3
Impairments, Exit Costs and Disposals (Restructuring and Related Costs) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021USD ($) | Dec. 27, 2020USD ($)Restaurants | Dec. 29, 2019USD ($) | |
Provision for impaired assets and restaurant closings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | $ 13,401 | $ 74,823 | $ 9,134 |
COVID-19 Restructuring | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of restaurants | Restaurants | 22 | ||
Restructuring charges | $ 24,866 | ||
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 | 18,766 | ||
COVID-19 Restructuring | Provision for impaired assets and restaurant closings | Facility closing | Operating lease, right-of-use-asset | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 5,003 | ||
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 | $ 1,097 |
Impairments, Exit Costs and D_4
Impairments, Exit Costs and Disposals (Lease liability rollforward) (Details) - Facility closing $ in Thousands | 12 Months Ended | |
Dec. 26, 2021USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Beginning of the year | $ 12,879 | |
Cash payments | (4,739) | |
Accretion | 906 | |
Adjustments | (561) | |
End of the year | 8,485 | [1] |
Accrued and other current liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, current | 2,900 | |
Non-current operating lease liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, noncurrent | $ 5,600 | |
[1] | As of December 26, 2021, the Company had exit-related accruals associated with closure and restructuring initiatives of $2.9 million recorded in Accrued and other current liabilities and $5.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Impairment, Exit Cost and Dispo
Impairment, Exit Cost and Disposals (Surplus Property Disposals) (Details) - Disposal group, disposed of by sale, not discontinued operations $ in Millions | 12 Months Ended |
Dec. 29, 2019USD ($)Restaurants | |
Surplus properties | Other restaurant operating | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group, not discontinued operation, gain on disposal | $ 3.6 |
Surplus properties | Property, fixtures and equipment, net | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of restaurants | Restaurants | 5 |
Disposal group, including discontinued operation, consideration | $ 12.7 |
Carrabba's Italian Grill | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of restaurants | Restaurants | 18 |
Disposal group, including discontinued operation, consideration | $ 3.6 |
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 - Table) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |||
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |||||
Net income (loss) attributable to Bloomin’ Brands | $ 215,555 | $ (158,715) | $ 130,573 | ||
Redemption of preferred stock in excess of carrying value | 0 | (3,496) | [1] | 0 | |
Net income (loss) attributable to common stockholders | 215,555 | (162,211) | 130,573 | ||
Convertible senior notes if-converted method interest adjustment, net of tax | 345 | [2] | 0 | 0 | |
Diluted net income (loss) attributable to common stockholders | $ 215,900 | $ (162,211) | $ 130,573 | ||
Basic weighted average common shares outstanding | 88,981 | 87,468 | 88,839 | ||
Effect of dilutive securities: | |||||
Convertible senior notes | 11,377 | [2] | 0 | [3] | 0 |
Warrants | 6,250 | 0 | [3] | 0 | |
Diluted weighted average common shares outstanding | 107,803 | 87,468 | 89,777 | ||
Basic earnings (loss) per share attributable to common stockholders (in USD per share) | $ 2.42 | $ (1.85) | $ 1.47 | ||
Diluted earnings (loss) per share attributable to common stockholders (in USD per share) | $ 2 | $ (1.85) | $ 1.45 | ||
Stock options | |||||
Effect of dilutive securities: | |||||
Dilutive shares | 779 | 0 | 571 | ||
Nonvested restricted stock units | |||||
Effect of dilutive securities: | |||||
Dilutive shares | 355 | 0 | 295 | ||
Nonvested performance-based share units | |||||
Effect of dilutive securities: | |||||
Dilutive shares | 61 | 0 | 72 | ||
[1] | Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings per share, reduces net income attributable to common stockholders. See Note 16 - 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 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 | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
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 (in shares) | 751 | 5,155 | 4,003 |
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 (in shares) | 128 | 682 | 158 |
Nonvested 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 (in shares) | 377 | 514 | 277 |
Stock-based and Deferred Comp_3
Stock-based and Deferred Compensation Plans (Equity Compensation Plan Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 24,291 | $ 14,716 | $ 19,690 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 2,286 | 3,743 | 5,270 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 8,184 | 8,559 | 8,949 | |
Performance-based share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 13,821 | [1] | $ 2,414 | $ 5,471 |
[1] | For 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 and Deferred Comp_4
Stock-based and Deferred Compensation Plans (Stock Options - Text) (Details) - Stock options | 12 Months Ended |
Dec. 26, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, expiration period | 10 years |
Stock-based and Deferred Comp_5
Stock-based and Deferred Compensation Plans (Stock Option Activity - Table) (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding as of December 27, 2020 (shares) | 5,422 | |
Exercised (shares) | (936) | |
Forfeited or expired (shares) | (210) | |
Outstanding as of December 26, 2021 (shares) | 4,276 | 5,422 |
Exercisable as of December 26, 2021 (shares) | 3,905 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding as of December 27, 2020 (per share) | $ 19.76 | |
Exercised (per share) | 15.98 | |
Forfeited or expired (per share) | 23.34 | |
Outstanding as of December 26, 2021 (per share) | 20.42 | $ 19.76 |
Exercisable as of December 26, 2021 (per share) | $ 20.36 | |
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 4 years 8 months 12 days | 5 years 1 month 6 days |
Outstanding intrinsic value | $ 7,304 | $ 6,575 |
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 4 years 4 months 24 days | |
Exercisable intrinsic value | $ 7,032 |
Stock-based and Deferred Comp_6
Stock-based and Deferred Compensation Plans (Black-Scholes - Table) (Details) - Stock options | 12 Months Ended | |
Dec. 29, 2019$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.34% | [1] |
Dividend yield | 1.94% | [2] |
Expected term | 4 years 9 months 18 days | [3] |
Weighted average volatility | 31.05% | [4] |
Weighted average grant date fair value per option (in USD per share) | $ 5.07 | |
[1] | Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option. | |
[2] | Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option. | |
[3] | Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options. | |
[4] | Based on the historical volatility of the Company’s stock. |
Stock-based and Deferred Comp_7
Stock-based and Deferred Compensation Plans (Stock Option Compensation - Table) (Details) - Stock options - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 8,419 | $ 2,201 | $ 7,929 |
Cash received from option exercises, net of tax withholding | 14,951 | 4,609 | 6,501 |
Fair value of stock options vested | 19,246 | 16,468 | 18,136 |
Tax benefits for stock option compensation expense | 1,942 | $ 535 | $ 1,932 |
Unrecognized stock option expense | $ 525 | ||
Remaining weighted average vesting period | 7 months 6 days |
Stock-based and Deferred Comp_8
Stock-based and Deferred Compensation Plans (Restricted Stock Activity) (Details) - $ / shares shares in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2021 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||
Granted (shares) | 300 | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | 3 years | 3 years | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||
Outstanding as of December 27, 2020 (shares) | 1,034 | ||||
Granted (shares) | 319 | ||||
Vested (shares) | (508) | ||||
Forfeited (shares) | (115) | ||||
Outstanding as of December 26, 2021 (shares) | 730 | 1,034 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Outstanding as of December 27, 2020 (per share) | $ 18.12 | ||||
Granted (per share) | 25.93 | ||||
Vested (per share) | 18.57 | ||||
Forfeited (per share) | 18.47 | ||||
Outstanding as of December 26, 2021 (per share) | $ 21.16 | $ 18.12 |
Stock-based and Deferred Comp_9
Stock-based and Deferred Compensation Plans (Restricted Stock Compensation) (Details) - Restricted stock units - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock vested | $ 9,434 | $ 8,973 | $ 8,200 |
Tax benefits for restricted stock compensation expense | 1,592 | $ 1,614 | $ 1,672 |
Unrecognized restricted stock expense | $ 9,315 | ||
Remaining weighted average vesting period | 1 year 9 months 18 days |
Stock-based and Deferred Com_10
Stock-based and Deferred Compensation Plans (PSU - Text) (Details) - shares | 1 Months Ended | 12 Months Ended |
Feb. 28, 2021 | Dec. 26, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 300,000 | |
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% | |
Common stock | 2020 Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 8,910,835 | |
Performance-based share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 328,000 | |
Vesting period | 3 years | 3 years |
Performance-based share units | Common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares that would be issued on vesting of stock units | 1 | |
Performance-based share units | 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% | |
Performance-based share units | 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% | 200.00% |
Stock-based and Deferred Com_11
Stock-based and Deferred Compensation Plans (PSU Activity - Table) (Details) - $ / shares shares in Thousands | 1 Months Ended | 12 Months Ended |
Feb. 28, 2021 | Dec. 26, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Granted (shares) | 300 | |
Performance-based share units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Outstanding as of December 27, 2020 (shares) | 673 | |
Granted (shares) | 328 | |
Vested (shares) | (147) | |
Forfeited (shares) | (95) | |
Outstanding as of December 26, 2021 (shares) | 759 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Outstanding as of December 27, 2020 (per share) | $ 20.37 | |
Granted (per share) | 28.98 | |
Vested (per share) | 23.05 | |
Forfeited (per share) | 24.11 | |
Outstanding as of December 26, 2021 (per share) | $ 23.11 |
Stock-based and Deferred Com_12
Stock-based and Deferred Compensation Plans (Monte Carlo simulation model - Table) (Details) - Performance-based share units | 12 Months Ended | |
Dec. 26, 2021$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.20% | [1] |
Volatility | 48.45% | [2] |
Grant date fair value per unit (in USD per share) | $ 29.73 | [3] |
Share-based compensation arrangement by share-based payment award, stock price premium, percentage | 14.30% | |
[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 and Deferred Com_13
Stock-based and Deferred Compensation Plans (PSU compensation - Table) (Details) - Performance-based share units - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax benefits for stock option compensation expense | $ 134 | $ 1,570 | $ 857 | |
Unrecognized PSU expense | $ 16,522 | |||
Remaining weighted average vesting period | [1] | 1 year 4 months 24 days | ||
[1] | PSUs typically vest after three years. |
Stock-based and Deferred Com_14
Stock-based and Deferred Compensation Plans (Area Operations Directors, Managing, Operating and Chef Partner Programs) (Details) - USD ($) $ in Millions | Dec. 26, 2021 | Dec. 27, 2020 |
Restaurant Managing and Chef Partners | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation liability, current and noncurrent | $ 15.5 | $ 28.1 |
Stock-based and Deferred Com_15
Stock-based and Deferred Compensation Plans (Other Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
401(k) plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Defined contribution plan, employer contribution costs | $ 6.1 | $ 5.5 | $ 5.4 |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Prepaid expenses | $ 21,194 | $ 12,148 | |||
Deferred gift card sales commissions | 17,793 | 19,300 | $ 18,554 | $ 16,431 | |
Assets held for sale | 100 | 3,831 | |||
Other current assets, net | 22,441 | 12,756 | |||
Total other current assets, net | 184,623 | 151,518 | |||
Accounts receivable - gift cards, net | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | [1] | 91,248 | 76,808 | ||
Accounts receivable - vendors, net | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | [1] | 11,793 | 8,886 | ||
Accounts receivable - franchisees, net | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | [1] | 1,701 | 1,007 | ||
Accounts receivable - other, net | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable, net | [1] | $ 18,353 | $ 16,782 | ||
[1] | See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Property, Fixtures and Equipm_3
Property, Fixtures and Equipment, Net (PFE - Table) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (1,514,521) | $ (1,412,660) |
Property, fixtures and equipment, net | 842,012 | 887,687 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 38,417 | 40,498 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 1,167,811 | 1,158,257 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 460,768 | 450,508 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 641,715 | 623,982 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | $ 47,822 | $ 27,102 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Surplus Properties) (Details) $ in Thousands | Dec. 26, 2021USD ($)property | Dec. 27, 2020USD ($)property |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Surplus properties, carrying value | $ 4,605 | $ 11,786 |
Other property | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of surplus properties owned | property | 6 | 12 |
Other current assets, net | Assets held for sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Surplus properties, carrying value | $ 100 | $ 3,831 |
Property, fixtures and equipment, net | Other property | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Surplus properties, carrying value | $ 4,505 | $ 7,955 |
Property, Fixtures and Equipm_4
Property, Fixtures and Equipment, Net (Depreciation and Repairs - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 157,386 | $ 173,342 | $ 188,190 |
Repair and maintenance expense | $ 104,209 | $ 88,829 | $ 106,943 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Goodwill Rollforward - Table) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 26, 2021 | Dec. 27, 2020 | |
Goodwill [Roll Forward] | |||||
Balance as of beginning of the year | $ 271,164,000 | $ 288,439,000 | |||
Goodwill, translation adjustments | (2,720,000) | (15,302,000) | |||
Impairment charges | $ 0 | $ 0 | $ 0 | (1,973,000) | |
Balance as of end of the year | 268,444,000 | 271,164,000 | |||
U.S. segment | |||||
Goodwill [Roll Forward] | |||||
Balance as of beginning of the year | 170,657,000 | 170,657,000 | |||
Goodwill, translation adjustments | 0 | 0 | |||
Impairment charges | 0 | ||||
Balance as of end of the year | 170,657,000 | 170,657,000 | |||
International segment | |||||
Goodwill [Roll Forward] | |||||
Balance as of beginning of the year | 100,507,000 | 117,782,000 | |||
Goodwill, translation adjustments | (2,720,000) | (15,302,000) | |||
Impairment charges | (1,973,000) | ||||
Balance as of end of the year | $ 97,787,000 | $ 100,507,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Gross Goodwill and Impairment - Table) (Details) | 3 Months Ended | 12 Months Ended | ||||
Jun. 27, 2021USD ($) | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 27, 2020USD ($)restraurant_concept | Dec. 26, 2021USD ($) | Dec. 29, 2019USD ($) | |
Goodwill [Line Items] | ||||||
Goodwill, gross | $ 1,059,217,000 | $ 1,056,497,000 | $ 1,074,519,000 | |||
Accumulated impairment losses | (788,053,000) | (788,053,000) | (786,080,000) | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | 1,973,000 | ||
U.S. segment | ||||||
Goodwill [Line Items] | ||||||
Goodwill, gross | 838,827,000 | 838,827,000 | 838,827,000 | |||
Accumulated impairment losses | $ (668,170,000) | (668,170,000) | (668,170,000) | |||
Number of reporting units | restraurant_concept | 4 | |||||
Goodwill, impairment loss | $ 0 | |||||
International segment | ||||||
Goodwill [Line Items] | ||||||
Goodwill, gross | 220,390,000 | 217,670,000 | 235,692,000 | |||
Accumulated impairment losses | $ (119,883,000) | $ (119,883,000) | $ (117,910,000) | |||
Number of reporting units | restraurant_concept | 3 | |||||
Goodwill, impairment loss | $ 1,973,000 | |||||
International segment | Outback Hong Kong | ||||||
Goodwill [Line Items] | ||||||
Goodwill, impairment loss | $ 2,000,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Intangible Assets - Table) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 26, 2021 | Dec. 27, 2020 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, accumulated amortization | $ (75,199,000) | $ (85,085,000) | |||
Intangible assets, gross (excluding goodwill) | 528,611,000 | 545,068,000 | |||
Intangible assets, net (excluding goodwill) | $ 453,412,000 | 459,983,000 | |||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | ||
Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 8 years | ||||
Trademarks | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | $ 81,951,000 | 81,951,000 | |||
Finite-lived intangible assets, accumulated amortization | (55,736,000) | (51,797,000) | |||
Finite-lived intangible assets, net | $ 26,215,000 | 30,154,000 | |||
Trademarks | Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 7 years | ||||
Franchise agreements | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | $ 0 | 14,881,000 | |||
Finite-lived intangible assets, accumulated amortization | 0 | (14,881,000) | |||
Finite-lived intangible assets, net | $ 0 | 0 | |||
Franchise agreements | Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 0 years | ||||
Reacquired franchise rights | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | $ 31,944,000 | 33,520,000 | |||
Finite-lived intangible assets, accumulated amortization | (19,463,000) | (18,407,000) | |||
Finite-lived intangible assets, net | $ 12,481,000 | 15,113,000 | |||
Reacquired franchise rights | Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 9 years | ||||
Trade names | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets (excluding goodwill) | $ 414,716,000 | $ 414,716,000 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Amortization Expense - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 6,005 | $ 6,919 | $ 8,621 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net (Annual Amortization Expense - Table) (Details) $ in Thousands | Dec. 26, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense 2022 | $ 5,807 |
Amortization expense 2023 | 5,741 |
Amortization expense 2024 | 5,613 |
Amortization expense 2025 | 5,378 |
Amortization expense 2026 | $ 5,294 |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | |||
Schedule of Other Assets, Net [Line Items] | ||||
Company-owned life insurance | $ 30,970 | [1] | $ 44,814 | |
Deferred debt issuance costs | [2] | 5,861 | 4,694 | |
Liquor licenses | 23,266 | 24,250 | ||
Other assets | 18,573 | 18,868 | ||
Other assets, net | 78,670 | 92,626 | ||
Accumulated amortization, deferred financing fees | 8,500 | $ 9,000 | ||
Other assets, net | ||||
Schedule of Other Assets, Net [Line Items] | ||||
Decrease in insurance assets | $ 9,100 | |||
[1] | During 2021, the Company withdrew $9.1 million from its Company-owned life insurance policies to pay deferred compensation obligations. | |||
[2] | Net of accumulated amortization of $8.5 million and $9.0 million as of December 26, 2021 and December 27, 2020, respectively. |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Table) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Payables and Accruals [Abstract] | |||
Accrued rent and current operating lease liabilities | $ 181,636 | $ 192,369 | |
Accrued payroll and other compensation | 105,095 | [1] | 79,291 |
Accrued insurance | 22,017 | 20,648 | |
Other current liabilities | 98,146 | 96,013 | |
Accrued and other liabilities, current | $ 406,894 | $ 388,321 | |
[1] | During 2021, accrued payroll and other compensation increased primarily due to an increase in incentive compensation as a result of increased restaurant sales in 2021 due to the impact of COVID-19 during 2020. |
Long-term Debt, Net (Schedule o
Long-term Debt, Net (Schedule of Long-Term Debt, Net) (Details) - USD ($) $ in Thousands | Dec. 28, 2020 | Feb. 23, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Apr. 16, 2021 | May 08, 2020 | |||
Debt instrument [Line Items] | ||||||||||
Finance lease liabilities | $ 2,376 | $ 2,405 | ||||||||
Less: unamortized debt discount and issuance costs | (14,157) | [1] | (67,704) | |||||||
Less: finance lease interest | (154) | (221) | ||||||||
Total debt, net | 793,065 | 1,036,480 | ||||||||
Less: current portion of long-term debt | (10,958) | (38,710) | ||||||||
Long-term debt, net | 782,107 | 997,770 | ||||||||
Repayments of borrowings on revolving credit facility | 837,000 | 657,000 | $ 671,300 | |||||||
Revolving credit facility | Senior Secured Credit Facility | Subsequent event | ||||||||||
Debt instrument [Line Items] | ||||||||||
Repayments of borrowings on revolving credit facility | $ 80,000 | |||||||||
Secured debt | Senior Secured Credit Facility | ||||||||||
Debt instrument [Line Items] | ||||||||||
Long-term debt, gross | 275,000 | 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 | $ 195,000 | 0 | ||||||||
Secured debt | Term loan A facility | Senior Secured Credit Facility | Weighted average | ||||||||||
Debt instrument [Line Items] | ||||||||||
Debt instrument, effective interest rate | [2] | 1.60% | ||||||||
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 | $ 80,000 | [3] | $ 0 | |||||||
Debt instrument, effective interest rate | [3] | 3.75% | ||||||||
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% | ||||||||
Convertible debt | 2025 Notes | ||||||||||
Debt instrument [Line Items] | ||||||||||
Long-term debt, gross | [4] | $ 230,000 | $ 230,000 | |||||||
Debt instrument, effective interest rate | 5.85% | 13.73% | ||||||||
Debt instrument, interest rate, stated percentage | 5.00% | [4] | 5.00% | [4] | 5.00% | |||||
Debt discount derecognized upon adoption of new accounting standard | $ 0 | [5] | $ 59,862 | |||||||
Convertible debt | 2025 Notes | Accounting standards updated 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 derecognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during 2021. | |||||||||
[2] | Interest rate represents the weighted average interest rate as of the respective periods. | |||||||||
[3] | Interest rate represents the Base Rate option elected in anticipation of impending repayment. Subsequent to December 26, 2021, the Company repaid the remaining $80.0 million balance on its revolving credit facility. | |||||||||
[4] | See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. | |||||||||
[5] | In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were derecognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during 2021. |
Long-term Debt, Net (2029 Notes
Long-term Debt, Net (2029 Notes Narrative) (Details) - 2029 Notes - Unsecured debt - USD ($) | Apr. 16, 2021 | Dec. 26, 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 (Second Ame
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 | 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% | |
Debt covenants compliance, quarterly total net leverage ratio, initial maximum ratio level | 4.50 | |
Secured debt | Credit Agreement | Base rate option 2 | ||
Debt instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 50.00% | |
Secured debt | Credit Agreement | Base rate option 3 | ||
Debt instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
Secured debt | Credit Agreement | Minimum | Eurocurrency rate | ||
Debt instrument [Line Items] | ||
Debt instrument, interest rate, floor | 0.00% | |
Secured debt | Credit Agreement | Maximum | ||
Debt instrument [Line Items] | ||
Debt instrument, covenant, aggregate capital expenditures | $ 200,000,000 | |
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 | 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 (Maturities
Long-term Debt, Net (Maturities - Tables) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Debt Disclosure [Abstract] | |||
2022 | $ 10,976 | ||
2023 | 10,739 | ||
2024 | 12,944 | ||
2025 | 247,674 | ||
2026 | 225,043 | ||
Thereafter | 300,000 | ||
Total payments | 807,376 | ||
Less: unamortized debt discount and issuance costs | (14,157) | [1] | $ (67,704) |
Less: finance lease interest | (154) | (221) | |
Total debt, net | $ 793,065 | $ 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 derecognized and $2.1 million of equity issuance costs were reclassified as debt issuance costs during 2021. |
Long-term Debt, Net (Deferred F
Long-term Debt, Net (Deferred Financing Fees) (Details) $ in Millions | Dec. 26, 2021USD ($) |
Credit Agreement | Secured debt | |
Debt instrument [Line Items] | |
Debt issuance costs | $ 5.9 |
Long-term debt, net | 2029 Notes | Unsecured debt | |
Debt instrument [Line Items] | |
Debt issuance costs | 5.5 |
Long-term debt, net | Credit Agreement | Secured debt | |
Debt instrument [Line Items] | |
Debt issuance costs | 2.2 |
Other assets, net | Credit Agreement | Secured debt | |
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 | Dec. 26, 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 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. |
Convertible Senior Notes (Sched
Convertible Senior Notes (Schedule of Convertible Notes) (Details) - Convertible debt - 2025 Notes - USD ($) | Dec. 28, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | May 12, 2020 | ||
Debt instrument [Line Items] | ||||||
Principal | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | |||
Debt discount | 0 | [1] | (59,862,000) | |||
Debt issuance costs | [2] | (5,898,000) | [1] | (5,427,000) | ||
Net carrying amount | 224,102,000 | 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 derecognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during 2021. | |||||
[2] | Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. |
Convertible Senior Notes (Sch_2
Convertible Senior Notes (Schedule of Interest) (Details) - Convertible debt - 2025 Notes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | ||
Debt instrument [Line Items] | |||
Coupon interest | $ 11,500 | $ 7,443 | |
Deferred discount amortization | 0 | 6,275 | |
Deferred issuance cost amortization | 1,557 | 569 | |
Total interest expense | [1] | $ 13,057 | $ 14,287 |
Debt instrument, effective interest rate | 5.85% | 13.73% | |
[1] | The effective rate of the 2025 Notes over their expected life was 5.85% and 13.73% for 2021 and 2020, respectively . |
Convertible Senior Notes (Con_2
Convertible Senior Notes (Convertible Notes Hedge Transactions) (Details) - Convertible debt - 2025 Notes $ / shares in Units, $ in Millions | May 08, 2020USD ($)$ / shares |
Debt instrument [Line Items] | |
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 16.64 |
Convertible debt proceeds used for payments for hedge activities, net of warrant proceeds | $ | $ 19.6 |
Other Long-term Liabilities, _3
Other Long-term Liabilities, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | ||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Accrued insurance liability | $ 31,517 | $ 32,128 | |
Chef and Restaurant Managing Partner deferred compensation obligations | 13,971 | 32,306 | |
Deferred payroll tax liabilities | 27,302 | [1] | 55,204 |
Other long-term liabilities | 52,452 | [2] | 65,717 |
Other long-term liabilities, net | 125,242 | $ 185,355 | |
Decrease in derivative liabilities | (15,600) | ||
COVID-19 pandemic | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Decrease in deferred payroll taxes | $ 27,300 | ||
[1] | During 2021, the Company made a payment of $27.3 million related to payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act. | ||
[2] | The Company’s hedge liability decreased by $15.6 million during 2021 primarily from the termination of certain interest rate swaps. See Note 17 - Derivative Instruments and Hedging Activities |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) | Feb. 08, 2022USD ($) |
Subsequent event | 2022 Share Repurchase Program | |
Shares Repurchases [Line Items] | |
Stock repurchase program, authorized amount | $ 125,000,000 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Mar. 29, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Dividends Payable [Line Items] | |||||
Common stock, dividends per share | $ 0.20 | ||||
Dividends, common stock, cash | $ 17,480 | $ 17,480 | $ 35,734 | ||
Cash dividends declared per common share | $ 0 | $ 0.20 | $ 0.40 | ||
Subsequent event | |||||
Dividends Payable [Line Items] | |||||
Cash dividends declared per common share | $ 0.14 | ||||
Dividends payable, date to be paid | Mar. 16, 2022 | ||||
Dividends payable, date of record | Mar. 2, 2022 |
Stockholders' Equity (Redeemabl
Stockholders' Equity (Redeemable Preferred Stock-Text) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Accumulated other comprehensive loss [Line Items] | |||
Payments for repurchase of redeemable preferred stock | $ 0 | $ 1,475 | $ 0 |
Redemption of preferred stock in excess of carrying value | 1,718 | ||
Additional paid-in capital | |||
Accumulated other comprehensive loss [Line Items] | |||
Redemption of preferred stock in excess of carrying value | 3,496 | ||
Abbraccio | |||
Accumulated other comprehensive loss [Line Items] | |||
Payments for repurchase of redeemable preferred stock | 1,000 | ||
Abbraccio | Additional paid-in capital | |||
Accumulated other comprehensive loss [Line Items] | |||
Redemption of preferred stock in excess of carrying value | $ 3,500 |
Stockholders' Equity (AOCL - Ta
Stockholders' Equity (AOCL - Table) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (205,989) | $ (211,446) |
Foreign currency translation adjustment | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | (195,480) | (188,883) |
Unrealized loss on derivatives, net of tax | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (10,509) | $ (22,563) |
Stockholders' Equity (OCL - Tab
Stockholders' Equity (OCL - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||||
Accumulated other comprehensive loss [Line Items] | ||||||
Unrealized gain (loss) on derivatives, net of tax | $ 86 | $ (14,741) | $ (11,944) | |||
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | 7,392 | 9,923 | 1,805 | |||
Amortization of terminated interest rate swaps, net of tax | 4,576 | 0 | 0 | |||
Other comprehensive income (loss) attributable to Bloomin' Brands | 5,457 | (42,334) | (26,764) | |||
Bloomin' Brands | ||||||
Accumulated other comprehensive loss [Line Items] | ||||||
Foreign currency translation adjustment | (6,597) | (36,852) | (16,882) | |||
Unrealized gain (loss) on derivatives, net of tax | 86 | (14,741) | [1] | (11,944) | [1] | |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | [2] | 7,392 | 9,923 | 1,805 | ||
Amortization of terminated interest rate swaps, net of tax | 4,576 | 0 | 0 | |||
Total unrealized gain (loss) on derivatives, net of tax | 12,054 | (4,818) | (10,139) | |||
Other comprehensive income (loss) attributable to Bloomin' Brands | $ 5,457 | (41,670) | (27,021) | |||
Other comprehensive income (loss), cash flow hedge, loss, before reclassification, tax | $ (5,100) | $ (4,100) | ||||
[1] | Unrealized loss on derivatives is net of tax of $5.1 million and $4.1 million for 2020 and 2019, respectively. | |||||
[2] | Reclassifications of adjustments for loss on derivatives are net of tax. See Note 17 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Designated Hedges - Text) (Details) - Interest rate swap | Dec. 09, 2021USD ($)counterparty | Apr. 16, 2021USD ($)counterparty | Oct. 25, 2018USD ($)counterparty | Dec. 26, 2021USD ($) | Dec. 27, 2020USD ($) | |
Contract termination | ||||||
Derivative [Line Items] | ||||||
Derivative agreements, number of counterparties | counterparty | 3 | 7 | ||||
Derivative, notional amount | $ 150,000,000 | $ 275,000,000 | ||||
Payment for settlement of interest rate, cash flow hedge | 4,100,000 | 13,300,000 | ||||
Derivative, interest rate swaps, liabilities, fair value | $ 4,100,000 | $ 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, weighted-average fixed interest rate | 3.04% | |||||
Derivative, interest rate swaps, liabilities, fair value | [1] | $ 3,056,000 | $ 30,495,000 | |||
Designated as hedging instrument | Interest expense | ||||||
Derivative [Line Items] | ||||||
Cash flow hedge loss to be reclassified within twelve months | $ 14,400,000 | |||||
Designated as hedging instrument | London Interbank Offered Rate (LIBOR) swap rate | ||||||
Derivative [Line Items] | ||||||
Derivative, description of terms | one-month London Inter-Bank Offered Rate | |||||
[1] | See Note 19 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Fair Value of Interest Rate Swaps - Table) (Details) - Interest rate swap - Designated as hedging instrument - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | [1] | $ 3,056 | $ 30,495 |
Accrued and other current liabilities | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | 3,056 | 14,855 | |
Accrued interest | 276 | 1,237 | |
Other long-term liabilities, net | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | $ 0 | $ 15,640 | |
[1] | See Note 19 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Effects of Interest Rate Swap) (Details) - Designated as hedging instrument - Interest rate swap $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021USD ($)counterparty | Dec. 27, 2020USD ($) | Dec. 29, 2019USD ($) | |
Derivative [Line Items] | |||
Total effects of the interest rate swaps on Net income (loss) | $ (7,392) | $ (9,923) | $ (1,805) |
Number of derivatives with each counterparty | counterparty | 1 | ||
Derivative, net liability position, aggregate fair value | $ 3,300 | 32,200 | |
Derivative, termination value | 3,300 | 32,200 | |
Interest expense | |||
Derivative [Line Items] | |||
Interest rate swap expense recognized in Interest expense, net | (9,951) | (13,370) | (2,436) |
Income tax expense | |||
Derivative [Line Items] | |||
Income tax benefit recognized in Provision (benefit) for income taxes | $ 2,559 | $ 3,447 | $ 631 |
Leases Lessee, Lease Assets and
Leases Lessee, Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Operating lease right-of-use assets | $ 1,130,873 | $ 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] | $ 2,074 | $ 1,947 |
Total lease assets, net | $ 1,132,947 | $ 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] | $ 177,028 | $ 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 | $ 958 | $ 1,210 | |
Non-current operating lease liabilities | [3] | $ 1,178,998 | $ 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 | $ 1,264 | $ 974 | |
Total lease liabilities | 1,358,248 | 1,395,641 | |
Accumulated amortization | (3,300) | (2,300) | |
Accrued contingent percentage rent | 3,500 | 2,700 | |
COVID-19 pandemic | |||
Schedule of Leased Assets and Liabilities - Lessee [Line Items] | |||
Accrued deferred rent | 1,100 | 12,800 | |
Accrued rent, noncurrent | $ 400 | $ 1,200 | |
[1] | Net of accumulated amortization of $3.3 million and $2.3 million as December 26, 2021 and December 27, 2020, respectively. | ||
[2] | Excludes COVID-19-related deferred rent accruals of $1.1 million and $12.8 million as of December 26, 2021 and December 27, 2020, respectively, and accrued contingent percentage rent of $3.5 million and $2.7 million, as of December 26, 2021 and December 27, 2020, respectively. | ||
[3] | Excludes COVID-19-related non-current deferred rent accruals of $0.4 million and $1.2 million as of December 26, 2021 and December 27, 2020, respectively. |
Leases (Lease Costs) (Details)
Leases (Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||||
Schedule of Lease Costs [Line Items] | ||||||
Operating leases | [1] | $ 178,733 | $ 178,740 | $ 181,397 | ||
Variable lease cost | 4,350 | [2] | (2,326) | [2] | 3,504 | |
Amortization of leased assets | 1,079 | 1,248 | 1,400 | |||
Interest on lease liabilities | 129 | 160 | 264 | |||
Sublease revenue | (9,396) | (3,121) | (6,542) | |||
Lease costs, net | 174,895 | 174,701 | 180,023 | |||
General and administrative expense | ||||||
Schedule of Lease Costs [Line Items] | ||||||
Operating leases | $ 12,900 | $ 13,800 | $ 14,600 | |||
[1] | Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.9 million, $13.8 million and $14.6 million for 2021, 2020 and 2019, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs. | |||||
[2] | Includes COVID-19-related rent abatements for 2021 and 2020. |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments and Sublease Revenues) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Schedule of Future Minimum Lease Payments and Sublease Revenues [Line Items] | |||
Operating lease, 2022 | [1],[2] | $ 185,093 | |
Operating lease, 2023 | [1] | 189,010 | |
Operating lease, 2024 | [1] | 183,170 | |
Operating lease, 2025 | [1] | 171,317 | |
Operating lease, 2026 | [1] | 164,111 | |
Operating lease, thereafter | [1] | 1,490,634 | |
Operating lease, total minimum lease payments | [1],[3] | 2,383,335 | |
Operating lease, interest | [1] | (1,025,773) | |
Operating lease liabilities | [1] | 1,357,562 | |
Finance lease, 2022 | 976 | ||
Finance lease, 2023 | 739 | ||
Finance lease, 2024 | 444 | ||
Finance lease, 2025 | 174 | ||
Finance lease, 2026 | 43 | ||
Finance lease, thereafter | 0 | ||
Finance lease, total minimum lease payments | 2,376 | $ 2,405 | |
Less: finance lease interest | (154) | (221) | |
Finance lease liabilities | 2,222 | ||
Sublease revenues, 2022 | (5,130) | ||
Sublease revenues, 2023 | (5,212) | ||
Sublease revenues, 2024 | (5,182) | ||
Sublease revenues, 2025 | (4,983) | ||
Sublease revenues, 2026 | (4,971) | ||
Sublease revenues, thereafter | (42,823) | ||
Sublease revenues, total | (68,301) | ||
Prepaid rent | 5,600 | ||
Lessee, operating lease, option to extend amount | 1,000,000 | ||
Lessee, operating lease, lease not yet commenced, unrecorded liability | 80,900 | ||
COVID-19 pandemic | |||
Schedule of Future Minimum Lease Payments and Sublease Revenues [Line Items] | |||
Accrued deferred rent | 1,100 | 12,800 | |
Accrued rent, noncurrent | $ 400 | $ 1,200 | |
[1] | Includes COVID-19-related current and non-current deferred rent accruals of $1.1 million and $0.4 million, respectively, as of December 26, 2021. | ||
[2] | Net of operating lease prepaid rent of $5.6 million. | ||
[3] | Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $80.9 million of signed operating leases that have not yet commenced. |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Dec. 26, 2021 | Dec. 27, 2020 | |
Leases [Abstract] | |||
Operating lease, weighted average remaining lease term | [1] | 13 years 8 months 12 days | 14 years |
Finance lease, weighted average remaining lease term | [1] | 2 years 9 months 18 days | 2 years 8 months 12 days |
Operating lease, weighted average discount rate, percent | [2] | 8.42% | 8.54% |
Finance lease, weighted average discount rate, percent | [2] | 5.01% | 7.21% |
[1] | Includes lease renewal options that are reasonably certain of exercise. | ||
[2] | Based on the Company’s incremental borrowing rate at lease commencement. |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 205,253 | $ 177,961 | $ 191,855 |
Leases (Schedule of Assets Leas
Leases (Schedule of Assets Lease to Third Parties) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Land | ||
Schedule of Assets Leased to Third Parties [Line Items] | ||
Property subject to or available for operating leases, gross | $ 5,021 | $ 9,341 |
Buildings | ||
Schedule of Assets Leased to Third Parties [Line Items] | ||
Property subject to or available for operating leases, gross | 4,987 | 10,172 |
Accumulated depreciation | (3,746) | (6,181) |
Property subject to or available for operating leases, net | $ 1,241 | $ 3,991 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Recurring Basis - Table) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Dec. 26, 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 | $ 17,225 | $ 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 | 6,714 | 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 | 9,039 | 16,494 |
Restricted cash and cash equivalents, fair value disclosure | 1,472 | 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 | 3,056 | 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 | 3,056 | 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 | 0 | 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 | 17,225 | 32,326 |
Liabilities, fair value disclosure | 3,056 | 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 | 3,056 | 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 | 0 | 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 | 6,714 | 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 | 9,039 | 16,494 |
Restricted cash and cash equivalents, fair value disclosure | $ 1,472 | $ 428 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurements on a Nonrecurring Basis - Table) (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment losses | $ 13,401 | $ 74,823 | $ 9,134 | ||||
Assets held for sale | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets held for sale, impairment | 0 | 123 | 315 | ||||
Operating lease, right-of-use-asset | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Operating lease assets, impairment | 3,950 | 30,940 | 4,284 | ||||
Property, fixtures and equipment, net | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fixed asset impairment | 8,445 | 41,077 | 4,535 | ||||
Goodwill and other assets | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment losses | 1,006 | 2,683 | 0 | ||||
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 | 20,294 | 101,608 | 12,561 | ||||
Carrying value measurement | Assets held for sale | 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] | 1,934 | |||||
Carrying value measurement | Assets held for sale | 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 | 0 | [1] | 752 | 2,049 | [1] | ||
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 | 1,200 | ||||||
Carrying value measurement | Operating lease, right-of-use-asset | 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] | 6,597 | |||||
Carrying value measurement | Operating lease, right-of-use-asset | 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 | 200 | ||||||
Carrying value measurement | Operating lease, right-of-use-asset | 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 | 8,647 | [2] | 72,615 | [2] | 6,357 | ||
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 | [3] | 11,647 | 26,311 | 3,915 | |||
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 | 1,400 | 2,200 | 2,300 | ||||
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 | 10,207 | 24,085 | 1,587 | ||||
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 | [4] | $ 0 | $ 748 | $ 0 | |||
[1] | Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. | ||||||
[2] | Carrying values measured using Level 2 inputs to estimate fair value totaled $0.2 million during 2019. 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. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments. | ||||||
[3] | Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million, $2.2 million and $2.3 million for 2021, 2020 and 2019, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair value. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments. | ||||||
[4] | Other assets generally measured using the quoted market value of comparable assets (Level 2). |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Fair Value Inputs on a Nonrecurring Basis) (Details) - Operating lease, right-of-use-asset and property, fixtures and equipment - Fair value, inputs, level 3 - Fair value, measurements, nonrecurring | 12 Months Ended |
Dec. 27, 2020 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, weighted average cost of capital | 10.40% |
Fair value inputs, long term growth rate | 1.50% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, weighted average cost of capital | 11.30% |
Fair value inputs, long term growth rate | 2.00% |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Debt by Hierarchy Level) (Details) - USD ($) $ in Thousands | Dec. 26, 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 | $ 190,125 | $ 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 | 76,926 | 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 | 195,000 | 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 | 80,000 | 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 | 447,615 | 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] | ||
Notes payable, fair value disclosure | 304,395 | 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 | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | ||
Schedule for Allowance for Expected Credit Losses [Line Items] | |||
Allowance for expected credit losses, beginning of period | $ 4,095 | $ 199 | |
Provision for expected credit losses | 64 | 3,472 | [1] |
Charge-off of accounts | (109) | (594) | |
Allowance for expected credit losses, end of period | 4,050 | 4,095 | |
ASU No. 2016-13 | |||
Schedule for Allowance for Expected Credit Losses [Line Items] | |||
Adjustment for adoption of ASU No. 2016-13 | $ 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 3 - 2020 COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Provision - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 258,202 | $ (206,941) | $ 129,826 |
Foreign | (8,905) | (32,580) | 11,864 |
Income (loss) before provision (benefit) for income taxes | $ 249,297 | $ (239,521) | $ 141,690 |
Income Taxes (Provision (Benefi
Income Taxes (Provision (Benefit) for Income Taxes - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Current provision: | |||
Federal | $ 16,951 | $ 2,606 | $ 13,265 |
State | 10,917 | 2,301 | 9,696 |
Foreign | 1,862 | 2,623 | 10,502 |
Current provision | 29,730 | 7,530 | 33,463 |
Deferred (benefit) provision: | |||
Federal | (2,057) | (66,498) | (21,407) |
State | 1,194 | (12,527) | (1,986) |
Foreign | (2,483) | (9,231) | (2,497) |
Deferred (benefit) provision | (3,346) | (88,256) | (25,890) |
Provision (benefit) for income taxes | $ 26,384 | $ (80,726) | $ 7,573 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate - Table) (Details) | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | [1] | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes at federal statutory rate | 21.00% | 21.00% | 21.00% | |
State and local income taxes, net of federal benefit | 3.80% | 3.30% | 4.40% | |
Employment-related credits, net | (13.20%) | 9.90% | (24.70%) | |
Tax settlements and related adjustments | (1.70%) | 0.10% | 0.00% | |
Net changes in deferred tax valuation allowances | (0.70%) | (0.60%) | (1.60%) | |
Foreign tax rate differential | (0.20%) | 1.10% | 3.20% | |
Nondeductible expenses | 2.30% | (1.40%) | 3.90% | |
Other, net | (0.70%) | 0.30% | (0.90%) | |
Total | 10.60% | 33.70% | 5.30% | |
[1] | Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. |
Income Taxes (Blended Rate - Na
Income Taxes (Blended Rate - Narrative) (Details) | 12 Months Ended |
Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |
Blended federal and state statutory income tax rate | 26.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities - Table) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Deferred income tax assets: | |||
Operating lease liabilities | $ 352,041 | $ 360,690 | |
Insurance reserves | 14,329 | 13,695 | |
Unearned revenue | 50,284 | 44,039 | |
Deferred compensation | 25,164 | 32,779 | |
Net operating loss carryforwards | 18,227 | 19,285 | |
Federal tax credit carryforwards | 146,734 | 142,055 | |
Other, net | [1] | 21,222 | 28,241 |
Gross deferred income tax assets | 628,001 | 640,784 | |
Less: valuation allowance | (16,998) | (18,509) | |
Deferred income tax assets, net of valuation allowance | 611,003 | 622,275 | |
Deferred income tax liabilities: | |||
Less: operating lease right-of-use asset basis differences | (290,697) | (300,387) | |
Less: property, fixtures and equipment basis differences | (48,284) | (54,725) | |
Less: intangible asset basis differences | (103,954) | (113,280) | |
Deferred income tax assets, net | 168,068 | 153,883 | |
Deferred tax liabilities, undistributed foreign earnings | $ 200 | $ 200 | |
[1] | As of December 26, 2021 and December 27, 2020, the Company maintained deferred tax liabilities for state income taxes on historical earnings of $0.2 million. |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance - Text) (Details) - USD ($) | Dec. 26, 2021 | Dec. 27, 2020 |
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | $ 16,998,000 | $ 18,509,000 |
Brazil | ||
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | 0 | |
U.S. segment | ||
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | 3,200,000 | |
International segment | ||
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | $ 13,800,000 |
Income Taxes (Undistributed Ear
Income Taxes (Undistributed Earnings - Text) (Details) $ in Millions | Dec. 26, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Undistributed earnings of foreign subsidiaries | $ 28.8 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
Income Tax Contingency [Line Items] | ||
Federal tax credit carryforwards | $ 146,734 | $ 142,055 |
Foreign loss carryforwards | 71,724 | |
Foreign credit carryforwards | 864 | |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
Federal tax credit carryforwards | 158,878 | |
General business tax credit carryforwards | $ 155,700 | |
Internal Revenue Service (IRS) | Maximum | ||
Income Tax Contingency [Line Items] | ||
General business tax credits, estimated period of use | 10 years |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits - Text) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 19,238 | $ 25,524 | $ 27,201 | $ 25,190 |
Portion of unrecognized tax benefits, including accrued interest and penalties, that if recognized, would impact the effective tax rate | 18,800 | 25,500 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 900 | 1,900 | ||
Unrecognized tax benefits, increase resulting from prior period tax positions | 166 | $ 1,061 | $ 869 | |
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits, increase resulting from prior period tax positions | 1,000 | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits, increase resulting from prior period tax positions | $ 2,000 |
Income Taxes (Unrecognized Ta_2
Income Taxes (Unrecognized Tax Benefits - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of beginning of year | $ 25,524 | $ 27,201 | $ 25,190 |
Additions for tax positions taken during a prior period | 166 | 1,061 | 869 |
Reductions for tax positions taken during a prior period | (4,209) | (324) | (255) |
Additions for tax positions taken during the current period | 1,292 | 762 | 2,237 |
Settlements with taxing authorities | (2,674) | (1,290) | (44) |
Lapses in the applicable statutes of limitations | (854) | (1,857) | (749) |
Translation adjustments | (7) | (29) | (47) |
Balance as of end of year | $ 19,238 | $ 25,524 | $ 27,201 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Guarantees) (Details) - Property lease guarantee - USD ($) $ in Millions | Dec. 26, 2021 | Dec. 27, 2020 |
Guarantor Obligations [Line Items] | ||
Lease guarantees, maximum exposure, undiscounted | $ 25.1 | |
Lease guarantees, maximum exposure at present value | 21.2 | |
Lease guarantees, current carrying value | $ 8.7 | $ 9.6 |
Commitments and Contingencies_3
Commitments and Contingencies (Purchase Obligations - Text) (Details) $ in Millions | 12 Months Ended | |
Dec. 26, 2021USD ($)supplier | Dec. 27, 2020USD ($) | |
Concentration Risk [Line Items] | ||
Purchase obligations | $ | $ 206.6 | $ 230.6 |
Long-term purchase commitment, period | 5 years | |
Number of primary beef suppliers | supplier | 4 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Percentage of marketplace | 80.00% | |
Minimum | Beef | Supplier concentration risk | Cost of goods and service, segment benchmark | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 90.00% |
Commitments and Contingencies_4
Commitments and Contingencies (Litigation and Other Matters - Text) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Litigation liability | $ 7.1 | $ 4.6 | |
Litigation settlement expense | $ 5.4 | $ 2.3 | $ 1.3 |
Commitments and Contingencies_5
Commitments and Contingencies (Royalty Termination) (Details) $ in Millions | Aug. 02, 2021USD ($) |
Other restaurant operating | Carrabba's Italian Grill | |
Other Commitments [Line Items] | |
Cash paid to settle royalty agreement | $ 61.9 |
Commitments and Contingencies_6
Commitments and Contingencies (Insurance, Future Payments) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 22,071 | |
2023 | 10,819 | |
2024 | 6,759 | |
2025 | 3,486 | |
2026 | 1,838 | |
Thereafter | 9,691 | |
Total | $ 54,664 | $ 53,217 |
Commitments and Contingencies_7
Commitments and Contingencies (Undiscounted Reserves to the Discounted Reserves) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 | |
Insurance [Line Items] | |||
Undiscounted reserves | $ 54,664 | $ 53,217 | |
Discount | [1] | (1,130) | (441) |
Discounted reserves | $ 53,534 | $ 52,776 | |
Discount rate | 0.69% | 0.26% | |
Accrued and other current liabilities | |||
Insurance [Line Items] | |||
Self insurance reserve, current | $ 22,017 | $ 20,648 | |
Other long-term liabilities, net | |||
Insurance [Line Items] | |||
Self insurance reserve, noncurrent | $ 31,517 | $ 32,128 | |
[1] | Discount rates of 0.69% and 0.26% were used for December 26, 2021 and December 27, 2020, respectively. |
Segment Reporting (Text) (Detai
Segment Reporting (Text) (Details) | 12 Months Ended |
Dec. 26, 2021reportableSegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 4,122,385 | $ 3,170,561 | $ 4,139,389 |
U.S. segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Restaurant sales, franchise and other revenues | 3,759,981 | 2,885,542 | 3,687,918 |
International segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 362,404 | $ 285,019 | $ 451,471 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | $ 308,958 | $ (174,973) | $ 191,090 | |
Loss on extinguishment and modification of debt | (2,073) | (237) | 0 | |
Other income (expense), net | 26 | 131 | (143) | |
Interest expense, net | (57,614) | (64,442) | (49,257) | |
Income (loss) before provision (benefit) for income taxes | 249,297 | (239,521) | 141,690 | |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 460,544 | (15,109) | 356,094 | |
Operating segments | U.S. segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 443,887 | (1,630) | 311,666 | |
Operating segments | International segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 16,657 | (13,479) | 44,428 | |
Corporate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | $ (151,586) | (159,864) | [1] | $ (165,004) |
Corporate | Impairment and general and administrative expense | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Restructuring charges | $ 32,400 | |||
[1] | Includes $32.4 million of charges for 2020 that were not allocated to the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 163,391 | $ 180,261 | $ 196,811 |
Corporate | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 6,499 | 12,240 | 16,439 |
U.S. segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 134,243 | 144,298 | 152,881 |
International segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 22,649 | $ 23,723 | $ 27,491 |
Segment Reporting (Capital Expe
Segment Reporting (Capital Expenditures by Segment - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 122,830 | $ 87,842 | $ 161,926 |
Consolidated entity, excluding consolidated VIE | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 126,412 | 88,994 | 159,027 |
Corporate | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 9,035 | 5,936 | 8,885 |
U.S. segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 103,303 | 64,516 | 121,646 |
International segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 14,074 | $ 18,542 | $ 28,496 |
Segment Reporting (Total Assets
Segment Reporting (Total Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,294,271 | $ 3,362,107 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 284,388 | 279,007 |
U.S. segment | Operating segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,626,808 | 2,672,778 |
International segment | Operating segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 383,075 | $ 410,322 |
Segment Reporting (Long-lived A
Segment Reporting (Long-lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Dec. 27, 2020 |
Segment reporting information [Line Items] | ||
Long-lived assets | $ 920,682 | $ 980,313 |
U.S. segment | ||
Segment reporting information [Line Items] | ||
Long-lived assets | 831,634 | 879,392 |
Brazil | ||
Segment reporting information [Line Items] | ||
Long-lived assets | 73,706 | 83,041 |
International - other | ||
Segment reporting information [Line Items] | ||
Long-lived assets | $ 15,342 | $ 17,880 |
Segment Reporting (Revenues by
Segment Reporting (Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 4,122,385 | $ 3,170,561 | $ 4,139,389 |
U.S. segment | |||
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | 3,759,981 | 2,885,542 | 3,687,918 |
Brazil | |||
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | 297,167 | 222,283 | 393,700 |
International - other | |||
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 65,237 | $ 62,736 | $ 57,771 |