Cover Page
Cover Page - $ / shares | 6 Months Ended | |
Jun. 26, 2022 | Jul. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 26, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35625 | |
Entity Registrant Name | BLOOMIN’ BRANDS, INC. | |
Entity Incorporation, State | DE | |
Entity Tax Identification Number | 20-8023465 | |
Entity Address, Address Line One | 2202 North West Shore Boulevard | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address City | Tampa | |
Entity Address State | FL | |
Entity Address Postal Zip Code | 33607 | |
City Area Code | 813 | |
Local Phone Number | 282-1225 | |
Title of 12(b) Security | Common Stock | |
Security Trading Currency | USD | |
Par Value Per Share | $ 0.01 | |
Trading Symbol | BLMN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 89,297,078 | |
Amendment Flag | false | |
Entity Central Index Key | 0001546417 | |
Current Fiscal Year End Date | --12-25 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Current assets | ||
Cash and cash equivalents | $ 95,346 | $ 87,585 |
Restricted cash and cash equivalents | 101 | 1,472 |
Inventories | 80,482 | 79,112 |
Other current assets, net | 116,997 | 184,623 |
Total current assets | 292,926 | 352,792 |
Property, fixtures and equipment, net | 852,155 | 842,012 |
Operating lease right-of-use assets | 1,122,317 | 1,130,873 |
Goodwill | 278,780 | 268,444 |
Intangible assets, net | 452,654 | 453,412 |
Deferred income tax assets, net | 158,110 | 168,068 |
Other assets, net | 73,053 | 78,670 |
Total assets | 3,229,995 | 3,294,271 |
Current liabilities | ||
Accounts payable | 185,645 | 167,978 |
Accrued and other current liabilities | 412,831 | 406,894 |
Unearned revenue | 309,863 | 398,795 |
Current portion of long-term debt | 1,511 | 10,958 |
Total current liabilities | 909,850 | 984,625 |
Non-current operating lease liabilities | 1,168,692 | 1,179,447 |
Long-term debt, net | 800,222 | 782,107 |
Other long-term liabilities, net | 88,490 | 125,242 |
Total liabilities | 2,967,254 | 3,071,421 |
Commitments and contingencies | ||
Bloomin’ Brands stockholders’ equity | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of June 26, 2022 and December 26, 2021 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 90,151,164 and 89,252,823 shares issued and outstanding as of June 26, 2022 and December 26, 2021, respectively | 902 | 893 |
Additional paid-in capital | 1,169,697 | 1,119,728 |
Accumulated deficit | (733,723) | (698,171) |
Accumulated other comprehensive loss | (176,054) | (205,989) |
Total Bloomin’ Brands stockholders’ equity | 260,822 | 216,461 |
Noncontrolling interests | 1,919 | 6,389 |
Total stockholders’ equity | 262,741 | 222,850 |
Total liabilities and stockholders’ equity | $ 3,229,995 | $ 3,294,271 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 26, 2022 | Dec. 26, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 90,151,164 | 89,252,823 |
Common stock, shares outstanding (in shares) | 90,151,164 | 89,252,823 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 1,125,162 | $ 1,077,366 | $ 2,265,697 | $ 2,064,839 |
Costs and expenses | ||||
Food and beverage costs | 364,459 | 312,102 | 723,829 | 603,972 |
Labor and other related | 308,759 | 294,999 | 621,270 | 569,637 |
Other restaurant operating | 263,529 | 233,450 | 522,639 | 462,743 |
Depreciation and amortization | 41,257 | 40,539 | 83,032 | 81,765 |
General and administrative | 59,246 | 66,462 | 117,920 | 123,710 |
Provision for impaired assets and restaurant closings | 193 | 5,177 | 2,032 | 7,377 |
Total costs and expenses | 1,037,443 | 952,729 | 2,070,722 | 1,849,204 |
Income from operations | 87,719 | 124,637 | 194,975 | 215,635 |
Loss on extinguishment and modification of debt | (107,630) | (2,073) | (107,630) | (2,073) |
Loss on fair value adjustment of derivatives, net | (17,685) | 0 | (17,685) | 0 |
Other income, net | 0 | 0 | 0 | 21 |
Interest expense, net | (12,548) | (14,990) | (26,181) | (29,618) |
(Loss) income before provision for income taxes | (50,144) | 107,574 | 43,479 | 183,965 |
Provision for income taxes | 11,536 | 22,688 | 27,465 | 29,281 |
Net (loss) income | (61,680) | 84,886 | 16,014 | 154,684 |
Less: net income attributable to noncontrolling interests | 1,955 | 2,341 | 4,138 | 3,277 |
Net (loss) income attributable to Bloomin’ Brands | (63,635) | 82,545 | 11,876 | 151,407 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | 11,940 | 10,015 | 23,223 | 3,440 |
Unrealized (loss) gain on derivatives, net of tax | 0 | (128) | 573 | (170) |
Reclassification of adjustments for loss on derivatives included in Net (loss) income, net of tax | 273 | 1,514 | 954 | 4,517 |
Impact of terminated interest rate swaps included in Net (loss) income, net of tax | 2,164 | 1,471 | 5,185 | 1,471 |
Comprehensive (loss) income | (47,303) | 97,758 | 45,949 | 163,942 |
Less: comprehensive income attributable to noncontrolling interests | 1,955 | 2,341 | 4,138 | 3,277 |
Comprehensive (loss) income attributable to Bloomin’ Brands | $ (49,258) | $ 95,417 | $ 41,811 | $ 160,665 |
Earnings Per Share [Abstract] | ||||
Basic (in USD per share) | $ (0.72) | $ 0.93 | $ 0.13 | $ 1.71 |
Diluted (in USD per share) | $ (0.72) | $ 0.75 | $ 0.12 | $ 1.38 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 88,898 | 89,075 | 89,127 | 88,721 |
Diluted (in shares) | 88,898 | 109,805 | 102,045 | 110,223 |
Restaurant sales | ||||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 1,108,918 | $ 1,055,227 | $ 2,232,493 | $ 2,034,678 |
Franchise and other revenues | ||||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 16,244 | $ 22,139 | $ 33,204 | $ 30,161 |
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 capital Cumulative-effect from a change in accounting principle | Accumulated deficit | Accumulated deficit Cumulative-effect from a change in accounting principle | Accumulated other comprehensive loss | Non-controlling interests | |
Balance at beginning of period (in shares) at Dec. 27, 2020 | 87,856,000 | |||||||||
Balance at beginning of period at Dec. 27, 2020 | $ 10,957 | $ (42,953) | $ 879 | $ 1,132,808 | $ (47,323) | $ (918,096) | $ 4,370 | $ (211,446) | $ 6,812 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||||
Net (loss) income | $ 154,684 | 151,407 | 3,277 | |||||||
Other comprehensive income, net of tax | 9,258 | 9,258 | ||||||||
Stock-based compensation | 14,507 | 14,507 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 1,355,000 | ||||||||
Common stock issued under stock plans | [1] | 9,925 | $ 13 | 9,912 | ||||||
Distributions to noncontrolling interests | (4,141) | (4,141) | ||||||||
Contributions from noncontrolling interests | 670 | 670 | ||||||||
Balance at end of period (in shares) at Jun. 27, 2021 | 89,211,000 | |||||||||
Balance at end of period at Jun. 27, 2021 | 152,907 | $ 892 | 1,109,904 | (762,319) | (202,188) | 6,618 | ||||
Balance at beginning of period (in shares) at Mar. 28, 2021 | 88,855,000 | |||||||||
Balance at beginning of period at Mar. 28, 2021 | 45,405 | $ 889 | 1,097,639 | (844,864) | (215,060) | 6,801 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 84,886 | 82,545 | 2,341 | |||||||
Other comprehensive income, net of tax | 12,872 | 12,872 | ||||||||
Stock-based compensation | 9,781 | 9,781 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 356,000 | ||||||||
Common stock issued under stock plans | [1] | 2,487 | $ 3 | 2,484 | ||||||
Distributions to noncontrolling interests | (2,683) | (2,683) | ||||||||
Contributions from noncontrolling interests | 159 | 159 | ||||||||
Balance at end of period (in shares) at Jun. 27, 2021 | 89,211,000 | |||||||||
Balance at end of period at Jun. 27, 2021 | $ 152,907 | $ 892 | 1,109,904 | (762,319) | (202,188) | 6,618 | ||||
Balance at beginning of period (in shares) at Dec. 26, 2021 | 89,252,823 | 89,253,000 | ||||||||
Balance at beginning of period at Dec. 26, 2021 | $ 222,850 | $ 893 | 1,119,728 | (698,171) | (205,989) | 6,389 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends declared, per common share | (12,559) | |||||||||
Balance at end of period (in shares) at Mar. 27, 2022 | 89,185,000 | |||||||||
Balance at end of period at Mar. 27, 2022 | $ 293,257 | $ 892 | 1,115,458 | (634,356) | (190,431) | 1,694 | ||||
Balance at beginning of period (in shares) at Dec. 26, 2021 | 89,252,823 | 89,253,000 | ||||||||
Balance at beginning of period at Dec. 26, 2021 | $ 222,850 | $ 893 | 1,119,728 | (698,171) | (205,989) | 6,389 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 16,014 | 11,876 | 4,138 | |||||||
Other comprehensive income, net of tax | 29,935 | 29,935 | ||||||||
Cash dividends declared, per common share | (24,977) | (24,977) | ||||||||
Repurchase and retirement of common stock (in shares) | (2,312,000) | |||||||||
Repurchase and retirement of common stock | (47,451) | $ (23) | (47,428) | |||||||
Stock-based compensation | 9,802 | 9,802 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 897,000 | ||||||||
Common stock issued under stock plans | [1] | 2,007 | $ 9 | 1,998 | ||||||
Purchase of noncontrolling interest, net of tax | (4,650) | (735) | (3,915) | |||||||
Distributions to noncontrolling interests | (5,154) | (5,154) | ||||||||
Contributions from noncontrolling interests | 461 | 461 | ||||||||
Retirement of convertible senior note hedges | 112,956 | 112,956 | ||||||||
Retirement of warrants | (97,617) | (97,617) | ||||||||
Issuance of common stock from repurchase of convertible senior notes (in shares) | 2,313,000 | |||||||||
Issuance of common stock from repurchase of convertible senior notes | $ 48,565 | $ 23 | 48,542 | |||||||
Balance at end of period (in shares) at Jun. 26, 2022 | 90,151,164 | 90,151,000 | ||||||||
Balance at end of period at Jun. 26, 2022 | $ 262,741 | $ 902 | 1,169,697 | (733,723) | (176,054) | 1,919 | ||||
Balance at beginning of period (in shares) at Mar. 27, 2022 | 89,185,000 | |||||||||
Balance at beginning of period at Mar. 27, 2022 | 293,257 | $ 892 | 1,115,458 | (634,356) | (190,431) | 1,694 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (61,680) | (63,635) | 1,955 | |||||||
Other comprehensive income, net of tax | 14,377 | 14,377 | ||||||||
Cash dividends declared, per common share | (12,418) | (12,418) | ||||||||
Repurchase and retirement of common stock (in shares) | (1,761,000) | |||||||||
Repurchase and retirement of common stock | (35,749) | $ (17) | (35,732) | |||||||
Stock-based compensation | 4,959 | 4,959 | ||||||||
Common stock issued under stock plans (in shares) | [1] | 414,000 | ||||||||
Common stock issued under stock plans | [1] | 1,122 | $ 4 | 1,118 | ||||||
Purchase of noncontrolling interest, net of tax | (2,762) | (3,301) | 539 | |||||||
Distributions to noncontrolling interests | (2,513) | (2,513) | ||||||||
Contributions from noncontrolling interests | 244 | 244 | ||||||||
Retirement of convertible senior note hedges | 112,956 | 112,956 | ||||||||
Retirement of warrants | (97,617) | (97,617) | ||||||||
Issuance of common stock from repurchase of convertible senior notes (in shares) | 2,313,000 | |||||||||
Issuance of common stock from repurchase of convertible senior notes | $ 48,565 | $ 23 | 48,542 | |||||||
Balance at end of period (in shares) at Jun. 26, 2022 | 90,151,164 | 90,151,000 | ||||||||
Balance at end of period at Jun. 26, 2022 | $ 262,741 | $ 902 | $ 1,169,697 | $ (733,723) | $ (176,054) | $ 1,919 | ||||
[1]Net of forfeitures and shares withheld for employee taxes. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 26, 2022 | Jun. 26, 2022 | |
Cash dividends declared per common share (in dollars per share) | $ 0.14 | $ 0.28 |
Additional paid-in capital | ||
Deferred tax effect of purchase of noncontrolling interests | $ (1,142) | $ (254) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 | Jun. 27, 2021 | |
Cash flows provided by operating activities: | ||
Net income | $ 16,014 | $ 154,684 |
Adjustments to reconcile Net income to cash provided by operating activities: | ||
Depreciation and amortization | 83,032 | 81,765 |
Amortization of debt discounts and issuance costs | 2,025 | 2,396 |
Amortization of deferred gift card sales commissions | 13,458 | 14,436 |
Provision for impaired assets and restaurant closings | 2,032 | 7,377 |
Non-cash interest expense from terminated interest rate swaps | 6,980 | 1,981 |
Non-cash operating lease costs | 41,336 | 38,073 |
Stock-based and other non-cash compensation expense | 9,802 | 14,507 |
Deferred income tax expense | 8,329 | 10,300 |
Loss on extinguishment and modification of debt | 107,630 | 2,073 |
Loss on fair value adjustment of derivatives, net | 17,685 | 0 |
Other, net | 4,935 | (1,343) |
Change in assets and liabilities | (94,440) | (43,067) |
Net cash provided by operating activities | 218,818 | 283,182 |
Cash flows used in investing activities: | ||
Proceeds from disposal of property, fixtures and equipment | 163 | 4,828 |
Capital expenditures | (76,901) | (51,398) |
Other investments, net | 1,000 | 3,945 |
Net cash used in investing activities | (75,738) | (42,625) |
Cash flows used in financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 200,000 |
Repayments of long-term debt and finance lease obligations | (195,733) | (425,564) |
Proceeds from borrowings on revolving credit facilities | 624,500 | 286,000 |
Repayments of borrowings on revolving credit facilities | (304,500) | (599,000) |
Financing fees | (853) | (5,868) |
Proceeds from issuance of senior notes | 0 | 300,000 |
Issuance costs related to senior notes | 0 | (5,546) |
Repurchase of convertible senior notes | (196,919) | 0 |
Proceeds from retirement of convertible senior note hedges | 131,869 | 0 |
Payments for retirement of warrants | (114,825) | 0 |
Proceeds from share-based compensation, net | 2,007 | 9,925 |
Distributions to noncontrolling interests | (5,154) | (4,141) |
Contributions from noncontrolling interests | 461 | 670 |
Purchase of noncontrolling interests | (4,904) | 0 |
Payments for partner equity plan | (5,743) | (4,494) |
Repurchase of common stock | (46,151) | 0 |
Cash dividends paid on common stock | (24,977) | 0 |
Net cash used in financing activities | (140,922) | (248,018) |
Effect of exchange rate changes on cash and cash equivalents | 4,232 | 128 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,390 | (7,333) |
Cash, cash equivalents and restricted cash as of the beginning of the period | 89,057 | 110,408 |
Cash, cash equivalents and restricted cash as of the end of the period | 95,447 | 103,075 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 18,862 | 23,748 |
Cash paid for income taxes, net of refunds | 17,191 | 11,883 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 26,415 | 28,261 |
Leased assets obtained in exchange for new finance lease liabilities | 2,417 | 48 |
Increase (decrease) in liabilities from the acquisition of property, fixtures and equipment | $ 2,545 | $ (203) |
Description of the Business and
Description of the Business and Basis of Presentation | 6 Months Ended |
Jun. 26, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation Description of the Business - Bloomin’ Brands (“Bloomin’ Brands” or the “Company”) owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements. Basis of Presentation - The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2021. Recently Issued Financial Accounting Standards Not Yet Adopted - In November 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU No. 2021-10”), which requires financial statement footnote disclosure regarding government assistance accounted for by applying a grant or contribution accounting model by analogy. ASU No. 2021-10 is effective for the Company for the fiscal year ending December 25, 2022. Upon adoption of ASU No. 2021-10 during the fourth quarter of 2022, the Company anticipates government assistance financial statement footnote disclosures within the 2022 Form 10-K, primarily in connection with employee retention credits provided under the Coronavirus, Aid, Relief and Economic Security (“CARES”) Act. Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period, including, but not limited to, presentation of certain items within the condensed consolidated statements of cash flows and certain notes to the consolidated financial statements. These reclassifications had no effect on previously reported net income. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 26, 2022 | |
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 (Loss) Income for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Revenues Restaurant sales $ 1,108,918 $ 1,055,227 $ 2,232,493 $ 2,034,678 Franchise and other revenues Franchise revenues 12,596 12,221 26,002 19,010 Other revenues (1) 3,648 9,918 7,202 11,151 Total Franchise and other revenues 16,244 22,139 33,204 30,161 Total revenues $ 1,125,162 $ 1,077,366 $ 2,265,697 $ 2,064,839 ________________ (1) During the thirteen and twenty-six weeks ended June 27, 2021, the Company recognized $6.3 million of other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base of Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes. The amount recognized as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest. The following tables include the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 26, 2022 JUNE 27, 2021 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 573,563 $ 8,156 $ 579,096 $ 8,418 Carrabba’s Italian Grill 170,190 797 171,408 665 Bonefish Grill 145,472 173 149,036 174 Fleming’s Prime Steakhouse & Wine Bar 93,933 — 88,101 — Other 2,769 8 2,652 — U.S. total 985,927 9,134 990,293 9,257 International Outback Steakhouse Brazil 100,647 — 43,310 — Other (1) 22,344 3,462 21,624 2,964 International total 122,991 3,462 64,934 2,964 Total $ 1,108,918 $ 12,596 $ 1,055,227 $ 12,221 ________________ (1) Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily includes revenues from franchised Outback Steakhouse restaurants. TWENTY-SIX WEEKS ENDED JUNE 26, 2022 JUNE 27, 2021 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 1,168,956 $ 16,615 $ 1,126,291 $ 11,374 Carrabba’s Italian Grill 345,818 1,458 329,094 1,282 Bonefish Grill 296,888 350 276,010 304 Fleming’s Prime Steakhouse & Wine Bar 191,595 — 154,412 — Other 6,305 13 4,545 — U.S. total 2,009,562 18,436 1,890,352 12,960 International Outback Steakhouse Brazil 185,948 — 104,158 — Other (1) 36,983 7,566 40,168 6,050 International total 222,931 7,566 144,326 6,050 Total $ 2,232,493 $ 26,002 $ 2,034,678 $ 19,010 ________________ (1) Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily includes revenues from franchised Outback Steakhouse restaurants. The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Other current assets, net Deferred gift card sales commissions $ 12,338 $ 17,793 Unearned revenue Deferred gift card revenue $ 303,544 $ 387,945 Deferred loyalty revenue 4,309 9,386 Deferred franchise fees - current 440 443 Other 1,570 1,021 Total unearned revenue $ 309,863 $ 398,795 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,185 $ 4,280 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Balance, beginning of the period $ 13,033 $ 13,502 $ 17,793 $ 19,300 Deferred gift card sales commissions amortization (5,441) (5,711) (13,458) (14,436) Deferred gift card sales commissions capitalization 5,436 5,297 9,605 8,796 Other (690) (540) (1,602) (1,112) Balance, end of the period $ 12,338 $ 12,548 $ 12,338 $ 12,548 The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Balance, beginning of the period $ 314,974 $ 306,075 $ 387,945 $ 373,048 Gift card sales 65,174 63,921 115,454 108,090 Gift card redemptions (72,428) (71,859) (189,050) (176,799) Gift card breakage (4,176) (4,182) (10,805) (10,384) Balance, end of the period $ 303,544 $ 293,955 $ 303,544 $ 293,955 |
Impairments and Exit Costs
Impairments and Exit Costs | 6 Months Ended |
Jun. 26, 2022 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Impairments and Exit Costs | Impairments and Exit Costs The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 27, 2021 Impairment losses U.S. $ 5,768 $ 7,174 International (555) 152 Corporate 209 238 Total impairment losses 5,422 7,564 Restaurant closure benefits U.S. (92) (34) International (153) (153) Total restaurant closure benefits (245) (187) Provision for impaired assets and restaurant closings $ 5,177 $ 7,377 Impairment and closure charges during the periods presented resulted primarily from locations identified for closure. Annual Goodwill and Intangible Asset Impairment Assessment - The Company performs its annual assessment for impairment of goodwill and other indefinite-lived intangible assets during its second fiscal quarter. The Company’s 2022 and 2021 assessments were qualitative. In connection with these assessments, the Company did not record any impairment charges. Accrued Facility Closure and Other Costs Rollforward - The following table is a rollforward of the Company’s closed facility lease liabilities and other accrued costs associated with the closure and restructuring initiatives, for the period indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 Balance, beginning of the period $ 8,485 Cash payments (2,308) Accretion 304 Adjustments (323) Balance, end of the period (1) $ 6,158 ________________ (1) As of June 26, 2022, the Company had exit-related accruals related to certain closure and restructuring initiatives of $1.6 million recorded in Accrued and other current liabilities and $4.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 6 Months Ended |
Jun. 26, 2022 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (Loss) Earnings Per Share In February 2021, the Company provided the trustee of its convertible senior notes due in 2025 (the “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. The amount of the 2025 Notes settled in shares of common stock 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, which was initially $11.89 per share of common stock. In connection with the offering of the 2025 Notes, the Company entered into warrant transactions (the “Warrant Transactions”), which have a dilutive effect on the Company’s common stock to the extent the price of its common stock exceeds the strike price of the Warrant Transactions, which was initially $16.64. In connection with dividends paid during the twenty-six weeks ended June 26, 2022, the conversion price of the 2025 Notes decreased to $11.74 per share of common stock and the strike price of the related warrants decreased to $16.43 per share of common stock. The following table presents the computation of basic and diluted (loss) earnings per share for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Net (loss) income attributable to Bloomin’ Brands $ (63,635) $ 82,545 $ 11,876 $ 151,407 Convertible senior notes if-converted method interest adjustment, net of tax (1) — — — 691 Diluted net (loss) income attributable to Bloomin’ Brands $ (63,635) $ 82,545 $ 11,876 $ 152,098 Basic weighted average common shares outstanding 88,898 89,075 89,127 88,721 Effect of dilutive securities: Stock options — 1,165 305 937 Nonvested restricted stock units — 351 192 427 Nonvested performance-based share units — — 143 47 Convertible senior notes (1)(2) — 11,231 8,253 13,212 Warrants (2) — 7,983 4,025 6,879 Diluted weighted average common shares outstanding 88,898 109,805 102,045 110,223 Basic (loss) earnings per share $ (0.72) $ 0.93 $ 0.13 $ 1.71 Diluted (loss) earnings per share $ (0.72) $ 0.75 $ 0.12 $ 1.38 ________________ (1) 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 the 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. (2) During the thirteen weeks ended June 26, 2022, the Company repurchased $125.0 million of the 2025 Notes and retired the corresponding portion of the related warrants. See Note 8 - Convertible Senior Notes for additional details. Due to the Company’s net loss during the thirteen weeks ended June 26, 2022, dilutive excess shares 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 (loss) earnings per share because their effect was antidilutive were as follows, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (shares in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Stock options 2,563 — 1,870 682 Nonvested restricted stock units 485 9 299 41 Nonvested performance-based share units 596 465 475 448 |
Stock-based Compensation Plans
Stock-based Compensation Plans | 6 Months Ended |
Jun. 26, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Plans | Stock-based Compensation Plans The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Performance-based share units (1) $ 2,840 $ 7,318 $ 5,459 $ 8,787 Restricted stock units 2,027 1,964 3,837 4,330 Stock options 55 469 432 1,334 $ 4,922 $ 9,751 $ 9,728 $ 14,451 ________________ (1) The thirteen and twenty-six weeks ended June 27, 2021 includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections of performance criteria set forth in the award agreements. In February 2022, the Company granted 0.5 million performance-based share units (“PSUs”) subject to final payout modification by a Relative Total Shareholder Return (“Relative TSR”) modifier. This Relative TSR modifier can adjust the final payout outcome by 75%, 100% or 125% of the achieved performance metric, with the overall payout capped at 200% of the annual target grant. These PSUs have a three-year cliff vesting period and their fair value was estimated using the Monte Carlo simulation model. Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated: TWENTY-SIX WEEKS ENDED JUNE 26, 2022 JUNE 27, 2021 Assumptions: Risk-free interest rate (1) 1.64 % 0.20 % Dividend yield (2) 2.31 % — % Volatility (3) 49.11 % 48.45 % Grant date fair value per unit (4) $ 26.10 $ 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) Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term. (3) Based on the historical volatility of the Company’s stock over the last seven years. (4) Represents a premium above the per share value of the Company’s common stock for the Relative TSR modifier as of the grant date of 7.9% and 14.3% for grants during the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively. The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of June 26, 2022: UNRECOGNIZED COMPENSATION EXPENSE REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) Performance-based share units $ 18,045 1.7 Restricted stock units $ 11,342 1.9 |
Other Current Assets, Net
Other Current Assets, Net | 6 Months Ended |
Jun. 26, 2022 | |
Other Current Assets, Net [Abstract] | |
Other Current Assets, Net | Other Current Assets, Net Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Prepaid expenses $ 28,000 $ 21,194 Accounts receivable - gift cards, net 15,575 91,248 Accounts receivable - vendors, net 12,284 11,793 Accounts receivable - franchisees, net 1,720 1,701 Accounts receivable - other, net 19,184 18,353 Deferred gift card sales commissions 12,338 17,793 Company-owned life insurance policies 21,501 17,244 Other current assets, net 6,395 5,297 $ 116,997 $ 184,623 |
Long-term Debt, Net
Long-term Debt, Net | 6 Months Ended |
Jun. 26, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net Following is a summary of outstanding Long-term debt, net as of the periods indicated: JUNE 26, 2022 DECEMBER 26, 2021 (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) 400,000 2.74 % 80,000 3.75 % Total Senior Secured Credit Facility 400,000 275,000 2025 Notes (3) 105,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Finance lease liabilities 4,228 2,376 Less: unamortized debt discount and issuance costs (4) (7,176) (14,157) Less: finance lease interest (319) (154) Total debt, net 801,733 793,065 Less: current portion of long-term debt (1,511) (10,958) Long-term debt, net $ 800,222 $ 782,107 ________________ (1) Interest rate represents the weighted average interest rate as of December 26, 2021. (2) Interest rate represents the weighted average interest rate as of June 26, 2022 and the base rate option elected in anticipation of impending repayment as of December 26, 2021. (3) During the thirteen weeks ended June 26, 2022, the Company repurchased $125.0 million of the 2025 Notes. See Note 8 - Convertible Senior Notes for additional details. (4) In connection with the Amended Credit Agreement and the partial repurchase of the 2025 Notes, $5.7 million of debt issuance costs were written off during the thirteen weeks ended June 26, 2022. See Note 8 - Convertible Senior Notes for additional details. Credit Agreement Amendment - On April 16, 2021, the Company and its wholly-owned subsidiary OSI Restaurant Partners, LLC (“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”), maturing on April 16, 2026. On April 26, 2022, the Company and OSI entered into the First Amendment to the Second Amended and Restated Credit Agreement and Incremental Amendment (the “Amended Credit Agreement”), which included an increase of the Company’s existing revolving credit facility from $800.0 million to $1.0 billion and a transition from London Inter-Bank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”) as the benchmark rate for purposes of calculating interest under the Senior Secured Credit Facility. At closing, an incremental $192.5 million was drawn on the revolving credit facility to fully repay the outstanding balance of Term loan A. The total indebtedness of the Company remained unchanged as a result of the Amended Credit Agreement. Under the Amended Credit Agreement, the Company may elect an interest rate at each reset period based on the Base Rate or Adjusted Term SOFR, 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 Adjusted Term SOFR with a one-month interest period plus 1.0% (the “Base Rate”). The Adjusted Term SOFR option is the 30, 90 or 180-day SOFR, plus a term SOFR adjustment of 0.10%, subject to a 0% floor (the “Adjusted Term SOFR”). The interest rate spreads are as follows: BASE RATE ELECTION ADJUSTED TERM SOFR ELECTION Revolving credit facility 50 to 150 basis points over the Base Rate 150 to 250 basis points over the Adjusted Term SOFR The transition to SOFR did not materially impact the interest rate applied to the Company’s borrowings. No other material changes were made to the terms of the Company’s Credit Agreement as a result of the Amended Credit Agreement. As of June 26, 2022 and December 26, 2021, the Company was in compliance with its debt covenants. Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated: (dollars in thousands) JUNE 26, 2022 Year 1 $ 1,543 Year 2 1,389 Year 3 105,770 Year 4 400,306 Year 5 176 Thereafter 300,044 Total payments 809,228 Less: unamortized debt discount and issuance costs (7,176) Less: finance lease interest (319) Total principal payments $ 801,733 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 26, 2022 | |
Convertible Notes [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes 2025 Notes - On May 25, 2022, the Company entered into exchange agreements (the “Exchange Agreements”) with certain holders (the “Noteholders”) of the 2025 Notes. The Noteholders agreed to exchange $125.0 million in aggregate principal amount of the Company’s outstanding 2025 Notes for $196.9 million in cash, plus accrued interest, and approximately 2.3 million shares of the Company’s common stock (the “2025 Notes Partial Repurchase”). Under the Exchange Agreements, the total amount of cash paid and number of shares of common stock issued by the Company were based upon the volume-weighted average price per share of the Company’s common stock during a ten-trading day averaging period ending on June 14, 2022. Upon entering into the Exchange Agreements, the conversion feature related to the 2025 Notes repurchased, as well as the settlements of the related convertible senior note hedges and warrants, were subject to derivative accounting. In connection with the 2025 Notes Partial Repurchase, the Company recognized a loss on extinguishment of debt of $104.7 million and a loss on fair value adjustment of derivatives, net of $17.7 million, and recorded a $48.5 million increase to Additional paid-in capital during the thirteen weeks ended June 26, 2022. The initial conversion rate applicable to the 2025 Notes was 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 was equivalent to an initial conversion price of approximately $11.89 per share. In connection with dividends paid during the twenty-six weeks ended June 26, 2022, the conversion rate for the remaining 2025 Notes decreased to approximately $11.74 per share, which represents 85.185 shares of common stock per $1,000 principal amount of the 2025 Notes, or a total of approximately 8.944 million shares. The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Long-term debt, net Principal $ 105,000 $ 230,000 Less: debt issuance costs (1) (2,321) (5,898) Net carrying amount $ 102,679 $ 224,102 ________________ (1) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. During the thirteen weeks ended June 26, 2022, the Company wrote off $2.8 million of debt issuance costs as a result of the 2025 Notes Partial Repurchase. Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Coupon interest $ 2,597 $ 2,875 $ 5,472 $ 5,750 Debt issuance cost amortization 370 386 774 767 Total interest expense (1) $ 2,967 $ 3,261 $ 6,246 $ 6,517 ________________ (1) The effective rate of the 2025 Notes over their expected life is 5.85%. Based on the daily closing prices of the Company’s stock during the quarter ended June 26, 2022, the remaining holders of the 2025 Notes are eligible to convert their 2025 Notes during the third quarter of 2022. Convertible Note Hedge and Warrant Transactions - In connection with the 2025 Notes Partial Repurchase, the Company entered into partial unwind agreements with certain financial institutions relating to a portion of the convertible note hedge transactions (the “Note Hedge Early Termination Agreements”) and a portion of the Warrant Transactions (the “Warrant Early Termination Agreements”) that were previously entered into by the Company in connection with the issuance of the 2025 Notes. Upon settlement, the Company received $131.9 million for the Note Hedge Early Termination Agreements and paid $114.8 million for the Warrant Early Termination Agreements during the thirteen weeks ended June 26, 2022. In connection with the Note Hedge Early Termination Agreements and the Warrant Early Termination Agreements the Company recorded a $113.0 million increase and a $97.6 million decrease, respectively, to Additional paid-in capital during the thirteen weeks ended June 26, 2022. The remaining 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 was initially $16.64 per share and is subject to certain adjustments under the terms of the Warrant Transactions. In connection with dividends paid during the twenty-six weeks ended June 26, 2022, the strike price for the remaining Warrant Transactions decreased to $16.43. |
Other Long-term Liabilities, Ne
Other Long-term Liabilities, Net | 6 Months Ended |
Jun. 26, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities, Net | Other Long-term Liabilities, Net Other long-term liabilities, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Accrued insurance liability $ 29,281 $ 31,517 Deferred payroll tax liabilities (1) — 27,302 Executive management deferred compensation obligations 19,098 23,543 Other long-term liabilities 40,111 42,880 $ 88,490 $ 125,242 _______________ (1) During the twenty-six weeks ended June 26, 2022, the Company reclassified $27.3 million of payroll taxes deferred under the CARES Act to current. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 26, 2022 | |
Stockholders' Equity Attributable to Parent [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. As of June 26, 2022, $77.5 million remained available for repurchase under the 2022 Share Repurchase Program. Following is a summary of the shares repurchased under the 2022 Share Repurchase Program during fiscal year 2022: (in thousands, except per share data) NUMBER OF SHARES AVERAGE REPURCHASE PRICE PER SHARE AMOUNT First fiscal quarter 551 $ 21.26 $ 11,702 Second fiscal quarter 1,761 $ 20.30 35,749 Total common stock repurchases (1) 2,312 $ 20.53 $ 47,451 ________________ (1) Subsequent to June 26, 2022, the Company repurchased 854 thousand shares of its common stock for $14.9 million under a Rule 10b5-1 plan through July 28, 2022. Dividends - The Company declared and paid dividends per share during fiscal year 2022 as follows: (dollars in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.14 $ 12,559 Second fiscal quarter 0.14 12,418 Total cash dividends declared and paid $ 0.28 $ 24,977 In July 2022, the Board declared a quarterly cash dividend of $0.14 per share, payable on August 24, 2022 to shareholders of record at the close of business on August 10, 2022. Accumulated Other Comprehensive Loss (“AOCL”) - Following are the components of AOCL as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Foreign currency translation adjustment $ (172,257) $ (195,480) Unrealized loss on derivatives, net of tax (3,797) (10,509) Accumulated other comprehensive loss $ (176,054) $ (205,989) Following are the components of Other comprehensive income attributable to Bloomin’ Brands for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Foreign currency translation adjustment $ 11,940 $ 10,015 $ 23,223 $ 3,440 Unrealized (loss) gain on derivatives, net of tax — (128) 573 (170) Reclassification of adjustments for loss on derivatives included in Net (loss) income, net of tax (1) 273 1,514 954 4,517 Impact of terminated interest rate swaps included in Net (loss) income, net of tax (1) 2,164 1,471 5,185 1,471 Total gain on derivatives, net of tax 2,437 2,857 6,712 5,818 Other comprehensive income attributable to Bloomin’ Brands $ 14,377 $ 12,872 $ 29,935 $ 9,258 ________________ (1) See Note 11 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications and the terminated swaps. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 26, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk - In October 2018, the Company entered into variable-to-fixed interest rate swap agreements with 12 counterparties to hedge a portion of the cash flows of the Company’s variable rate debt. The swap agreements had an aggregate notional amount of $550.0 million and mature on November 30, 2022. Under the terms of the swap agreements, the Company paid a weighted average fixed rate of 3.04% on the notional amount and received payments from the counterparty based on one-month LIBOR. During 2021, the Company terminated its variable-to-fixed interest rate swap agreements with certain counterparties and as a result, as of December 26, 2021 had interest rate swap agreements remaining with two counterparties for an aggregate notional amount of $125.0 million. In connection with the Amended Credit Agreement, on April 26, 2022 the Company terminated its remaining variable-to-fixed interest rate swap agreements. Following these terminations, the unrealized losses related to the terminated swap agreements included in Accumulated other comprehensive loss will be amortized to Interest expense, net during 2022. The Company’s swap agreements were designated and qualified as cash flow hedges, recognized on its Consolidated Balance Sheet at fair value as of December 26, 2021 and classified based on the instruments’ maturity dates. As of June 26, 2022, the Company estimated $5.2 million of interest expense from the terminated swap agreements will be reclassified to Interest expense, net through the November 2022 maturity date of the swaps. The following table presents the fair value and classification of the Company’s swap agreements, as of the period indicated: (dollars in thousands) DECEMBER 26, 2021 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability (1) $ 3,056 Accrued and other current liabilities Accrued interest $ 276 Accrued and other current liabilities ____________________ (1) See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. The following table summarizes the effects of the swap agreements on Net (loss) income for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Interest rate swap agreements: Interest rate swap expense recognized in Interest expense, net $ (367) $ (2,038) $ (1,284) $ (6,082) Income tax benefit recognized in Provision for income taxes 94 524 330 1,565 Net effects of interest rate swap agreements $ (273) $ (1,514) $ (954) $ (4,517) Terminated interest rate swap agreements: Terminated interest rate swap expense recognized in Interest expense, net $ (2,913) $ (1,981) $ (6,980) $ (1,981) Income tax benefit recognized in Provision for income taxes 749 510 1,795 510 Net effects of terminated interest rate swap agreements $ (2,164) $ (1,471) $ (5,185) $ (1,471) Total net effects on Net (loss) income $ (2,437) $ (2,985) $ (6,139) $ (5,988) |
Leases
Leases | 6 Months Ended |
Jun. 26, 2022 | |
Leases [Abstract] | |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION JUNE 26, 2022 DECEMBER 26, 2021 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,122,317 $ 1,130,873 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 3,782 2,074 Total lease assets, net $ 1,126,099 $ 1,132,947 Current operating lease liabilities (2) Accrued and other current liabilities $ 178,817 $ 177,028 Current finance lease liabilities Current portion of long-term debt 1,511 958 Non-current operating lease liabilities (2) Non-current operating lease liabilities 1,168,418 1,178,998 Non-current finance lease liabilities Long-term debt, net 2,398 1,264 Total lease liabilities $ 1,351,144 $ 1,358,248 ________________ (1) Net of accumulated amortization of $4.1 million and $3.3 million as of June 26, 2022 and December 26, 2021, respectively. (2) Excludes current accrued contingent percentage rent of $4.3 million and $3.5 million, as of June 26, 2022 and December 26, 2021, respectively, and immaterial current and non-current COVID-19-related deferred rent accruals. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Operating leases (1) Other restaurant operating $ 45,579 $ 43,763 $ 90,940 $ 88,555 Variable lease cost (2) Other restaurant operating 1,619 731 3,502 1,508 Finance leases: Amortization of leased assets Depreciation and amortization 356 258 693 520 Interest on lease liabilities Interest expense, net 44 31 76 67 Sublease revenue Franchise and other revenues (2,436) (2,825) (4,994) (3,660) Lease costs, net $ 45,162 $ 41,958 $ 90,217 $ 86,990 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.1 million and $3.2 million for the thirteen weeks ended June 26, 2022 and June 27, 2021, respectively, and $6.1 million and $6.7 million for the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively, which is included in General and administrative expense. (2) Includes COVID-19-related rent abatements for the thirteen and twenty-six weeks ended June 27, 2021. The following table is a summary of cash flow impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 97,255 $ 105,323 |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION JUNE 26, 2022 DECEMBER 26, 2021 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,122,317 $ 1,130,873 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 3,782 2,074 Total lease assets, net $ 1,126,099 $ 1,132,947 Current operating lease liabilities (2) Accrued and other current liabilities $ 178,817 $ 177,028 Current finance lease liabilities Current portion of long-term debt 1,511 958 Non-current operating lease liabilities (2) Non-current operating lease liabilities 1,168,418 1,178,998 Non-current finance lease liabilities Long-term debt, net 2,398 1,264 Total lease liabilities $ 1,351,144 $ 1,358,248 ________________ (1) Net of accumulated amortization of $4.1 million and $3.3 million as of June 26, 2022 and December 26, 2021, respectively. (2) Excludes current accrued contingent percentage rent of $4.3 million and $3.5 million, as of June 26, 2022 and December 26, 2021, respectively, and immaterial current and non-current COVID-19-related deferred rent accruals. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Operating leases (1) Other restaurant operating $ 45,579 $ 43,763 $ 90,940 $ 88,555 Variable lease cost (2) Other restaurant operating 1,619 731 3,502 1,508 Finance leases: Amortization of leased assets Depreciation and amortization 356 258 693 520 Interest on lease liabilities Interest expense, net 44 31 76 67 Sublease revenue Franchise and other revenues (2,436) (2,825) (4,994) (3,660) Lease costs, net $ 45,162 $ 41,958 $ 90,217 $ 86,990 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.1 million and $3.2 million for the thirteen weeks ended June 26, 2022 and June 27, 2021, respectively, and $6.1 million and $6.7 million for the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively, which is included in General and administrative expense. (2) Includes COVID-19-related rent abatements for the thirteen and twenty-six weeks ended June 27, 2021. The following table is a summary of cash flow impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 97,255 $ 105,323 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 26, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: JUNE 26, 2022 DECEMBER 26, 2021 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 13,583 $ 13,583 $ — $ 6,714 $ 6,714 $ — Money market funds 10,670 10,670 — 9,039 9,039 — Restricted cash equivalents: Money market funds 101 101 — 1,472 1,472 — Total asset recurring fair value measurements $ 24,354 $ 24,354 $ — $ 17,225 $ 17,225 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ — $ — $ — $ 3,056 $ — $ 3,056 Total liability recurring fair value measurements $ — $ — $ — $ 3,056 $ — $ 3,056 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, 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 tables summarize the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 27, 2021 (dollars in thousands) REMAINING CARRYING VALUE (1) TOTAL IMPAIRMENT Operating lease right-of-use assets $ 5,687 $ 962 Property, fixtures and equipment 8,192 4,460 $ 13,879 $ 5,422 TWENTY-SIX WEEKS ENDED JUNE 27, 2021 (dollars in thousands) REMAINING CARRYING VALUE (1) TOTAL IMPAIRMENT Operating lease right-of-use assets $ 7,651 $ 1,512 Property, fixtures and equipment 8,928 6,052 $ 16,579 $ 7,564 ________________ (1) All asset carrying values measured using discounted cash flow models (Level 3). Interim Disclosures about Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and current and long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported on its Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: JUNE 26, 2022 DECEMBER 26, 2021 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 $ 400,000 $ 390,000 $ 80,000 $ 76,926 2025 Notes $ 105,000 $ 177,031 $ 230,000 $ 447,615 2029 Notes $ 300,000 $ 255,000 $ 300,000 $ 304,395 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 26, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 (Loss) income before provision for income taxes $ (50,144) $ 107,574 $ 43,479 $ 183,965 Provision for income taxes $ 11,536 $ 22,688 $ 27,465 $ 29,281 Effective income tax rate (23.0) % 21.1 % 63.2 % 15.9 % The effective income tax rate for the thirteen weeks ended June 26, 2022 includes the impact of nondeductible losses associated with the 2025 Notes Partial Repurchase which, relative to a pre-tax book loss during the quarter, resulted in a negative effective income tax rate. The effective income tax rate for the twenty-six weeks ended June 26, 2022 increased by 47.3 percentage points as compared to the twenty-six weeks ended June 27, 2021. The increase was primarily due to the non-deductible losses associated with the 2025 Notes Partial Repurchase recorded during the twenty-six weeks ended June 26, 2022. 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. As part of the guidance issued, these regulations change longstanding foreign tax credit regulations that now make foreign taxes paid to certain countries no longer creditable in the United States. The Company expects that a portion of post-2022 foreign taxes paid will not be creditable in the United States. Furthermore, the impact of these regulations will result in the utilization of existing prior year foreign tax credit carryforwards for which the Company had previously recorded a valuation allowance. The valuation allowance related to the credits expected to be utilized has been released during the thirteen and twenty-six weeks ended June 26, 2022. The effective income tax rate for the thirteen weeks ended June 26, 2022 was lower than the Company’s blended federal and state statutory rate of approximately 26%. The income tax rate includes the impact of nondeductible losses associated with the 2025 Notes Partial Repurchase which, relative to a pre-tax book loss during the quarter, resulted in a negative effective income tax rate. The effective income tax rate for the twenty-six weeks ended June 26, 2022 was higher than the statutory rate primarily due to the non-deductible losses associated with the 2025 Notes Partial Repurchase recorded during the twenty-six weeks ended June 26, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 26, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Other Matters - The Company is subject to legal proceedings, claims and liabilities, such as liquor liability, slip and fall cases, wage-and-hour and other employment-related litigation, which arise in the ordinary course of business. A reserve is recorded when it is both: (i) probable that a loss has occurred and (ii) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. The Company’s legal proceedings range from cases brought by a single plaintiff to threatened class actions with many putative class members. While some matters pending against the Company specify the damages claimed by the plaintiff or class, many seek 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 $8.5 million and $7.1 million for certain of its outstanding legal proceedings as of June 26, 2022 and December 26, 2021, 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. 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. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 26, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The following is a summary of reporting segments: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. Segment accounting policies are the same as those described in Note 2 - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 26, 2021. Revenues for all segments include only transactions with customers and exclude intersegment revenues. Excluded from Income from operations for U.S. and international are certain legal and corporate costs not directly related to the performance of the segments, most stock-based compensation expenses and certain bonus expenses. The following table is a summary of Total revenues by segment, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Total revenues U.S. $ 998,627 $ 1,003,058 $ 2,035,034 $ 1,907,976 International 126,535 74,308 230,663 156,863 Total revenues $ 1,125,162 $ 1,077,366 $ 2,265,697 $ 2,064,839 The following table is a reconciliation of segment income from operations to (Loss) income before provision for income taxes, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Segment income from operations U.S. $ 104,620 $ 165,297 $ 236,846 $ 287,032 International 14,126 2,470 23,010 6,007 Total segment income from operations 118,746 167,767 259,856 293,039 Unallocated corporate operating expense (31,027) (43,130) (64,881) (77,404) Total income from operations 87,719 124,637 194,975 215,635 Loss on extinguishment and modification of debt (107,630) (2,073) (107,630) (2,073) Loss on fair value adjustment of derivatives, net (17,685) — (17,685) — Other income, net — — — 21 Interest expense, net (12,548) (14,990) (26,181) (29,618) (Loss) income before provision for income taxes $ (50,144) $ 107,574 $ 43,479 $ 183,965 The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Depreciation and amortization U.S. $ 33,544 $ 33,578 $ 68,303 $ 67,223 International 6,019 5,566 11,556 11,286 Corporate 1,694 1,395 3,173 3,256 Total depreciation and amortization $ 41,257 $ 40,539 $ 83,032 $ 81,765 |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 26, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of Presentation - The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2021. |
Recently issued financial accounting standards not yet adopted | Recently Issued Financial Accounting Standards Not Yet Adopted - In November 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU No. 2021-10”), which requires financial statement footnote disclosure regarding government assistance accounted for by applying a grant or contribution accounting model by analogy. ASU No. 2021-10 is effective for the Company for the fiscal year ending December 25, 2022. Upon adoption of ASU No. 2021-10 during the fourth quarter of 2022, the Company anticipates government assistance financial statement footnote disclosures within the 2022 Form 10-K, primarily in connection with employee retention credits provided under the Coronavirus, Aid, Relief and Economic Security (“CARES”) Act. Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. |
Reclassifications | Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period, including, but not limited to, presentation of certain items within the condensed consolidated statements of cash flows and certain notes to the consolidated financial statements. These reclassifications had no effect on previously reported net income. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
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 (Loss) Income for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Revenues Restaurant sales $ 1,108,918 $ 1,055,227 $ 2,232,493 $ 2,034,678 Franchise and other revenues Franchise revenues 12,596 12,221 26,002 19,010 Other revenues (1) 3,648 9,918 7,202 11,151 Total Franchise and other revenues 16,244 22,139 33,204 30,161 Total revenues $ 1,125,162 $ 1,077,366 $ 2,265,697 $ 2,064,839 ________________ (1) During the thirteen and twenty-six weeks ended June 27, 2021, the Company recognized $6.3 million of other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base of Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes. The amount recognized as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest. |
Disaggregation of revenue | The following tables include the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 26, 2022 JUNE 27, 2021 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 573,563 $ 8,156 $ 579,096 $ 8,418 Carrabba’s Italian Grill 170,190 797 171,408 665 Bonefish Grill 145,472 173 149,036 174 Fleming’s Prime Steakhouse & Wine Bar 93,933 — 88,101 — Other 2,769 8 2,652 — U.S. total 985,927 9,134 990,293 9,257 International Outback Steakhouse Brazil 100,647 — 43,310 — Other (1) 22,344 3,462 21,624 2,964 International total 122,991 3,462 64,934 2,964 Total $ 1,108,918 $ 12,596 $ 1,055,227 $ 12,221 ________________ (1) Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily includes revenues from franchised Outback Steakhouse restaurants. TWENTY-SIX WEEKS ENDED JUNE 26, 2022 JUNE 27, 2021 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 1,168,956 $ 16,615 $ 1,126,291 $ 11,374 Carrabba’s Italian Grill 345,818 1,458 329,094 1,282 Bonefish Grill 296,888 350 276,010 304 Fleming’s Prime Steakhouse & Wine Bar 191,595 — 154,412 — Other 6,305 13 4,545 — U.S. total 2,009,562 18,436 1,890,352 12,960 International Outback Steakhouse Brazil 185,948 — 104,158 — Other (1) 36,983 7,566 40,168 6,050 International total 222,931 7,566 144,326 6,050 Total $ 2,232,493 $ 26,002 $ 2,034,678 $ 19,010 ________________ |
Contract with customers, asset and liability | The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Other current assets, net Deferred gift card sales commissions $ 12,338 $ 17,793 Unearned revenue Deferred gift card revenue $ 303,544 $ 387,945 Deferred loyalty revenue 4,309 9,386 Deferred franchise fees - current 440 443 Other 1,570 1,021 Total unearned revenue $ 309,863 $ 398,795 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,185 $ 4,280 |
Deferred gift card sales commissions | |
Revenue Recognition [Line Items] | |
Contract with customers, asset and liability | The following table is a rollforward of deferred gift card sales commissions for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Balance, beginning of the period $ 13,033 $ 13,502 $ 17,793 $ 19,300 Deferred gift card sales commissions amortization (5,441) (5,711) (13,458) (14,436) Deferred gift card sales commissions capitalization 5,436 5,297 9,605 8,796 Other (690) (540) (1,602) (1,112) Balance, end of the period $ 12,338 $ 12,548 $ 12,338 $ 12,548 |
Unearned revenue | |
Revenue Recognition [Line Items] | |
Contract with customers, asset and liability | The following table is a rollforward of unearned gift card revenue for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Balance, beginning of the period $ 314,974 $ 306,075 $ 387,945 $ 373,048 Gift card sales 65,174 63,921 115,454 108,090 Gift card redemptions (72,428) (71,859) (189,050) (176,799) Gift card breakage (4,176) (4,182) (10,805) (10,384) Balance, end of the period $ 303,544 $ 293,955 $ 303,544 $ 293,955 |
Impairments and Exit Costs (Tab
Impairments and Exit Costs (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Impairments, Exit Costs and Disposals [Abstract] | |
Provision for impaired assets and restaurant closings | The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 27, 2021 JUNE 27, 2021 Impairment losses U.S. $ 5,768 $ 7,174 International (555) 152 Corporate 209 238 Total impairment losses 5,422 7,564 Restaurant closure benefits U.S. (92) (34) International (153) (153) Total restaurant closure benefits (245) (187) Provision for impaired assets and restaurant closings $ 5,177 $ 7,377 |
Accrued facility closure and other costs rollforward | The following table is a rollforward of the Company’s closed facility lease liabilities and other accrued costs associated with the closure and restructuring initiatives, for the period indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 Balance, beginning of the period $ 8,485 Cash payments (2,308) Accretion 304 Adjustments (323) Balance, end of the period (1) $ 6,158 ________________ (1) As of June 26, 2022, the Company had exit-related accruals related to certain closure and restructuring initiatives of $1.6 million recorded in Accrued and other current liabilities and $4.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of (loss) earnings per share, basic and diluted | The following table presents the computation of basic and diluted (loss) earnings per share for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands, except per share data) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Net (loss) income attributable to Bloomin’ Brands $ (63,635) $ 82,545 $ 11,876 $ 151,407 Convertible senior notes if-converted method interest adjustment, net of tax (1) — — — 691 Diluted net (loss) income attributable to Bloomin’ Brands $ (63,635) $ 82,545 $ 11,876 $ 152,098 Basic weighted average common shares outstanding 88,898 89,075 89,127 88,721 Effect of dilutive securities: Stock options — 1,165 305 937 Nonvested restricted stock units — 351 192 427 Nonvested performance-based share units — — 143 47 Convertible senior notes (1)(2) — 11,231 8,253 13,212 Warrants (2) — 7,983 4,025 6,879 Diluted weighted average common shares outstanding 88,898 109,805 102,045 110,223 Basic (loss) earnings per share $ (0.72) $ 0.93 $ 0.13 $ 1.71 Diluted (loss) earnings per share $ (0.72) $ 0.75 $ 0.12 $ 1.38 ________________ (1) 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 the 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. (2) During the thirteen weeks ended June 26, 2022, the Company repurchased $125.0 million of the 2025 Notes and retired the corresponding portion of the related warrants. See Note 8 - Convertible Senior Notes for additional details. Due to the Company’s net loss during the thirteen weeks ended June 26, 2022, dilutive excess shares 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 (loss) earnings per share | Share-based compensation-related weighted average securities outstanding not included in the computation of (loss) earnings per share because their effect was antidilutive were as follows, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (shares in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Stock options 2,563 — 1,870 682 Nonvested restricted stock units 485 9 299 41 Nonvested performance-based share units 596 465 475 448 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of compensation cost for stock-based payment arrangements, allocation of share-based compensation costs by plan | The Company recognized stock-based compensation expense as follows for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Performance-based share units (1) $ 2,840 $ 7,318 $ 5,459 $ 8,787 Restricted stock units 2,027 1,964 3,837 4,330 Stock options 55 469 432 1,334 $ 4,922 $ 9,751 $ 9,728 $ 14,451 ________________ (1) The thirteen and twenty-six weeks ended June 27, 2021 includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections of performance criteria set forth in the award agreements. |
Schedule of stock-based payment award, performance-based shares, valuation assumptions | Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated: TWENTY-SIX WEEKS ENDED JUNE 26, 2022 JUNE 27, 2021 Assumptions: Risk-free interest rate (1) 1.64 % 0.20 % Dividend yield (2) 2.31 % — % Volatility (3) 49.11 % 48.45 % Grant date fair value per unit (4) $ 26.10 $ 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) Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term. (3) Based on the historical volatility of the Company’s stock over the last seven years. |
Schedule of unrecognized compensation cost, nonvested awards | The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of June 26, 2022: UNRECOGNIZED COMPENSATION EXPENSE REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) Performance-based share units $ 18,045 1.7 Restricted stock units $ 11,342 1.9 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Other Current Assets, Net [Abstract] | |
Schedule of other current assets | Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Prepaid expenses $ 28,000 $ 21,194 Accounts receivable - gift cards, net 15,575 91,248 Accounts receivable - vendors, net 12,284 11,793 Accounts receivable - franchisees, net 1,720 1,701 Accounts receivable - other, net 19,184 18,353 Deferred gift card sales commissions 12,338 17,793 Company-owned life insurance policies 21,501 17,244 Other current assets, net 6,395 5,297 $ 116,997 $ 184,623 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding Long-term debt, net as of the periods indicated: JUNE 26, 2022 DECEMBER 26, 2021 (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) 400,000 2.74 % 80,000 3.75 % Total Senior Secured Credit Facility 400,000 275,000 2025 Notes (3) 105,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Finance lease liabilities 4,228 2,376 Less: unamortized debt discount and issuance costs (4) (7,176) (14,157) Less: finance lease interest (319) (154) Total debt, net 801,733 793,065 Less: current portion of long-term debt (1,511) (10,958) Long-term debt, net $ 800,222 $ 782,107 ________________ (1) Interest rate represents the weighted average interest rate as of December 26, 2021. (2) Interest rate represents the weighted average interest rate as of June 26, 2022 and the base rate option elected in anticipation of impending repayment as of December 26, 2021. (3) During the thirteen weeks ended June 26, 2022, the Company repurchased $125.0 million of the 2025 Notes. See Note 8 - Convertible Senior Notes for additional details. (4) In connection with the Amended Credit Agreement and the partial repurchase of the 2025 Notes, $5.7 million of debt issuance costs were written off during the thirteen weeks ended June 26, 2022. See Note 8 - Convertible Senior Notes |
Schedule of interest rate spread options | The interest rate spreads are as follows: BASE RATE ELECTION ADJUSTED TERM SOFR ELECTION Revolving credit facility 50 to 150 basis points over the Base Rate 150 to 250 basis points over the Adjusted Term SOFR |
Schedule of maturities of long-term debt | Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated: (dollars in thousands) JUNE 26, 2022 Year 1 $ 1,543 Year 2 1,389 Year 3 105,770 Year 4 400,306 Year 5 176 Thereafter 300,044 Total payments 809,228 Less: unamortized debt discount and issuance costs (7,176) Less: finance lease interest (319) Total principal payments $ 801,733 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Convertible Notes [Abstract] | |
Convertible senior notes balances | The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Long-term debt, net Principal $ 105,000 $ 230,000 Less: debt issuance costs (1) (2,321) (5,898) Net carrying amount $ 102,679 $ 224,102 ________________ (1) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. During the thirteen weeks ended June 26, 2022, the Company wrote off $2.8 million of debt issuance costs as a result of the 2025 Notes Partial Repurchase. |
Convertible senior notes interest expense | Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Coupon interest $ 2,597 $ 2,875 $ 5,472 $ 5,750 Debt issuance cost amortization 370 386 774 767 Total interest expense (1) $ 2,967 $ 3,261 $ 6,246 $ 6,517 ________________ (1) The effective rate of the 2025 Notes over their expected life is 5.85%. |
Other Long-term Liabilities, _2
Other Long-term Liabilities, Net (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | Other long-term liabilities, net, consisted of the following as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Accrued insurance liability $ 29,281 $ 31,517 Deferred payroll tax liabilities (1) — 27,302 Executive management deferred compensation obligations 19,098 23,543 Other long-term liabilities 40,111 42,880 $ 88,490 $ 125,242 _______________ (1) During the twenty-six weeks ended June 26, 2022, the Company reclassified $27.3 million of payroll taxes deferred under the CARES Act to current. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of repurchases of common stock | Following is a summary of the shares repurchased under the 2022 Share Repurchase Program during fiscal year 2022: (in thousands, except per share data) NUMBER OF SHARES AVERAGE REPURCHASE PRICE PER SHARE AMOUNT First fiscal quarter 551 $ 21.26 $ 11,702 Second fiscal quarter 1,761 $ 20.30 35,749 Total common stock repurchases (1) 2,312 $ 20.53 $ 47,451 ________________ (1) Subsequent to June 26, 2022, the Company repurchased 854 thousand shares of its common stock for $14.9 million under a Rule 10b5-1 plan through July 28, 2022. |
Dividends declared and paid | The Company declared and paid dividends per share during fiscal year 2022 as follows: (dollars in thousands, except per share data) DIVIDENDS PER SHARE AMOUNT First fiscal quarter $ 0.14 $ 12,559 Second fiscal quarter 0.14 12,418 Total cash dividends declared and paid $ 0.28 $ 24,977 |
Schedule of accumulated other comprehensive loss | Following are the components of AOCL as of the periods indicated: (dollars in thousands) JUNE 26, 2022 DECEMBER 26, 2021 Foreign currency translation adjustment $ (172,257) $ (195,480) Unrealized loss on derivatives, net of tax (3,797) (10,509) Accumulated other comprehensive loss $ (176,054) $ (205,989) |
Other comprehensive income | Following are the components of Other comprehensive income attributable to Bloomin’ Brands for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Foreign currency translation adjustment $ 11,940 $ 10,015 $ 23,223 $ 3,440 Unrealized (loss) gain on derivatives, net of tax — (128) 573 (170) Reclassification of adjustments for loss on derivatives included in Net (loss) income, net of tax (1) 273 1,514 954 4,517 Impact of terminated interest rate swaps included in Net (loss) income, net of tax (1) 2,164 1,471 5,185 1,471 Total gain on derivatives, net of tax 2,437 2,857 6,712 5,818 Other comprehensive income attributable to Bloomin’ Brands $ 14,377 $ 12,872 $ 29,935 $ 9,258 ________________ (1) See Note 11 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications and the terminated swaps. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
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 period indicated: (dollars in thousands) DECEMBER 26, 2021 CONSOLIDATED BALANCE SHEET CLASSIFICATION Interest rate swaps - liability (1) $ 3,056 Accrued and other current liabilities Accrued interest $ 276 Accrued and other current liabilities ____________________ (1) See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivatives instruments statements of financial performance, location | The following table summarizes the effects of the swap agreements on Net (loss) income for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Interest rate swap agreements: Interest rate swap expense recognized in Interest expense, net $ (367) $ (2,038) $ (1,284) $ (6,082) Income tax benefit recognized in Provision for income taxes 94 524 330 1,565 Net effects of interest rate swap agreements $ (273) $ (1,514) $ (954) $ (4,517) Terminated interest rate swap agreements: Terminated interest rate swap expense recognized in Interest expense, net $ (2,913) $ (1,981) $ (6,980) $ (1,981) Income tax benefit recognized in Provision for income taxes 749 510 1,795 510 Net effects of terminated interest rate swap agreements $ (2,164) $ (1,471) $ (5,185) $ (1,471) Total net effects on Net (loss) income $ (2,437) $ (2,985) $ (6,139) $ (5,988) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Leases [Abstract] | |
Assets and liabilities, lessee | The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION JUNE 26, 2022 DECEMBER 26, 2021 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,122,317 $ 1,130,873 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 3,782 2,074 Total lease assets, net $ 1,126,099 $ 1,132,947 Current operating lease liabilities (2) Accrued and other current liabilities $ 178,817 $ 177,028 Current finance lease liabilities Current portion of long-term debt 1,511 958 Non-current operating lease liabilities (2) Non-current operating lease liabilities 1,168,418 1,178,998 Non-current finance lease liabilities Long-term debt, net 2,398 1,264 Total lease liabilities $ 1,351,144 $ 1,358,248 ________________ (1) Net of accumulated amortization of $4.1 million and $3.3 million as of June 26, 2022 and December 26, 2021, respectively. (2) Excludes current accrued contingent percentage rent of $4.3 million and $3.5 million, as of June 26, 2022 and December 26, 2021, respectively, and immaterial current and non-current COVID-19-related deferred rent accruals. |
Lease, cost | Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME CLASSIFICATION THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Operating leases (1) Other restaurant operating $ 45,579 $ 43,763 $ 90,940 $ 88,555 Variable lease cost (2) Other restaurant operating 1,619 731 3,502 1,508 Finance leases: Amortization of leased assets Depreciation and amortization 356 258 693 520 Interest on lease liabilities Interest expense, net 44 31 76 67 Sublease revenue Franchise and other revenues (2,436) (2,825) (4,994) (3,660) Lease costs, net $ 45,162 $ 41,958 $ 90,217 $ 86,990 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.1 million and $3.2 million for the thirteen weeks ended June 26, 2022 and June 27, 2021, respectively, and $6.1 million and $6.7 million for the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively, which is included in General and administrative expense. (2) Includes COVID-19-related rent abatements for the thirteen and twenty-six weeks ended June 27, 2021. |
Cash flow, operating activities | The following table is a summary of cash flow impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated: TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 97,255 $ 105,323 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement inputs and valuation techniques | Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: JUNE 26, 2022 DECEMBER 26, 2021 (dollars in thousands) TOTAL LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 13,583 $ 13,583 $ — $ 6,714 $ 6,714 $ — Money market funds 10,670 10,670 — 9,039 9,039 — Restricted cash equivalents: Money market funds 101 101 — 1,472 1,472 — Total asset recurring fair value measurements $ 24,354 $ 24,354 $ — $ 17,225 $ 17,225 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ — $ — $ — $ 3,056 $ — $ 3,056 Total liability recurring fair value measurements $ — $ — $ — $ 3,056 $ — $ 3,056 |
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, 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 tables summarize the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated: THIRTEEN WEEKS ENDED JUNE 27, 2021 (dollars in thousands) REMAINING CARRYING VALUE (1) TOTAL IMPAIRMENT Operating lease right-of-use assets $ 5,687 $ 962 Property, fixtures and equipment 8,192 4,460 $ 13,879 $ 5,422 TWENTY-SIX WEEKS ENDED JUNE 27, 2021 (dollars in thousands) REMAINING CARRYING VALUE (1) TOTAL IMPAIRMENT Operating lease right-of-use assets $ 7,651 $ 1,512 Property, fixtures and equipment 8,928 6,052 $ 16,579 $ 7,564 ________________ (1) All asset carrying values measured using discounted cash flow models (Level 3). |
Schedule of carrying value and fair value of senior secured credit facilities and other unsecured debt | The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: JUNE 26, 2022 DECEMBER 26, 2021 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 $ 400,000 $ 390,000 $ 80,000 $ 76,926 2025 Notes $ 105,000 $ 177,031 $ 230,000 $ 447,615 2029 Notes $ 300,000 $ 255,000 $ 300,000 $ 304,395 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 (Loss) income before provision for income taxes $ (50,144) $ 107,574 $ 43,479 $ 183,965 Provision for income taxes $ 11,536 $ 22,688 $ 27,465 $ 29,281 Effective income tax rate (23.0) % 21.1 % 63.2 % 15.9 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following is a summary of reporting segments: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. |
Reconciliation of revenue from segments to consolidated | The following table is a summary of Total revenues by segment, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Total revenues U.S. $ 998,627 $ 1,003,058 $ 2,035,034 $ 1,907,976 International 126,535 74,308 230,663 156,863 Total revenues $ 1,125,162 $ 1,077,366 $ 2,265,697 $ 2,064,839 |
Reconciliation of operating profit from segments to consolidated | The following table is a reconciliation of segment income from operations to (Loss) income before provision for income taxes, for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Segment income from operations U.S. $ 104,620 $ 165,297 $ 236,846 $ 287,032 International 14,126 2,470 23,010 6,007 Total segment income from operations 118,746 167,767 259,856 293,039 Unallocated corporate operating expense (31,027) (43,130) (64,881) (77,404) Total income from operations 87,719 124,637 194,975 215,635 Loss on extinguishment and modification of debt (107,630) (2,073) (107,630) (2,073) Loss on fair value adjustment of derivatives, net (17,685) — (17,685) — Other income, net — — — 21 Interest expense, net (12,548) (14,990) (26,181) (29,618) (Loss) income before provision for income taxes $ (50,144) $ 107,574 $ 43,479 $ 183,965 |
Reconciliation of segment depreciation and amortization | The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (dollars in thousands) JUNE 26, 2022 JUNE 27, 2021 JUNE 26, 2022 JUNE 27, 2021 Depreciation and amortization U.S. $ 33,544 $ 33,578 $ 68,303 $ 67,223 International 6,019 5,566 11,556 11,286 Corporate 1,694 1,395 3,173 3,256 Total depreciation and amortization $ 41,257 $ 40,539 $ 83,032 $ 81,765 |
Description of the Business a_3
Description of the Business and Basis of Presentation - Description of the Business (Details) | Jun. 26, 2022 restraurant_concept |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restaurant concepts in portfolio | 4 |
Revenue Recognition (Principal
Revenue Recognition (Principal Revenue Transactions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | $ 1,125,162 | $ 1,077,366 | $ 2,265,697 | $ 2,064,839 | ||
Restaurant sales | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 1,108,918 | 1,055,227 | 2,232,493 | 2,034,678 | ||
Franchise and other revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 16,244 | 22,139 | 33,204 | 30,161 | ||
Franchise revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | 12,596 | 12,221 | 26,002 | 19,010 | ||
Other revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Restaurant sales, franchise and other revenues | $ 3,648 | 9,918 | [1] | $ 7,202 | 11,151 | [1] |
Recognized benefit related to Brazilian tax ruling | $ 6,300 | $ 6,300 | ||||
[1]During the thirteen and twenty-six weeks ended June 27, 2021, the Company recognized $6.3 million of other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base of Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes. The amount recognized as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest. |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | $ 1,125,162 | $ 1,077,366 | $ 2,265,697 | $ 2,064,839 | ||||
U.S. segment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 998,627 | 1,003,058 | 2,035,034 | 1,907,976 | ||||
International segment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 126,535 | 74,308 | 230,663 | 156,863 | ||||
Restaurant sales | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 1,108,918 | 1,055,227 | 2,232,493 | 2,034,678 | ||||
Restaurant sales | U.S. segment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 985,927 | 990,293 | 2,009,562 | 1,890,352 | ||||
Restaurant sales | International segment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 122,991 | 64,934 | 222,931 | 144,326 | ||||
Restaurant sales | Outback Steakhouse | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 573,563 | 579,096 | 1,168,956 | 1,126,291 | ||||
Restaurant sales | Carrabba’s Italian Grill | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 170,190 | 171,408 | 345,818 | 329,094 | ||||
Restaurant sales | Bonefish Grill | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 145,472 | 149,036 | 296,888 | 276,010 | ||||
Restaurant sales | Fleming’s Prime Steakhouse & Wine Bar | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 93,933 | 88,101 | 191,595 | 154,412 | ||||
Restaurant sales | Other - U.S. | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 2,769 | 2,652 | 6,305 | 4,545 | ||||
Restaurant sales | Outback Brazil | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 100,647 | 43,310 | 185,948 | 104,158 | ||||
Restaurant sales | Other - international | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 22,344 | [1] | 21,624 | [1] | 36,983 | [2] | 40,168 | [2] |
Franchise revenues | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 12,596 | 12,221 | 26,002 | 19,010 | ||||
Franchise revenues | U.S. segment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 9,134 | 9,257 | 18,436 | 12,960 | ||||
Franchise revenues | International segment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 3,462 | 2,964 | 7,566 | 6,050 | ||||
Franchise revenues | Outback Steakhouse | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 8,156 | 8,418 | 16,615 | 11,374 | ||||
Franchise revenues | Carrabba’s Italian Grill | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 797 | 665 | 1,458 | 1,282 | ||||
Franchise revenues | Bonefish Grill | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 173 | 174 | 350 | 304 | ||||
Franchise revenues | Fleming’s Prime Steakhouse & Wine Bar | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | 0 | ||||
Franchise revenues | Other - U.S. | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 8 | 0 | 13 | 0 | ||||
Franchise revenues | Outback Brazil | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | 0 | ||||
Franchise revenues | Other - international | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Restaurant sales, franchise and other revenues | $ 3,462 | $ 2,964 | $ 7,566 | $ 6,050 | ||||
[1]Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily includes revenues from franchised Outback Steakhouse restaurants.[2]Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily includes revenues from franchised Outback Steakhouse restaurants. |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities Summary) (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 |
Revenue Recognition [Line Items] | ||||||
Deferred gift card sales commissions, current | $ 12,338 | $ 13,033 | $ 17,793 | $ 12,548 | $ 13,502 | $ 19,300 |
Unearned revenue | 309,863 | 398,795 | ||||
Deferred gift card revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 303,544 | $ 314,974 | 387,945 | $ 293,955 | $ 306,075 | $ 373,048 |
Deferred gift card sales commissions | ||||||
Revenue Recognition [Line Items] | ||||||
Deferred gift card sales commissions, current | 12,338 | 17,793 | ||||
Unearned revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 309,863 | 398,795 | ||||
Unearned revenue | Deferred gift card revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 303,544 | 387,945 | ||||
Unearned revenue | Deferred loyalty revenue | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 4,309 | 9,386 | ||||
Unearned revenue | Deferred franchise fees | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 440 | 443 | ||||
Unearned revenue | Other | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenue | 1,570 | 1,021 | ||||
Other long-term liabilities, net | Deferred franchise fees | ||||||
Revenue Recognition [Line Items] | ||||||
Deferred franchise fees, noncurrent | $ 4,185 | $ 4,280 |
Revenue Recognition (Contract_2
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Commissions Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Balance, beginning of the period | $ 13,033 | $ 13,502 | $ 17,793 | $ 19,300 |
Deferred gift card sales commissions amortization | (5,441) | (5,711) | (13,458) | (14,436) |
Deferred gift card sales commissions capitalization | 5,436 | 5,297 | 9,605 | 8,796 |
Other | (690) | (540) | (1,602) | (1,112) |
Balance, end of the period | $ 12,338 | $ 12,548 | $ 12,338 | $ 12,548 |
Revenue Recognition (Contract_3
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Revenue Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Revenue Recognition [Line Items] | ||||
Balance, beginning of the period | $ 398,795 | |||
Balance, end of the period | $ 309,863 | 309,863 | ||
Deferred gift card revenue | ||||
Revenue Recognition [Line Items] | ||||
Balance, beginning of the period | 314,974 | $ 306,075 | 387,945 | $ 373,048 |
Gift card sales | 65,174 | 63,921 | 115,454 | 108,090 |
Gift card redemptions | (72,428) | (71,859) | (189,050) | (176,799) |
Gift card breakage | (4,176) | (4,182) | (10,805) | (10,384) |
Balance, end of the period | $ 303,544 | $ 293,955 | $ 303,544 | $ 293,955 |
Impairments and Exit Costs (Pro
Impairments and Exit Costs (Provision for Impaired Assets and Restaurant Closings) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Provision for impaired assets and restaurant closings | $ 193,000 | $ 5,177,000 | $ 2,032,000 | $ 7,377,000 |
Impairment charges | 0 | 0 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | 0 | ||
Provision for impaired assets and restaurant closings | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment losses | 5,422,000 | 7,564,000 | ||
Restaurant closure expenses | (245,000) | (187,000) | ||
Provision for impaired assets and restaurant closings | Corporate, non-segment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment losses | 209,000 | 238,000 | ||
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 | 5,768,000 | 7,174,000 | ||
Restaurant closure expenses | (92,000) | (34,000) | ||
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 | (555,000) | 152,000 | ||
Restaurant closure expenses | $ (153,000) | $ (153,000) |
Impairments and Exit Costs (Lea
Impairments and Exit Costs (Lease Liability Rollforward) (Details) - Facility closing $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of the period | $ 8,485 | |
Cash payments | (2,308) | |
Accretion | 304 | |
Adjustments | (323) | |
Balance, end of the period | 6,158 | [1] |
Accrued and other current liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, current | 1,600 | |
Non-current operating lease liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, noncurrent | $ 4,600 | |
[1]As of June 26, 2022, the Company had exit-related accruals related to certain closure and restructuring initiatives of $1.6 million recorded in Accrued and other current liabilities and $4.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet |
(Loss) Earnings Per Share (2025
(Loss) Earnings Per Share (2025 Notes Impact) (Details) - 2025 Notes - Convertible debt - USD ($) | 3 Months Ended | ||
Jun. 26, 2022 | May 25, 2022 | May 08, 2020 | |
Debt Instrument [Line Items] | |||
Debt instrument, convertible, conversion price | $ 11.74 | $ 11.89 | |
Class of warrant or right, exercise price of warrants or rights | $ 16.43 | $ 16.64 | |
2025 Notes repurchase amount | $ 125,000,000 |
(Loss) Earnings Per Share (Basi
(Loss) Earnings Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | ||||
Schedule of (loss) earnings per share, basic and diluted [Line Items] | |||||||
Net (loss) income attributable to Bloomin’ Brands | $ (63,635) | $ 82,545 | $ 11,876 | $ 151,407 | |||
Convertible senior notes if-converted method interest adjustment, net of tax | 0 | 0 | 0 | 691 | [1] | ||
Diluted net (loss) income attributable to Bloomin’ Brands | $ (63,635) | $ 82,545 | $ 11,876 | $ 152,098 | |||
Basic weighted average common shares outstanding | 88,898 | 89,075 | 89,127 | 88,721 | |||
Effect of diluted securities: | |||||||
Convertible senior notes | 0 | [2] | 11,231 | 8,253 | [2] | 13,212 | [1] |
Warrants | 0 | [2] | 7,983 | 4,025 | [2] | 6,879 | |
Diluted weighted average common shares outstanding | 88,898 | 109,805 | 102,045 | 110,223 | |||
Basic (loss) earnings per share (in USD per share) | $ (0.72) | $ 0.93 | $ 0.13 | $ 1.71 | |||
Diluted (loss) earnings per share (in USD per share) | $ (0.72) | $ 0.75 | $ 0.12 | $ 1.38 | |||
Stock options | |||||||
Effect of diluted securities: | |||||||
Dilutive shares | 0 | 1,165 | 305 | 937 | |||
Nonvested restricted stock units | |||||||
Effect of diluted securities: | |||||||
Dilutive shares | 0 | 351 | 192 | 427 | |||
Nonvested performance-based share units | |||||||
Effect of diluted securities: | |||||||
Dilutive shares | 0 | 0 | 143 | 47 | |||
[1]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 the 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.[2] During the thirteen weeks ended June 26, 2022, the Company repurchased $125.0 million of the 2025 Notes and retired the corresponding portion of the related warrants. See Note 8 - Convertible Senior Notes for additional details. Due to the Company’s net loss during the thirteen weeks ended June 26, 2022, dilutive excess shares and warrants were excluded from the computation of diluted earnings per share as their effect would be antidilutive. |
(Loss) Earnings Per Share (Anti
(Loss) Earnings Per Share (Antidilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Stock options | ||||
Antidilutive securities excluded from computation of (loss) earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of (loss) earnings per share (in shares) | 2,563 | 0 | 1,870 | 682 |
Nonvested restricted stock units | ||||
Antidilutive securities excluded from computation of (loss) earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of (loss) earnings per share (in shares) | 485 | 9 | 299 | 41 |
Nonvested performance-based share units | ||||
Antidilutive securities excluded from computation of (loss) earnings per share [Line Items] | ||||
Antidilutive securities not included in the computation of (loss) earnings per share (in shares) | 596 | 465 | 475 | 448 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 4,922 | $ 9,751 | $ 9,728 | $ 14,451 | ||
Performance-based share units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 2,840 | 7,318 | [1] | 5,459 | 8,787 | [1] |
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 2,027 | 1,964 | 3,837 | 4,330 | ||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 55 | $ 469 | $ 432 | $ 1,334 | ||
[1]The thirteen and twenty-six weeks ended June 27, 2021 includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections of performance criteria set forth in the award agreements. |
Stock-based Compensation Plan_3
Stock-based Compensation Plans (Assumptions Used in the Monte Carlo Simulation Model and the Grant Date Fair Value of PSUs Granted) (Details) - Nonvested performance-based share units - $ / shares shares in Millions | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Jun. 26, 2022 | Jun. 27, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.5 | |||
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 1 | 75% | |||
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 2 | 100% | |||
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 3 | 125% | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | [1] | 1.64% | 0.20% | |
Dividend yield | [2] | 2.31% | 0% | |
Volatility | [3] | 49.11% | 48.45% | |
Grant date fair value per unit (in USD per share) | [4] | $ 26.10 | $ 29.73 | |
Share-based compensation arrangement by share-based payment award, stock price premium, percentage | 7.90% | 14.30% | ||
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% | |||
[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]Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term.[3]Based on the historical volatility of the Company’s stock over the last seven years.[4]Represents a premium above the per share value of the Company’s common stock for the Relative TSR modifier as of the grant date of 7.9% and 14.3% for grants during the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively. |
Stock-based Compensation Plan_4
Stock-based Compensation Plans (Unrecognized Stock Compensation Expense and the Remaining Weighted-Average Vesting Period) (Details) $ in Thousands | 6 Months Ended |
Jun. 26, 2022 USD ($) | |
Performance-based share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock-based awards other than options | $ 18,045 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 1 year 8 months 12 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation, nonvested awards, compensation expense not yet recognized, stock-based awards other than options | $ 11,342 |
Employee service share-based compensation, nonvested awards, compensation expense not yet recognized, period for recognition | 1 year 10 months 24 days |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Prepaid expenses | $ 28,000 | $ 21,194 | ||||
Deferred gift card sales commissions | 12,338 | $ 13,033 | 17,793 | $ 12,548 | $ 13,502 | $ 19,300 |
Company-owned life insurance policies | 21,501 | 17,244 | ||||
Other current assets, net | 6,395 | 5,297 | ||||
Total other current assets, net | 116,997 | 184,623 | ||||
Accounts receivable - gift cards, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | 15,575 | 91,248 | ||||
Accounts receivable - vendors, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | 12,284 | 11,793 | ||||
Accounts receivable - franchisees, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | 1,720 | 1,701 | ||||
Accounts receivable - other, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | $ 19,184 | $ 18,353 |
Long-term Debt, Net (Schedule o
Long-term Debt, Net (Schedule of Long-term Debt, Net) (Details) - USD ($) | 3 Months Ended | ||||
Jun. 26, 2022 | Dec. 26, 2021 | Jun. 27, 2021 | |||
Debt Instrument [Line Items] | |||||
Finance lease liabilities | $ 4,228,000 | $ 2,376,000 | |||
Less: unamortized debt discount and issuance costs | (7,176,000) | [1] | (14,157,000) | ||
Less: finance lease interest | (319,000) | (154,000) | |||
Total debt, net | 801,733,000 | 793,065,000 | |||
Less: current portion of long-term debt | (1,511,000) | (10,958,000) | |||
Long-term debt, net | 800,222,000 | 782,107,000 | |||
Senior Secured Credit Facility and 2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Write off of deferred debt issuance cost | 5,700,000 | ||||
Secured debt | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 400,000,000 | 275,000,000 | |||
Secured debt | Term loan A facility | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | $ 195,000,000 | |||
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 | Revolving credit facility | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, amount outstanding | $ 400,000,000 | $ 80,000,000 | |||
Debt instrument, effective interest rate | [3] | 2.74% | 3.75% | ||
Convertible debt | 2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 105,000,000 | [4] | $ 230,000,000 | ||
Debt instrument, effective interest rate | 5.85% | 5.85% | |||
Debt instrument, interest rate, stated percentage | 5% | 5% | |||
2025 Notes repurchase amount | $ 125,000,000 | ||||
Write off of deferred debt issuance cost | 2,800,000 | ||||
Unsecured debt | 2029 Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 300,000,000 | $ 300,000,000 | |||
Debt instrument, interest rate, stated percentage | 5.13% | 5.13% | |||
[1] In connection with the Amended Credit Agreement and the partial repurchase of the 2025 Notes, $5.7 million of debt issuance costs were written off during the thirteen weeks ended June 26, 2022. See Note 8 - Convertible Senior Notes During the thirteen weeks ended June 26, 2022, the Company repurchased $125.0 million of the 2025 Notes. See Note 8 - Convertible Senior Notes |
Long-term Debt, Net (Amended Cr
Long-term Debt, Net (Amended Credit Agreement) (Details) - USD ($) | 6 Months Ended | |||
Apr. 26, 2022 | Jun. 26, 2022 | Jun. 27, 2021 | Apr. 16, 2021 | |
Debt Instrument [Line Items] | ||||
Proceeds from borrowings on revolving credit facilities | $ 624,500,000 | $ 286,000,000 | ||
Senior Secured Credit Facility | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||
Term loan A facility | Senior Secured Credit Facility | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Principal | 200,000,000 | |||
Revolving credit facility | Secured debt | Adjusted term SOFR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Revolving credit facility | Secured debt | Adjusted term SOFR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% | |||
Revolving credit facility | Secured debt | Base rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Revolving credit facility | Secured debt | Base rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Revolving credit facility | Senior Secured Credit Facility | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 800,000,000 | ||
Proceeds from borrowings on revolving credit facilities | $ 192,500,000 | |||
Amended Credit Agreement | Secured debt | Base rate option 2 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 50% | |||
Amended Credit Agreement | Secured debt | Base rate option 3 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1% | |||
Amended Credit Agreement | Secured debt | Adjusted term SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.10% | |||
Amended Credit Agreement | Secured debt | Adjusted term SOFR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 0% |
Long-term Debt, Net (Maturities
Long-term Debt, Net (Maturities-Table) (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 | |
Debt Disclosure [Abstract] | |||
Year 1 | $ 1,543 | ||
Year 2 | 1,389 | ||
Year 3 | 105,770 | ||
Year 4 | 400,306 | ||
Year 5 | 176 | ||
Thereafter | 300,044 | ||
Total payments | 809,228 | ||
Less: unamortized debt discount and issuance costs | (7,176) | [1] | $ (14,157) |
Less: finance lease interest | (319) | (154) | |
Total principal payments | $ 801,733 | $ 793,065 | |
[1] In connection with the Amended Credit Agreement and the partial repurchase of the 2025 Notes, $5.7 million of debt issuance costs were written off during the thirteen weeks ended June 26, 2022. See Note 8 - Convertible Senior Notes |
Convertible Senior Notes (Conve
Convertible Senior Notes (Convertible Notes Text) (Details) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | ||||||
May 25, 2022 USD ($) $ / shares shares | May 08, 2020 USD ($) $ / shares shares | Jun. 26, 2022 USD ($) | Jun. 27, 2021 USD ($) | Jun. 26, 2022 USD ($) | Jun. 27, 2021 USD ($) | Dec. 26, 2021 USD ($) | May 12, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Repayments of convertible senior notes | $ 196,919,000 | $ 0 | ||||||
Loss on extinguishment and modification of debt | $ (107,630,000) | $ (2,073,000) | (107,630,000) | (2,073,000) | ||||
Loss on fair value adjustment of derivatives, net | (17,685,000) | $ 0 | (17,685,000) | $ 0 | ||||
Issuance of common stock from repurchase of convertible senior notes | 48,565,000 | 48,565,000 | ||||||
Additional paid-in capital | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of common stock from repurchase of convertible senior notes | 48,542,000 | 48,542,000 | ||||||
Convertible debt | 2025 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
2025 Notes repurchase amount | 125,000,000 | |||||||
Repayments of convertible senior notes | $ 196,900,000 | |||||||
Issuance of common stock from repurchase of convertible senior notes (in shares) | shares | 2,300 | |||||||
Loss on extinguishment and modification of debt | 104,700,000 | |||||||
Loss on fair value adjustment of derivatives, net | 17,700,000 | |||||||
Debt instrument, convertible, conversion ratio | 85.185 | 84.122 | ||||||
Debt instrument, convertible principal amount | $ 1,000 | $ 1,000 | ||||||
Debt conversion, converted instrument, shares to be issued | shares | 8,944 | 19,348 | ||||||
2025 Notes, principal amount | 105,000,000 | $ 105,000,000 | $ 230,000,000 | $ 230,000,000 | ||||
Debt instrument, convertible, conversion price | $ / shares | $ 11.74 | $ 11.89 | ||||||
Convertible debt | 2025 Notes | Additional paid-in capital | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of common stock from repurchase of convertible senior notes | $ 48,500,000 |
Convertible Senior Notes (Con_2
Convertible Senior Notes (Convertible Senior Notes Balances) (Details) - 2025 Notes - Convertible debt - USD ($) | 3 Months Ended | |||
Jun. 26, 2022 | Dec. 26, 2021 | May 12, 2020 | ||
Debt Instrument [Line Items] | ||||
Principal | $ 105,000,000 | $ 230,000,000 | $ 230,000,000 | |
Less: debt issuance costs | [1] | (2,321,000) | (5,898,000) | |
Net carrying amount | 102,679,000 | $ 224,102,000 | ||
Write off of deferred debt issuance cost | $ 2,800,000 | |||
[1]Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. During the thirteen weeks ended June 26, 2022, the Company wrote off $2.8 million of debt issuance costs as a result of the 2025 Notes Partial Repurchase. |
Convertible Senior Notes (Con_3
Convertible Senior Notes (Convertible Senior Notes Interest Expense) (Details) - 2025 Notes - Convertible debt - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | ||
Debt Instrument [Line Items] | |||||
Coupon interest | $ 2,597 | $ 2,875 | $ 5,472 | $ 5,750 | |
Debt issuance cost amortization | 370 | 386 | 774 | 767 | |
Total interest expense | [1] | $ 2,967 | $ 3,261 | $ 6,246 | $ 6,517 |
Debt instrument, effective interest rate | 5.85% | 5.85% | 5.85% | 5.85% | |
[1] The effective rate of the 2025 Notes over their expected life is 5.85%. |
Convertible Senior Notes (Con_4
Convertible Senior Notes (Convertible Notes Hedge Transactions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 26, 2022 | Jun. 27, 2021 | May 25, 2022 | May 08, 2020 | |
Debt Instrument [Line Items] | |||||
Proceeds from retirement of convertible senior note hedges | $ 131,869 | $ 0 | |||
Payments for retirement of warrants | (114,825) | $ 0 | |||
Retirement of convertible senior note hedges | $ (112,956) | (112,956) | |||
Retirement of warrants | 97,617 | 97,617 | |||
Additional paid-in capital | |||||
Debt Instrument [Line Items] | |||||
Retirement of convertible senior note hedges | (112,956) | (112,956) | |||
Retirement of warrants | 97,617 | $ 97,617 | |||
Convertible debt | 2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Proceeds from retirement of convertible senior note hedges | 131,900 | ||||
Payments for retirement of warrants | (114,800) | ||||
Class of warrant or right, exercise price of warrants or rights | $ 16.43 | $ 16.64 | |||
Convertible debt | 2025 Notes | Additional paid-in capital | |||||
Debt Instrument [Line Items] | |||||
Retirement of convertible senior note hedges | 113,000 | ||||
Retirement of warrants | $ (97,600) |
Other Long-term Liabilities, _3
Other Long-term Liabilities, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 26, 2022 | Dec. 26, 2021 | ||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Accrued insurance liability | $ 29,281 | $ 31,517 | |
Deferred payroll tax liabilities | 0 | [1] | 27,302 |
Executive management deferred compensation obligations | 19,098 | 23,543 | |
Other long-term liabilities | 40,111 | 42,880 | |
Other long-term liabilities, net | 88,490 | $ 125,242 | |
COVID-19 pandemic | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Decrease in deferred payroll taxes | $ (27,300) | ||
[1]During the twenty-six weeks ended June 26, 2022, the Company reclassified $27.3 million of payroll taxes deferred under the CARES Act to current. |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 28, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Jun. 26, 2022 | Feb. 08, 2022 | ||
Share Repurchase Program [Line Items] | ||||||
Repurchase and retirement of common stock | $ 35,749,000 | $ 47,451,000 | ||||
2022 share repurchase program | ||||||
Share Repurchase Program [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 125,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 77,500,000 | $ 77,500,000 | ||||
Repurchase and retirement of common stock (in shares) | 1,761 | 551 | 2,312 | [1] | ||
Stock repurchase program, average price paid, per share | $ 20.30 | $ 21.26 | $ 20.53 | [1] | ||
Repurchase and retirement of common stock | $ 35,749,000 | $ 11,702,000 | $ 47,451,000 | [1] | ||
2022 share repurchase program | Subsequent event | ||||||
Share Repurchase Program [Line Items] | ||||||
Repurchase and retirement of common stock (in shares) | 854 | |||||
Repurchase and retirement of common stock | $ 14,900,000 | |||||
[1]Subsequent to June 26, 2022, the Company repurchased 854 thousand shares of its common stock for $14.9 million under a Rule 10b5-1 plan through July 28, 2022. |
Stockholders' Equity (Dividend)
Stockholders' Equity (Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Jun. 26, 2022 | |
Dividends payable [Line Items] | ||||
Common stock, dividends, per share, cash paid | $ 0.14 | $ 0.14 | $ 0.28 | |
Dividends, common stock, cash | $ 12,418 | $ 12,559 | $ 24,977 | |
Common stock, dividends per share | $ 0.14 | $ 0.28 | ||
Subsequent event | ||||
Dividends payable [Line Items] | ||||
Common stock, dividends per share | $ 0.14 | |||
Dividends payable, date to be paid | Aug. 24, 2022 | |||
Dividends payable, date of record | Aug. 10, 2022 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (176,054) | $ (205,989) |
Foreign currency translation adjustment | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | (172,257) | (195,480) |
Unrealized loss on derivatives, net of tax | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (3,797) | $ (10,509) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | ||
Accumulated other comprehensive income [Line Items] | |||||
Unrealized (loss) gain on derivatives, net of tax | $ 0 | $ (128) | $ 573 | $ (170) | |
Reclassification of adjustments for loss on derivatives included in Net (loss) income, net of tax | 273 | 1,514 | 954 | 4,517 | |
Impact of terminated interest rate swaps included in Net (loss) income, net of tax | 2,164 | 1,471 | 5,185 | 1,471 | |
Other comprehensive income attributable to Bloomin’ Brands | 14,377 | 12,872 | 29,935 | 9,258 | |
Bloomin' Brands | |||||
Accumulated other comprehensive income [Line Items] | |||||
Foreign currency translation adjustment | 11,940 | 10,015 | 23,223 | 3,440 | |
Unrealized (loss) gain on derivatives, net of tax | 0 | (128) | 573 | (170) | |
Reclassification of adjustments for loss on derivatives included in Net (loss) income, net of tax | [1] | 273 | 1,514 | 954 | 4,517 |
Impact of terminated interest rate swaps included in Net (loss) income, net of tax | [1] | 2,164 | 1,471 | 5,185 | 1,471 |
Total gain on derivatives, net of tax | 2,437 | 2,857 | 6,712 | 5,818 | |
Other comprehensive income attributable to Bloomin’ Brands | $ 14,377 | $ 12,872 | $ 29,935 | $ 9,258 | |
[1] See Note 11 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications and the terminated swaps. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Cash Flow Hedges of Interest Rate Risk) (Details) - Designated as hedging instrument - Interest rate swap | 6 Months Ended | ||
Oct. 25, 2018 USD ($) counterparty | Jun. 26, 2022 USD ($) | Dec. 26, 2021 USD ($) counterparty | |
Derivative [Line Items] | |||
Derivative agreements, number of counterparties | counterparty | 12 | 2 | |
Derivative, notional amount | $ 550,000,000 | $ 125,000,000 | |
Derivative, maturity date | Nov. 30, 2022 | ||
Derivative, average fixed interest rate | 3.04% | ||
Interest expense | |||
Derivative [Line Items] | |||
Cash flow hedge loss to be reclassified through maturity | $ 5,200,000 | ||
London Interbank Offered Rate (LIBOR) swap rate | |||
Derivative [Line Items] | |||
Derivative, variable interest rate | one-month LIBOR |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Fair Value and Classification of Interest Rate Swaps) (Details) - Interest rate swap - Designated as hedging instrument - Accrued and other current liabilities $ in Thousands | Dec. 26, 2021 USD ($) | |
Derivative [Line Items] | ||
Interest rate swaps - liability | $ 3,056 | [1] |
Accrued interest | $ 276 | |
[1] See Note 13 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Effects of the Interest Rate Swaps) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Derivative [Line Items] | ||||
Net effects of terminated interest rate swap agreements | $ 2,164 | $ 1,471 | $ 5,185 | $ 1,471 |
Interest rate swap | Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Net effects of interest rate swap agreements | (273) | (1,514) | (954) | (4,517) |
Net effects of terminated interest rate swap agreements | (2,164) | (1,471) | (5,185) | (1,471) |
Total net effects on Net (loss) income | (2,437) | (2,985) | (6,139) | (5,988) |
Interest rate swap | Designated as hedging instrument | Interest expense | ||||
Derivative [Line Items] | ||||
Interest rate swap expense recognized in Interest expense, net | (367) | (2,038) | (1,284) | (6,082) |
Terminated interest rate swap expense recognized in Interest expense, net | (2,913) | (1,981) | (6,980) | (1,981) |
Interest rate swap | Designated as hedging instrument | Income tax expense | ||||
Derivative [Line Items] | ||||
Income tax benefit recognized in Provision for income taxes | 94 | 524 | 330 | 1,565 |
Income tax benefit recognized in Provision for income taxes | $ 749 | $ 510 | $ 1,795 | $ 510 |
Leases (Lessee, Lease Assets an
Leases (Lessee, Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 1,122,317 | $ 1,130,873 | |
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] | $ 3,782 | $ 2,074 |
Total lease assets, net | $ 1,126,099 | $ 1,132,947 | |
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] | $ 178,817 | $ 177,028 |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt | |
Current finance lease liabilities | $ 1,511 | $ 958 | |
Non-current operating lease liabilities | [2] | $ 1,168,418 | $ 1,178,998 |
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Long-term debt, net | Long-term debt, net | |
Non-current finance lease liabilities | $ 2,398 | $ 1,264 | |
Total lease liabilities | 1,351,144 | 1,358,248 | |
Accumulated amortization | (4,100) | (3,300) | |
Accrued contingent percentage rent | $ 4,300 | $ 3,500 | |
[1]Net of accumulated amortization of $4.1 million and $3.3 million as of June 26, 2022 and December 26, 2021, respectively.[2]Excludes current accrued contingent percentage rent of $4.3 million and $3.5 million, as of June 26, 2022 and December 26, 2021, respectively, and immaterial current and non-current COVID-19-related deferred rent accruals. |
Leases (Lessee, Lease Costs) (D
Leases (Lessee, Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | ||||
Schedule of Lease Costs [Line Items] | |||||||
Operating leases | [1] | $ 45,579 | $ 43,763 | $ 90,940 | $ 88,555 | ||
Variable lease cost | 1,619 | 731 | [2] | 3,502 | 1,508 | [2] | |
Amortization of leased assets | 356 | 258 | 693 | 520 | |||
Interest on lease liabilities | 44 | 31 | 76 | 67 | |||
Sublease revenue | (2,436) | (2,825) | (4,994) | (3,660) | |||
Lease costs, net | 45,162 | 41,958 | 90,217 | 86,990 | |||
General and administrative expense | |||||||
Schedule of Lease Costs [Line Items] | |||||||
Operating leases | $ 3,100 | $ 3,200 | $ 6,100 | $ 6,700 | |||
[1]Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.1 million and $3.2 million for the thirteen weeks ended June 26, 2022 and June 27, 2021, respectively, and $6.1 million and $6.7 million for the twenty-six weeks ended June 26, 2022 and June 27, 2021, respectively, which is included in General and administrative expense.[2]Includes COVID-19-related rent abatements for the thirteen and twenty-six weeks ended June 27, 2021. |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 | Jun. 27, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 97,255 | $ 105,323 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Recurring Basis) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Fair value, inputs, level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 24,354 | $ 17,225 |
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 | Fixed income funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 13,583 | 6,714 |
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 | 10,670 | 9,039 |
Restricted cash and cash equivalents, fair value disclosure | 101 | 1,472 |
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 | 0 | 3,056 |
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 | 0 | 3,056 |
Fair value, inputs, level 2 | Fixed income funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Fair value, inputs, level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Restricted cash and cash equivalents, fair value disclosure | 0 | 0 |
Carrying value measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 24,354 | 17,225 |
Liabilities, fair value disclosure | 0 | 3,056 |
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 | 0 | 3,056 |
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 | 13,583 | 6,714 |
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 | 10,670 | 9,039 |
Restricted cash and cash equivalents, fair value disclosure | $ 101 | $ 1,472 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurements on a Nonrecurring Basis) (Details) - Fair value, measurements, nonrecurring $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2021 USD ($) | Jun. 27, 2021 USD ($) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment losses | $ 5,422 | $ 7,564 | ||
Operating lease right-of-use assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Operating lease assets, impairment | 962 | 1,512 | ||
Property, fixtures and equipment, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property, fixtures and equipment, impairment | 4,460 | 6,052 | ||
Assets measured with impairment, quarter-to-date | Carrying value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 13,879 | [1] | 13,879 | [1] |
Assets measured with impairment, quarter-to-date | Operating lease right-of-use assets | Fair value, inputs, level 3 | Carrying value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 5,687 | [1] | 5,687 | [1] |
Assets measured with impairment, quarter-to-date | Property, fixtures and equipment, net | Fair value, inputs, level 3 | Carrying value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 8,192 | [1] | 8,192 | [1] |
Assets measured with impairment, year-to-date | Carrying value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 16,579 | [1] | 16,579 | [1] |
Assets measured with impairment, year-to-date | Operating lease right-of-use assets | Fair value, inputs, level 3 | Carrying value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 7,651 | [1] | 7,651 | [1] |
Assets measured with impairment, year-to-date | Property, fixtures and equipment, net | Fair value, inputs, level 3 | Carrying value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | $ 8,928 | [1] | $ 8,928 | [1] |
[1]All asset carrying values measured using discounted cash flow models (Level 3). |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Debt by Hierarchy Level) (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
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 | $ 0 | $ 190,125 |
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 | 390,000 | 76,926 |
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 | 0 | 195,000 |
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 | 400,000 | 80,000 |
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 | 177,031 | 447,615 |
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 | 105,000 | 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 | 255,000 | 304,395 |
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 | $ 300,000 |
Income Taxes (Change in Effecti
Income Taxes (Change in Effective Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Income Tax Disclosure [Abstract] | ||||
(Loss) income before provision for income taxes | $ (50,144) | $ 107,574 | $ 43,479 | $ 183,965 |
Provision for income taxes | $ 11,536 | $ 22,688 | $ 27,465 | $ 29,281 |
Effective income tax rate | (23.00%) | 21.10% | 63.20% | 15.90% |
Change in effective income tax rate | 47.30% | |||
Blended federal and state statutory income tax rate | 26% |
Commitments and Contingencies (
Commitments and Contingencies (Litigation and Other Matters) (Details) - USD ($) $ in Millions | Jun. 26, 2022 | Dec. 26, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated litigation liability | $ 8.5 | $ 7.1 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Guarantees) (Details) - Property lease guarantee - USD ($) $ in Millions | Jun. 26, 2022 | Dec. 26, 2021 |
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 23 | |
Guarantee obligations, maximum exposure at present value | 17.5 | |
Lease guarantee contingent liabilities | $ 8.4 | $ 8.7 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 1,125,162 | $ 1,077,366 | $ 2,265,697 | $ 2,064,839 |
U.S. segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 998,627 | 1,003,058 | 2,035,034 | 1,907,976 |
International segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 126,535 | $ 74,308 | $ 230,663 | $ 156,863 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated [Line Items] | ||||
Income from operations | $ 87,719 | $ 124,637 | $ 194,975 | $ 215,635 |
Loss on extinguishment and modification of debt | (107,630) | (2,073) | (107,630) | (2,073) |
Loss on fair value adjustment of derivatives, net | (17,685) | 0 | (17,685) | 0 |
Other income, net | 0 | 0 | 0 | 21 |
Interest expense, net | (12,548) | (14,990) | (26,181) | (29,618) |
(Loss) income before provision for income taxes | (50,144) | 107,574 | 43,479 | 183,965 |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated [Line Items] | ||||
Income from operations | 118,746 | 167,767 | 259,856 | 293,039 |
Operating segments | U.S. segment | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated [Line Items] | ||||
Income from operations | 104,620 | 165,297 | 236,846 | 287,032 |
Operating segments | International segment | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated [Line Items] | ||||
Income from operations | 14,126 | 2,470 | 23,010 | 6,007 |
Corporate, non-segment | ||||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated [Line Items] | ||||
Income from operations | $ (31,027) | $ (43,130) | $ (64,881) | $ (77,404) |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | $ 41,257 | $ 40,539 | $ 83,032 | $ 81,765 |
Operating segments | U.S. segment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | 33,544 | 33,578 | 68,303 | 67,223 |
Operating segments | International segment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | 6,019 | 5,566 | 11,556 | 11,286 |
Corporate, non-segment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Depreciation and amortization | $ 1,694 | $ 1,395 | $ 3,173 | $ 3,256 |