Cover Page
Cover Page - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 25, 2022 | Feb. 16, 2023 | Jun. 24, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 25, 2022 | ||
Current Fiscal Year End Date | --12-25 | ||
Document Transition Report | false | ||
Entity File Number | 001-35625 | ||
Entity Registrant Name | BLOOMIN’ BRANDS, INC. | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 20-8023465 | ||
Entity Address Line One | 2202 North West Shore Boulevard | ||
Entity Address Line Two | Suite 500 | ||
Entity Address City | Tampa | ||
Entity Address State | FL | ||
Entity Address Postal Zip Code | 33607 | ||
City Area Code | 813 | ||
Local Phone Number | 282-1225 | ||
Title of 12(b) Security | Common Stock | ||
Security Trading Currency | USD | ||
Par Value Per Share | $ 0.01 | ||
Trading Symbol | BLMN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.6 | ||
Entity Common Stock, Shares Outstanding | 87,098,993 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001546417 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 25, 2022 | |
Audit Information [Abstract] | |
Auditor firm ID | 238 |
Auditor name | PricewaterhouseCoopers LLP |
Auditor location | Tampa, Florida |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Current assets | ||
Cash and cash equivalents | $ 84,735 | $ 87,585 |
Restricted cash and cash equivalents | 0 | 1,472 |
Inventories | 78,124 | 79,112 |
Other current assets, net | 183,718 | 184,623 |
Total current assets | 346,577 | 352,792 |
Property, fixtures and equipment, net | 914,142 | 842,012 |
Operating lease right-of-use assets | 1,103,083 | 1,130,873 |
Goodwill | 273,032 | 268,444 |
Intangible assets, net | 448,326 | 453,412 |
Deferred income tax assets, net | 153,118 | 168,068 |
Other assets, net | 82,147 | 78,670 |
Total assets | 3,320,425 | 3,294,271 |
Current liabilities | ||
Accounts payable | 183,715 | 167,978 |
Accrued and other current liabilities | 399,301 | 406,894 |
Unearned revenue | 394,215 | 398,795 |
Current portion of long-term debt | 1,636 | 10,958 |
Total current liabilities | 978,867 | 984,625 |
Non-current operating lease liabilities | 1,148,607 | 1,179,447 |
Long-term debt, net | 831,656 | 782,107 |
Other long-term liabilities, net | 87,386 | 125,242 |
Total liabilities | 3,046,516 | 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 December 25, 2022 and December 26, 2021 | 0 | 0 |
Common stock, $0.01 par value, 475,000,000 shares authorized; 87,696,200 and 89,252,823 shares issued and outstanding as of December 25, 2022 and December 26, 2021, respectively | 877 | 893 |
Additional paid-in capital | 1,161,912 | 1,119,728 |
Accumulated deficit | (706,109) | (698,171) |
Accumulated other comprehensive loss | (185,311) | (205,989) |
Total Bloomin’ Brands stockholders’ equity | 271,369 | 216,461 |
Noncontrolling interests | 2,540 | 6,389 |
Total stockholders’ equity | 273,909 | 222,850 |
Total liabilities and stockholders’ equity | $ 3,320,425 | $ 3,294,271 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 25, 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 outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 87,696,200 | 89,252,823 |
Common stock, shares outstanding (in shares) | 87,696,200 | 89,252,823 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 4,416,508 | $ 4,122,385 | $ 3,170,561 | |
Costs and expenses | ||||
Food and beverage costs | 1,383,632 | 1,229,689 | 982,702 | |
Labor and other related | 1,226,460 | 1,154,623 | 1,005,295 | |
Other restaurant operating | 1,065,662 | 1,006,371 | 846,566 | |
Depreciation and amortization | 169,617 | 163,391 | 180,261 | |
General and administrative | 234,752 | 245,616 | 254,356 | |
Provision for impaired assets and restaurant closings | 5,964 | 13,737 | 76,354 | |
Total costs and expenses | 4,086,087 | 3,813,427 | 3,345,534 | |
Income (loss) from operations | 330,421 | 308,958 | (174,973) | |
Loss on extinguishment and modification of debt | (107,630) | (2,073) | (237) | |
Loss on fair value adjustment of derivatives, net | (17,685) | 0 | 0 | |
Other (expense) income, net | (23) | 26 | 131 | |
Interest expense, net | (53,176) | (57,614) | (64,442) | |
Income (loss) before provision (benefit) for income taxes | 151,907 | 249,297 | (239,521) | |
Provision (benefit) for income taxes | 42,704 | 26,384 | (80,726) | |
Net income (loss) | 109,203 | 222,913 | (158,795) | |
Less: net income (loss) attributable to noncontrolling interests | 7,296 | 7,358 | (80) | |
Net income (loss) attributable to Bloomin’ Brands | 101,907 | 215,555 | (158,715) | |
Redemption of preferred stock in excess of carrying value | 0 | 0 | (3,496) | [1] |
Net income (loss) attributable to common stockholders | 101,907 | 215,555 | (162,211) | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 10,169 | (6,597) | (37,516) | |
Unrealized gain (loss) on derivatives, net of tax | 573 | 86 | (14,741) | |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | 954 | 7,392 | 9,923 | |
Impact of terminated interest rate swaps included in Net income (loss), net of tax | 8,982 | 4,576 | 0 | |
Comprehensive income (loss) | 129,881 | 228,370 | (201,129) | |
Less: comprehensive income (loss) attributable to noncontrolling interests | 7,296 | 7,358 | (744) | |
Comprehensive income (loss) attributable to Bloomin’ Brands | $ 122,585 | $ 221,012 | $ (200,385) | |
Earnings (loss) per share attributable to common stockholders: | ||||
Basic (in USD per share) | $ 1.15 | $ 2.42 | $ (1.85) | |
Diluted (in USD per share) | $ 1.03 | $ 2 | $ (1.85) | |
Weighted average common shares outstanding: | ||||
Basic (shares) | 88,846 | 88,981 | 87,468 | |
Diluted (shares) | 98,512 | 107,803 | 87,468 | |
Cash dividends declared per common share | $ 0.56 | $ 0 | $ 0.20 | |
Restaurant sales | ||||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 4,352,695 | $ 4,061,093 | $ 3,144,636 | |
Franchise and other revenues | ||||
Revenues | ||||
Restaurant sales, franchise and other revenues | $ 63,813 | $ 61,292 | $ 25,925 | |
[1] Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings (loss) per share, reduces net income attributable to common stockholders. See Note 16 - Stockholders’ Equity |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative-effect from a change in accounting principle | Common stock | Additional paid-in capital | Additional paid-in capital Cumulative-effect from a change in accounting principle | Retained earnings | Retained earnings Cumulative-effect from a change in accounting principle | Accumulated other comprehensive loss | Noncontrolling interests | |
Balance (in shares) at Dec. 29, 2019 | 86,946,000 | |||||||||
Balance at Dec. 29, 2019 | $ 177,481 | $ (4,292) | $ 869 | $ 1,094,338 | $ (755,089) | $ (4,292) | $ (169,776) | $ 7,139 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | ASU No. 2016-13 | |||||||||
Net income (loss) | $ (158,795) | (158,715) | (80) | |||||||
Other comprehensive income (loss), net of tax | (42,334) | (42,187) | (147) | |||||||
Cash dividends declared, per common share | (17,480) | (17,480) | ||||||||
Stock-based compensation | 14,802 | 14,802 | ||||||||
Consideration for preferred stock in excess of carrying value, net of tax | (1,718) | (3,496) | 517 | 1,261 | ||||||
Common stock issued under stock plans, shares | [1] | 910,000 | ||||||||
Common stock issued under stock plans | [1] | (7) | $ 10 | (17) | ||||||
Purchase of noncontrolling interests, net of tax | (60) | (156) | 96 | |||||||
Distributions to noncontrolling interests | (1,908) | (1,908) | ||||||||
Contributions from noncontrolling interests | 451 | 451 | ||||||||
Equity component value of convertible note issuance, net of tax | 64,367 | 64,367 | ||||||||
Sale of common stock warrant | 46,690 | 46,690 | ||||||||
Purchase of convertible note hedge | (66,240) | (66,240) | ||||||||
Balance (in shares) at Dec. 27, 2020 | 87,856,000 | |||||||||
Balance at Dec. 27, 2020 | $ 10,957 | $ (42,953) | $ 879 | 1,132,808 | $ (47,323) | (918,096) | $ 4,370 | (211,446) | 6,812 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting standards updated 2020-06 | |||||||||
Net income (loss) | $ 222,913 | 215,555 | 7,358 | |||||||
Other comprehensive income (loss), net of tax | 5,457 | 5,457 | ||||||||
Stock-based compensation | 24,405 | 24,405 | ||||||||
Common stock issued under stock plans, shares | [1] | 1,397,000 | ||||||||
Common stock issued under stock plans | [1] | 9,850 | $ 14 | 9,836 | ||||||
Purchase of noncontrolling interests, net of tax | (3) | 2 | (5) | |||||||
Distributions to noncontrolling interests | (9,123) | (9,123) | ||||||||
Contributions from noncontrolling interests | $ 1,347 | 1,347 | ||||||||
Balance (in shares) at Dec. 26, 2021 | 89,252,823 | 89,253,000 | ||||||||
Balance at Dec. 26, 2021 | $ 222,850 | $ 893 | 1,119,728 | (698,171) | (205,989) | 6,389 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 109,203 | 101,907 | 7,296 | |||||||
Other comprehensive income (loss), net of tax | 20,778 | 100 | 20,678 | |||||||
Cash dividends declared, per common share | (49,736) | (49,736) | ||||||||
Repurchase and retirement of common stock (in shares) | (5,429,000) | |||||||||
Repurchase and retirement of common stock | (109,999) | $ (54) | (109,945) | |||||||
Stock-based compensation | 16,514 | 16,514 | ||||||||
Common stock issued under stock plans, shares | [1] | 1,559,000 | ||||||||
Common stock issued under stock plans | [1] | 12,955 | $ 15 | 12,940 | ||||||
Purchase of noncontrolling interests, net of tax | (4,815) | (1,415) | (3,400) | |||||||
Distributions to noncontrolling interests | (9,127) | (9,127) | ||||||||
Contributions from noncontrolling interests | 1,382 | 1,382 | ||||||||
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 (in shares) at Dec. 25, 2022 | 87,696,200 | 87,696,000 | ||||||||
Balance at Dec. 25, 2022 | $ 273,909 | $ 877 | $ 1,161,912 | $ (706,109) | $ (185,311) | $ 2,540 | ||||
[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 | 12 Months Ended | |
Dec. 25, 2022 | Dec. 27, 2020 | |
Cash dividends declared per common share (in USD per share) | $ 0.56 | $ 0.20 |
Equity component value of convertible note issuance, tax effect | $ 650 | |
Additional paid-in capital | ||
Deferred tax effect of purchase of noncontrolling interests | $ (489) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Cash flows provided by operating activities: | |||
Net income (loss) | $ 109,203 | $ 222,913 | $ (158,795) |
Adjustments to reconcile Net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 169,617 | 163,391 | 180,261 |
Amortization of debt discounts and issuance costs | 3,538 | 4,494 | 10,142 |
Amortization of deferred gift card sales commissions | 24,091 | 26,012 | 20,927 |
Provision for impaired assets and restaurant closings | 5,964 | 13,737 | 76,354 |
Non-cash interest expense from terminated interest rate swaps | 12,215 | 6,160 | 0 |
Non-cash operating lease costs | 83,254 | 78,272 | 74,436 |
(Benefit) provision for expected credit losses and contingent lease liabilities | (1,117) | 946 | 7,225 |
Inventory obsolescence and spoilage | 0 | 0 | 10,169 |
Stock-based and other non-cash compensation expense | 16,514 | 24,405 | 14,802 |
Deferred income tax expense (benefit) | 13,748 | (3,346) | (88,256) |
Loss on extinguishment and modification of debt | 107,630 | 2,073 | 237 |
Loss on fair value adjustment of derivatives, net | 17,685 | 0 | 0 |
Other, net | 3,186 | (1,879) | (3,932) |
Change in assets and liabilities: | |||
Decrease (increase) in inventories | 1,036 | (18,210) | 19,857 |
(Increase) decrease in other current assets | (40,370) | (58,397) | 14,392 |
(Increase) decrease in other assets | (6,670) | (2,073) | 3,688 |
Decrease in operating right-of-use assets, net | 277 | 160 | 412 |
(Decrease) increase in accounts payable and accrued and other current liabilities | (40,679) | 25,619 | (61,638) |
(Decrease) increase in unearned revenue | (4,638) | 17,225 | 10,569 |
Decrease in operating lease liabilities | (82,540) | (90,387) | (50,626) |
(Decrease) increase in other long-term liabilities | (1,022) | (8,660) | 58,625 |
Net cash provided by operating activities | 390,922 | 402,455 | 138,849 |
Cash flows used in investing activities: | |||
Proceeds from disposal of property, fixtures and equipment | 1,634 | 9,322 | 2,178 |
Proceeds received from company-owned life insurance | 16,092 | 9,270 | 9,695 |
Capital expenditures | (219,691) | (122,830) | (87,842) |
Other investments, net | 827 | (507) | (670) |
Net cash used in investing activities | (201,138) | (104,745) | (76,639) |
Cash flows used in financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 200,000 | 0 |
Repayments of long-term debt and finance lease obligations | (196,447) | (431,166) | (26,326) |
Proceeds from borrowings on revolving credit facilities | 1,239,500 | 470,000 | 505,000 |
Repayments of borrowings on revolving credit facilities | (889,500) | (837,000) | (657,000) |
Financing fees | (1,205) | (5,868) | (3,096) |
Proceeds from issuance of senior notes | 0 | 300,000 | 0 |
Issuance costs related to senior notes | 0 | (5,546) | (8,416) |
Proceeds from issuance of convertible senior notes | 0 | 0 | 230,000 |
Repurchase of convertible senior notes | (196,919) | 0 | 0 |
Purchase of convertible note hedge | 0 | 0 | (66,240) |
Proceeds from retirement of convertible senior note hedges | 131,869 | 0 | 0 |
Proceeds from issuance of warrants | 0 | 0 | 46,690 |
Payments for retirement of warrants | (114,825) | 0 | 0 |
Proceeds (payments of taxes) from share-based compensation, net | 12,955 | 9,850 | (7) |
Distributions to noncontrolling interests | (9,127) | (9,123) | (1,908) |
Contributions from noncontrolling interests | 1,382 | 1,347 | 451 |
Purchase of noncontrolling interests | (5,004) | (3) | (60) |
Payments for partner equity plan | (9,292) | (9,910) | (16,906) |
Repurchase of common stock | (109,152) | 0 | 0 |
Cash dividends paid on common stock | (49,736) | 0 | (17,480) |
Redemption of subsidiary preferred stock | 0 | 0 | (1,475) |
Net cash used in financing activities | (195,501) | (317,419) | (16,773) |
Effect of exchange rate changes on cash and cash equivalents | 1,395 | (1,642) | (2,174) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (4,322) | (21,351) | 43,263 |
Cash, cash equivalents and restricted cash as of the beginning of the period | 89,057 | 110,408 | 67,145 |
Cash, cash equivalents and restricted cash as of the end of the period | 84,735 | 89,057 | 110,408 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 39,126 | 47,036 | 52,630 |
Cash paid for income taxes, net of refunds | 35,450 | 36,336 | 8,415 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Leased assets obtained in exchange for new operating lease liabilities | 54,271 | 43,363 | 19,451 |
Leased assets obtained in exchange for new finance lease liabilities | 4,066 | 1,238 | 1,367 |
Increase in liabilities from the acquisition of property, fixtures and equipment | $ 12,762 | $ 2,344 | $ 1,152 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Bloomin’ Brands, Inc. (“Bloomin’ Brands” or the “Company”), a holding company that conducts its operations through its subsidiaries, is one of the largest casual dining restaurant companies in the world, with a portfolio of leading, differentiated restaurant concepts. OSI Restaurant Partners, LLC (“OSI”) is the Company’s primary operating entity. The Company owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 25, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation - The Company’s consolidated financial statements include the accounts and operations of Bloomin’ Brands and its subsidiaries. To ensure timely reporting, the Company consolidates the results of its Brazil operations on a one-month calendar lag. There were no intervening events that would materially affect the Company’s consolidated financial position, results of operations or cash flows as of and for the year ended December 25, 2022. COVID-19 Pandemic - As a result of the COVID-19 pandemic (“COVID-19”), traffic was significantly reduced in the Company’s restaurants which negatively impacted its operating results during 2020. See Note 3 - COVID-19 for details regarding certain charges resulting from the COVID-19 pandemic. During 2021, the recovery of in-restaurant dining continued while the Company retained a significant portion of the incremental off-premises volume it achieved during 2020. Internationally, COVID-19-related capacity constraints continued in 2021 during periods of increased case counts and new variants until the middle of 2022 when in-restaurant dining was operating without COVID-19-related capacity constraints. Principles of Consolidation - All intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities’ operations. The Company is a franchisor of 321 full-service restaurants and off-premises kitchens as of December 25, 2022, but does not possess any ownership interests in its franchisees and does not provide material direct financial support to its franchisees. These franchise relationships are not deemed variable interest entities and are not consolidated. Investments in entities the Company does not control, but where the Company’s interest is between 20% and 50% and the Company has the ability to exercise significant influence over the entity, are accounted for under the equity method. Fiscal Year - The Company utilizes a 52-53-week year ending on the last Sunday in December. In a 52-week fiscal year, each quarterly period is comprised of 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter. All periods presented consisted of 52 weeks. Use of Estimates - The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated. Cash and Cash Equivalents - Cash equivalents consist of investments that are readily convertible to cash with an original maturity date of three months or less. Cash and cash equivalents include $41.5 million and $41.3 million, as of December 25, 2022 and December 26, 2021, respectively, for amounts in transit from credit card companies since settlement is reasonably assured. Restricted Cash - From time to time, the Company may have short-term restricted cash balances consisting of amounts pledged for settlement of deferred compensation plan obligations. Concentrations of Credit and Counterparty Risk - Financial instruments that potentially subject the Company to a concentration of credit risk and credit losses are through credit card and trade receivables consisting primarily of amounts due for gift card, vendor, franchise and other receivables. Gift card, vendor and other receivables consist primarily of amounts due from gift card resellers and vendor rebates. The Company considers the concentration of credit risk for gift card, vendor and other receivables to be minimal due to the payment histories and general financial condition of its gift card resellers and vendors. Amounts due from franchisees consist of initial franchise fees, royalty income and advertising fees. See Note 8 - Other Current Assets, Net for disclosure of trade receivables by category as of December 25, 2022 and December 26, 2021. Financial instruments that potentially subject the Company to concentrations of counterparty risk are cash and cash equivalents, restricted cash and derivatives. The Company attempts to limit its counterparty risk by investing in certificates of deposit, money market funds, noninterest-bearing accounts and other highly rated investments. Whenever possible, the Company selects investment grade counterparties and rated money market funds in order to mitigate its counterparty risk. At times, cash balances may be in excess of FDIC insurance limits. See Note 17 - Derivative Instruments and Hedging Activities for a discussion of the Company’s use of derivative instruments and management of credit risk inherent in derivative instruments. Allowance for Expected Credit Losses - The Company evaluates the collectability of credit card and trade receivables based on historical loss experience by risk pool and records periodic adjustments for factors such as deterioration of economic conditions, specific customer circumstances and changes in the aging of accounts receivable balances. Losses are charged off in the period in which they are determined to be uncollectible. See Note 20 - Allowance for Expected Credit Losses for a discussion of the Company’s allowance for expected credit losses. In instances where there is no established loss history, S&P speculative-grade default rates are utilized as an estimated expected credit loss rate. The Company assigned its interest, and is contingently liable, under certain real estate leases, primarily related to divested restaurant properties. Contingent lease liabilities related to these guarantees are calculated based on management’s estimate of exposure to losses which includes historical analysis of credit losses, including known instances of default, and existing economic conditions. See Note 22 - Commitments and Contingencies for a discussion of the Company’s contingent lease liabilities. Fair Value - Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data Inventories - Inventories consist of food and beverages and are stated at the lower of cost (first-in, first-out) or net realizable value. Property, Fixtures and Equipment - Property, fixtures and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful life of the assets. Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 2 to 7 years ____________________ (1) Includes improvements to leased properties which are depreciated over the shorter of their useful life or the reasonably certain lease term, including renewal periods that are reasonably certain. Repair and maintenance costs that maintain the appearance and functionality of the restaurant, but do not extend the useful life of any restaurant asset are expensed as incurred. The Company suspends depreciation and amortization for assets held for sale. The cost and related accumulated depreciation of assets sold or disposed of are removed from the Company’s Consolidated Balance Sheets, and any resulting gain or loss is generally recognized in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss). The Company capitalizes direct and indirect internal costs associated with the acquisition, development, design and construction of Company-owned restaurant locations as these costs have a future benefit to the Company. Upon restaurant opening, these costs are depreciated and charged to Depreciation and amortization expense over the reasonably certain lease term. Internal costs of $4.1 million, $3.7 million and $2.7 million were capitalized during 2022, 2021 and 2020, respectively. For 2022 and 2021, computer equipment and software costs of $9.2 million and $3.4 million, respectively, were capitalized. As of December 25, 2022 and December 26, 2021, there was $10.1 million and $6.4 million, respectively, of unamortized computer equipment and software included in Property, fixtures and equipment, net on the Company’s Consolidated Balance Sheets. Goodwill and Intangible Assets - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate. The Company’s indefinite-lived intangible assets consist of trade names and are recorded at fair value as of the date of acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the fair value of the reporting unit is calculated. The carrying value of the reporting unit is compared to its calculated fair value, with any excess of carrying value over fair value deemed to be an impairment. Definite-lived intangible assets, which consist primarily of trademarks and reacquired franchise rights, are recorded at fair value as of the date of acquisition, amortized over their estimated useful lives and tested for impairment, using the relief from royalty method, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Derivatives - The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. If the derivative qualifies for hedge accounting treatment, any gain or loss on the derivative instrument is recognized in equity as a change to Accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements, foreign currency exchange rate movements, changes in energy prices and other identified risks. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. Deferred Debt Issuance Costs - For its revolving credit facility, the Company records deferred debt issuance costs related to the issuance of debt obligations in Other assets, net on its Consolidated Balance Sheets. For fees associated with all other debt obligations, the Company records deferred debt issuance costs as a reduction of Long-term debt, net. The Company amortizes deferred debt issuance costs to interest expense over the term of the respective financing arrangement, primarily using the effective interest method. The Company amortized deferred debt issuance costs of $3.5 million, $4.5 million and $3.9 million to Interest expense, net for 2022, 2021 and 2020, respectively. Liquor Licenses - The fees from obtaining non-transferable liquor licenses directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in Other assets, net on the Company’s Consolidated Balance Sheets. Insurance Reserves - The Company carries insurance programs with specific retention levels or high per-claim deductibles for a significant portion of expected losses under its workers’ compensation, general or liquor liability, health, property and management liability insurance programs. The Company records a liability for all unresolved claims and for an estimate of incurred but not reported claims at the anticipated cost that falls below its specified retention levels or per-claim deductible amounts. In establishing reserves, the Company considers actuarial assumptions and judgments regarding economic conditions, and the frequency and severity of claims. Reserves recorded for workers’ compensation and general liability claims are discounted using the average of the one-year and five-year risk-free rate of monetary assets that have comparable maturities. Share Repurchase - The par value of the repurchased shares is deducted from common stock and the excess of the purchase price over the par value of the shares is recorded to Accumulated deficit. All shares of common stock acquired through share repurchase programs are retired and restored to authorized but unissued shares of common stock. Revenue Recognition - The Company records food and beverage revenues, net of discounts and taxes, upon delivery to the customer. Franchise-related revenues are included in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Royalties, which are generally a percentage of net sales of the franchisee, are recognized as revenue in the period in which the sales are reported to have occurred provided collectability is reasonably assured. Proceeds from the sale of gift cards, which do not have expiration dates, are recorded as deferred revenue and recognized as revenue upon redemption by the customer. The Company applies the portfolio approach practical expedient to account for gift card contracts and performance obligations. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized using estimates based on historical redemption patterns. If actual redemptions vary from assumptions used to estimate breakage, gift card breakage income may differ from the amount recorded. The Company periodically updates its estimates used for breakage. Breakage revenue is recorded as a component of Restaurant sales in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Approximately 84% of deferred gift card revenue is expected to be recognized within 12 months of inception. Gift card sales commissions paid to third-party providers are capitalized and subsequently amortized to Other restaurant operating expense based on historical gift card redemption patterns. See Note 4 - Revenue Recognition for rollforwards of deferred gift card sales commissions and unearned gift card revenue. Advertising fees charged to franchisees are recognized in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) provided collectability is reasonably assured. Initial franchise and renewal fees are recognized over the term of the franchise agreement and renewal period, respectively. The weighted average remaining term of franchise agreements and renewal periods was approximately 12 years as of December 25, 2022. The Company maintains a customer loyalty program, Dine Rewards, in the U.S., where customers earn a reward after attaining qualified spend amounts. The Company’s estimate of the value of the reward is recorded as deferred revenue. Each reward must be redeemed within specified time limits of earning such reward. The revenue associated with the fair value of the reward is recognized upon the earlier of redemption or expiration of the reward. The Company applies the practical expedient to exclude disclosures regarding loyalty program remaining performance obligations, which have original expected durations of less than one year. The Company collects and remits sales, food and beverage, alcoholic beverage and hospitality taxes on transactions with customers and reports revenue net of taxes in its Consolidated Statements of Operations and Comprehensive Income (Loss). Leases - The Company’s determination of whether an arrangement contains a lease is based on an evaluation of whether the arrangement conveys the right to use and control specific property or equipment. The Company leases restaurant and office facilities and certain equipment under operating leases primarily having initial terms between one five The Company accounts for U.S. fixed lease and non-lease components of a restaurant facility lease as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to account for the lease assets and liabilities. Leases with an initial term of 12 months or less are not recorded on its Consolidated Balance Sheets and are recognized on a straight-line basis over the lease term within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Rent expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease and may include rent holidays, is recorded on a straight-line basis over the initial lease term and those renewal periods that are reasonably certain. Operating lease rent expense for open Company-owned restaurants is recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Payments received from landlords as incentives for leasehold improvements are recorded as a reduction of the right-of-use asset and amortized on a straight-line basis over the term of the lease as a reduction of rent expense. In April 2020, the FASB issued a question-and-answer document focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19 (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Company elected this practical expedient for COVID-19-related rent concessions, primarily rent deferrals or rent abatements, and elected not to remeasure the related lease liability and right-of-use asset for those leases. Rent deferrals are accrued with no impact to straight-line rent expense. Rent abatements are recognized as a reduction of variable rent expense in the month they occur. This election will continue while these concessions are in effect. Pre-Opening Expenses - Non-capital expenditures associated with opening new restaurants are expensed as incurred and are included in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Consideration Received from Vendors - The Company receives consideration for a variety of vendor-sponsored programs, such as volume rebates, promotions and advertising allowances. Advertising allowances are intended to offset the Company’s costs of promoting and selling menu items in its restaurants. Vendor consideration is recorded as a reduction of Food and beverage costs or Other restaurant operating expense when recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment of Long-Lived Assets and Costs Associated with Exit Activities - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows independent of other assets. For long-lived assets deployed at its restaurants, the Company reviews for impairment at the individual restaurant level. When evaluating for impairment, the total future undiscounted cash flows expected to be generated by the asset are compared to the carrying amount. If the total future undiscounted cash flows of the asset are less than its carrying amount, recoverability is measured by comparing the fair value of the assets to the carrying amount. An impairment loss is recognized in earnings when the asset’s carrying value exceeds its estimated fair value. Fair value is generally estimated using a discounted cash flow model. Restaurant closure costs, including lease termination fees, are expensed as incurred. When the Company ceases using the property rights under a non-cancelable operating lease, it records a liability for the net present value of any remaining non-rent lease-related obligations, less the estimated subtenant cost recovery that can reasonably be obtained for the property. Any subsequent adjustment to that liability as a result of lease termination or changes in estimates of cost recovery is recorded in the period incurred. The associated expense is recorded in Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Restaurant sites and certain other assets to be sold are included in assets held for sale when certain criteria are met, including the requirement that the likelihood of selling the assets within one year is probable. Advertising Costs - Advertising production costs are expensed in the period when the advertising first occurs. All other advertising costs are expensed in the period in which the costs are incurred. Advertising expense of $94.0 million, $59.7 million and $67.3 million for 2022, 2021 and 2020, respectively, was recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Legal Costs - Settlement costs are accrued when they are deemed probable and reasonably estimable. Legal fees are recognized as incurred and are reported in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Research and Development Expenses (“R&D”) - R&D is expensed as incurred in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). R&D primarily consists of payroll and benefit costs. R&D was $2.7 million, $2.6 million and $2.4 million for 2022, 2021 and 2020, respectively. Partner Compensation - In addition to base salary, Market Vice Presidents, Area Operating Partners, Restaurant Managing Partners and Chef Partners generally receive performance-based bonuses for providing management and supervisory services to their restaurants, certain of which may be based on a percentage of their restaurants’ monthly operating results or cash flows and/or total controllable income (“Monthly Payments”). Certain Restaurant Managing Partners and Chef Partners in the U.S. (“U.S. Partners”) may also participate in deferred compensation programs and other performance-based compensation programs. The Company may invest in corporate-owned life insurance policies, which are held within an irrevocable grantor or “rabbi” trust account for settlement of certain of the Company’s obligations under the deferred compensation plans. Many of the Company’s international Restaurant Managing Partners are given the option to purchase participation interests in the cash distributions of the restaurants they manage. The amount, terms and availability vary by country. The Company estimates future bonuses and deferred compensation obligations to U.S. Partners and Area Operating Partners, using current and historical information on restaurant performance and records the long-term portion of partner obligations in Other long-term liabilities, net on its Consolidated Balance Sheets. Monthly Payments and deferred compensation expenses for U.S. Partners are included in Labor and other related expenses and Monthly Payments and bonus expense for Area Operating Partners are included in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Stock-based Compensation - Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting or service periods. Stock-based compensation expense is recognized only for those awards expected to vest. The expense, net of forfeitures, is recognized using the straight-line method. Forfeitures of share-based compensation awards are recognized as they occur. Beginning in 2021, performance-based share units (“PSUs”) issued by the Company include a relative total shareholder return (“Relative TSR”) modifier to the final payout outcome, which can adjust the payout percentage based on the achieved performance metric. The Relative TSR is measured by comparing the Company’s Relative TSR to that of the constituents of the S&P 1500 Restaurants index. Basic and Diluted Earnings (Loss) per Share - The Company computes basic earnings (loss) per share based on the weighted average number of common shares that were outstanding during the period. Except where the result would be antidilutive, diluted earnings per share includes the dilutive effect of common stock equivalents, consisting of stock options, restricted stock units, performance-based share units and warrants, measured using the treasury stock method, and the Company’s convertible senior notes, measured using the if-converted method. PSUs are considered dilutive when the related performance criterion has been met. The Company has provided the trustee of the Company’s convertible senior notes due 2025 (the “ 2025 Notes”) notice of its irrevocable election under the 2025 Notes indenture to settle the principal portion of the 2025 Notes upon conversion in cash and any excess in shares. As a result, only the amounts in excess of the principal amount, if applicable, are considered in diluted earnings per share. Foreign Currency Translation and Transactions - For non-U.S. operations, the functional currency is the local currency. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date with the translation adjustments recorded in Accumulated other comprehensive loss in the Company’s Consolidated Statements of Changes in Stockholders’ Equity. Results of operations are translated using the average exchange rates for the reporting period. Foreign currency exchange transaction losses are recorded in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Income Taxes - Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. A valuation allowance may reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company records a tax benefit for an uncertain tax position using the highest cumulative tax benefit that is more likely than not to be realized. The Company adjusts its liability for unrecognized tax benefits in the period in which it determines the issue is effectively settled, the statute of limitations expires or when more information becomes available. Liabilities for unrecognized tax benefits, including penalties and interest, are recorded in Accrued and other current liabilities and Other long-term liabilities, net on the Company’s Consolidated Balance Sheets. Recently Adopted Financial Accounting Standards - During the thirteen weeks ended December 25, 2022, the Company adopted Accounting Standards Update (“ASU”) No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, which requires financial statement footnote disclosure regarding government assistance accounted for by applying a grant or contribution accounting model by analogy. See Note 3 - COVID-19 for information regarding COVID-19-related government assistance. On December 28, 2020, the Company adopted ASU No. 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” (“ASU No. 2020-06”) which removes the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. ASU No. 2020-06 also requires the application of the if-converted method for calculating the diluted earnings per share impact of the 2025 Notes. The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021: ADJUSTMENT CONSOLIDATED BALANCE SHEET CLASSIFICATION AMOUNT Deferred tax impact of cumulative-effect adjustment Deferred income tax assets, net $ 14.9 Debt discount reclassification Long-term debt, net $ 59.9 Equity issuance costs reclassification Long-term debt, net $ (2.1) Debt discount amortization reclassification, net of tax Accumulated deficit $ 4.4 Reversal of separated equity component, net of tax Additional paid-in capital $ (47.3) After adopting ASU No. 2020-06, the 2025 Notes are reflected entirely as a liability since the embedded conversion feature is no longer separately presented within stockholders’ equity. 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. |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 25, 2022 | |
COVID-19 Impact [Abstract] | |
COVID-19 | COVID-19 COVID-19 Charges - Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated (dollars in thousands): CHARGES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR 2020 Inventory obsolescence and spoilage Food and beverage costs $ 10,450 Compensation for idle employees (1) Labor and other related 29,993 Other operating charges Other restaurant operating 3,219 Lease guarantee contingent liabilities (2) General and administrative 4,188 Allowance for expected credit losses (3) General and administrative 3,334 Other charges General and administrative 2,719 Right-of-use asset impairment (4) Provision for impaired assets and restaurant closings 32,992 Fixed asset impairment (4) Provision for impaired assets and restaurant closings 34,423 Goodwill and other impairment (5) Provision for impaired assets and restaurant closings 3,190 $ 124,508 ________________ (1) Represents relief pay for U.S. hourly employees impacted by the closure of dining rooms, net of employee retention tax credits earned. See COVID-19 Government Assistance below for further discussion regarding employee retention credits earned. (2) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (3) Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. (4) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments and Exit Costs and Note 4 - Revenue Recognition , for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively. (5) Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. COVID-19 Government Assistance - During 2020, the Company recorded $19.6 million of COVID-19-related government assistance primarily in connection with the Employee Retention Credit (“ERC”) provided under the Coronavirus, Aid, Relief and Economic Security (“CARES”) Act, substantially all of which was recorded in Labor and other related As there was no authoritative guidance under U.S. GAAP on accounting for government assistance provided to for-profit business entities, the Company accounted for government assistance by analogy to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance. The Company recognized assistance under each program when it met the program terms for assistance and receipt of assistance was reasonably assured. Government assistance is generally recorded as a deduction to the related expenses or losses that the grants are intended to compensate. During the periods presented, the Company did not receive any Paycheck Protection Program loans, a program under the CARES Act providing loans to assist entities with paying their payroll and other costs. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 25, 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 Income (Loss) for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Revenues Restaurant sales $ 4,352,695 $ 4,061,093 $ 3,144,636 Franchise and other revenues Franchise revenues 49,687 45,520 21,195 Other revenues (1) 14,126 15,772 4,730 Total Franchise and other revenues 63,813 61,292 25,925 Total revenues $ 4,416,508 $ 4,122,385 $ 3,170,561 ________________ (1) For 2021, includes a $3.1 million benefit from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base. The amount recognized primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest. The following table includes the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market for the periods indicated: FISCAL YEAR 2022 2021 2020 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 2,240,432 $ 31,418 $ 2,175,909 $ 29,725 $ 1,760,071 $ 9,898 Carrabba’s Italian Grill 676,467 2,938 653,231 2,439 497,212 1,309 Bonefish Grill 559,583 662 544,068 641 396,193 346 Fleming’s Prime Steakhouse & Wine Bar 374,388 — 332,607 — 209,564 — Other 12,146 49 9,033 9 6,507 — U.S. total 3,863,016 35,067 3,714,848 32,814 2,869,547 11,553 International Outback Steakhouse - Brazil 405,866 — 258,997 — 206,280 — Other (1) 83,813 14,620 87,248 12,706 68,809 9,642 International total 489,679 14,620 346,245 12,706 275,089 9,642 Total $ 4,352,695 $ 49,687 $ 4,061,093 $ 45,520 $ 3,144,636 $ 21,195 ____________________ (1) Includes Restaurant sales for the Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily include 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) DECEMBER 25, 2022 DECEMBER 26, 2021 Other current assets, net Deferred gift card sales commissions $ 17,755 $ 17,793 Unearned revenue Deferred gift card revenue $ 386,495 $ 387,945 Deferred loyalty revenue 5,628 9,386 Deferred franchise fees - current 460 443 Other 1,632 1,021 Total Unearned revenue $ 394,215 $ 398,795 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,126 $ 4,280 The following table is a rollforward of deferred gift card sales commissions for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Balance, beginning of the period $ 17,793 $ 19,300 $ 18,554 Deferred gift card sales commissions amortization (24,091) (26,012) (20,927) Deferred gift card sales commissions capitalization 26,743 26,625 22,923 Other (2,690) (2,120) (1,250) Balance, end of the period $ 17,755 $ 17,793 $ 19,300 The following table is a rollforward of unearned gift card revenue for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Balance, beginning of the period $ 387,945 $ 373,048 $ 358,757 Gift card sales 326,603 330,841 306,016 Gift card redemptions (310,017) (298,397) (277,675) Gift card breakage (18,036) (17,547) (14,050) Balance, end of the period $ 386,495 $ 387,945 $ 373,048 Franchisee Deferred Payment Agreement - On December 27, 2020, the Company entered into an agreement (the “Resolution Agreement”) with Cerca Trova Southwest Restaurant Group, LLC (d/b/a Out West Restaurant Group) and certain of its affiliates (collectively, “Out West”), who currently franchises 79 Outback Steakhouse restaurants in the western United States, primarily in California. The Resolution Agreement ends on December 31, 2023 or upon the earlier occurrence of certain specified events, including the sale of all or substantially all of the assets or equity of Out West, bankruptcy or a liquidation event (“Qualifying Event”) (the “Forbearance Period”). Prior to the Resolution Agreement, Out West was in default of its franchise agreements for nonpayment of certain amounts due, and simultaneously in default of its credit agreement with its lenders primarily due to the significant impact of the COVID-19 pandemic. Under the terms of the Resolution Agreement, the Company agreed to: • not call upon any previous default under the existing franchise agreements during the Forbearance Period; • reduce future advertising fees to 2.25% of gross sales during the Forbearance Period; • permanently waive unpaid royalty and advertising fees for the period of February 24, 2020 to July 26, 2020; • allow for closure of four restaurants and certain sublease modifications (the “Property Concessions”); • allow for closure of up to ten additional restaurants during the first 12 months of the Resolution Agreement, without imposition of any penalties or accelerated royalties; • defer all non-waived past due royalties and advertising fees through November 22, 2020, and for certain permitted restaurant closings in connection with the Property Concessions, defer accelerated rent and royalties that otherwise would have been due under the terms and conditions of the respective franchise agreements and leases or subleases (the “Initial Deferred Balance”); and • defer all past due rents through December 27, 2020 on subleased properties totaling $3.6 million until April 2021 when the balance will be repaid over an 18-month period. In connection with the Property Concessions, the Company recognized $4.7 million of lease right-of-use asset impairment during the thirteen weeks ended December 27, 2020, within the U.S. segment. Out West also entered into a Forbearance Agreement and Second Amendment to Credit and Guaranty Agreement (“Forbearance Agreement”) with its lenders that, in conjunction with the Resolution Agreement, provides, among other things, for a pre-determined calculation of available monthly cash (“Available Cash”) that Out West may use to settle its obligations due to the Company and its lenders. Available Cash is calculated net of operating expenses, including local marketing expenditures required under the Resolution Agreement. Under the Resolution Agreement, if Out West is unable to satisfy monthly royalty or advertising fees with Available Cash, such amounts will automatically increase the Initial Deferred Balance. At the time of the Resolution Agreement, no amounts previously waived or reflected in the Initial Deferred Balance had been recorded as a receivable or revenue, with the exception of a $3.1 million receivable balance that had been previously fully reserved. Collections of the Initial Deferred Balance, and any future amounts due under the Resolution Agreement or the Company’s franchise agreements after November 22, 2020, will be recognized if collectability is reasonably assured which is typically upon receipt of cash. Since the execution of the Resolution Agreement, all current royalties and obligated amounts were collected, with the exception of $3.0 million of royalties during the thirteen weeks ended December 25, 2022 which were in excess of Out West’s calculation of Available Cash under the Forbearance Agreement. The Company recorded an allowance for expected credit losses against a portion of these uncollected amounts during the thirteen weeks ended December 25, 2022. See Note 20 - Allowance for Expected Credit Losses for additional details. |
Impairment and Exit Costs
Impairment and Exit Costs | 12 Months Ended |
Dec. 25, 2022 | |
Impairments and Exit Costs [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: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Impairment losses U.S. (1) $ 3,942 $ 11,945 $ 65,129 International (1)(2) 1,537 1,186 3,468 Corporate (3) 7 270 6,226 Total impairment losses 5,486 13,401 74,823 Restaurant closure charges (benefits) U.S. (1) 478 422 1,358 International (1) — (86) 173 Total restaurant closure charges 478 336 1,531 Provision for impaired assets and restaurant closings $ 5,964 $ 13,737 $ 76,354 ____________________ (1) U.S. and international impairment and closure charges during 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. (2) Includes goodwill impairment charges of $2.0 million during 2020. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. (3) Corporate impairment charges during 2020 primarily relate to transformational initiatives. COVID-19 Restructuring - During 2020, the Company recognized pre-tax asset impairments and closure charges in connection with the closure of 22 U.S. restaurants and from the update of certain cash flow assumptions, including lease renewal considerations (the “COVID-19 Restructuring”). Following is a summary of the COVID-19 Restructuring charges recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the period indicated (dollars in thousands): CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR DESCRIPTION 2020 Property, fixtures and equipment impairments Provision for impaired assets and restaurant closings $ 18,766 Lease right-of-use asset impairments and closure charges Provision for impaired assets and restaurant closings 5,003 Severance and other expenses General and administrative 1,097 $ 24,866 The remaining impairment and closure charges during the periods presented resulted primarily from locations identified for closure or relocation. Accrued Facility Closure and Other Costs Rollforward - The following table is a rollforward of the Company’s closed facility lease liabilities and other accrued costs associated with the closure and restructuring initiatives for the period indicated: FISCAL YEAR (dollars in thousands) 2022 Balance, beginning of the period $ 8,485 Cash payments (3,296) Accretion 558 Adjustments (271) Balance, end of the period (1) $ 5,476 ________________ (1) As of December 25, 2022, the Company had exit-related accruals related to certain closure and restructuring initiatives of $1.3 million recorded in Accrued and other current liabilities and $4.2 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 25, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The dilutive effect of the 2025 Notes is calculated using the if-converted method. To the extent the Company has the ability to settle its 2025 Notes in shares of its common stock, the principal and conversion spread on the 2025 Notes will have a dilutive impact on diluted earnings per share when the average market price of the Company’s common stock for a given period exceeds the conversion price, which was initially $11.89 per share of common stock. In February 2021, the Company provided the trustee of its 2025 Notes notice of the Company’s irrevocable election to settle the principal portion of the 2025 Notes in cash and any excess in shares. As a result, subsequent to the election, only the amounts in excess of the principal amount are considered in diluted earnings per share under the if-converted method. In connection with the offering of the 2025 Notes, the Company entered into the Convertible Note Hedge Transactions and Warrant Transactions described in Note 14 - Convertible Senior Notes. However, the Convertible Note Hedge Transactions are not considered when calculating dilutive shares given their anti-dilutive impact as an offset to dilution of shares underlying the 2025 Notes. The Warrant Transactions have a dilutive effect on the Company’s common stock to the extent the price of its common stock exceeds the strike price of the Warrant Transactions, which was initially $16.64. See Note 14 - Convertible Senior Notes for additional information regarding the 2025 Notes, Convertible Note Hedge Transactions and Warrant Transactions. The following table presents the computation of basic and diluted earnings (loss) per share attributable to common stockholders for the periods indicated: FISCAL YEAR (in thousands, except per share data) 2022 2021 2020 Net income (loss) attributable to Bloomin’ Brands $ 101,907 $ 215,555 $ (158,715) Redemption of preferred stock in excess of carrying value (1) — — (3,496) Net income (loss) attributable to common stockholders 101,907 215,555 (162,211) Convertible senior notes if-converted method interest adjustment, net of tax (2) — 345 — Diluted net income (loss) attributable to common stockholders $ 101,907 $ 215,900 $ (162,211) Basic weighted average common shares outstanding 88,846 88,981 87,468 Effect of dilutive securities: Stock options 261 779 — Nonvested restricted stock units 182 355 — Nonvested performance-based share units 180 61 — Convertible senior notes (2)(3) 6,089 11,377 — Warrants (3) 2,954 6,250 — Diluted weighted average common shares outstanding 98,512 107,803 87,468 Basic earnings (loss) per share attributable to common stockholders $ 1.15 $ 2.42 $ (1.85) Diluted earnings (loss) per share attributable to common stockholders $ 1.03 $ 2.00 $ (1.85) ________________ (1) Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings (loss) per share, reduces net income attributable to common stockholders. See Note 16 - Stockholders’ Equity for additional details. (2) Adjustment for interest related to the 2025 Notes weighted for the portion of the period prior to the Company’s election under the 2025 Notes indenture to settle the principal portion of 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. (3) During 2022, the Company repurchased $125.0 million of the 2025 Notes and retired the corresponding portion of the related warrants. See Note 14 - Convertible Senior Notes for additional details. Due to the Company’s net loss during 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted loss per share as their effect would be antidilutive. Share-based compensation-related weighted average securities outstanding not included in the computation of net earnings (loss) per share attributable to common stockholders because their effect was antidilutive were as follows for the periods indicated: FISCAL YEAR (shares in thousands) 2022 2021 2020 Stock options 1,849 751 5,155 Nonvested restricted stock units 192 128 682 Nonvested performance-based share units 461 377 514 |
Stock-based and Deferred Compen
Stock-based and Deferred Compensation Plans | 12 Months Ended |
Dec. 25, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments and Deferred Compensation [Abstract] | |
Stock-based and Deferred Compensation Plans | Stock-based and Deferred Compensation Plans Stock-based Compensation Plans The Company recognized stock-based compensation expense as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Performance-based share units (1) $ 8,176 $ 13,821 $ 2,414 Restricted stock units 7,687 8,184 8,559 Stock options 503 2,286 3,743 $ 16,366 $ 24,291 $ 14,716 ________________ (1) For 2022, includes a cumulative life-to-date adjustment to decrease expense for PSUs granted in fiscal year 2020 based on Company performance against criteria set forth in the award agreements. For 2021, includes a cumulative life-to-date adjustment to increase expense for PSUs granted in fiscal years 2019, 2020 and 2021 based on Company performance against criteria set forth in the award agreements. Performance-based Share Units - The number of PSUs that vest is determined for each year based on the achievement of certain performance criteria as set forth in the award agreement and may range from zero to 200% of the annual target grant. The PSUs are settled in shares of common stock, with holders receiving one share of common stock for each performance-based share unit that vests. Compensation expense for PSUs is recognized over the vesting period when it is probable the performance criteria will be achieved. The following table presents a summary of the Company’s PSU activity: (in thousands, except per unit data) PERFORMANCE-BASED SHARE UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (1) Outstanding as of December 26, 2021 759 $ 23.11 $ 15,896 Granted 313 $ 26.10 Performance Adjustment (2) 169 $ 19.69 Vested (338) $ 19.69 Forfeited (29) $ 23.30 Outstanding as of December 25, 2022 874 $ 24.83 $ 18,323 Expected to vest as of December 25, 2022 1,275 $ 26,715 ________________ (1) Based on the $20.95 and $20.96 share price of the Company’s common stock on December 23, 2021 and 2022, the last trading day of 2022 and 2021, respectively. (2) Represents adjustment to 200% payout for PSUs granted during 2019. Prior to 2021, the fair value of PSUs was based on the closing price of the Company’s common stock on the grant date. During 2022 and 2021, the Company granted PSUs subject to final payout modification by a 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. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that the market conditions will be achieved and is applied to the closing price of the Company’s common stock on the date of the grant. Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated: FISCAL YEAR 2022 2021 Assumptions: Risk-free interest rate (1) 1.64 % 0.20 % Dividend yield (2) 2.31 % — % Volatility (3) 49.11 % 48.45 % ________________ (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. The following represents PSU compensation information for the periods indicated: FISCAL YEAR (dollars in thousands, except grant date fair value data) 2022 2021 2020 Weighted average grant date fair value for PSUs granted (1) $ 26.10 $ 29.73 $ 19.96 Intrinsic value for PSUs vested $ 7,626 $ 3,768 $ 6,550 Fair value of PSUs vested $ 6,646 $ 3,401 $ 4,809 Tax benefits for PSU compensation expense $ 348 $ 134 $ 1,570 Unrecognized PSU expense $ 11,955 Remaining weighted average vesting period (2) 1.2 years ________________ (1) 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 2022 and 2021, respectively. (2) PSUs typically vest after three years. Restricted Stock Units (“RSUs”) - RSUs generally vest over a period of three years in an equal number of shares each year. Following is a summary of the Company’s RSU activity: (in thousands, except per unit data) RESTRICTED STOCK UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (1) Outstanding as of December 26, 2021 730 $ 21.16 $ 15,298 Granted 364 $ 21.59 Vested (396) $ 20.27 Forfeited (41) $ 24.69 Outstanding as of December 25, 2022 (2) 657 $ 21.72 $ 13,776 ________________ (1) Based on the $20.95 and $20.96 share price of the Company’s common stock on December 23, 2021 and 2022, the last trading day of 2022 and 2021, respectively. (2) All RSUs outstanding as of December 25, 2022 are expected to vest. The following represents RSU compensation information for the periods indicated: FISCAL YEAR (dollars in thousands, except grant date fair value data) 2022 2021 2020 Weighted average grant date fair value for RSUs granted (1) $ 21.59 $ 25.93 $ 16.66 Intrinsic value of RSUs vested $ 9,070 $ 13,482 $ 8,183 Fair value of RSUs vested $ 8,025 $ 9,434 $ 8,973 Tax benefits for RSU compensation expense $ 1,113 $ 1,592 $ 1,614 Unrecognized RSU expense $ 8,389 Remaining weighted average vesting period 1.8 years ________________ (1) The weighted average dividend yield was 2.43% and 2.11% for 2022 and 2020, respectively. There were no dividends in 2021. Stock Options - Stock options generally vest and become exercisable over a period of four years in an equal number of shares each year. Stock options have an exercisable life of no more than ten years from the date of grant. The Company settles stock option exercises with authorized but unissued shares of the Company’s common stock. The following table presents a summary of the Company’s stock option activity: (in thousands, except exercise price and contractual life data) OPTIONS WEIGHTED WEIGHTED AGGREGATE Outstanding as of December 26, 2021 4,276 $ 20.42 4.7 $ 7,304 Exercised (1,044) $ 17.15 Forfeited or expired (44) $ 24.89 Outstanding as of December 25, 2022 (1) 3,188 $ 21.43 4.0 $ 3,337 Exercisable as of December 25, 2022 3,149 $ 21.46 4.0 $ 3,244 ________________ (1) No stock options were granted during 2022. The following represents stock option compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Intrinsic value of options exercised $ 6,367 $ 8,419 $ 2,201 Cash received from option exercises, net of tax withholding $ 17,888 $ 14,951 $ 4,609 Fair value of stock options vested $ 7,645 $ 19,246 $ 16,468 Tax benefits for stock option compensation expense $ 1,495 $ 1,942 $ 535 U.S. Partner Deferred Compensations Plans - Certain U.S. Partners may participate in deferred compensation programs that are subject to the rules of Section 409A of the Internal Revenue Code. The Company may invest in corporate-owned life insurance policies, which are held within an irrevocable grantor or rabbi trust account for settlement of certain of the obligations under the deferred compensation plans. The deferred compensation obligation due to U.S. Partners under these plans was $3.5 million and $15.5 million as of December 25, 2022 and 401(k) Plan - The Company has a qualified defined contribution plan that qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended. The Company incurred contribution costs of $5.6 million, $6.1 million and $5.5 million for the 401(k) Plan for 2022, 2021 and 2020, respectively. Highly Compensated Employee Plan - The Company provides a deferred compensation plan for its highly compensated employees who are not eligible to participate in the 401(k) Plan. The deferred compensation plan allows these employees to contribute a percentage of their base salary and cash bonus on a pre-tax basis. The deferred compensation plan is unsecured and funded through the Company’s voluntary contributions. |
Other Current Assets, Net
Other Current Assets, Net | 12 Months Ended |
Dec. 25, 2022 | |
Other Assets [Abstract] | |
Other Current Assets, Net | Other Current Assets, Net Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Prepaid expenses $ 29,343 $ 21,194 Accounts receivable - gift cards, net (1) 85,606 91,248 Accounts receivable - vendors, net (1) 25,385 11,793 Accounts receivable - franchisees, net (1) 2,550 1,701 Accounts receivable - other, net (1) 18,408 18,353 Deferred gift card sales commissions 17,755 17,793 Company-owned life insurance (2) — 17,244 Other current assets, net 4,671 5,297 $ 183,718 $ 184,623 ________________ (1) See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Property, Fixtures and Equipmen
Property, Fixtures and Equipment, Net | 12 Months Ended |
Dec. 25, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Fixtures and Equipment, Net | Property, Fixtures and Equipment, Net Property, fixtures and equipment, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Land $ 37,596 $ 38,417 Buildings 1,223,403 1,167,811 Furniture and fixtures 489,895 460,768 Equipment 739,136 641,715 Construction in progress 41,723 47,822 Less: accumulated depreciation (1,617,611) (1,514,521) $ 914,142 $ 842,012 Depreciation and repair and maintenance expense are as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Depreciation expense $ 163,445 $ 157,386 $ 173,342 Repair and maintenance expense $ 116,318 $ 104,209 $ 88,829 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill - The following table is a rollforward of goodwill for the periods indicated: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 27, 2020 $ 170,657 $ 100,507 $ 271,164 Translation adjustments — (2,720) (2,720) Balance as of December 26, 2021 170,657 97,787 268,444 Translation adjustments — 4,588 4,588 Balance as of December 25, 2022 $ 170,657 $ 102,375 $ 273,032 The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS U.S. $ 838,827 $ (668,170) $ 838,827 $ (668,170) $ 838,827 $ (668,170) International 222,258 (119,883) 217,670 (119,883) 220,390 (119,883) Total goodwill $ 1,061,085 $ (788,053) $ 1,056,497 $ (788,053) $ 1,059,217 $ (788,053) T he COVID-19 outbreak was considered a triggering event during the first quarter of 2020, indicating that the carrying amount of goodwill may not be recoverable. As a result, the Company performed a quantitative assessment for its four U.S. and three international reporting units to determine whether a reporting unit was impaired. Based on this assessment, which utilized a discounted cash flow analysis, the Company recorded full impairment of goodwill related to its Hong Kong reporting unit of $2.0 million within the international segment during the first quarter of 2020. Impairment was not recorded for any of the Company’s other reporting units as a result of the quantitative assessment. The Company performs its annual assessment for impairment of goodwill and other indefinite-lived intangible assets each year during the second quarter. The Company’s 2022 and 2021 assessments utilized a qualitative approach. As a result of these assessments, the Company did not record any goodwill asset impairment charges during 2022 or 2021. Since the Company performed a quantitative assessment on the last day of the first quarter of 2020, as described above, the Company utilized the same assumptions and analysis in performing a quantitative annual assessment in its second quarter and concluded that no additional impairment was required. Intangible Assets, net - Intangible assets, net, consisted of the following as of the periods indicated: WEIGHTED AVERAGE REMAINING AMORTIZATION PERIOD DECEMBER 25, 2022 DECEMBER 26, 2021 (dollars in thousands) GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE Trade names Indefinite $ 414,716 $ 414,716 $ 414,716 $ 414,716 Trademarks 6 81,952 $ (59,675) 22,277 81,951 $ (55,736) 26,215 Reacquired franchise rights 8 34,602 (23,269) 11,333 31,944 (19,463) 12,481 Total intangible assets 7 $ 531,270 $ (82,944) $ 448,326 $ 528,611 $ (75,199) $ 453,412 The Company did not record any indefinite-lived intangible asset impairment charges during the periods presented. Definite-lived intangible assets are amortized on a straight-line basis. The following table presents the aggregate expense related to the amortization of the Company’s trademarks and reacquired franchise rights for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Amortization expense $ 6,172 $ 6,005 $ 6,919 The following table presents expected annual amortization of intangible assets as of December 25, 2022: (dollars in thousands) 2023 $ 5,891 2024 $ 5,752 2025 $ 5,408 2026 $ 5,293 2027 $ 3,554 |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Dec. 25, 2022 | |
Other Assets [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Company-owned life insurance $ 27,789 $ 30,970 Deferred debt issuance costs (1) 5,505 5,861 Liquor licenses 23,454 23,266 Other assets 25,399 18,573 $ 82,147 $ 78,670 ________________ |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Dec. 25, 2022 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Accrued rent and current operating lease liabilities $ 187,136 $ 181,636 Accrued payroll and other compensation (1) 84,075 105,095 Accrued insurance 20,932 22,017 Other current liabilities 107,158 98,146 $ 399,301 $ 406,894 ________________ (1) During 2022, accrued payroll and other compensation decreased primarily due to payment of deferred compensation obligations and a decrease in incentive compensation. |
Long-term Debt, Net
Long-term Debt, Net | 12 Months Ended |
Dec. 25, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net Following is a summary of outstanding long-term debt as of the periods indicated: DECEMBER 25, 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) 430,000 5.79 % 80,000 3.75 % Total Senior Secured Credit Facility 430,000 275,000 2025 Notes (3) 105,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Finance lease liabilities 5,976 2,376 Less: unamortized debt discount and issuance costs (4) (6,493) (14,157) Less: finance lease interest (1,191) (154) Total debt, net 833,292 793,065 Less: current portion of long-term debt (1,636) (10,958) Long-term debt, net $ 831,656 $ 782,107 ________________ (1) Interest rate represents the weighted average interest rate. (2) Interest rate represents the weighted average interest rate as of December 25, 2022 and the base rate option elected in anticipation of impending repayment as of December 26, 2021. Subsequent to December 25, 2022, the Company repaid $80.0 million on its revolving credit facility. (3) During 2022, the Company repurchased $125.0 million of the 2025 Notes. See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. (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 2022. See Note 14 - Convertible Senior Notes for details regarding the partial repurchase of the 2025 Notes. Bloomin’ Brands, Inc. is a holding company and conducts its operations through its subsidiaries, certain of which have incurred indebtedness as described below. Credit Agreement - On April 16, 2021, the Company and OSI, as co-borrowers, entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”), which provides for senior secured financing of up to $1.0 billion consisting of a $200.0 million Term loan A and an $800.0 million revolving credit facility (the “Senior Secured Credit Facility”). The Senior Secured Credit Facility matures on April 16, 2026 and replaced the Company’s prior senior secured financing of up to $1.5 billion (the “Former Credit Facility”). 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 the London Inter-Bank Offered Rate (“LIBOR”) to the 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. Fees on letters of credit and daily unused availability under the revolving credit facility are 150 to 250 basis points and 25 to 40 basis points, respectively. The commitments under the Senior Secured Credit Facility may be increased in an aggregate principal amount of up to: (i) $225.0 million or (ii) at the Company’s option, up to an unlimited amount of incremental facilities, so long as the Consolidated Senior Secured Net Leverage Ratio, as defined in the Amended Credit Agreement, is no more than 3.00 to 1.00 as of the last day of the most recent period of four consecutive fiscal quarters ended. The Amended Credit Agreement limits, subject to certain exceptions, the Company’s ability and the ability of its subsidiaries to incur additional indebtedness; make significant payments; sell assets; pay dividends and other restricted payments; make certain investments; acquire certain assets; effect mergers and similar transactions; and effect certain other transactions with affiliates. Total Net Leverage Ratio (“TNLR”) is the ratio of Consolidated Total Debt (Current portion of long-term debt and Long-term debt, net of cash, excluding the 2025 Notes) to Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization and certain other adjustments as defined in the Amended Credit Agreement). The Amended Credit Agreement requires a TNLR not to exceed 4.50 to 1.00. As of December 25, 2022 and December 26, 2021, the Company was in compliance with its debt covenants. 2029 Notes - On April 16, 2021, the Company and its wholly-owned subsidiary OSI, as co-issuers, issued $300.0 million aggregate principal amount of senior unsecured notes due 2029 (the “2029 Notes”). The 2029 Notes were issued pursuant to an Indenture, dated April 16, 2021 (the “Indenture”), by and among the Company, the guarantors named therein, and Wells Fargo Bank, National Association, as trustee. The 2029 Notes are guaranteed by each of the Company’s existing and future domestic restricted subsidiaries (other than OSI) that are guarantors or borrowers under its Senior Secured Credit Facility or certain other indebtedness. The 2029 Notes mature on April 15, 2029, unless earlier redeemed or purchased by the Company. The 2029 Notes bear cash interest at an annual rate of 5.125% payable semi-annually in arrears on April 15 and October 15 of each year. The Company may redeem some or all of the 2029 Notes at any time on or after April 15, 2024, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest. The Company may also redeem up to 40% of the 2029 Notes in an amount not greater than the proceeds of certain equity offerings completed before April 15, 2024, at a redemption price equal to 105.125% of the principal amount thereof, plus accrued and unpaid interest. In addition, at any time prior to April 15, 2024, the Company may redeem some or all of the 2029 Notes at a price equal to 100% of the principal amount, plus a make-whole premium, plus accrued and unpaid interest. The Indenture contains restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness or issue certain preferred stock; pay dividends, redeem stock or make other distributions; make certain investments; create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company; create certain liens; transfer or sell certain assets; merge or consolidate; enter into certain transactions with the Company’s affiliates; and designate subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications as set forth in the Indenture. The Indenture contains customary events of default, including, without limitation, failure to make required payments, failure to comply with certain agreements or covenants, cross-acceleration to certain other indebtedness in excess of specified amounts, certain events of bankruptcy and insolvency, and failure to pay certain judgments. Maturities - Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated: (dollars in thousands) DECEMBER 25, 2022 2023 $ 1,674 2024 1,275 2025 105,821 2026 430,426 2027 338 Thereafter 301,442 Total payments 840,976 Less: unamortized debt discount and issuance costs (6,493) Less: finance lease interest (1,191) Total principal payments $ 833,292 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 25, 2022 | |
Convertible Notes [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes 2025 Notes - In May 2020, the Company completed a $230.0 million principal amount private offering of 5.00% convertible senior unsecured notes due in 2025. The 2025 Notes are governed by the terms of an indenture between the Company and Wells Fargo Bank, National Association, as the Trustee. The 2025 Notes mature on May 1, 2025, unless earlier converted, redeemed or purchased by the Company. The 2025 Notes bear cash interest at an annual rate of 5.00%, payable semi-annually in arrears on May 1 and November 1 of each year. Net proceeds from the 2025 Notes offering were approximately $221.6 million, after deducting the initial purchaser’s discounts and commissions and the Company’s offering expenses. The initial conversion rate applicable to the 2025 Notes 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. The conversion rate is subject to adjustment upon the occurrence of certain specified events. Prior to the close of business on the business day immediately preceding November 1, 2024, holders may convert all or a portion of their 2025 Notes under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock and the conversion rate on each such trading day; (iii) upon the occurrence of specified corporate events or distributions on the Company’s common stock; (iv) if the Company calls the 2025 Notes for redemption and (v) at any time from, and including November 1, 2024 until the close of business on the second scheduled trading day immediately before the maturity date. The 2025 Notes will be redeemable by the Company, in whole or in part, at the Company’s option at any time, and from time to time, on or after May 1, 2023 and on or before the 40 th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on: (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any of the 2025 Notes for redemption will constitute a make-whole fundamental change with respect to that note, in which case the conversion rate applicable to the conversion of the 2025 Notes will be increased in certain circumstances if it is converted after it is called for redemption. If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2025 Notes for cash at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest. Holders of 2025 Notes who convert their 2025 Notes in connection with a notice of redemption or a make-whole fundamental change may be entitled to a premium in the form of an increase in the conversion rate of the 2025 Notes. Based on the daily closing prices of the Company’s stock during the quarter ended December 25, 2022, holders of the 2025 Notes are eligible to convert their 2025 Notes during the first quarter of 2023. The Company has provided the trustee of the 2025 Notes notice of its irrevocable election under the 2025 Notes indenture to settle the principal portion of the 2025 Notes upon conversion in cash and any excess in shares. 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 2022. In connection with dividends paid during 2022, the conversion rate for the remaining 2025 Notes decreased to approximately $11.59 per share, which represents 86.267 shares of common stock per $1,000 principal amount of the 2025 Notes, or a total of approximately 9.058 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) DECEMBER 25, 2022 DECEMBER 26, 2021 Long-term debt, net Principal $ 105,000 $ 230,000 Less: debt issuance costs (1) (1,939) (5,898) Net carrying amount $ 103,061 $ 224,102 ________________ (1) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. During 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: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Coupon interest $ 8,080 $ 11,500 $ 7,443 Deferred discount amortization — — 6,275 Debt issuance cost amortization 1,156 1,557 569 Total interest expense (1) $ 9,236 $ 13,057 $ 14,287 ________________ (1) The effective rate of the 2025 Notes over their expected life was 5.85% for 2022 and 2021 and 13.73% for 2020. Convertible Note Hedge and Warrant Transactions - In connection with the offering of the 2025 Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedge Transactions”) with certain of the initial purchasers of the 2025 Notes and/or their respective affiliates and other financial institutions (in this capacity, the “Hedge Counterparties”). Concurrently with the Company’s entry into the Convertible Note Hedge Transactions, the Company also entered into separate, warrant transactions with the Hedge Counterparties collectively relating to the same number of shares of the Company’s common stock, subject to customary anti-dilution adjustments, and for which the Company received proceeds that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “Warrant Transactions”). The Convertible Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the 2025 Notes, and are expected generally to reduce the potential equity dilution in excess of the principal amount due upon conversion of the 2025 Notes. The Warrant Transactions have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions. The strike price was initially $16.64 per share and is subject to certain adjustments under the terms of the Warrant Transactions. The portion of the net proceeds to the Company from the offering of the 2025 Notes that was used to pay the premium on the Convertible Note Hedge Transactions, net of the proceeds to the Company from the Warrant Transactions, was approximately $19.6 million. The net costs incurred in connection with the Convertible Note Hedge Transactions and Warrant Transactions were recorded as a reduction to Additional paid-in capital on the Company’s Consolidated Balance Sheet during 2020. The Convertible Note Hedge Transactions are exercisable upon conversion of the 2025 Notes. The Convertible Note Hedge Transactions expire upon maturity of the 2025 Notes. The Warrant Transactions are exercisable on the expiration dates included in the related forms of confirmation. 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. 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 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. In connection with dividends paid during 2022, the strike price for the remaining Warrant Transactions decreased to $16.23. |
Other Long-term Liabilities, Ne
Other Long-term Liabilities, Net | 12 Months Ended |
Dec. 25, 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) DECEMBER 25, 2022 DECEMBER 26, 2021 Accrued insurance liability $ 28,133 $ 31,517 Deferred payroll tax liabilities (1) — 27,302 Deferred compensation obligations 31,608 37,514 Other long-term liabilities 27,645 28,909 $ 87,386 $ 125,242 _______________ |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 25, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchases - On February 8, 2022, the Company’s Board of Directors (the “Board”) approved a share repurchase program (the “2022 Share Repurchase Program”) under which the Company was authorized to repurchase up to $125.0 million of its outstanding common stock. The 2022 Share Repurchase Program will expire on August 9, 2023. As of December 25, 2022, $15.0 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 Third fiscal quarter 1,746 $ 19.21 33,549 Fourth fiscal quarter 1,371 $ 21.15 28,999 Total common stock repurchases (1) 5,429 $ 20.26 $ 109,999 ________________ (1) Subsequent to December 25, 2022, the Company repurchased 644 thousand shares of its common stock for $15.0 million under a Rule 10b5-1 plan. On February 7, 2023, the Company’s Board approved a new $125.0 million authorization (the “2023 Share Repurchase Program”). The 2023 Share Repurchase Program will expire on August 7, 2024. Dividends - The Company declared and paid dividends per share during the periods presented as follows: DIVIDENDS PER SHARE AMOUNT FISCAL YEAR FISCAL YEAR (dollars in thousands, except per share data) 2022 2020 2022 2020 First fiscal quarter $ 0.14 $ 0.20 $ 12,559 $ 17,480 Second fiscal quarter 0.14 — 12,418 — Third fiscal quarter 0.14 — 12,475 — Fourth fiscal quarter 0.14 — 12,284 — Total cash dividends declared and paid $ 0.56 $ 0.20 $ 49,736 $ 17,480 On February 7, 2023, the Board declared a quarterly cash dividend of $0.24 per share, payable on March 15, 2023 to shareholders of record at the close of business on March 1, 2023. Redeemable Preferred Stock - In connection with the development of its Abbraccio Cucina Italiana (“Abbraccio”) concept in 2015, the Company sold preferred shares of its Abbraccio concept (“Abbraccio Shares”) to certain investors. During 2020, the Company exercised a call option to purchase all outstanding Abbraccio Shares for $1.0 million and recorded a reduction to Accumulated deficit and an increase in Net loss applicable to common stockholders of $3.5 million for the consideration paid in excess of the Abbraccio Shares’ carrying value. Accumulated Other Comprehensive Loss (“AOCL”) - Following are the components of AOCL as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Foreign currency translation adjustment $ (185,311) $ (195,480) Unrealized loss on derivatives, net of tax — (10,509) Accumulated other comprehensive loss $ (185,311) $ (205,989) Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Foreign currency translation adjustment $ 10,169 $ (6,597) $ (36,852) Unrealized gain (loss) on derivatives, net of tax (1) 573 86 (14,741) Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2) 954 7,392 9,923 Impact of terminated interest rate swaps included in Net income (loss), net of tax (2) 8,982 4,576 — Total gain (loss) on derivatives, net of tax 10,509 12,054 (4,818) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 20,678 $ 5,457 $ (41,670) ________________ (1) Unrealized loss on derivatives during 2020 is net of tax of $5.1 million. (2) See Note 17 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications and the terminated swaps. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 25, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Interest Rate Risk - The Company manages economic risks, including interest rate variability, primarily by managing the amount, sources and duration of its debt funding and through the use of derivative financial instruments. The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps. Designated Hedges Cash Flow Hedges of Interest Rate Risk - In October 2018, the Company entered into variable-to-fixed interest rate swap agreements with 12 counterparties to hedge a portion of the cash flows of the Company’s variable rate debt (the “2018 Swap Agreements”). The 2018 Swap Agreements had an aggregate notional amount of $550.0 million and matured on November 30, 2022. Under the terms of the 2018 Swap Agreements, the Company paid a weighted average fixed rate of 3.04% on the notional amount and received payments from the counterparties based on the one-month LIBOR rate. In connection with the refinancing of its Former Credit Facility, on April 16, 2021 the Company terminated its variable-to-fixed interest rate swap agreements with seven counterparties having an aggregate notional amount of $275.0 million for a payment of approximately $13.3 million, including accrued interest. Following these terminations, $13.4 million of unrealized losses related to the terminated swap agreements included in AOCL were amortized on a straight-line basis to Interest expense, net over the remaining original term of the terminated swaps. As a result of the Company’s anticipated decrease in variable rate debt balances due to significant voluntary debt payments, on December 9, 2021 the Company terminated its variable-to-fixed interest rate swap agreements with three counterparties having an aggregate notional amount of $150.0 million for a payment of approximately $4.1 million, including accrued interest. Following these terminations, $4.1 million of unrealized losses related to the terminated swap agreements included in AOCL were amortized to Interest expense, net over the remaining original term of the terminated swaps. 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 were amortized to Interest expense, net over the remaining original term of the terminated swaps. 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. 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 19 - Fair Value Measurements for fair value discussion of the interest rate swaps. The Company’s interest rate swaps were subject to master netting arrangements. As of December 26, 2021, the Company did not have more than one derivative between the same counterparties and as such, there was no netting. The following table summarizes the effects of the swap agreements on Net income (loss) for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Interest rate swap agreements: Interest rate swap expense recognized in Interest expense, net $ (1,284) $ (9,951) $ (13,370) Income tax benefit recognized in Provision (benefit) for income taxes 330 2,559 3,447 Net effects of interest rate swap agreements $ (954) $ (7,392) $ (9,923) Terminated interest rate swap agreements: Terminated interest rate swap expense recognized in Interest expense, net $ (12,115) $ (6,160) $ — Income tax benefit recognized in Provision (benefit) for income taxes 3,133 1,584 — Net effects of terminated interest rate swap agreements $ (8,982) $ (4,576) $ — Total net effects on Net income (loss) $ (9,936) $ (11,968) $ (9,923) By utilizing the interest rate swaps, the Company was exposed to credit-related losses in the event that the counterparty failed to perform under the terms of the derivative contract. To mitigate this risk, the Company entered into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assessed the creditworthiness of its counterparties. As of December 26, 2021, all counterparties to the interest rate swaps performed in accordance with their contractual obligations. |
Leases
Leases | 12 Months Ended |
Dec. 25, 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 DECEMBER 25, 2022 DECEMBER 26, 2021 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,103,083 $ 1,130,873 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 4,679 2,074 Total lease assets, net $ 1,107,762 $ 1,132,947 Current operating lease liabilities (2) Accrued and other current liabilities $ 183,510 $ 177,028 Current finance lease liabilities Current portion of long-term debt 1,636 958 Non-current operating lease liabilities (2) Non-current operating lease liabilities 1,148,379 1,178,998 Non-current finance lease liabilities Long-term debt, net 3,149 1,264 Total lease liabilities $ 1,336,674 $ 1,358,248 ________________ (1) Net of accumulated amortization of $3.6 million and $3.3 million as December 25, 2022 and December 26, 2021, respectively. (2) Excludes current accrued contingent percentage rent of $3.4 million and $3.5 million, as of December 25, 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 Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR (dollars in thousands) 2022 2021 2020 Operating leases (1) Other restaurant operating $ 182,091 $ 178,733 $ 178,740 Variable lease cost (2) Other restaurant operating 6,508 4,350 (2,326) Finance leases: Amortization of leased assets Depreciation and amortization 1,420 1,079 1,248 Interest on lease liabilities Interest expense, net 172 129 160 Sublease revenue Franchise and other revenues (9,016) (9,396) (3,121) Lease costs, net $ 181,175 $ 174,895 $ 174,701 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.2 million, $12.9 million and $13.8 million for 2022, 2021 and 2020, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs for 2021 and 2020. (2) Includes COVID-19-related rent abatements for 2021 and 2020. As of December 25, 2022, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2023 (2) $ 190,933 $ 1,674 $ (5,552) 2024 192,371 1,275 (5,782) 2025 179,377 821 (5,518) 2026 171,279 426 (5,514) 2027 165,906 338 (5,617) Thereafter 1,407,054 1,442 (40,598) Total minimum lease payments (receipts) (3) 2,306,920 5,976 $ (68,581) Less: Interest (974,623) (1,191) Present value of future lease payments $ 1,332,297 $ 4,785 ____________________ (1) Includes immaterial current and non-current COVID-19-related deferred rent accruals as of December 25, 2022. (2) Net of operating lease prepaid rent of $4.6 million. (3) Includes $919.7 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.9 million of signed operating leases that have not yet commenced. The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 Weighted average remaining lease term (1): Operating leases 13.2 years 13.7 years Finance leases 5.4 years 2.8 years Weighted average discount rate (2): Operating leases 8.44 % 8.42 % Finance leases 6.63 % 5.01 % ____________________ (1) Includes lease renewal options that are reasonably certain of exercise. (2) Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement. 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: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 193,822 $ 205,253 $ 177,961 Properties Leased to Third Parties - The Company leases certain owned land and buildings to third parties, generally related to closed or refranchised restaurants. The following table is a summary of assets leased to third parties as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Land $ 4,906 $ 5,021 Buildings $ 4,289 $ 4,987 Less: accumulated depreciation (3,298) (3,746) Buildings, net $ 991 $ 1,241 |
Leases | Leases The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) CONSOLIDATED BALANCE SHEET CLASSIFICATION DECEMBER 25, 2022 DECEMBER 26, 2021 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,103,083 $ 1,130,873 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 4,679 2,074 Total lease assets, net $ 1,107,762 $ 1,132,947 Current operating lease liabilities (2) Accrued and other current liabilities $ 183,510 $ 177,028 Current finance lease liabilities Current portion of long-term debt 1,636 958 Non-current operating lease liabilities (2) Non-current operating lease liabilities 1,148,379 1,178,998 Non-current finance lease liabilities Long-term debt, net 3,149 1,264 Total lease liabilities $ 1,336,674 $ 1,358,248 ________________ (1) Net of accumulated amortization of $3.6 million and $3.3 million as December 25, 2022 and December 26, 2021, respectively. (2) Excludes current accrued contingent percentage rent of $3.4 million and $3.5 million, as of December 25, 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 Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR (dollars in thousands) 2022 2021 2020 Operating leases (1) Other restaurant operating $ 182,091 $ 178,733 $ 178,740 Variable lease cost (2) Other restaurant operating 6,508 4,350 (2,326) Finance leases: Amortization of leased assets Depreciation and amortization 1,420 1,079 1,248 Interest on lease liabilities Interest expense, net 172 129 160 Sublease revenue Franchise and other revenues (9,016) (9,396) (3,121) Lease costs, net $ 181,175 $ 174,895 $ 174,701 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.2 million, $12.9 million and $13.8 million for 2022, 2021 and 2020, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs for 2021 and 2020. (2) Includes COVID-19-related rent abatements for 2021 and 2020. As of December 25, 2022, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2023 (2) $ 190,933 $ 1,674 $ (5,552) 2024 192,371 1,275 (5,782) 2025 179,377 821 (5,518) 2026 171,279 426 (5,514) 2027 165,906 338 (5,617) Thereafter 1,407,054 1,442 (40,598) Total minimum lease payments (receipts) (3) 2,306,920 5,976 $ (68,581) Less: Interest (974,623) (1,191) Present value of future lease payments $ 1,332,297 $ 4,785 ____________________ (1) Includes immaterial current and non-current COVID-19-related deferred rent accruals as of December 25, 2022. (2) Net of operating lease prepaid rent of $4.6 million. (3) Includes $919.7 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.9 million of signed operating leases that have not yet commenced. The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 Weighted average remaining lease term (1): Operating leases 13.2 years 13.7 years Finance leases 5.4 years 2.8 years Weighted average discount rate (2): Operating leases 8.44 % 8.42 % Finance leases 6.63 % 5.01 % ____________________ (1) Includes lease renewal options that are reasonably certain of exercise. (2) Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement. 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: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 193,822 $ 205,253 $ 177,961 Properties Leased to Third Parties - The Company leases certain owned land and buildings to third parties, generally related to closed or refranchised restaurants. The following table is a summary of assets leased to third parties as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Land $ 4,906 $ 5,021 Buildings $ 4,289 $ 4,987 Less: accumulated depreciation (3,298) (3,746) Buildings, net $ 991 $ 1,241 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 (dollars in thousands) TOTAL LEVEL 1 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 3,301 $ 3,301 $ 6,714 $ 6,714 $ — Money market funds 4,786 4,786 9,039 9,039 — Restricted cash equivalents: Money market funds — — 1,472 1,472 — Total asset recurring fair value measurements $ 8,087 $ 8,087 $ 17,225 $ 17,225 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ — $ — $ 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 Historically, the Company’s derivative instruments included interest rate swaps. Fair value measurements were based on the contractual terms of the derivatives and used observable market-based inputs. The interest rate swaps were 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 considered its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of December 26, 2021, the Company determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. Fair Value Measurements on a Nonrecurring Basis - Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to property, fixtures and equipment, operating lease right-of-use assets, goodwill and other intangible assets, which are remeasured when carrying value exceeds fair value. Carrying value after impairment approximates fair value. The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis for the periods indicated: 2022 2021 2020 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ — $ — $ — $ — $ 1,934 $ 123 Operating lease right-of-use assets (2) 2,219 1,233 8,647 3,950 72,615 30,940 Property, fixtures and equipment (3) 2,807 4,253 11,647 8,445 26,311 41,077 Goodwill and other assets (4) — — — 1,006 748 2,683 $ 5,026 $ 5,486 $ 20,294 $ 13,401 $ 101,608 $ 74,823 ________________ (1) Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (2) Carrying values measured using discounted cash flow models (Level 3). Refer to Note 5 - Impairments and Exit Costs for a more detailed discussion of impairments. (3) Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million and $2.2 million for 2021 and 2020, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair value. Refer to Note 5 - Impairments and Exit Costs for a more detailed discussion of impairments. (4) Other assets were generally measured using the quoted market value of comparable assets (Level 2). See Note 5 - Impairments and Exit Costs for information regarding impairment charges resulting from the fair value measurement performed on a nonrecurring basis during 2020. Projected future cash flows, including discount rate and growth rate assumptions, are derived from then-current economic conditions, expectations of management and projected trends of current operating results. As a result, the Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs that fall within Level 3 of the fair value hierarchy. In assessment of impairment for operating locations, the Company determined the fair values of individual operating locations using an income approach, which required discounting projected future cash flows. When determining the stream of projected future cash flows associated with an individual operating location, management made assumptions, including highest and best use and inputs from restaurant operations, where necessary, and about key variables including the following unobservable inputs: revenue growth rates, controllable and uncontrollable expenses, and asset residual values. In order to calculate the present value of those future cash flows, the Company discounted cash flow estimates at its weighted average cost of capital applicable to the country in which the measured assets reside. The following table presents quantitative information related to certain unobservable inputs used in the Company’s Level 3 fair value measurements of Operating lease right-of-use assets and Property, fixtures and equipment for the impairment losses incurred during the period indicated: FISCAL YEAR UNOBSERVABLE INPUTS 2020 Weighted average cost of capital 10.4% to 11.3% Long-term growth rate 1.5% to 2.0% Fair Value of Financial Instruments - The Company’s non-derivative financial instruments consist of cash equivalents, accounts receivable, accounts payable and current and long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported on its Consolidated Balance Sheets due to their short duration. Debt is carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: DECEMBER 25, 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 $ 430,000 $ 430,000 $ 80,000 $ 76,926 2025 Notes $ 105,000 $ 198,843 $ 230,000 $ 447,615 2029 Notes $ 300,000 $ 260,265 $ 300,000 $ 304,395 |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 12 Months Ended |
Dec. 25, 2022 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The following table is a rollforward of the Company’s trade receivables allowance for expected credit losses for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Allowance for expected credit losses, beginning of the period $ 4,050 $ 4,095 $ 199 Adjustment for adoption of ASU No. 2016-13 — — 1,018 Provision for expected credit losses (1) 1,547 64 3,472 Charge-off of accounts (146) (109) (594) Allowance for expected credit losses, end of the period $ 5,451 $ 4,050 $ 4,095 ________________ (1) In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. The Company is also exposed to credit losses from off-balance sheet lease guarantees primarily related to the divestiture of certain formerly Company-owned restaurant sites. See Note 22 - Commitments and Contingencies for details regarding these lease guarantees. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the domestic and foreign components of Income (loss) before provision (benefit) for income taxes for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Domestic $ 134,465 $ 258,202 $ (206,941) Foreign 17,442 (8,905) (32,580) Income (loss) before provision (benefit) for income taxes $ 151,907 $ 249,297 $ (239,521) Provision (benefit) for income taxes consisted of the following for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Current provision: Federal $ 13,026 $ 16,951 $ 2,606 State 10,576 10,917 2,301 Foreign 5,354 1,862 2,623 28,956 29,730 7,530 Deferred provision (benefit): Federal 5,172 (2,057) (66,498) State 3,470 1,194 (12,527) Foreign 5,106 (2,483) (9,231) 13,748 (3,346) (88,256) Provision (benefit) for income taxes $ 42,704 $ 26,384 $ (80,726) Effective Income Tax Rate - The reconciliation of income taxes calculated at the United States federal tax statutory rate to the Company’s effective income tax rate is as follows for the periods indicated: FISCAL YEAR 2022 2021 2020 (1) Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 7.3 3.8 3.3 Non-deductible loss on 2025 Notes Partial Repurchase 18.0 — — Non-deductible expenses 2.8 2.3 (1.4) Foreign tax rate differential 2.3 (0.2) 1.1 U.S. tax on foreign earnings - GILTI 1.6 — — Brazil tax legislation 0.2 — — Employment-related credits, net (22.4) (13.2) 9.9 Net changes in deferred tax valuation allowances (2.8) (0.7) (0.6) Tax settlements and related adjustments (0.1) (1.7) 0.1 Other, net 0.2 (0.7) 0.3 Total 28.1 % 10.6 % 33.7 % ________________ (1) Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. The net increase in the effective income tax rate in 2022 as compared to 2021 was primarily due to the non-deductible losses associated with the 2025 Notes Partial Repurchase recorded during 2022. The net decrease in the effective income tax rate in 2021 as compared to 2020 was primarily due to the benefit of FICA tax credits on certain employees’ tips reducing the effective income tax rate in 2021 as a result of pre-tax book income as compared to increasing the effective income tax rate in 2020 as a result of pre-tax book loss. A restaurant company employer may claim a credit against its federal income taxes for FICA taxes paid on certain tipped wages (the “FICA tax credit”). The level of FICA tax credits is primarily driven by U.S. Restaurant sales and is not impacted by costs incurred that may reduce pre-tax income. The Company has a blended federal and state statutory rate of approximately 26%. The effective income tax rate for 2022 was higher than the blended federal and state statutory rate primarily due to the non-deductible losses associated with the 2025 Notes Partial Repurchase recorded during 2022, partially offset by the benefit of FICA tax credits on certain employees’ tips. The effective income tax rate for 2021 was lower than the blended federal and state statutory rate primarily due to the benefit of FICA tax credits on certain employees’ tips. On December 28, 2021, the U.S. Treasury and the Internal Revenue Service released final regulations that, among other things, provide guidance on several aspects of the foreign tax credit rules. 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 was released during 2022. Deferred Tax Assets and Liabilities - The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Deferred income tax assets: Operating lease liabilities $ 346,482 $ 352,041 Insurance reserves 15,695 14,329 Unearned revenue 52,366 50,284 Deferred compensation 14,726 25,164 Net operating loss carryforwards 14,277 18,227 Federal tax credit carryforwards 165,411 146,734 Other, net (1) 12,248 21,222 Gross deferred income tax assets 621,205 628,001 Less: valuation allowance (12,664) (16,998) Deferred income tax assets, net of valuation allowance 608,541 611,003 Deferred income tax liabilities: Less: operating lease right-of-use asset basis differences (284,701) (290,697) Less: property, fixtures and equipment basis differences (63,344) (48,284) Less: intangible asset basis differences (109,162) (103,954) Deferred income tax assets, net $ 151,334 $ 168,068 Reported as: Deferred income tax assets $ 153,118 $ 168,068 Deferred income tax liabilities (included in Other long-term liabilities, net) (1,784) — Net deferred tax assets $ 151,334 $ 168,068 ________________ (1) As of December 25, 2022 and December 26, 2021, the Company maintained deferred tax liabilities for state income taxes on historical foreign earnings of $0.3 million and $0.2 million, respectively. As of December 25, 2022, valuation allowances against deferred tax assets in the U.S. and in certain foreign jurisdictions totaled $0.4 million and $12.3 million, respectively. The Company will maintain the valuation allowances in each applicable tax jurisdiction until it determines it is more likely than not the deferred tax assets will be realized. The net change in the deferred tax valuation allowance in 2022 is primarily attributable to net operating loss carryforwards in certain foreign jurisdictions with full valuation allowances recorded that expired or are no longer available to the Company and the release of the valuation allowance recorded against foreign tax credits that are now more likely than not to be realized. The Company has considered the impact of the COVID-19 pandemic on the Company’s Brazilian operating subsidiary, including assessing the realizability of Brazilian deferred tax assets. As part of the Company’s evaluation of positive and negative evidence, management considered whether there has been cumulative income or loss in the past three years, the impact of non-deductible amounts, the scheduled reversal of deferred tax assets and liabilities, projected future taxable income and the state of the Company’s business in Brazil. As of December 25, 2022 and December 26, 2021, the Company has concluded that no valuation allowance is required against the deferred tax assets of its Brazilian operating subsidiary. Although management uses the best information available, it is reasonably possible that the estimates used by the Company could be materially different from the actual results. These differences could result in a material adjustment to the Company’s valuation allowance in a future reporting period. In September 2022, the Company’s Brazilian subsidiary received a preliminary injunction authorizing it to benefit from the exemptions enacted by Law 14,148/2021 which provides for emergency and temporary actions that would grant certain industries a 100% exemption from income tax (IRPJ and CSLL) and federal value added taxes (PIS and COFINS) for a five-year period. The injunction was issued as part of an ongoing lawsuit initiated by the Company’s Brazilian subsidiary due to the uncertainty regarding the restaurant industry’s eligibility for the exemptions under this legislation. During the thirteen weeks ended December 25, 2022, the Company concluded that it is more likely than not eligible for benefits under this legislation. The Company will continue to evaluate and assess the exemptions, the status of its preliminary injunction and all other available evidence in future periods. The benefits of the Brazil tax legislation include an increase in revenues as a result of not being required to remit certain PIS and COFINS during the exemption period. The increase in revenues is partially offset by higher costs in several financial statement line items that were previously reduced by PIS and COFINS tax credits that will not be generated during the exemption period. Benefits of this legislation also include a reduction in the Brazilian income tax rate from 34% to 0% for a period of five years on certain income earned in Brazil. Benefits began in the thirteen weeks ended December 25, 2022 and end in the first quarter of 2027 with a return to full statutory income tax rates. The Company’s 2022 Net income and Earnings per share were not materially impacted by the overall income tax impacts of the Brazil tax legislation which included revaluing Brazilian deferred tax assets and liabilities that are expected to reverse during the exemption period. Undistributed Earnings - As of December 25, 2022, the Company had aggregate undistributed foreign earnings of approximately $23.2 million. These earnings may be repatriated to the U.S. without additional material U.S. federal income tax. These amounts are not considered indefinitely reinvested in the Company’s foreign subsidiaries. The Company has not recorded a deferred tax liability on the financial statement carrying amount over the tax basis of its investments in foreign subsidiaries because the Company continues to assert that it is indefinitely reinvested in its underlying investments in foreign subsidiaries. The determination of any unrecorded deferred tax liability on this amount is not practicable due to the uncertainty of how these investments would be recovered. Tax Carryforwards - The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 25, 2022 are as follows: (dollars in thousands) EXPIRATION DATE AMOUNT Federal tax credit carryforwards 2026 - 2042 $ 177,676 Foreign loss carryforwards 2023 - Indefinite $ 62,213 Foreign credit carryforwards Indefinite $ 864 As of December 25, 2022, the Company had $175.5 million in general business tax credit carryforwards, which have a 20-year carryforward period and are utilized on a first-in, first-out basis. The Company currently expects to utilize these tax credit carryforwards within a 10-year period. However, the Company’s ability to utilize these tax credits could be adversely impacted by, among other items, a future “ownership change” as defined under Section 382 of the Internal Revenue Code. Unrecognized Tax Benefits - As of December 25, 2022 and December 26, 2021, the liability for unrecognized tax benefits was $18.3 million and $19.2 million, respectively. Of the total amount of unrecognized tax benefits, including accrued interest and penalties, $17.9 million and $18.8 million, respectively, if recognized, would impact the Company’s effective income tax rate. The following table summarizes the activity related to the Company’s unrecognized tax benefits for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Balance, beginning of the period $ 19,238 $ 25,524 $ 27,201 Additions for tax positions taken during a prior period 114 166 1,061 Reductions for tax positions taken during a prior period (401) (4,209) (324) Additions for tax positions taken during the current period 1,100 1,292 762 Settlements with taxing authorities (375) (2,674) (1,290) Lapses in the applicable statutes of limitations (1,424) (854) (1,857) Translation adjustments 6 (7) (29) Balance, end of the period $ 18,258 $ 19,238 $ 25,524 The Company had approximately $0.8 million and $0.9 million accrued for the payment of interest and penalties as of December 25, 2022 and December 26, 2021, respectively. The Company recognized immaterial interest and penalties related to uncertain tax positions in the Provision (benefit) for income taxes, for all periods presented. In many cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by relevant taxable authorities. Based on the outcome of these examinations, or a result of the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the related recorded unrecognized tax benefits for tax positions taken on previously filed tax returns will change by approximately $1.0 million to $2.0 million within the next 12 months. Open Tax Years - Following is a summary of the open audit years by jurisdiction as of December 25, 2022: OPEN AUDIT YEARS United States - federal 2007 - 2021 United States - state 2009 - 2021 Foreign 2016 - 2021 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Guarantees - The Company assigned its interest, and is contingently liable, under certain real estate leases. These leases have varying terms, the latest of which expires in 2032. As of December 25, 2022, the undiscounted payments the Company could be required to make in the event of non-payment by the primary lessees was approximately $22.9 million. The present value of these potential payments discounted at the Company’s incremental borrowing rate as of December 25, 2022 was approximately $16.8 million. In the event of default, the indemnity clauses in the Company’s purchase and sale agreements govern its ability to pursue and recover damages incurred. As of December 25, 2022 and December 26, 2021, the Company’s recorded contingent lease liability was $6.2 million and $8.7 million, respectively. Purchase Obligations - Purchase obligations were $226.6 million and $206.6 million as of December 25, 2022 and December 26, 2021, respectively. These purchase obligations are primarily due within three years, however commitments with various vendors extend through December 2030. Outstanding commitments consist primarily of inventory, kitchen equipment, technology, advertising and restaurant-level service contracts. In 2022, the Company purchased more than 95% of its U.S. beef raw materials from four beef suppliers that represent more than 80% of the total beef marketplace in the U.S. Litigation and Other Matters - The Company is subject to legal proceedings, claims and liabilities, such as liquor liability, slip and fall cases, wage and hour and other employment-related litigation, which arise in the ordinary course of business. A reserve is recorded when it is both: (i) probable that a loss has occurred and (ii) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. The Company’s legal proceedings range from cases brought by a single plaintiff to threatened class actions with many putative class members. While some matters pending against the Company specify the damages claimed by the plaintiff or class, many seek unspecified amounts or are at very early stages of the legal process. Even when the amount of damages claimed against the Company are stated, the claimed amount may be exaggerated, unsupported or unrelated to possible outcomes, and as such, are not meaningful indicators of the Company’s potential liability or financial exposure. As a result, some matters have not yet progressed sufficiently through discovery or development of important factual information and legal issues to enable the Company to estimate an amount of loss or a range of possible loss. Certain subsidiaries of the Company have been named in collective actions alleging violations of the Fair Labor Standards Act and state wage and hour laws. The Company believes its employees were properly paid and is defending these matters vigorously. During the thirteen weeks ended December 25, 2022, the Company accrued $5.9 million within Accrued and other current liabilities on its Consolidated Balance Sheet for these matters. 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. Including the matters discussed above, the Company recorded reserves of $15.1 million and $7.1 million for certain of its outstanding legal proceedings as of December 25, 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. During 2022, 2021 and 2020, the Company recognized $9.4 million, $5.4 million and $2.3 million, respectively, in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for certain legal reserves and settlements. Royalty Termination - On August 2, 2021, wholly-owned subsidiaries of the Company entered into the Purchase and Sale of Royalty Payment Stream and Termination of Royalty Agreement (the “Royalty Termination Agreement”) with the Carrabba’s Italian Grill founders (the “Carrabba’s Founders”), pursuant to which the Company’s obligation to pay future royalties on U.S. Carrabba’s Italian Grill restaurant sales and lump sum royalty fees on Carrabba’s Italian Grill (and Abbraccio) restaurants opened outside the U.S. was terminated. Upon execution of the Royalty Termination Agreement, the Company made a cash payment of $61.9 million to the Carrabba’s Founders, which was recorded in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss) during 2021. Insurance - As of December 25, 2022, the future undiscounted payments the Company expects for workers’ compensation, general liability and health insurance claims are as follows: (dollars in thousands) 2023 $ 21,308 2024 11,826 2025 7,597 2026 4,058 2027 2,102 Thereafter 8,473 $ 55,364 The following is a reconciliation of the expected aggregate undiscounted reserves to the discounted reserves for insurance claims recognized on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Undiscounted reserves $ 55,364 $ 54,664 Discount (1) (6,299) (1,130) Discounted reserves $ 49,065 $ 53,534 Discounted reserves recognized on the Company’s Consolidated Balance Sheets: Accrued and other current liabilities $ 20,932 $ 22,017 Other long-term liabilities, net 28,133 31,517 $ 49,065 $ 53,534 ____________________ (1) Discount rates of 4.47% and 0.69% were used for December 25, 2022 and December 26, 2021, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 25, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company considers each of its restaurant concepts and international markets as operating segments, which reflects how the Company manages its business, reviews operating performance and allocates resources. Resources are allocated and performance is assessed by the Company’s Chief Executive Officer, whom the Company has determined to be its Chief Operating Decision Maker. The Company aggregates its operating segments into two reportable segments, U.S. and international. The U.S. segment includes all restaurants operating in the U.S. while restaurants operating outside the U.S. are included in the international segment. The following is a summary of reporting segments as of December 25, 2022: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. Segment accounting policies are the same as those described in Note 2 - Summary of Significant Accounting Policies . Revenues for all segments include only transactions with customers and exclude intersegment revenues. Excluded from Income (loss) from operations for U.S. and international are certain legal and corporate costs not directly related to the performance of the segments, most stock-based compensation expenses, certain insurance expenses and certain bonus expenses. The following table is a summary of Total revenues by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Total revenues U.S. $ 3,911,870 $ 3,759,981 $ 2,885,542 International 504,638 362,404 285,019 Total revenues $ 4,416,508 $ 4,122,385 $ 3,170,561 The following table is a reconciliation of segment income (loss) from operations to Income (loss) before provision (benefit) for income taxes for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Segment income (loss) from operations U.S. $ 407,860 $ 443,887 $ (1,630) International 57,333 16,657 (13,479) Total segment income (loss) from operations 465,193 460,544 (15,109) Unallocated corporate operating expense (1) (134,772) (151,586) (159,864) Total income (loss) from operations 330,421 308,958 (174,973) Loss on extinguishment and modification of debt (107,630) (2,073) (237) Loss on fair value adjustment of derivatives, net (17,685) — — Other (expense) income, net (23) 26 131 Interest expense, net (53,176) (57,614) (64,442) Income (loss) before provision (benefit) for income taxes $ 151,907 $ 249,297 $ (239,521) ____________________ (1) Includes $32.4 million of charges for 2020 that were not allocated to the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings. The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Depreciation and amortization U.S. $ 139,170 $ 134,243 $ 144,298 International 23,397 22,649 23,723 Corporate 7,050 6,499 12,240 Total depreciation and amortization $ 169,617 $ 163,391 $ 180,261 The following table is a summary of capital expenditures by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Capital expenditures U.S. $ 196,163 $ 103,303 $ 64,516 International 28,647 14,074 18,542 Corporate 11,709 9,035 5,936 Total capital expenditures $ 236,519 $ 126,412 $ 88,994 The following table sets forth Total assets by segment as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Assets U.S. $ 2,669,953 $ 2,626,808 International 400,052 383,075 Corporate 250,420 284,388 Total assets $ 3,320,425 $ 3,294,271 Geographic areas — International assets are defined as assets residing in a country other than the U.S. The following table details long-lived assets, excluding goodwill, operating lease right-of-use assets, intangible assets and deferred tax assets, by major geographic area as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 U.S. $ 891,379 $ 831,634 International Brazil 93,972 73,706 Other 10,938 15,342 Total long-lived assets $ 996,289 $ 920,682 International revenues are defined as revenues generated from restaurant sales originating in a country other than the U.S. The following table details Total revenues by major geographic area for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 U.S. $ 3,911,870 $ 3,759,981 $ 2,885,542 International Brazil 448,411 297,167 222,283 Other 56,227 65,237 62,736 Total revenues $ 4,416,508 $ 4,122,385 $ 3,170,561 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 25, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation - The Company’s consolidated financial statements include the accounts and operations of Bloomin’ Brands and its subsidiaries. To ensure timely reporting, the Company consolidates the results of its Brazil operations on a one-month calendar lag. There were no intervening events that would materially affect the Company’s consolidated financial position, results of operations or cash flows as of and for the year ended December 25, 2022. |
Principles of consolidation | Principles of Consolidation - All intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities’ operations. The Company is a franchisor of 321 full-service restaurants and off-premises kitchens as of December 25, 2022, but does not possess any ownership interests in its franchisees and does not provide material direct financial support to its franchisees. These franchise relationships are not deemed variable interest entities and are not consolidated. |
Fiscal year | Fiscal Year - The Company utilizes a 52-53-week year ending on the last Sunday in December. In a 52-week fiscal year, each quarterly period is comprised of 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter. All periods presented consisted of 52 weeks. |
Use of estimates | Use of Estimates - The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated. |
Cash and cash equivalents | Cash and Cash Equivalents - Cash equivalents consist of investments that are readily convertible to cash with an original maturity date of three months or less. Cash and cash equivalents include $41.5 million and $41.3 million, as of December 25, 2022 and December 26, 2021, respectively, for amounts in transit from credit card companies since settlement is reasonably assured. |
Restricted cash | Restricted Cash - From time to time, the Company may have short-term restricted cash balances consisting of amounts pledged for settlement of deferred compensation plan obligations. |
Concentration of credit risk | Concentrations of Credit and Counterparty Risk - Financial instruments that potentially subject the Company to a concentration of credit risk and credit losses are through credit card and trade receivables consisting primarily of amounts due for gift card, vendor, franchise and other receivables. Gift card, vendor and other receivables consist primarily of amounts due from gift card resellers and vendor rebates. The Company considers the concentration of credit risk for gift card, vendor and other receivables to be minimal due to the payment histories and general financial condition of its gift card resellers and vendors. Amounts due from franchisees consist of initial franchise fees, royalty income and advertising fees. See Note 8 - Other Current Assets, Net for disclosure of trade receivables by category as of December 25, 2022 and December 26, 2021. |
Concentration of counterparty risk | Financial instruments that potentially subject the Company to concentrations of counterparty risk are cash and cash equivalents, restricted cash and derivatives. The Company attempts to limit its counterparty risk by investing in certificates of deposit, money market funds, noninterest-bearing accounts and other highly rated investments. Whenever possible, the Company selects investment grade counterparties and rated money market funds in order to mitigate its counterparty risk. At times, cash balances may be in excess of FDIC insurance limits. See Note 17 - Derivative Instruments and Hedging Activities for a discussion of the Company’s use of derivative instruments and management of credit risk inherent in derivative instruments. |
Allowance for expected credit losses | Allowance for Expected Credit Losses - The Company evaluates the collectability of credit card and trade receivables based on historical loss experience by risk pool and records periodic adjustments for factors such as deterioration of economic conditions, specific customer circumstances and changes in the aging of accounts receivable balances. Losses are charged off in the period in which they are determined to be uncollectible. See Note 20 - Allowance for Expected Credit Losses for a discussion of the Company’s allowance for expected credit losses. In instances where there is no established loss history, S&P speculative-grade default rates are utilized as an estimated expected credit loss rate. |
Off-balance-sheet credit exposure | The Company assigned its interest, and is contingently liable, under certain real estate leases, primarily related to divested restaurant properties. Contingent lease liabilities related to these guarantees are calculated based on management’s estimate of exposure to losses which includes historical analysis of credit losses, including known instances of default, and existing economic conditions. See Note 22 - Commitments and Contingencies |
Fair value | Fair Value - Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data |
Inventories | Inventories - Inventories consist of food and beverages and are stated at the lower of cost (first-in, first-out) or net realizable value. |
Property, fixtures and equipment | Property, Fixtures and Equipment - Property, fixtures and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful life of the assets. Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 2 to 7 years ____________________ (1) Includes improvements to leased properties which are depreciated over the shorter of their useful life or the reasonably certain lease term, including renewal periods that are reasonably certain. Repair and maintenance costs that maintain the appearance and functionality of the restaurant, but do not extend the useful life of any restaurant asset are expensed as incurred. The Company suspends depreciation and amortization for assets held for sale. The cost and related accumulated depreciation of assets sold or disposed of are removed from the Company’s Consolidated Balance Sheets, and any resulting gain or loss is generally recognized in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss). The Company capitalizes direct and indirect internal costs associated with the acquisition, development, design and construction of Company-owned restaurant locations as these costs have a future benefit to the Company. Upon restaurant opening, these costs are depreciated and charged to Depreciation and amortization expense over the reasonably certain lease term. Internal costs of $4.1 million, $3.7 million and $2.7 million were capitalized during 2022, 2021 and 2020, respectively. For 2022 and 2021, computer equipment and software costs of $9.2 million and $3.4 million, respectively, were capitalized. As of December 25, 2022 and December 26, 2021, there was $10.1 million and $6.4 million, respectively, of unamortized computer equipment and software included in Property, fixtures and equipment, net on the Company’s Consolidated Balance Sheets. |
Goodwill and intangible assets | Goodwill and Intangible Assets - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate. The Company’s indefinite-lived intangible assets consist of trade names and are recorded at fair value as of the date of acquisition. Goodwill and indefinite-lived intangible assets are tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the fair value of the reporting unit is calculated. The carrying value of the reporting unit is compared to its calculated fair value, with any excess of carrying value over fair value deemed to be an impairment. Definite-lived intangible assets, which consist primarily of trademarks and reacquired franchise rights, are recorded at fair value as of the date of acquisition, amortized over their estimated useful lives and tested for impairment, using the relief from royalty method, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. |
Derivatives | Derivatives - The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. If the derivative qualifies for hedge accounting treatment, any gain or loss on the derivative instrument is recognized in equity as a change to Accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements, foreign currency exchange rate movements, changes in energy prices and other identified risks. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. |
Deferred debt issuance costs | Deferred Debt Issuance Costs - For its revolving credit facility, the Company records deferred debt issuance costs related to the issuance of debt obligations in Other assets, net on its Consolidated Balance Sheets. For fees associated with all other debt obligations, the Company records deferred debt issuance costs as a reduction of Long-term debt, net. The Company amortizes deferred debt issuance costs to interest expense over the term of the respective financing arrangement, primarily using the effective interest method. The Company amortized deferred debt issuance costs of $3.5 million, $4.5 million and $3.9 million to Interest expense, net for 2022, 2021 and 2020, respectively. |
Liquor licenses | Liquor Licenses - The fees from obtaining non-transferable liquor licenses directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in Other assets, net on the Company’s Consolidated Balance Sheets. |
Insurance reserves | Insurance Reserves - The Company carries insurance programs with specific retention levels or high per-claim deductibles for a significant portion of expected losses under its workers’ compensation, general or liquor liability, health, property and management liability insurance programs. The Company records a liability for all unresolved claims and for an estimate of incurred but not reported claims at the anticipated cost that falls below its specified retention levels or per-claim deductible amounts. In establishing reserves, the Company considers actuarial assumptions and judgments regarding economic conditions, and the frequency and severity of claims. Reserves recorded for workers’ compensation and general liability claims are discounted using the average of the one-year and five-year risk-free rate of monetary assets that have comparable maturities. |
Share repurchase | Share Repurchase - The par value of the repurchased shares is deducted from common stock and the excess of the purchase price over the par value of the shares is recorded to Accumulated deficit. All shares of common stock acquired through share repurchase programs are retired and restored to authorized but unissued shares of common stock. |
Revenue recognition | Revenue Recognition - The Company records food and beverage revenues, net of discounts and taxes, upon delivery to the customer. Franchise-related revenues are included in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Royalties, which are generally a percentage of net sales of the franchisee, are recognized as revenue in the period in which the sales are reported to have occurred provided collectability is reasonably assured. Proceeds from the sale of gift cards, which do not have expiration dates, are recorded as deferred revenue and recognized as revenue upon redemption by the customer. The Company applies the portfolio approach practical expedient to account for gift card contracts and performance obligations. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized using estimates based on historical redemption patterns. If actual redemptions vary from assumptions used to estimate breakage, gift card breakage income may differ from the amount recorded. The Company periodically updates its estimates used for breakage. Breakage revenue is recorded as a component of Restaurant sales in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Approximately 84% of deferred gift card revenue is expected to be recognized within 12 months of inception. Gift card sales commissions paid to third-party providers are capitalized and subsequently amortized to Other restaurant operating expense based on historical gift card redemption patterns. See Note 4 - Revenue Recognition for rollforwards of deferred gift card sales commissions and unearned gift card revenue. Advertising fees charged to franchisees are recognized in Franchise and other revenues in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) provided collectability is reasonably assured. Initial franchise and renewal fees are recognized over the term of the franchise agreement and renewal period, respectively. The weighted average remaining term of franchise agreements and renewal periods was approximately 12 years as of December 25, 2022. The Company maintains a customer loyalty program, Dine Rewards, in the U.S., where customers earn a reward after attaining qualified spend amounts. The Company’s estimate of the value of the reward is recorded as deferred revenue. Each reward must be redeemed within specified time limits of earning such reward. The revenue associated with the fair value of the reward is recognized upon the earlier of redemption or expiration of the reward. The Company applies the practical expedient to exclude disclosures regarding loyalty program remaining performance obligations, which have original expected durations of less than one year. The Company collects and remits sales, food and beverage, alcoholic beverage and hospitality taxes on transactions with customers and reports revenue net of taxes in its Consolidated Statements of Operations and Comprehensive Income (Loss). |
Leases | Leases - The Company’s determination of whether an arrangement contains a lease is based on an evaluation of whether the arrangement conveys the right to use and control specific property or equipment. The Company leases restaurant and office facilities and certain equipment under operating leases primarily having initial terms between one five The Company accounts for U.S. fixed lease and non-lease components of a restaurant facility lease as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to account for the lease assets and liabilities. Leases with an initial term of 12 months or less are not recorded on its Consolidated Balance Sheets and are recognized on a straight-line basis over the lease term within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Rent expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease and may include rent holidays, is recorded on a straight-line basis over the initial lease term and those renewal periods that are reasonably certain. Operating lease rent expense for open Company-owned restaurants is recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Payments received from landlords as incentives for leasehold improvements are recorded as a reduction of the right-of-use asset and amortized on a straight-line basis over the term of the lease as a reduction of rent expense. In April 2020, the FASB issued a question-and-answer document focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19 (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Company elected this practical expedient for COVID-19-related rent concessions, primarily rent deferrals or rent abatements, and elected not to remeasure the related lease liability and right-of-use asset for those leases. Rent deferrals are accrued with no impact to straight-line rent expense. Rent abatements are recognized as a reduction of variable rent expense in the month they occur. This election will continue while these concessions are in effect. |
Pre-opening expenses | Pre-Opening Expenses - Non-capital expenditures associated with opening new restaurants are expensed as incurred and are included in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Consideration received from vendors | Consideration Received from Vendors - The Company receives consideration for a variety of vendor-sponsored programs, such as volume rebates, promotions and advertising allowances. Advertising allowances are intended to offset the Company’s costs of promoting and selling menu items in its restaurants. Vendor consideration is recorded as a reduction of Food and beverage costs or Other restaurant operating expense when recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Impairment of long-lived assets and costs associated with exit activities | Impairment of Long-Lived Assets and Costs Associated with Exit Activities - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows independent of other assets. For long-lived assets deployed at its restaurants, the Company reviews for impairment at the individual restaurant level. When evaluating for impairment, the total future undiscounted cash flows expected to be generated by the asset are compared to the carrying amount. If the total future undiscounted cash flows of the asset are less than its carrying amount, recoverability is measured by comparing the fair value of the assets to the carrying amount. An impairment loss is recognized in earnings when the asset’s carrying value exceeds its estimated fair value. Fair value is generally estimated using a discounted cash flow model. Restaurant closure costs, including lease termination fees, are expensed as incurred. When the Company ceases using the property rights under a non-cancelable operating lease, it records a liability for the net present value of any remaining non-rent lease-related obligations, less the estimated subtenant cost recovery that can reasonably be obtained for the property. Any subsequent adjustment to that liability as a result of lease termination or changes in estimates of cost recovery is recorded in the period incurred. The associated expense is recorded in Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). Restaurant sites and certain other assets to be sold are included in assets held for sale when certain criteria are met, including the requirement that the likelihood of selling the assets within one year is probable. |
Advertising costs | Advertising Costs - Advertising production costs are expensed in the period when the advertising first occurs. All other advertising costs are expensed in the period in which the costs are incurred. Advertising expense of $94.0 million, $59.7 million and $67.3 million for 2022, 2021 and 2020, respectively, was recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Legal costs | Legal Costs - Settlement costs are accrued when they are deemed probable and reasonably estimable. Legal fees are recognized as incurred and are reported in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Research and development expenses | Research and Development Expenses (“R&D”) - R&D is expensed as incurred in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). R&D primarily consists of payroll and benefit costs. R&D was $2.7 million, $2.6 million and $2.4 million for 2022, 2021 and 2020, respectively. |
Partner compensation | Partner Compensation - In addition to base salary, Market Vice Presidents, Area Operating Partners, Restaurant Managing Partners and Chef Partners generally receive performance-based bonuses for providing management and supervisory services to their restaurants, certain of which may be based on a percentage of their restaurants’ monthly operating results or cash flows and/or total controllable income (“Monthly Payments”). Certain Restaurant Managing Partners and Chef Partners in the U.S. (“U.S. Partners”) may also participate in deferred compensation programs and other performance-based compensation programs. The Company may invest in corporate-owned life insurance policies, which are held within an irrevocable grantor or “rabbi” trust account for settlement of certain of the Company’s obligations under the deferred compensation plans. Many of the Company’s international Restaurant Managing Partners are given the option to purchase participation interests in the cash distributions of the restaurants they manage. The amount, terms and availability vary by country. The Company estimates future bonuses and deferred compensation obligations to U.S. Partners and Area Operating Partners, using current and historical information on restaurant performance and records the long-term portion of partner obligations in Other long-term liabilities, net on its Consolidated Balance Sheets. Monthly Payments and deferred compensation expenses for U.S. Partners are included in Labor and other related expenses and Monthly Payments and bonus expense for Area Operating Partners are included in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). |
Stock-based compensation | Stock-based Compensation - Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting or service periods. Stock-based compensation expense is recognized only for those awards expected to vest. The expense, net of forfeitures, is recognized using the straight-line method. Forfeitures of share-based compensation awards are recognized as they occur. |
Basic and diluted earnings (loss) per share | Basic and Diluted Earnings (Loss) per Share - The Company computes basic earnings (loss) per share based on the weighted average number of common shares that were outstanding during the period. Except where the result would be antidilutive, diluted earnings per share includes the dilutive effect of common stock equivalents, consisting of stock options, restricted stock units, performance-based share units and warrants, measured using the treasury stock method, and the Company’s convertible senior notes, measured using the if-converted method. PSUs are considered dilutive when the related performance criterion has been met. The Company has provided the trustee of the Company’s convertible senior notes due 2025 (the “ 2025 Notes”) notice of its irrevocable election under the 2025 Notes indenture to settle the principal portion of the |
Foreign currency translation and transactions | Foreign Currency Translation and Transactions - For non-U.S. operations, the functional currency is the local currency. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date with the translation adjustments recorded in Accumulated other comprehensive loss in the Company’s Consolidated Statements of Changes in Stockholders’ Equity. Results of |
Income taxes | Income Taxes - Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. A valuation allowance may reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company records a tax benefit for an uncertain tax position using the highest cumulative tax benefit that is more likely than not to be realized. The Company adjusts its liability for unrecognized tax benefits in the period in which it determines the issue is effectively settled, the statute of limitations expires or when more information becomes available. Liabilities for unrecognized tax benefits, including penalties and interest, are recorded in Accrued and other current liabilities and Other long-term liabilities, net on the Company’s Consolidated Balance Sheets. |
Recently adopted financial accounting standards | Recently Adopted Financial Accounting Standards - During the thirteen weeks ended December 25, 2022, the Company adopted Accounting Standards Update (“ASU”) No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, which requires financial statement footnote disclosure regarding government assistance accounted for by applying a grant or contribution accounting model by analogy. See Note 3 - COVID-19 for information regarding COVID-19-related government assistance. On December 28, 2020, the Company adopted ASU No. 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” (“ASU No. 2020-06”) which removes the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. ASU No. 2020-06 also requires the application of the if-converted method for calculating the diluted earnings per share impact of the 2025 Notes. The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021: ADJUSTMENT CONSOLIDATED BALANCE SHEET CLASSIFICATION AMOUNT Deferred tax impact of cumulative-effect adjustment Deferred income tax assets, net $ 14.9 Debt discount reclassification Long-term debt, net $ 59.9 Equity issuance costs reclassification Long-term debt, net $ (2.1) Debt discount amortization reclassification, net of tax Accumulated deficit $ 4.4 Reversal of separated equity component, net of tax Additional paid-in capital $ (47.3) After adopting ASU No. 2020-06, the 2025 Notes are reflected entirely as a liability since the embedded conversion feature is no longer separately presented within stockholders’ equity. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Accounting Policies [Abstract] | |
Fair value measurements, recurring and nonrecurring, valuation techniques | Fair value is categorized into one of the following three levels based on the lowest level of significant input: Level 1 Unadjusted quoted market prices in active markets for identical assets or liabilities Level 2 Observable inputs available at measurement date other than quoted prices included in Level 1 Level 3 Unobservable inputs that cannot be corroborated by observable market data |
Property, fixtures and equipment, useful lives | Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 2 to 7 years ____________________ Property, fixtures and equipment, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Land $ 37,596 $ 38,417 Buildings 1,223,403 1,167,811 Furniture and fixtures 489,895 460,768 Equipment 739,136 641,715 Construction in progress 41,723 47,822 Less: accumulated depreciation (1,617,611) (1,514,521) $ 914,142 $ 842,012 |
Schedule of material reclassification adjustments from the adoption of ASU 2020-06 | The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021: ADJUSTMENT CONSOLIDATED BALANCE SHEET CLASSIFICATION AMOUNT Deferred tax impact of cumulative-effect adjustment Deferred income tax assets, net $ 14.9 Debt discount reclassification Long-term debt, net $ 59.9 Equity issuance costs reclassification Long-term debt, net $ (2.1) Debt discount amortization reclassification, net of tax Accumulated deficit $ 4.4 Reversal of separated equity component, net of tax Additional paid-in capital $ (47.3) |
COVID-19 (Tables)
COVID-19 (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
COVID-19 Impact [Abstract] | |
Impact from COVID-19 | Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated (dollars in thousands): CHARGES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR 2020 Inventory obsolescence and spoilage Food and beverage costs $ 10,450 Compensation for idle employees (1) Labor and other related 29,993 Other operating charges Other restaurant operating 3,219 Lease guarantee contingent liabilities (2) General and administrative 4,188 Allowance for expected credit losses (3) General and administrative 3,334 Other charges General and administrative 2,719 Right-of-use asset impairment (4) Provision for impaired assets and restaurant closings 32,992 Fixed asset impairment (4) Provision for impaired assets and restaurant closings 34,423 Goodwill and other impairment (5) Provision for impaired assets and restaurant closings 3,190 $ 124,508 ________________ (1) Represents relief pay for U.S. hourly employees impacted by the closure of dining rooms, net of employee retention tax credits earned. See COVID-19 Government Assistance below for further discussion regarding employee retention credits earned. (2) Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third parties. (3) Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables. (4) Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments and Exit Costs and Note 4 - Revenue Recognition , for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively. (5) Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 25, 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 Income (Loss) for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Revenues Restaurant sales $ 4,352,695 $ 4,061,093 $ 3,144,636 Franchise and other revenues Franchise revenues 49,687 45,520 21,195 Other revenues (1) 14,126 15,772 4,730 Total Franchise and other revenues 63,813 61,292 25,925 Total revenues $ 4,416,508 $ 4,122,385 $ 3,170,561 ________________ |
Disaggregation of revenue | The following table includes the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market for the periods indicated: FISCAL YEAR 2022 2021 2020 (dollars in thousands) RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES RESTAURANT SALES FRANCHISE REVENUES U.S. Outback Steakhouse $ 2,240,432 $ 31,418 $ 2,175,909 $ 29,725 $ 1,760,071 $ 9,898 Carrabba’s Italian Grill 676,467 2,938 653,231 2,439 497,212 1,309 Bonefish Grill 559,583 662 544,068 641 396,193 346 Fleming’s Prime Steakhouse & Wine Bar 374,388 — 332,607 — 209,564 — Other 12,146 49 9,033 9 6,507 — U.S. total 3,863,016 35,067 3,714,848 32,814 2,869,547 11,553 International Outback Steakhouse - Brazil 405,866 — 258,997 — 206,280 — Other (1) 83,813 14,620 87,248 12,706 68,809 9,642 International total 489,679 14,620 346,245 12,706 275,089 9,642 Total $ 4,352,695 $ 49,687 $ 4,061,093 $ 45,520 $ 3,144,636 $ 21,195 ____________________ (1) Includes Restaurant sales for the Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily include revenues from franchised Outback Steakhouse restaurants. |
Contract with customer, asset and liability | The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Other current assets, net Deferred gift card sales commissions $ 17,755 $ 17,793 Unearned revenue Deferred gift card revenue $ 386,495 $ 387,945 Deferred loyalty revenue 5,628 9,386 Deferred franchise fees - current 460 443 Other 1,632 1,021 Total Unearned revenue $ 394,215 $ 398,795 Other long-term liabilities, net Deferred franchise fees - non-current $ 4,126 $ 4,280 |
Other current assets, net | |
Revenue Recognition [Line Items] | |
Contract with customer, asset and liability | The following table is a rollforward of deferred gift card sales commissions for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Balance, beginning of the period $ 17,793 $ 19,300 $ 18,554 Deferred gift card sales commissions amortization (24,091) (26,012) (20,927) Deferred gift card sales commissions capitalization 26,743 26,625 22,923 Other (2,690) (2,120) (1,250) Balance, end of the period $ 17,755 $ 17,793 $ 19,300 |
Unearned revenue | |
Revenue Recognition [Line Items] | |
Contract with customer, asset and liability | The following table is a rollforward of unearned gift card revenue for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Balance, beginning of the period $ 387,945 $ 373,048 $ 358,757 Gift card sales 326,603 330,841 306,016 Gift card redemptions (310,017) (298,397) (277,675) Gift card breakage (18,036) (17,547) (14,050) Balance, end of the period $ 386,495 $ 387,945 $ 373,048 |
Impairments and Exit Costs (Tab
Impairments and Exit Costs (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Impairments and Exit Costs [Abstract] | |
Provision for impaired assets and restaurant closings | The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Impairment losses U.S. (1) $ 3,942 $ 11,945 $ 65,129 International (1)(2) 1,537 1,186 3,468 Corporate (3) 7 270 6,226 Total impairment losses 5,486 13,401 74,823 Restaurant closure charges (benefits) U.S. (1) 478 422 1,358 International (1) — (86) 173 Total restaurant closure charges 478 336 1,531 Provision for impaired assets and restaurant closings $ 5,964 $ 13,737 $ 76,354 ____________________ (1) U.S. and international impairment and closure charges during 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. (2) Includes goodwill impairment charges of $2.0 million during 2020. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. (3) Corporate impairment charges during 2020 primarily relate to transformational initiatives. |
Restructuring and related costs | Following is a summary of the COVID-19 Restructuring charges recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the period indicated (dollars in thousands): CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR DESCRIPTION 2020 Property, fixtures and equipment impairments Provision for impaired assets and restaurant closings $ 18,766 Lease right-of-use asset impairments and closure charges Provision for impaired assets and restaurant closings 5,003 Severance and other expenses General and administrative 1,097 $ 24,866 |
Accrued facility closure and other costs rollforward | The following table is a rollforward of the Company’s closed facility lease liabilities and other accrued costs associated with the closure and restructuring initiatives for the period indicated: FISCAL YEAR (dollars in thousands) 2022 Balance, beginning of the period $ 8,485 Cash payments (3,296) Accretion 558 Adjustments (271) Balance, end of the period (1) $ 5,476 ________________ (1) As of December 25, 2022, the Company had exit-related accruals related to certain closure and restructuring initiatives of $1.3 million recorded in Accrued and other current liabilities and $4.2 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share, basic and diluted | The following table presents the computation of basic and diluted earnings (loss) per share attributable to common stockholders for the periods indicated: FISCAL YEAR (in thousands, except per share data) 2022 2021 2020 Net income (loss) attributable to Bloomin’ Brands $ 101,907 $ 215,555 $ (158,715) Redemption of preferred stock in excess of carrying value (1) — — (3,496) Net income (loss) attributable to common stockholders 101,907 215,555 (162,211) Convertible senior notes if-converted method interest adjustment, net of tax (2) — 345 — Diluted net income (loss) attributable to common stockholders $ 101,907 $ 215,900 $ (162,211) Basic weighted average common shares outstanding 88,846 88,981 87,468 Effect of dilutive securities: Stock options 261 779 — Nonvested restricted stock units 182 355 — Nonvested performance-based share units 180 61 — Convertible senior notes (2)(3) 6,089 11,377 — Warrants (3) 2,954 6,250 — Diluted weighted average common shares outstanding 98,512 107,803 87,468 Basic earnings (loss) per share attributable to common stockholders $ 1.15 $ 2.42 $ (1.85) Diluted earnings (loss) per share attributable to common stockholders $ 1.03 $ 2.00 $ (1.85) ________________ (1) Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings (loss) per share, reduces net income attributable to common stockholders. See Note 16 - Stockholders’ Equity for additional details. (2) Adjustment for interest related to the 2025 Notes weighted for the portion of the period prior to the Company’s election under the 2025 Notes indenture to settle the principal portion of 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. (3) During 2022, the Company repurchased $125.0 million of the 2025 Notes and retired the corresponding portion of the related warrants. See Note 14 - Convertible Senior Notes for additional details. Due to the Company’s net loss during 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted loss per share as their effect would be antidilutive. |
Schedule of antidilutive securities excluded from computation of earnings (loss) per share | Share-based compensation-related weighted average securities outstanding not included in the computation of net earnings (loss) per share attributable to common stockholders because their effect was antidilutive were as follows for the periods indicated: FISCAL YEAR (shares in thousands) 2022 2021 2020 Stock options 1,849 751 5,155 Nonvested restricted stock units 192 128 682 Nonvested performance-based share units 461 377 514 |
Stock-based and Deferred Comp_2
Stock-based and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by award type | The Company recognized stock-based compensation expense as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Performance-based share units (1) $ 8,176 $ 13,821 $ 2,414 Restricted stock units 7,687 8,184 8,559 Stock options 503 2,286 3,743 $ 16,366 $ 24,291 $ 14,716 ________________ (1) For 2022, includes a cumulative life-to-date adjustment to decrease expense for PSUs granted in fiscal year 2020 based on Company performance against criteria set forth in the award agreements. For 2021, includes a cumulative life-to-date adjustment to increase expense for PSUs granted in fiscal years 2019, 2020 and 2021 based on Company performance against criteria set forth in the award agreements. |
Schedule of share-based compensation, stock options, activity | The following table presents a summary of the Company’s stock option activity: (in thousands, except exercise price and contractual life data) OPTIONS WEIGHTED WEIGHTED AGGREGATE Outstanding as of December 26, 2021 4,276 $ 20.42 4.7 $ 7,304 Exercised (1,044) $ 17.15 Forfeited or expired (44) $ 24.89 Outstanding as of December 25, 2022 (1) 3,188 $ 21.43 4.0 $ 3,337 Exercisable as of December 25, 2022 3,149 $ 21.46 4.0 $ 3,244 ________________ (1) No stock options were granted during 2022. |
Performance-based share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of nonvested performance-based units, activity | The following table presents a summary of the Company’s PSU activity: (in thousands, except per unit data) PERFORMANCE-BASED SHARE UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (1) Outstanding as of December 26, 2021 759 $ 23.11 $ 15,896 Granted 313 $ 26.10 Performance Adjustment (2) 169 $ 19.69 Vested (338) $ 19.69 Forfeited (29) $ 23.30 Outstanding as of December 25, 2022 874 $ 24.83 $ 18,323 Expected to vest as of December 25, 2022 1,275 $ 26,715 ________________ (1) Based on the $20.95 and $20.96 share price of the Company’s common stock on December 23, 2021 and 2022, the last trading day of 2022 and 2021, respectively. (2) Represents adjustment to 200% payout for PSUs granted during 2019. |
Monte Carlo schedule of assumptions used to calculate fair value of PSUs | Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated: FISCAL YEAR 2022 2021 Assumptions: Risk-free interest rate (1) 1.64 % 0.20 % Dividend yield (2) 2.31 % — % Volatility (3) 49.11 % 48.45 % ________________ (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 employee service share-based compensation, allocation of recognized period costs | The following represents PSU compensation information for the periods indicated: FISCAL YEAR (dollars in thousands, except grant date fair value data) 2022 2021 2020 Weighted average grant date fair value for PSUs granted (1) $ 26.10 $ 29.73 $ 19.96 Intrinsic value for PSUs vested $ 7,626 $ 3,768 $ 6,550 Fair value of PSUs vested $ 6,646 $ 3,401 $ 4,809 Tax benefits for PSU compensation expense $ 348 $ 134 $ 1,570 Unrecognized PSU expense $ 11,955 Remaining weighted average vesting period (2) 1.2 years ________________ (1) 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 2022 and 2021, respectively. (2) PSUs typically vest after three years. |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of employee service share-based compensation, allocation of recognized period costs | The following represents RSU compensation information for the periods indicated: FISCAL YEAR (dollars in thousands, except grant date fair value data) 2022 2021 2020 Weighted average grant date fair value for RSUs granted (1) $ 21.59 $ 25.93 $ 16.66 Intrinsic value of RSUs vested $ 9,070 $ 13,482 $ 8,183 Fair value of RSUs vested $ 8,025 $ 9,434 $ 8,973 Tax benefits for RSU compensation expense $ 1,113 $ 1,592 $ 1,614 Unrecognized RSU expense $ 8,389 Remaining weighted average vesting period 1.8 years ________________ |
Schedule of stock-based compensation, restricted stock units, activity | Following is a summary of the Company’s RSU activity: (in thousands, except per unit data) RESTRICTED STOCK UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (1) Outstanding as of December 26, 2021 730 $ 21.16 $ 15,298 Granted 364 $ 21.59 Vested (396) $ 20.27 Forfeited (41) $ 24.69 Outstanding as of December 25, 2022 (2) 657 $ 21.72 $ 13,776 ________________ (1) Based on the $20.95 and $20.96 share price of the Company’s common stock on December 23, 2021 and 2022, the last trading day of 2022 and 2021, respectively. (2) All RSUs outstanding as of December 25, 2022 are expected to vest. |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of employee service share-based compensation, allocation of recognized period costs | The following represents stock option compensation information for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Intrinsic value of options exercised $ 6,367 $ 8,419 $ 2,201 Cash received from option exercises, net of tax withholding $ 17,888 $ 14,951 $ 4,609 Fair value of stock options vested $ 7,645 $ 19,246 $ 16,468 Tax benefits for stock option compensation expense $ 1,495 $ 1,942 $ 535 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Other Assets [Abstract] | |
Schedule of other current assets, net | Other current assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Prepaid expenses $ 29,343 $ 21,194 Accounts receivable - gift cards, net (1) 85,606 91,248 Accounts receivable - vendors, net (1) 25,385 11,793 Accounts receivable - franchisees, net (1) 2,550 1,701 Accounts receivable - other, net (1) 18,408 18,353 Deferred gift card sales commissions 17,755 17,793 Company-owned life insurance (2) — 17,244 Other current assets, net 4,671 5,297 $ 183,718 $ 184,623 ________________ (1) See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Property, Fixtures and Equipm_2
Property, Fixtures and Equipment, Net (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, fixtures and equipment, net | Estimated useful lives by major asset category are generally as follows: Buildings (1) 5 to 30 years Furniture and fixtures 5 to 7 years Equipment 2 to 7 years Computer equipment and software 2 to 7 years ____________________ Property, fixtures and equipment, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Land $ 37,596 $ 38,417 Buildings 1,223,403 1,167,811 Furniture and fixtures 489,895 460,768 Equipment 739,136 641,715 Construction in progress 41,723 47,822 Less: accumulated depreciation (1,617,611) (1,514,521) $ 914,142 $ 842,012 |
Schedule of other operating cost and expense, depreciation and repairs and maintenance expense | Depreciation and repair and maintenance expense are as follows for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Depreciation expense $ 163,445 $ 157,386 $ 173,342 Repair and maintenance expense $ 116,318 $ 104,209 $ 88,829 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Goodwill [Line Items] | |
Goodwill rollforward | The following table is a rollforward of goodwill for the periods indicated: (dollars in thousands) U.S. INTERNATIONAL CONSOLIDATED Balance as of December 27, 2020 $ 170,657 $ 100,507 $ 271,164 Translation adjustments — (2,720) (2,720) Balance as of December 26, 2021 170,657 97,787 268,444 Translation adjustments — 4,588 4,588 Balance as of December 25, 2022 $ 170,657 $ 102,375 $ 273,032 |
Finite-lived intangible assets amortization expense | The following table presents the aggregate expense related to the amortization of the Company’s trademarks and reacquired franchise rights for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Amortization expense $ 6,172 $ 6,005 $ 6,919 |
Schedule of finite-lived intangible assets, future amortization expense | The following table presents expected annual amortization of intangible assets as of December 25, 2022: (dollars in thousands) 2023 $ 5,891 2024 $ 5,752 2025 $ 5,408 2026 $ 5,293 2027 $ 3,554 |
Goodwill | |
Goodwill [Line Items] | |
Schedule of goodwill and intangible assets | The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 DECEMBER 27, 2020 (dollars in thousands) GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS GROSS CARRYING AMOUNT ACCUMULATED IMPAIRMENTS U.S. $ 838,827 $ (668,170) $ 838,827 $ (668,170) $ 838,827 $ (668,170) International 222,258 (119,883) 217,670 (119,883) 220,390 (119,883) Total goodwill $ 1,061,085 $ (788,053) $ 1,056,497 $ (788,053) $ 1,059,217 $ (788,053) |
Intangible assets, net | |
Goodwill [Line Items] | |
Schedule of goodwill and intangible assets | Intangible assets, net, consisted of the following as of the periods indicated: WEIGHTED AVERAGE REMAINING AMORTIZATION PERIOD DECEMBER 25, 2022 DECEMBER 26, 2021 (dollars in thousands) GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE GROSS CARRYING VALUE ACCUMULATED AMORTIZATION NET CARRYING VALUE Trade names Indefinite $ 414,716 $ 414,716 $ 414,716 $ 414,716 Trademarks 6 81,952 $ (59,675) 22,277 81,951 $ (55,736) 26,215 Reacquired franchise rights 8 34,602 (23,269) 11,333 31,944 (19,463) 12,481 Total intangible assets 7 $ 531,270 $ (82,944) $ 448,326 $ 528,611 $ (75,199) $ 453,412 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Other Assets [Abstract] | |
Schedule of other assets, noncurrent | Other assets, net, consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Company-owned life insurance $ 27,789 $ 30,970 Deferred debt issuance costs (1) 5,505 5,861 Liquor licenses 23,454 23,266 Other assets 25,399 18,573 $ 82,147 $ 78,670 ________________ |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of accrued and other current liabilities | Accrued and other current liabilities consisted of the following as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Accrued rent and current operating lease liabilities $ 187,136 $ 181,636 Accrued payroll and other compensation (1) 84,075 105,095 Accrued insurance 20,932 22,017 Other current liabilities 107,158 98,146 $ 399,301 $ 406,894 ________________ (1) During 2022, accrued payroll and other compensation decreased primarily due to payment of deferred compensation obligations and a decrease in incentive compensation. |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Following is a summary of outstanding long-term debt as of the periods indicated: DECEMBER 25, 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) 430,000 5.79 % 80,000 3.75 % Total Senior Secured Credit Facility 430,000 275,000 2025 Notes (3) 105,000 5.00 % 230,000 5.00 % 2029 Notes 300,000 5.13 % 300,000 5.13 % Finance lease liabilities 5,976 2,376 Less: unamortized debt discount and issuance costs (4) (6,493) (14,157) Less: finance lease interest (1,191) (154) Total debt, net 833,292 793,065 Less: current portion of long-term debt (1,636) (10,958) Long-term debt, net $ 831,656 $ 782,107 ________________ (1) Interest rate represents the weighted average interest rate. (2) Interest rate represents the weighted average interest rate as of December 25, 2022 and the base rate option elected in anticipation of impending repayment as of December 26, 2021. Subsequent to December 25, 2022, the Company repaid $80.0 million on its revolving credit facility. (3) During 2022, the Company repurchased $125.0 million of the 2025 Notes. See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. (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 2022. See Note 14 - Convertible Senior Notes for details regarding the partial repurchase of the 2025 Notes. |
Schedule of interest rate 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) DECEMBER 25, 2022 2023 $ 1,674 2024 1,275 2025 105,821 2026 430,426 2027 338 Thereafter 301,442 Total payments 840,976 Less: unamortized debt discount and issuance costs (6,493) Less: finance lease interest (1,191) Total principal payments $ 833,292 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 25, 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) DECEMBER 25, 2022 DECEMBER 26, 2021 Long-term debt, net Principal $ 105,000 $ 230,000 Less: debt issuance costs (1) (1,939) (5,898) Net carrying amount $ 103,061 $ 224,102 ________________ (1) Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life. During 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: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Coupon interest $ 8,080 $ 11,500 $ 7,443 Deferred discount amortization — — 6,275 Debt issuance cost amortization 1,156 1,557 569 Total interest expense (1) $ 9,236 $ 13,057 $ 14,287 ________________ (1) The effective rate of the 2025 Notes over their expected life was 5.85% for 2022 and 2021 and 13.73% for 2020. |
Other Long-term Liabilities, _2
Other Long-term Liabilities, Net (Tables) | 12 Months Ended |
Dec. 25, 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) DECEMBER 25, 2022 DECEMBER 26, 2021 Accrued insurance liability $ 28,133 $ 31,517 Deferred payroll tax liabilities (1) — 27,302 Deferred compensation obligations 31,608 37,514 Other long-term liabilities 27,645 28,909 $ 87,386 $ 125,242 _______________ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Stockholders' Equity Note [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 Third fiscal quarter 1,746 $ 19.21 33,549 Fourth fiscal quarter 1,371 $ 21.15 28,999 Total common stock repurchases (1) 5,429 $ 20.26 $ 109,999 ________________ (1) Subsequent to December 25, 2022, the Company repurchased 644 thousand shares of its common stock for $15.0 million under a Rule 10b5-1 plan. |
Dividends declared and paid | The Company declared and paid dividends per share during the periods presented as follows: DIVIDENDS PER SHARE AMOUNT FISCAL YEAR FISCAL YEAR (dollars in thousands, except per share data) 2022 2020 2022 2020 First fiscal quarter $ 0.14 $ 0.20 $ 12,559 $ 17,480 Second fiscal quarter 0.14 — 12,418 — Third fiscal quarter 0.14 — 12,475 — Fourth fiscal quarter 0.14 — 12,284 — Total cash dividends declared and paid $ 0.56 $ 0.20 $ 49,736 $ 17,480 |
Schedule of accumulated other comprehensive loss | Following are the components of AOCL as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Foreign currency translation adjustment $ (185,311) $ (195,480) Unrealized loss on derivatives, net of tax — (10,509) Accumulated other comprehensive loss $ (185,311) $ (205,989) |
Comprehensive income (loss) | Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Foreign currency translation adjustment $ 10,169 $ (6,597) $ (36,852) Unrealized gain (loss) on derivatives, net of tax (1) 573 86 (14,741) Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2) 954 7,392 9,923 Impact of terminated interest rate swaps included in Net income (loss), net of tax (2) 8,982 4,576 — Total gain (loss) on derivatives, net of tax 10,509 12,054 (4,818) Other comprehensive income (loss) attributable to Bloomin’ Brands $ 20,678 $ 5,457 $ (41,670) ________________ (1) Unrealized loss on derivatives during 2020 is net of tax of $5.1 million. (2) See Note 17 - 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) | 12 Months Ended |
Dec. 25, 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 19 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Schedule of derivatives instruments statements of financial performance and financial position, location | The following table summarizes the effects of the swap agreements on Net income (loss) for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Interest rate swap agreements: Interest rate swap expense recognized in Interest expense, net $ (1,284) $ (9,951) $ (13,370) Income tax benefit recognized in Provision (benefit) for income taxes 330 2,559 3,447 Net effects of interest rate swap agreements $ (954) $ (7,392) $ (9,923) Terminated interest rate swap agreements: Terminated interest rate swap expense recognized in Interest expense, net $ (12,115) $ (6,160) $ — Income tax benefit recognized in Provision (benefit) for income taxes 3,133 1,584 — Net effects of terminated interest rate swap agreements $ (8,982) $ (4,576) $ — Total net effects on Net income (loss) $ (9,936) $ (11,968) $ (9,923) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 25, 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 DECEMBER 25, 2022 DECEMBER 26, 2021 Operating lease right-of-use assets Operating lease right-of-use assets $ 1,103,083 $ 1,130,873 Finance lease right-of-use assets (1) Property, fixtures and equipment, net 4,679 2,074 Total lease assets, net $ 1,107,762 $ 1,132,947 Current operating lease liabilities (2) Accrued and other current liabilities $ 183,510 $ 177,028 Current finance lease liabilities Current portion of long-term debt 1,636 958 Non-current operating lease liabilities (2) Non-current operating lease liabilities 1,148,379 1,178,998 Non-current finance lease liabilities Long-term debt, net 3,149 1,264 Total lease liabilities $ 1,336,674 $ 1,358,248 ________________ (1) Net of accumulated amortization of $3.6 million and $3.3 million as December 25, 2022 and December 26, 2021, respectively. (2) Excludes current accrued contingent percentage rent of $3.4 million and $3.5 million, as of December 25, 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 Income (Loss) for the periods indicated: CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATION FISCAL YEAR (dollars in thousands) 2022 2021 2020 Operating leases (1) Other restaurant operating $ 182,091 $ 178,733 $ 178,740 Variable lease cost (2) Other restaurant operating 6,508 4,350 (2,326) Finance leases: Amortization of leased assets Depreciation and amortization 1,420 1,079 1,248 Interest on lease liabilities Interest expense, net 172 129 160 Sublease revenue Franchise and other revenues (9,016) (9,396) (3,121) Lease costs, net $ 181,175 $ 174,895 $ 174,701 ________________ (1) Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.2 million, $12.9 million and $13.8 million for 2022, 2021 and 2020, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs for 2021 and 2020. (2) Includes COVID-19-related rent abatements for 2021 and 2020. |
Lessee, operating lease, liability, maturity | As of December 25, 2022, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2023 (2) $ 190,933 $ 1,674 $ (5,552) 2024 192,371 1,275 (5,782) 2025 179,377 821 (5,518) 2026 171,279 426 (5,514) 2027 165,906 338 (5,617) Thereafter 1,407,054 1,442 (40,598) Total minimum lease payments (receipts) (3) 2,306,920 5,976 $ (68,581) Less: Interest (974,623) (1,191) Present value of future lease payments $ 1,332,297 $ 4,785 ____________________ (1) Includes immaterial current and non-current COVID-19-related deferred rent accruals as of December 25, 2022. (2) Net of operating lease prepaid rent of $4.6 million. (3) Includes $919.7 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.9 million of signed operating leases that have not yet commenced. |
Finance lease, liability, maturity | As of December 25, 2022, future minimum lease payments and sublease revenues under non-cancelable leases are as follows: (dollars in thousands) OPERATING LEASES (1) FINANCE LEASES SUBLEASE REVENUES 2023 (2) $ 190,933 $ 1,674 $ (5,552) 2024 192,371 1,275 (5,782) 2025 179,377 821 (5,518) 2026 171,279 426 (5,514) 2027 165,906 338 (5,617) Thereafter 1,407,054 1,442 (40,598) Total minimum lease payments (receipts) (3) 2,306,920 5,976 $ (68,581) Less: Interest (974,623) (1,191) Present value of future lease payments $ 1,332,297 $ 4,785 ____________________ (1) Includes immaterial current and non-current COVID-19-related deferred rent accruals as of December 25, 2022. (2) Net of operating lease prepaid rent of $4.6 million. (3) Includes $919.7 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.9 million of signed operating leases that have not yet commenced. |
Lessee, weighted average remaining lease term and weighted average discount rate | The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 Weighted average remaining lease term (1): Operating leases 13.2 years 13.7 years Finance leases 5.4 years 2.8 years Weighted average discount rate (2): Operating leases 8.44 % 8.42 % Finance leases 6.63 % 5.01 % ____________________ (1) Includes lease renewal options that are reasonably certain of exercise. (2) Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement. |
Cash flow, operating activities, lessee | 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: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 193,822 $ 205,253 $ 177,961 |
Schedule of property subject to or available for operating leases | The following table is a summary of assets leased to third parties as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Land $ 4,906 $ 5,021 Buildings $ 4,289 $ 4,987 Less: accumulated depreciation (3,298) (3,746) Buildings, net $ 991 $ 1,241 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: DECEMBER 25, 2022 DECEMBER 26, 2021 (dollars in thousands) TOTAL LEVEL 1 TOTAL LEVEL 1 LEVEL 2 Assets: Cash equivalents: Fixed income funds $ 3,301 $ 3,301 $ 6,714 $ 6,714 $ — Money market funds 4,786 4,786 9,039 9,039 — Restricted cash equivalents: Money market funds — — 1,472 1,472 — Total asset recurring fair value measurements $ 8,087 $ 8,087 $ 17,225 $ 17,225 $ — Liabilities: Accrued and other current liabilities: Derivative instruments - interest rate swaps $ — $ — $ 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 Historically, the Company’s derivative instruments included interest rate swaps. Fair value measurements were based on the contractual terms of the derivatives and used observable market-based inputs. The interest rate swaps were 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 considered its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of December 26, 2021, the Company determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. |
Fair value assets and liabilities measured on a nonrecurring basis | The following table summarizes the Company’s assets measured at fair value by hierarchy level on a nonrecurring basis for the periods indicated: 2022 2021 2020 (dollars in thousands) REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT REMAINING CARRYING VALUE TOTAL IMPAIRMENT Assets held for sale (1) $ — $ — $ — $ — $ 1,934 $ 123 Operating lease right-of-use assets (2) 2,219 1,233 8,647 3,950 72,615 30,940 Property, fixtures and equipment (3) 2,807 4,253 11,647 8,445 26,311 41,077 Goodwill and other assets (4) — — — 1,006 748 2,683 $ 5,026 $ 5,486 $ 20,294 $ 13,401 $ 101,608 $ 74,823 ________________ (1) Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value. (2) Carrying values measured using discounted cash flow models (Level 3). Refer to Note 5 - Impairments and Exit Costs for a more detailed discussion of impairments. (3) Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million and $2.2 million for 2021 and 2020, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair value. Refer to Note 5 - Impairments and Exit Costs for a more detailed discussion of impairments. (4) Other assets were generally measured using the quoted market value of comparable assets (Level 2). |
Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques | The following table presents quantitative information related to certain unobservable inputs used in the Company’s Level 3 fair value measurements of Operating lease right-of-use assets and Property, fixtures and equipment for the impairment losses incurred during the period indicated: FISCAL YEAR UNOBSERVABLE INPUTS 2020 Weighted average cost of capital 10.4% to 11.3% Long-term growth rate 1.5% to 2.0% |
Schedule of carrying value and fair value of senior secured credit facilities | The following table includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated: DECEMBER 25, 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 $ 430,000 $ 430,000 $ 80,000 $ 76,926 2025 Notes $ 105,000 $ 198,843 $ 230,000 $ 447,615 2029 Notes $ 300,000 $ 260,265 $ 300,000 $ 304,395 |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Credit Loss [Abstract] | |
Allowance for credit losses rollforward | The following table is a rollforward of the Company’s trade receivables allowance for expected credit losses for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Allowance for expected credit losses, beginning of the period $ 4,050 $ 4,095 $ 199 Adjustment for adoption of ASU No. 2016-13 — — 1,018 Provision for expected credit losses (1) 1,547 64 3,472 Charge-off of accounts (146) (109) (594) Allowance for expected credit losses, end of the period $ 5,451 $ 4,050 $ 4,095 ________________ (1) In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income tax, domestic and foreign | The following table presents the domestic and foreign components of Income (loss) before provision (benefit) for income taxes for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Domestic $ 134,465 $ 258,202 $ (206,941) Foreign 17,442 (8,905) (32,580) Income (loss) before provision (benefit) for income taxes $ 151,907 $ 249,297 $ (239,521) |
Schedule of components of income tax expense (benefit) | Provision (benefit) for income taxes consisted of the following for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Current provision: Federal $ 13,026 $ 16,951 $ 2,606 State 10,576 10,917 2,301 Foreign 5,354 1,862 2,623 28,956 29,730 7,530 Deferred provision (benefit): Federal 5,172 (2,057) (66,498) State 3,470 1,194 (12,527) Foreign 5,106 (2,483) (9,231) 13,748 (3,346) (88,256) Provision (benefit) for income taxes $ 42,704 $ 26,384 $ (80,726) |
Schedule of effective income tax rate reconciliation | The reconciliation of income taxes calculated at the United States federal tax statutory rate to the Company’s effective income tax rate is as follows for the periods indicated: FISCAL YEAR 2022 2021 2020 (1) Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 7.3 3.8 3.3 Non-deductible loss on 2025 Notes Partial Repurchase 18.0 — — Non-deductible expenses 2.8 2.3 (1.4) Foreign tax rate differential 2.3 (0.2) 1.1 U.S. tax on foreign earnings - GILTI 1.6 — — Brazil tax legislation 0.2 — — Employment-related credits, net (22.4) (13.2) 9.9 Net changes in deferred tax valuation allowances (2.8) (0.7) (0.6) Tax settlements and related adjustments (0.1) (1.7) 0.1 Other, net 0.2 (0.7) 0.3 Total 28.1 % 10.6 % 33.7 % ________________ (1) Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. |
Schedule of deferred tax assets and liabilities | The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Deferred income tax assets: Operating lease liabilities $ 346,482 $ 352,041 Insurance reserves 15,695 14,329 Unearned revenue 52,366 50,284 Deferred compensation 14,726 25,164 Net operating loss carryforwards 14,277 18,227 Federal tax credit carryforwards 165,411 146,734 Other, net (1) 12,248 21,222 Gross deferred income tax assets 621,205 628,001 Less: valuation allowance (12,664) (16,998) Deferred income tax assets, net of valuation allowance 608,541 611,003 Deferred income tax liabilities: Less: operating lease right-of-use asset basis differences (284,701) (290,697) Less: property, fixtures and equipment basis differences (63,344) (48,284) Less: intangible asset basis differences (109,162) (103,954) Deferred income tax assets, net $ 151,334 $ 168,068 Reported as: Deferred income tax assets $ 153,118 $ 168,068 Deferred income tax liabilities (included in Other long-term liabilities, net) (1,784) — Net deferred tax assets $ 151,334 $ 168,068 ________________ (1) As of December 25, 2022 and December 26, 2021, the Company maintained deferred tax liabilities for state income taxes on historical foreign earnings of $0.3 million and $0.2 million, respectively. |
Summary of operating loss carryforwards | The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 25, 2022 are as follows: (dollars in thousands) EXPIRATION DATE AMOUNT Federal tax credit carryforwards 2026 - 2042 $ 177,676 Foreign loss carryforwards 2023 - Indefinite $ 62,213 Foreign credit carryforwards Indefinite $ 864 |
Schedule of unrecognized tax benefits roll forward | The following table summarizes the activity related to the Company’s unrecognized tax benefits for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Balance, beginning of the period $ 19,238 $ 25,524 $ 27,201 Additions for tax positions taken during a prior period 114 166 1,061 Reductions for tax positions taken during a prior period (401) (4,209) (324) Additions for tax positions taken during the current period 1,100 1,292 762 Settlements with taxing authorities (375) (2,674) (1,290) Lapses in the applicable statutes of limitations (1,424) (854) (1,857) Translation adjustments 6 (7) (29) Balance, end of the period $ 18,258 $ 19,238 $ 25,524 |
Summary of open audit years by jurisdiction | Following is a summary of the open audit years by jurisdiction as of December 25, 2022: OPEN AUDIT YEARS United States - federal 2007 - 2021 United States - state 2009 - 2021 Foreign 2016 - 2021 |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 12 Months Ended |
Dec. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum expected insurance payments | As of December 25, 2022, the future undiscounted payments the Company expects for workers’ compensation, general liability and health insurance claims are as follows: (dollars in thousands) 2023 $ 21,308 2024 11,826 2025 7,597 2026 4,058 2027 2,102 Thereafter 8,473 $ 55,364 |
Schedule of liability for unpaid claims and claims adjustment expense | The following is a reconciliation of the expected aggregate undiscounted reserves to the discounted reserves for insurance claims recognized on the Company’s Consolidated Balance Sheets as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Undiscounted reserves $ 55,364 $ 54,664 Discount (1) (6,299) (1,130) Discounted reserves $ 49,065 $ 53,534 Discounted reserves recognized on the Company’s Consolidated Balance Sheets: Accrued and other current liabilities $ 20,932 $ 22,017 Other long-term liabilities, net 28,133 31,517 $ 49,065 $ 53,534 ____________________ (1) Discount rates of 4.47% and 0.69% were used for December 25, 2022 and December 26, 2021, respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 25, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following is a summary of reporting segments as of December 25, 2022: REPORTABLE SEGMENT (1) CONCEPT GEOGRAPHIC LOCATION U.S. Outback Steakhouse United States of America Carrabba’s Italian Grill Bonefish Grill Fleming’s Prime Steakhouse & Wine Bar International Outback Steakhouse Brazil, Hong Kong/China Carrabba’s Italian Grill (Abbraccio) Brazil _________________ (1) Includes franchise locations. |
Reconciliation of revenue from segments to consolidated | The following table is a summary of Total revenues by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Total revenues U.S. $ 3,911,870 $ 3,759,981 $ 2,885,542 International 504,638 362,404 285,019 Total revenues $ 4,416,508 $ 4,122,385 $ 3,170,561 |
Reconciliation of operating profit (loss) from segments to consolidated | The following table is a reconciliation of segment income (loss) from operations to Income (loss) before provision (benefit) for income taxes for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Segment income (loss) from operations U.S. $ 407,860 $ 443,887 $ (1,630) International 57,333 16,657 (13,479) Total segment income (loss) from operations 465,193 460,544 (15,109) Unallocated corporate operating expense (1) (134,772) (151,586) (159,864) Total income (loss) from operations 330,421 308,958 (174,973) Loss on extinguishment and modification of debt (107,630) (2,073) (237) Loss on fair value adjustment of derivatives, net (17,685) — — Other (expense) income, net (23) 26 131 Interest expense, net (53,176) (57,614) (64,442) Income (loss) before provision (benefit) for income taxes $ 151,907 $ 249,297 $ (239,521) ____________________ (1) Includes $32.4 million of charges for 2020 that were not allocated to the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings. |
Reconciliation of segment depreciation and amortization and capital expenditures | The following table is a summary of Depreciation and amortization expense by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Depreciation and amortization U.S. $ 139,170 $ 134,243 $ 144,298 International 23,397 22,649 23,723 Corporate 7,050 6,499 12,240 Total depreciation and amortization $ 169,617 $ 163,391 $ 180,261 The following table is a summary of capital expenditures by segment for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 Capital expenditures U.S. $ 196,163 $ 103,303 $ 64,516 International 28,647 14,074 18,542 Corporate 11,709 9,035 5,936 Total capital expenditures $ 236,519 $ 126,412 $ 88,994 |
Schedule of segment total assets | The following table sets forth Total assets by segment as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 Assets U.S. $ 2,669,953 $ 2,626,808 International 400,052 383,075 Corporate 250,420 284,388 Total assets $ 3,320,425 $ 3,294,271 |
Schedule of long-lived assets, by geographic area | The following table details long-lived assets, excluding goodwill, operating lease right-of-use assets, intangible assets and deferred tax assets, by major geographic area as of the periods indicated: (dollars in thousands) DECEMBER 25, 2022 DECEMBER 26, 2021 U.S. $ 891,379 $ 831,634 International Brazil 93,972 73,706 Other 10,938 15,342 Total long-lived assets $ 996,289 $ 920,682 |
Schedule of revenues, by geographic area | International revenues are defined as revenues generated from restaurant sales originating in a country other than the U.S. The following table details Total revenues by major geographic area for the periods indicated: FISCAL YEAR (dollars in thousands) 2022 2021 2020 U.S. $ 3,911,870 $ 3,759,981 $ 2,885,542 International Brazil 448,411 297,167 222,283 Other 56,227 65,237 62,736 Total revenues $ 4,416,508 $ 4,122,385 $ 3,170,561 |
Description of the Business (De
Description of the Business (Details) | Dec. 25, 2022 restraurant_concept |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of restaurant concepts in portfolio | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Basis of Presentation) (Details) | 12 Months Ended |
Dec. 25, 2022 | |
Accounting Policies [Abstract] | |
Reporting lag for Brazil operations in financial statements | 1 month |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Principles of Consolidation) (Details) | Dec. 25, 2022 restaurant |
Minimum | Equity method investment | |
Principles of Consolidation [Line Items] | |
Equity method investment, ownership percentage | 20% |
Maximum | Equity method investment | |
Principles of Consolidation [Line Items] | |
Equity method investment, ownership percentage | 50% |
Franchised units | |
Principles of Consolidation [Line Items] | |
Number of restaurants | 321 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Dec. 26, 2021 |
Cash and cash equivalents | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, amounts in transit from credit card companies | $ 41.5 | $ 41.3 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Property, Fixtures and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Property, Plant and Equipment [Line Items] | ||||
Capitalized internal costs for construction in progress | $ 4.1 | $ 3.7 | $ 2.7 | |
Capitalized computer equipment and software, additions | 9.2 | 3.4 | ||
Property, fixtures and equipment, net | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized computer equipment and software, net | $ 10.1 | $ 6.4 | ||
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | [1] | 5 years | ||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | [1] | 30 years | ||
Furniture and fixtures | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Furniture and fixtures | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Computer equipment and software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Computer equipment and software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
[1]Includes improvements to leased properties which are depreciated over the shorter of their useful life or the reasonably certain lease term, including renewal periods that are reasonably certain. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Deferred Debt Issuance Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Interest expense | |||
Deferred debt issuance costs [Line Items] | |||
Debt issuance cost amortization | $ 3.5 | $ 4.5 | $ 3.9 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Insurance Reserves) (Details) - Workers' compensation and general liability | 12 Months Ended |
Dec. 25, 2022 | |
Minimum | |
Insurance [Line Items] | |
Insurance, annual risk free rate, period | 1 year |
Maximum | |
Insurance [Line Items] | |
Insurance, annual risk free rate, period | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Revenue Recognition) (Details) | Dec. 25, 2022 |
Revenue Recognition [Line Items] | |
Revenue, remaining performance obligation, expected satisfaction within 12 months of inception, percentage | 84% |
Deferred franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-25 | |
Revenue Recognition [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Leases) (Details) | Dec. 25, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Lessee, operating lease, renewal term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 30 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Other restaurant operating | |||
Schedule of Advertising Costs [Line Items] | |||
Advertising expense | $ 94 | $ 59.7 | $ 67.3 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Research and Development Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
General and administrative | |||
Schedule of research and development expense [Line Items] | |||
Research and development expense | $ 2.7 | $ 2.6 | $ 2.4 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Recently Issued Financial Accounting Standards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2020 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax impact of cumulative-effect adjustment | $ 608,541 | $ 611,003 | |||
Reversal of separated equity component, net of tax | (273,909) | (222,850) | $ (10,957) | $ (177,481) | |
Cumulative-effect from a change in accounting principle | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reversal of separated equity component, net of tax | 42,953 | 4,292 | |||
2025 Notes | Convertible debt | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt discount amortization reclassification, net of tax | 0 | 0 | (6,275) | ||
Accounting standards updated 2020-06 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax impact of cumulative-effect adjustment | $ 14,900 | ||||
Accounting standards updated 2020-06 | Additional paid-in capital | Cumulative-effect from a change in accounting principle | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reversal of separated equity component, net of tax | (47,300) | ||||
Accounting standards updated 2020-06 | 2025 Notes | Convertible debt | Long-term debt, net | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt discount reclassification | 59,900 | ||||
Equity issuance costs reclassification | (2,100) | ||||
Accounting standards updated 2020-06 | 2025 Notes | Convertible debt | Retained earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt discount amortization reclassification, net of tax | $ 4,400 | ||||
Retained earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reversal of separated equity component, net of tax | $ 706,109 | $ 698,171 | 918,096 | 755,089 | |
Retained earnings | Cumulative-effect from a change in accounting principle | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reversal of separated equity component, net of tax | $ (4,370) | $ 4,292 |
COVID-19 (Details)
COVID-19 (Details) - USD ($) | 12 Months Ended | ||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Inventory obsolescence and spoilage | $ 0 | $ 0 | $ 10,169,000 | ||
Allowance for expected credit losses | 1,547,000 | 64,000 | $ 3,472,000 | [1] | |
Impairment, long-lived asset, held-for-use, statement of income or comprehensive income [Extensible Enumeration] | Provision for impaired assets and restaurant closings | ||||
Costs and expenses | 4,086,087,000 | 3,813,427,000 | $ 3,345,534,000 | ||
Government assistance, statement of income or comprehensive income [Extensible Enumeration] | Labor and other related | ||||
Provision for impaired assets and restaurant closings | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Goodwill and other impairment | 5,486,000 | 13,401,000 | $ 74,823,000 | ||
COVID-19 pandemic | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Costs and expenses | 124,508,000 | ||||
COVID-19 pandemic | COVID-19-related employee retention | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Government assistance, amount | 19,600,000 | ||||
COVID-19 pandemic | Paycheck Protection Program loans | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Government assistance, amount | $ 0 | $ 0 | 0 | ||
COVID-19 pandemic | Property, fixtures and equipment, net | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Fixed asset impairment | [2] | 34,423,000 | |||
COVID-19 pandemic | Food and beverage costs | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Inventory obsolescence and spoilage | 10,450,000 | ||||
COVID-19 pandemic | Labor and other related | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Compensation for idle employees | [3] | 29,993,000 | |||
COVID-19 pandemic | Other restaurant operating | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Other operating charges | 3,219,000 | ||||
COVID-19 pandemic | General and administrative | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Other operating charges | 2,719,000 | ||||
Allowance for expected credit losses | [4] | 3,334,000 | |||
COVID-19 pandemic | General and administrative | Property lease guarantee | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Lease guarantee contingent liabilities | [5] | 4,188,000 | |||
COVID-19 pandemic | Provision for impaired assets and restaurant closings | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Right-of-use asset impairment | [2] | 32,992,000 | |||
COVID-19 pandemic | Provision for impaired assets and restaurant closings | Goodwill and other assets | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Goodwill and other impairment | [6] | $ 3,190,000 | |||
[1] In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments and Exit Costs and Note 4 - Revenue Recognition , for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively. Represents relief pay for U.S. hourly employees impacted by the closure of dining rooms, net of employee retention tax credits earned. See COVID-19 Government Assistance below for further discussion regarding employee retention credits earned. Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net |
Revenue Recognition (Principal
Revenue Recognition (Principal Revenue Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | $ 4,416,508 | $ 4,122,385 | $ 3,170,561 | |
Restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 4,352,695 | 4,061,093 | 3,144,636 | |
Franchise and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 63,813 | 61,292 | 25,925 | |
Franchise revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 49,687 | 45,520 | 21,195 | |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | $ 14,126 | 15,772 | [1] | $ 4,730 |
Recognized benefit related to Brazilian tax ruling | $ 3,100 | |||
[1]For 2021, includes a $3.1 million benefit from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base. The amount recognized primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest. |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | $ 4,416,508 | $ 4,122,385 | $ 3,170,561 | |
U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 3,911,870 | 3,759,981 | 2,885,542 | |
International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 504,638 | 362,404 | 285,019 | |
Restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 4,352,695 | 4,061,093 | 3,144,636 | |
Restaurant sales | U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 3,863,016 | 3,714,848 | 2,869,547 | |
Restaurant sales | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 489,679 | 346,245 | 275,089 | |
Restaurant sales | Outback Steakhouse | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 2,240,432 | 2,175,909 | 1,760,071 | |
Restaurant sales | Carrabba's Italian Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 676,467 | 653,231 | 497,212 | |
Restaurant sales | Bonefish Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 559,583 | 544,068 | 396,193 | |
Restaurant sales | Fleming's Prime Steakhouse & Wine Bar | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 374,388 | 332,607 | 209,564 | |
Restaurant sales | Other - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 12,146 | 9,033 | 6,507 | |
Restaurant sales | Outback Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 405,866 | 258,997 | 206,280 | |
Restaurant sales | Other - International | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | [1] | 83,813 | 87,248 | 68,809 |
Franchise revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 49,687 | 45,520 | 21,195 | |
Franchise revenues | U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 35,067 | 32,814 | 11,553 | |
Franchise revenues | International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 14,620 | 12,706 | 9,642 | |
Franchise revenues | Outback Steakhouse | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 31,418 | 29,725 | 9,898 | |
Franchise revenues | Carrabba's Italian Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 2,938 | 2,439 | 1,309 | |
Franchise revenues | Bonefish Grill | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 662 | 641 | 346 | |
Franchise revenues | Fleming's Prime Steakhouse & Wine Bar | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | |
Franchise revenues | Other - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 49 | 9 | 0 | |
Franchise revenues | Outback Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | 0 | 0 | 0 | |
Franchise revenues | Other - International | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant sales, franchise and other revenues | [1] | $ 14,620 | $ 12,706 | $ 9,642 |
[1]Includes Restaurant sales for the Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily include revenues from franchised Outback Steakhouse restaurants. |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities Summary) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 |
Revenue Recognition [Line Items] | ||||
Deferred gift card sales commissions | $ 17,755 | $ 17,793 | $ 19,300 | $ 18,554 |
Unearned revenue | 394,215 | 398,795 | ||
Deferred gift card revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 386,495 | 387,945 | $ 373,048 | $ 358,757 |
Other current assets, net | ||||
Revenue Recognition [Line Items] | ||||
Deferred gift card sales commissions | 17,755 | 17,793 | ||
Unearned revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 394,215 | 398,795 | ||
Unearned revenue | Deferred gift card revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 386,495 | 387,945 | ||
Unearned revenue | Deferred loyalty revenue | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 5,628 | 9,386 | ||
Unearned revenue | Deferred franchise fees | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 460 | 443 | ||
Unearned revenue | Other | ||||
Revenue Recognition [Line Items] | ||||
Unearned revenue | 1,632 | 1,021 | ||
Other long-term liabilities, net | Deferred franchise fees | ||||
Revenue Recognition [Line Items] | ||||
Deferred franchise fees, noncurrent | $ 4,126 | $ 4,280 |
Revenue Recognition (Contract_2
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Commissions Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Balance, beginning of the period | $ 17,793 | $ 19,300 | $ 18,554 |
Deferred gift card sales commissions amortization | (24,091) | (26,012) | (20,927) |
Deferred gift card sales commissions capitalization | 26,743 | 26,625 | 22,923 |
Other | (2,690) | (2,120) | (1,250) |
Balance, end of the period | $ 17,755 | $ 17,793 | $ 19,300 |
Revenue Recognition (Contract_3
Revenue Recognition (Contract Assets and Liabilities - Deferred Gift Card Revenue Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Revenue Recognition [Line Items] | |||
Balance, beginning of the period | $ 398,795 | ||
Balance, end of the period | 394,215 | $ 398,795 | |
Deferred gift card revenue | |||
Revenue Recognition [Line Items] | |||
Balance, beginning of the period | 387,945 | 373,048 | $ 358,757 |
Gift card sales | 326,603 | 330,841 | 306,016 |
Gift card redemptions | (310,017) | (298,397) | (277,675) |
Gift card breakage | (18,036) | (17,547) | (14,050) |
Balance, end of the period | $ 386,495 | $ 387,945 | $ 373,048 |
Revenue Recognition (Franchisee
Revenue Recognition (Franchisee Deferred Payment Agreement) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 27, 2020 USD ($) Restaurants | Dec. 27, 2020 USD ($) Restaurants | Dec. 25, 2022 USD ($) restaurant Restaurants | Dec. 26, 2021 USD ($) | ||
Accounts receivable - franchisees, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, net | [1] | $ 2,550 | $ 1,701 | ||
Franchisee Resolution Agreement | Out West | |||||
Disaggregation of Revenue [Line Items] | |||||
Franchise advertising fee gross sales percentage | 2.25% | 2.25% | |||
Increase in deferred rent | $ 3,600 | ||||
Franchisee Resolution Agreement | Out West | Accounts receivable - franchisees, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, net | $ 3,100 | $ 3,100 | |||
Accounts Receivable, before Allowance for Credit Loss, Current | $ 3,000 | ||||
U.S. segment | Franchisee Resolution Agreement | Outback Steakhouse Property Concessions | Operating lease, right-of-use-asset | Out West | |||||
Disaggregation of Revenue [Line Items] | |||||
Impairment losses | $ 4,700 | ||||
Franchised units | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of restaurants | restaurant | 321 | ||||
Franchised units | Franchisee Resolution Agreement | Outback Steakhouse Property Concessions | Out West | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of restaurants | Restaurants | 4 | 4 | |||
Franchised units | Franchisee Resolution Agreement | Outback Steakhouse Property Concessions | Maximum | Out West | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of restaurants | Restaurants | 10 | 10 | |||
Franchised units | Outback Steakhouse | U.S. segment | Out West | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of restaurants | Restaurants | 79 | ||||
[1] See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Impairments and Exit Costs (Pro
Impairments and Exit Costs (Provision for Impaired Assets and Restaurant Closings) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Provision for impaired assets and restaurant closings | $ 5,964,000 | $ 13,737,000 | $ 76,354,000 | ||||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | ||||
International segment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Goodwill, impairment loss | 2,000,000 | ||||||
Provision for impaired assets and restaurant closings | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 5,486,000 | 13,401,000 | 74,823,000 | ||||
Restaurant closure charges (benefits) | 478,000 | 336,000 | 1,531,000 | ||||
Provision for impaired assets and restaurant closings | Corporate | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 7,000 | 270,000 | 6,226,000 | [1] | |||
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 | 3,942,000 | 11,945,000 | 65,129,000 | [2] | |||
Restaurant closure charges (benefits) | 478,000 | 422,000 | 1,358,000 | [2] | |||
Provision for impaired assets and restaurant closings | International segment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment losses | 1,537,000 | 1,186,000 | 3,468,000 | [2],[3] | |||
Restaurant closure charges (benefits) | $ 0 | $ (86,000) | $ 173,000 | [2] | |||
[1]Corporate impairment charges during 2020 primarily relate to transformational initiatives.[2] U.S. and international impairment and closure charges during 2020 primarily relate to the COVID-19 pandemic, including charges related to the COVID-19 Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. Includes goodwill impairment charges of $2.0 million during 2020. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of goodwill. |
Impairments and Exit Costs (Res
Impairments and Exit Costs (Restructuring and Related Costs) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | Dec. 27, 2020 USD ($) Restaurants | |
Provision for impaired assets and restaurant closings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | $ 5,486 | $ 13,401 | $ 74,823 |
COVID-19 Restructuring | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of restaurants | Restaurants | 22 | ||
Restructuring charges | $ 24,866 | ||
COVID-19 Restructuring | Provision for impaired assets and restaurant closings | Facility closing | Property, fixtures and equipment, net | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 18,766 | ||
COVID-19 Restructuring | Provision for impaired assets and restaurant closings | Facility closing | Operating lease, right-of-use-asset | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment losses | 5,003 | ||
COVID-19 Restructuring | General and administrative | Employee severance | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Severance and other expenses | $ 1,097 |
Impairments and Exit Costs (Lea
Impairments and Exit Costs (Lease Liability Rollforward) (Details) - Facility closing $ in Thousands | 12 Months Ended | |
Dec. 25, 2022 USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of the period | $ 8,485 | |
Cash payments | (3,296) | |
Accretion | 558 | |
Adjustments | (271) | |
Balance, end of the period | 5,476 | [1] |
Accrued and other current liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, current | 1,300 | |
Non-current operating lease liabilities | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, noncurrent | $ 4,200 | |
[1]As of December 25, 2022, the Company had exit-related accruals related to certain closure and restructuring initiatives of $1.3 million recorded in Accrued and other current liabilities and $4.2 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet. |
Earnings (Loss) Per Share (2025
Earnings (Loss) Per Share (2025 Notes Impact) (Details) - 2025 Notes - Convertible debt - $ / shares | Nov. 23, 2022 | May 08, 2020 |
Debt instrument [Line Items] | ||
Debt instrument, convertible, conversion price | $ 11.59 | $ 11.89 |
Class of warrant or right, exercise price of warrants or rights | $ 16.23 | $ 16.64 |
Earnings (Loss) Per Share (Basi
Earnings (Loss) Per Share (Basic and Diluted EPS - Table) (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||||||
May 25, 2022 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||||
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |||||||
Net income (loss) attributable to Bloomin’ Brands | $ 101,907,000 | $ 215,555,000 | $ (158,715,000) | ||||
Redemption of preferred stock in excess of carrying value | 0 | 0 | (3,496,000) | [1] | |||
Net income (loss) attributable to common stockholders | 101,907,000 | 215,555,000 | (162,211,000) | ||||
Convertible senior notes if-converted method interest adjustment, net of tax | 0 | 345,000 | [2] | 0 | |||
Diluted net income (loss) attributable to common stockholders | $ 101,907,000 | $ 215,900,000 | $ (162,211,000) | ||||
Basic weighted average common shares outstanding | 88,846 | 88,981 | 87,468 | ||||
Effect of dilutive securities: | |||||||
Convertible senior notes | 6,089 | [2],[3] | 11,377 | [2] | 0 | [3] | |
Warrants | 2,954 | [3] | 6,250 | 0 | [3] | ||
Diluted weighted average common shares outstanding | 98,512 | 107,803 | 87,468 | ||||
Basic earnings (loss) per share attributable to common stockholders (in USD per share) | $ 1.15 | $ 2.42 | $ (1.85) | ||||
Diluted earnings (loss) per share attributable to common stockholders (in USD per share) | $ 1.03 | $ 2 | $ (1.85) | ||||
2025 Notes | Convertible debt | |||||||
Effect of dilutive securities: | |||||||
2025 Notes repurchase amount | $ 125,000,000 | $ 125,000,000 | |||||
Stock options | |||||||
Effect of dilutive securities: | |||||||
Dilutive shares | 261 | 779 | 0 | ||||
Nonvested restricted stock units | |||||||
Effect of dilutive securities: | |||||||
Dilutive shares | 182 | 355 | 0 | ||||
Nonvested performance-based share units | |||||||
Effect of dilutive securities: | |||||||
Dilutive shares | 180 | 61 | 0 | ||||
[1] Consideration paid in excess of carrying value for the redemption of its Abbraccio preferred stock is considered a deemed dividend and, for purposes of calculating earnings (loss) per share, reduces net income attributable to common stockholders. See Note 16 - Stockholders’ Equity During 2022, the Company repurchased $125.0 million of the 2025 Notes and retired the corresponding portion of the related warrants. See Note 14 - Convertible Senior Notes for additional details. Due to the Company’s net loss during 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted loss per share as their effect would be antidilutive. |
Earnings (Loss) Per Share (Anti
Earnings (Loss) Per Share (Antidilutive Securities) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of earnings (loss) per share (in shares) | 1,849 | 751 | 5,155 |
Nonvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of earnings (loss) per share (in shares) | 192 | 128 | 682 |
Nonvested performance-based share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of earnings (loss) per share (in shares) | 461 | 377 | 514 |
Stock-based and Deferred Comp_3
Stock-based and Deferred Compensation Plans (Equity Compensation Plan Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 16,366 | $ 24,291 | $ 14,716 | ||
Performance-based share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 8,176 | [1] | 13,821 | [1] | 2,414 |
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | 7,687 | 8,184 | 8,559 | ||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 503 | $ 2,286 | $ 3,743 | ||
[1]For 2022, includes a cumulative life-to-date adjustment to decrease expense for PSUs granted in fiscal year 2020 based on Company performance against criteria set forth in the award agreements. For 2021, includes a cumulative life-to-date adjustment to increase expense for PSUs granted in fiscal years 2019, 2020 and 2021 based on Company performance against criteria set forth in the award agreements. |
Stock-based and Deferred Comp_4
Stock-based and Deferred Compensation Plans (PSU - Text) (Details) - shares | 12 Months Ended | |
Dec. 25, 2022 | Dec. 26, 2021 | |
Common stock | 2020 Omnibus Incentive Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 7,935,988 | |
Performance-based share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement By share-based payment award, total shareholder return modifier, option 1 | 75% | 75% |
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 2 | 100% | 100% |
Share-based compensation arrangement by share-based payment award, total shareholder return modifier, option 3 | 125% | 125% |
Vesting period | 3 years | 3 years |
Performance-based share units | Common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares that would be issued on vesting of stock units | 1 | |
Performance-based share units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0% | |
Performance-based share units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 200% | 200% |
Stock-based and Deferred Comp_5
Stock-based and Deferred Compensation Plans (PSU Activity - Table) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 23, 2022 | Dec. 23, 2021 | ||||
Common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||
Share price applicable to outstanding share-based compensation | $ 20.96 | $ 20.95 | |||||||
Performance-based share units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||||||
Outstanding as of December 26, 2021 (shares) | 759 | ||||||||
Granted (shares) | 313 | ||||||||
Performance adjustment (shares) | [1] | 169 | |||||||
Vested (shares) | (338) | ||||||||
Forfeited (shares) | (29) | ||||||||
Outstanding as of December 25, 2022 (shares) | 874 | 759 | |||||||
Expected to vest as of December 25, 2022 | 1,275 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||
Outstanding as of December 26, 2021 (per share) | $ 23.11 | ||||||||
Granted (per share) | 26.10 | [2] | $ 29.73 | [2] | $ 19.96 | ||||
Performance adjustment (per share) | [1] | 19.69 | |||||||
Vested (per share) | 19.69 | ||||||||
Forfeited (per share) | 23.30 | ||||||||
Outstanding as of December 25, 2022 (per share) | $ 24.83 | $ 23.11 | |||||||
Aggregate intrinsic value as of December 26, 2021 | [3] | $ 18,323 | $ 15,896 | ||||||
Aggregate intrinsic value, expected to vest as of December 25, 2022 | [3] | $ 26,715 | |||||||
Performance-based share units | 2019 PSU Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 200% | ||||||||
[1]Represents adjustment to 200% payout for PSUs granted during 2019.[2]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 2022 and 2021, respectively.[3]Based on the $20.95 and $20.96 share price of the Company’s common stock on December 23, 2021 and 2022, the last trading day of 2022 and 2021, respectively. |
Stock-based and Deferred Comp_6
Stock-based and Deferred Compensation Plans (Monte Carlo Simulation Model - Table) (Details) - Performance-based share units | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | [1] | 1.64% | 0.20% |
Dividend yield | [2] | 2.31% | 0% |
Volatility | [3] | 49.11% | 48.45% |
[1]Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit.[2]Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term.[3]Based on the historical volatility of the Company’s stock over the last seven years. |
Stock-based and Deferred Comp_7
Stock-based and Deferred Compensation Plans (PSU Compensation - Table) (Details) - Performance-based share units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value for PSU/RSUs granted | $ 26.10 | [1] | $ 29.73 | [1] | $ 19.96 | |
Intrinsic value for PSUs vested | $ 7,626 | $ 3,768 | $ 6,550 | |||
Fair value of PSUs vested | 6,646 | 3,401 | 4,809 | |||
Tax benefits for RSU/PSU compensation expense | 348 | $ 134 | $ 1,570 | |||
Unrecognized PSU expense | $ 11,955 | |||||
Remaining weighted average vesting period | [2] | 1 year 2 months 12 days | ||||
Share-based compensation arrangement by share-based payment award, stock price premium, percentage | 7.90% | 14.30% | ||||
Vesting period | 3 years | 3 years | ||||
[1]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 2022 and 2021, respectively.[2]PSUs typically vest after three years. |
Stock-based and Deferred Comp_8
Stock-based and Deferred Compensation Plans (Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 23, 2022 | Dec. 23, 2021 | |||
Common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share price applicable to outstanding share-based compensation | $ 20.96 | $ 20.95 | |||||
Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | 3 years | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||||
Outstanding as of December 26, 2021 (shares) | 730 | ||||||
Granted (shares) | 364 | ||||||
Vested (shares) | (396) | ||||||
Forfeited (shares) | (41) | ||||||
Outstanding as of December 25, 2022 (shares) | 657 | [1] | 730 | ||||
Expected to vest as of December 25, 2022 | 657 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Outstanding as of December 26, 2021 (per share) | $ 21.16 | ||||||
Granted (per share) | [2] | 21.59 | $ 25.93 | $ 16.66 | |||
Vested (per share) | 20.27 | ||||||
Forfeited (per share) | 24.69 | ||||||
Outstanding as of December 25, 2022 (per share) | 21.72 | $ 21.16 | |||||
Expected to vest as of December 25, 2022, weighted average grant date fair value | $ 21.72 | ||||||
Aggregate intrinsic value as of December 26, 2021 | [3] | $ 13,776 | $ 15,298 | ||||
Aggregate intrinsic value, expected to vest as of December 25, 2022 | [3] | $ 13,776 | |||||
[1]All RSUs outstanding as of December 25, 2022 are expected to vest.[2]The weighted average dividend yield was 2.43% and 2.11% for 2022 and 2020, respectively. There were no dividends in 2021.[3]Based on the $20.95 and $20.96 share price of the Company’s common stock on December 23, 2021 and 2022, the last trading day of 2022 and 2021, respectively. |
Stock-based and Deferred Comp_9
Stock-based and Deferred Compensation Plans (Restricted Stock Compensation) (Details) - USD ($) | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends | $ 0 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value for PSU/RSUs granted | [1] | $ 21.59 | $ 25.93 | $ 16.66 |
Intrinsic value of RSUs vested | $ 9,070,000 | $ 13,482,000 | $ 8,183,000 | |
Fair value of RSUs vested | 8,025,000 | 9,434,000 | 8,973,000 | |
Tax benefits for RSU/PSU compensation expense | 1,113,000 | $ 1,592,000 | $ 1,614,000 | |
Unrecognized RSU expense | $ 8,389,000 | |||
Remaining weighted average vesting period | 1 year 9 months 18 days | |||
Dividend yield | 2.43% | 2.11% | ||
[1]The weighted average dividend yield was 2.43% and 2.11% for 2022 and 2020, respectively. There were no dividends in 2021. |
Stock-based and Deferred Com_10
Stock-based and Deferred Compensation Plans (Stock Options - Text) (Details) - Stock options | 12 Months Ended |
Dec. 25, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, expiration period | 10 years |
Stock-based and Deferred Com_11
Stock-based and Deferred Compensation Plans (Stock Option Activity - Table) (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding as of December 26, 2021 (shares) | 4,276,000 | ||
Exercised (shares) | (1,044,000) | ||
Forfeited or expired (shares) | (44,000) | ||
Outstanding as of December 25, 2022 (shares) | 3,188,000 | [1] | 4,276,000 |
Exercisable as of December 25, 2022 (shares) | 3,149,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding as of December 26, 2021 (per share) | $ 20.42 | ||
Exercised (per share) | 17.15 | ||
Forfeited or expired (per share) | 24.89 | ||
Outstanding as of December 25, 2022 (per share) | 21.43 | $ 20.42 | |
Exercisable as of December 25, 2022 (per share) | $ 21.46 | ||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 4 years | 4 years 8 months 12 days | |
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 4 years | ||
Outstanding intrinsic value | $ 3,337 | $ 7,304 | |
Exercisable intrinsic value | $ 3,244 | ||
Granted (shares) | 0 | ||
[1] No stock options were granted during 2022. |
Stock-based and Deferred Com_12
Stock-based and Deferred Compensation Plans (Stock Option Compensation - Table) (Details) - Stock options - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 6,367 | $ 8,419 | $ 2,201 |
Cash received from option exercises, net of tax withholding | 17,888 | 14,951 | 4,609 |
Fair value of stock options vested | 7,645 | 19,246 | 16,468 |
Tax benefits for stock option compensation expense | $ 1,495 | $ 1,942 | $ 535 |
Stock-based and Deferred Com_13
Stock-based and Deferred Compensation Plans (Area Operations Directors, Managing, Operating and Chef Partner Programs) (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Dec. 26, 2021 |
Restaurant Managing and Chef Partners | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation liability, current and noncurrent | $ 3.5 | $ 15.5 |
Stock-based and Deferred Com_14
Stock-based and Deferred Compensation Plans (Other Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
401(k) plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Defined contribution plan, employer contribution costs | $ 5.6 | $ 6.1 | $ 5.5 |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Prepaid expenses | $ 29,343 | $ 21,194 | ||||
Deferred gift card sales commissions | 17,755 | 17,793 | $ 19,300 | $ 18,554 | ||
Other current assets, net | 4,671 | 5,297 | ||||
Total other current assets, net | 183,718 | 184,623 | ||||
Other current assets, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Deferred gift card sales commissions | 17,755 | 17,793 | ||||
Company-owned life insurance | 0 | [1] | 17,244 | |||
Accounts receivable - gift cards, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | [2] | 85,606 | 91,248 | |||
Accounts receivable - vendors, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | [2] | 25,385 | 11,793 | |||
Accounts receivable - franchisees, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | [2] | 2,550 | 1,701 | |||
Accounts receivable - other, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, net | [2] | $ 18,408 | $ 18,353 | |||
[1]During 2022, the Company withdrew the current portion of its Company-owned life insurance policies to pay deferred compensation obligations.[2] See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses. |
Property, Fixtures and Equipm_3
Property, Fixtures and Equipment, Net (PFE - Table) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (1,617,611) | $ (1,514,521) |
Property, fixtures and equipment, net | 914,142 | 842,012 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 37,596 | 38,417 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 1,223,403 | 1,167,811 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 489,895 | 460,768 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | 739,136 | 641,715 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, fixtures and equipment, gross | $ 41,723 | $ 47,822 |
Property, Fixtures and Equipm_4
Property, Fixtures and Equipment, Net (Depreciation and Repairs - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 163,445 | $ 157,386 | $ 173,342 |
Repair and maintenance expense | $ 116,318 | $ 104,209 | $ 88,829 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Goodwill Rollforward - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2022 | Dec. 26, 2021 | |
Goodwill [Roll Forward] | ||
Balance as of beginning of the year | $ 268,444 | $ 271,164 |
Goodwill, translation adjustments | 4,588 | (2,720) |
Balance as of end of the year | 273,032 | 268,444 |
U.S. segment | ||
Goodwill [Roll Forward] | ||
Balance as of beginning of the year | 170,657 | 170,657 |
Goodwill, translation adjustments | 0 | 0 |
Balance as of end of the year | 170,657 | 170,657 |
International segment | ||
Goodwill [Roll Forward] | ||
Balance as of beginning of the year | 97,787 | 100,507 |
Goodwill, translation adjustments | 4,588 | (2,720) |
Balance as of end of the year | $ 102,375 | $ 97,787 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Gross Goodwill and Impairment - Table) (Details) | 3 Months Ended | 12 Months Ended | |||||
Jun. 26, 2022 USD ($) | Jun. 27, 2021 USD ($) | Jun. 28, 2020 USD ($) | Mar. 29, 2020 USD ($) | Dec. 27, 2020 USD ($) restraurant_concept | Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | |
Goodwill [Line Items] | |||||||
Goodwill, gross | $ 1,059,217,000 | $ 1,061,085,000 | $ 1,056,497,000 | ||||
Accumulated impairment losses | (788,053,000) | (788,053,000) | (788,053,000) | ||||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | ||||
U.S. segment | |||||||
Goodwill [Line Items] | |||||||
Goodwill, gross | 838,827,000 | 838,827,000 | 838,827,000 | ||||
Accumulated impairment losses | $ (668,170,000) | (668,170,000) | (668,170,000) | ||||
Number of reporting units | restraurant_concept | 4 | ||||||
International segment | |||||||
Goodwill [Line Items] | |||||||
Goodwill, gross | $ 220,390,000 | 222,258,000 | 217,670,000 | ||||
Accumulated impairment losses | $ (119,883,000) | $ (119,883,000) | $ (119,883,000) | ||||
Number of reporting units | restraurant_concept | 3 | ||||||
Goodwill, impairment loss | $ 2,000,000 | ||||||
International segment | Outback Hong Kong | |||||||
Goodwill [Line Items] | |||||||
Goodwill, impairment loss | $ 2,000,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Intangible Assets - Table) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | Dec. 25, 2022 | Dec. 26, 2021 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, accumulated amortization | $ (82,944,000) | $ (75,199,000) | |||
Intangible assets, gross (excluding goodwill) | 531,270,000 | 528,611,000 | |||
Intangible assets, net (excluding goodwill) | $ 448,326,000 | 453,412,000 | |||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | ||
Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 7 years | ||||
Trademarks | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | $ 81,952,000 | 81,951,000 | |||
Finite-lived intangible assets, accumulated amortization | (59,675,000) | (55,736,000) | |||
Finite-lived intangible assets, net | $ 22,277,000 | 26,215,000 | |||
Trademarks | Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 6 years | ||||
Reacquired franchise rights | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | $ 34,602,000 | 31,944,000 | |||
Finite-lived intangible assets, accumulated amortization | (23,269,000) | (19,463,000) | |||
Finite-lived intangible assets, net | $ 11,333,000 | 12,481,000 | |||
Reacquired franchise rights | Weighted average | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, remaining amortization period | 8 years | ||||
Trade names | |||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets (excluding goodwill) | $ 414,716,000 | $ 414,716,000 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Amortization Expense - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 6,172 | $ 6,005 | $ 6,919 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net (Annual Amortization Expense - Table) (Details) $ in Thousands | Dec. 25, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense 2023 | $ 5,891 |
Amortization expense 2024 | 5,752 |
Amortization expense 2025 | 5,408 |
Amortization expense 2026 | 5,293 |
Amortization expense 2027 | $ 3,554 |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Schedule of Other Assets, Net [Line Items] | |||
Deferred debt issuance costs | [1] | $ 5,505 | $ 5,861 |
Liquor licenses | 23,454 | 23,266 | |
Other assets | 25,399 | 18,573 | |
Other assets, net | 82,147 | 78,670 | |
Accumulated amortization, deferred financing fees | 10,100 | 8,500 | |
Other assets, net | |||
Schedule of Other Assets, Net [Line Items] | |||
Company-owned life insurance | $ 27,789 | $ 30,970 | |
[1]Net of accumulated amortization of $10.1 million and $8.5 million as of December 25, 2022 and December 26, 2021, respectively. |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Payables and Accruals [Abstract] | |||
Accrued rent and current operating lease liabilities | $ 187,136 | $ 181,636 | |
Accrued payroll and other compensation | 84,075 | [1] | 105,095 |
Accrued insurance | 20,932 | 22,017 | |
Other current liabilities | 107,158 | 98,146 | |
Accrued and other liabilities, current | $ 399,301 | $ 406,894 | |
[1]During 2022, accrued payroll and other compensation decreased primarily due to payment of deferred compensation obligations and a decrease in incentive compensation. |
Long-term Debt, Net (Schedule o
Long-term Debt, Net (Schedule of Long-Term Debt, Net) (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |||||||
May 25, 2022 | Feb. 22, 2023 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Apr. 16, 2021 | May 08, 2020 | |||
Debt instrument [Line Items] | |||||||||
Finance lease liabilities | $ 5,976,000 | $ 2,376,000 | |||||||
Less: unamortized debt discount and issuance costs | (6,493,000) | [1] | (14,157,000) | ||||||
Less: finance lease interest | (1,191,000) | (154,000) | |||||||
Total debt, net | 833,292,000 | 793,065,000 | |||||||
Long-Term Debt and Lease Obligation, Current | (1,636,000) | (10,958,000) | |||||||
Long-term debt, net | 831,656,000 | 782,107,000 | |||||||
Repayments of borrowings on revolving credit facility | 889,500,000 | 837,000,000 | $ 657,000,000 | ||||||
Senior Secured Credit Facility and 2025 Notes | |||||||||
Debt instrument [Line Items] | |||||||||
Write off of deferred debt issuance cost | 5,700,000 | ||||||||
Revolving credit facility | Senior Secured Credit Facility | Subsequent event | |||||||||
Debt instrument [Line Items] | |||||||||
Repayments of borrowings on revolving credit facility | $ 80,000,000 | ||||||||
Secured debt | Senior Secured Credit Facility | |||||||||
Debt instrument [Line Items] | |||||||||
Long-term debt, gross | 430,000,000 | 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 | $ 430,000,000 | [3] | $ 80,000,000 | ||||||
Debt instrument, effective interest rate | [3] | 3.75% | |||||||
Secured debt | Revolving credit facility | Senior Secured Credit Facility | Weighted average | |||||||||
Debt instrument [Line Items] | |||||||||
Debt instrument, effective interest rate | [3] | 5.79% | |||||||
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% | 13.73% | ||||||
Debt instrument, interest rate, stated percentage | 5% | 5% | 5% | ||||||
2025 Notes repurchase amount | $ 125,000,000 | $ 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% | 5.125% | ||||||
[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 2022. See Note 14 - Convertible Senior Notes for details regarding the partial repurchase of the 2025 Notes. During 2022, the Company repurchased $125.0 million of the 2025 Notes. See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions. |
Long-term Debt, Net (Second Ame
Long-term Debt, Net (Second Amended and Restated Credit Agreement Narrative) (Details) - USD ($) | 12 Months Ended | |||||
Apr. 26, 2022 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Apr. 16, 2021 | Nov. 30, 2017 | |
Debt instrument [Line Items] | ||||||
Proceeds from borrowings on revolving credit facilities | $ 1,239,500,000 | $ 470,000,000 | $ 505,000,000 | |||
Secured debt | Revolving credit facility | Minimum | Adjusted Term SOFR | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
Secured debt | Revolving credit facility | Minimum | Base rate | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Secured debt | Revolving credit facility | Maximum | Adjusted Term SOFR | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
Secured debt | Revolving credit facility | Maximum | Base rate | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
Secured debt | Amended Credit Agreement | ||||||
Debt instrument [Line Items] | ||||||
Debt covenants compliance, quarterly total net leverage ratio, initial maximum ratio level for increase in borrowing | 3 | |||||
Debt covenants compliance, quarterly total net leverage ratio, initial maximum ratio level | 4.50 | |||||
Secured debt | Amended Credit Agreement | Base rate option 2 | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 50% | |||||
Secured debt | Amended Credit Agreement | Base rate option 3 | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1% | |||||
Secured debt | Amended Credit Agreement | Adjusted Term SOFR | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||
Secured debt | Amended Credit Agreement | Minimum | Adjusted Term SOFR | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, interest rate, floor | 0% | |||||
Secured debt | Letter of credit | Minimum | ||||||
Debt instrument [Line Items] | ||||||
Letters of credit fee, percentage | 1.50% | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||||
Secured debt | Letter of credit | Maximum | ||||||
Debt instrument [Line Items] | ||||||
Letters of credit fee, percentage | 2.50% | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.40% | |||||
Secured debt | Senior Secured Credit Facility | ||||||
Debt instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||
Long-term debt, maturity date | Apr. 16, 2026 | |||||
Line of credit facility, maximum increase | $ 225,000,000 | |||||
Secured debt | Senior Secured Credit Facility | Term loan A facility | ||||||
Debt instrument [Line Items] | ||||||
Debt instrument, face amount | $ 200,000,000 | |||||
Secured debt | Senior Secured Credit Facility | Revolving credit facility | ||||||
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 | |||||
Secured debt | Former Credit Facility | ||||||
Debt instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 |
Long-term Debt, Net (2029 Notes
Long-term Debt, Net (2029 Notes Narrative) (Details) - 2029 Notes - Unsecured debt - USD ($) | Apr. 16, 2021 | Dec. 25, 2022 | Dec. 26, 2021 |
Debt instrument [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | ||
Long-term debt, maturity date | Apr. 15, 2029 | ||
Debt instrument, interest rate, stated percentage | 5.125% | 5.13% | 5.13% |
Proceeds from issuance of private placement | $ 294,500,000 | ||
Debt instrument, redemption, equity offering redemption option | |||
Debt instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 105.125% | ||
Debt instrument, redemption, early redemption option | |||
Debt instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100% | ||
Maximum | Debt instrument, redemption, equity offering redemption option | |||
Debt instrument [Line Items] | |||
Debt instrument, redemption price, percentage of principal amount redeemed | 40% |
Long-term Debt, Net (Maturities
Long-term Debt, Net (Maturities - Tables) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Debt Disclosure [Abstract] | |||
2023 | $ 1,674 | ||
2024 | 1,275 | ||
2025 | 105,821 | ||
2026 | 430,426 | ||
2027 | 338 | ||
Thereafter | 301,442 | ||
Total payments | 840,976 | ||
Less: unamortized debt discount and issuance costs | (6,493) | [1] | $ (14,157) |
Less: finance lease interest | (1,191) | (154) | |
Total principal payments | $ 833,292 | $ 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 2022. See Note 14 - Convertible Senior Notes for details regarding the partial repurchase of the 2025 Notes. |
Convertible Senior Notes (Conve
Convertible Senior Notes (Convertible Notes Text) (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | |||||||
Nov. 23, 2022 USD ($) $ / shares shares | May 25, 2022 USD ($) shares | May 08, 2020 USD ($) $ / shares shares | May 08, 2020 USD ($) day $ / shares | Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | Dec. 27, 2020 USD ($) | May 12, 2020 USD ($) | |
Debt instrument [Line Items] | ||||||||
Repayments of convertible senior notes | $ 196,919,000 | $ 0 | $ 0 | |||||
Loss on extinguishment and modification of debt | (107,630,000) | (2,073,000) | (237,000) | |||||
Loss on fair value adjustment of derivatives, net | (17,685,000) | 0 | $ 0 | |||||
Issuance of common stock from repurchase of convertible senior notes | 48,565,000 | |||||||
Additional paid-in capital | ||||||||
Debt instrument [Line Items] | ||||||||
Issuance of common stock from repurchase of convertible senior notes | 48,542,000 | |||||||
Convertible debt | 2025 Notes | ||||||||
Debt instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 105,000,000 | $ 230,000,000 | $ 230,000,000 | |||||
Debt instrument, interest rate, stated percentage | 5% | 5% | 5% | 5% | ||||
Long-term debt, maturity date | May 01, 2025 | May 01, 2025 | ||||||
Proceeds from issuance of private placement | $ 221,600,000 | |||||||
Debt instrument, convertible, conversion ratio | 86.267 | 84.122 | ||||||
Debt instrument, convertible principal amount | $ 1,000 | $ 1,000 | $ 1,000 | |||||
Debt conversion, converted instrument, shares to be issued | shares | 9,058 | 19,348 | ||||||
Debt instrument, convertible, conversion price | $ / shares | $ 11.59 | $ 11.89 | $ 11.89 | |||||
Debt instrument, redemption price, percentage | 100% | |||||||
2025 Notes repurchase amount | $ 125,000,000 | $ 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 | |||||||
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 debt | 2025 Notes | Conversion option one | ||||||||
Debt instrument [Line Items] | ||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | |||||||
Debt instrument, convertible, threshold trading days | day | 20 | |||||||
Debt instrument, convertible, threshold consecutive trading days | day | 30 | |||||||
Convertible debt | 2025 Notes | Conversion option two | ||||||||
Debt instrument [Line Items] | ||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 98% | |||||||
Debt instrument, convertible, threshold trading days | day | 5 | |||||||
Debt instrument, convertible, threshold consecutive trading days | day | 5 |
Convertible Senior Notes (Sched
Convertible Senior Notes (Schedule of Convertible Notes) (Details) - Convertible debt - 2025 Notes - USD ($) | 12 Months Ended | |||
Dec. 25, 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] | (1,939,000) | (5,898,000) | |
Net carrying amount | 103,061,000 | $ 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 2022, the Company wrote off $2.8 million of debt issuance costs as a result of the 2025 Notes Partial Repurchase. |
Convertible Senior Notes (Sch_2
Convertible Senior Notes (Schedule of Interest) (Details) - Convertible debt - 2025 Notes - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Debt instrument [Line Items] | ||||
Coupon interest | $ 8,080 | $ 11,500 | $ 7,443 | |
Deferred discount amortization | 0 | 0 | 6,275 | |
Debt issuance cost amortization | 1,156 | 1,557 | 569 | |
Total interest expense | [1] | $ 9,236 | $ 13,057 | $ 14,287 |
Debt instrument, effective interest rate | 5.85% | 5.85% | 13.73% | |
[1] The effective rate of the 2025 Notes over their expected life was 5.85% for 2022 and 2021 and 13.73% for 2020. |
Convertible Senior Notes (Con_2
Convertible Senior Notes (Convertible Notes Hedge Transactions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
May 08, 2020 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Nov. 23, 2022 | |
Debt instrument [Line Items] | |||||
Proceeds from retirement of convertible senior note hedges | $ 131,869 | $ 0 | $ 0 | ||
Payments for repurchase of warrants | 114,825 | $ 0 | $ 0 | ||
Retirement of convertible senior note hedges | (112,956) | ||||
Retirement of warrants | (97,617) | ||||
Additional paid-in capital | |||||
Debt instrument [Line Items] | |||||
Retirement of convertible senior note hedges | (112,956) | ||||
Retirement of warrants | (97,617) | ||||
Convertible debt | 2025 Notes | |||||
Debt instrument [Line Items] | |||||
Class of warrant or right, exercise price of warrants or rights | $ 16.64 | $ 16.23 | |||
Convertible debt proceeds used for payments for hedge activities, net of warrant proceeds | $ 19,600 | ||||
Proceeds from retirement of convertible senior note hedges | 131,900 | ||||
Payments for repurchase of warrants | 114,800 | ||||
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 | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | ||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Accrued insurance liability | $ 28,133 | $ 31,517 | |
Deferred payroll tax liabilities | 0 | [1] | 27,302 |
Deferred compensation obligations | 31,608 | 37,514 | |
Other long-term liabilities | 27,645 | 28,909 | |
Other long-term liabilities, net | 87,386 | $ 125,242 | |
COVID-19 pandemic | |||
Schedule of Other Long-term Liabilities, Net [Line Items] | |||
Decrease in deferred payroll taxes | $ 27,300 | ||
[1]During 2022, the Company made a payment of $27.3 million related to payroll taxes deferred under the CARES Act. |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Feb. 22, 2023 | Dec. 25, 2022 | Sep. 25, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 25, 2022 | Feb. 07, 2023 | Feb. 08, 2022 | ||
Shares Repurchases [Line Items] | |||||||||
Stock repurchased and retired during period, value | $ 109,999,000 | ||||||||
2022 Share Repurchase Program | |||||||||
Shares Repurchases [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 125,000,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 15,000,000 | $ 15,000,000 | |||||||
Stock repurchased and retired during period, shares | 1,371 | 1,746 | 1,761 | 551 | 5,429 | [1] | |||
Treasury stock acquired, average cost per share | $ 21.15 | $ 19.21 | $ 20.30 | $ 21.26 | $ 20.26 | [1] | |||
Stock repurchased and retired during period, value | $ 28,999,000 | $ 33,549,000 | $ 35,749,000 | $ 11,702,000 | $ 109,999,000 | [1] | |||
Subsequent event | 2022 Share Repurchase Program | |||||||||
Shares Repurchases [Line Items] | |||||||||
Stock repurchased and retired during period, shares | 644 | ||||||||
Stock repurchased and retired during period, value | $ 15,000,000 | ||||||||
Subsequent event | 2023 Share Repurchase Program | |||||||||
Shares Repurchases [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 125,000,000 | ||||||||
[1]Subsequent to December 25, 2022, the Company repurchased 644 thousand shares of its common stock for $15.0 million under a Rule 10b5-1 plan. |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 07, 2023 | Dec. 25, 2022 | Sep. 25, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Dividends Payable [Line Items] | ||||||||||||
Common stock, dividends per share | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0 | $ 0 | $ 0 | $ 0.20 | $ 0.56 | $ 0.20 | ||
Dividends, common stock, cash | $ 12,284 | $ 12,475 | $ 12,418 | $ 12,559 | $ 0 | $ 0 | $ 0 | $ 17,480 | $ 49,736 | $ 17,480 | ||
Cash dividends declared per common share | $ 0.56 | $ 0 | $ 0.20 | |||||||||
Subsequent event | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Cash dividends declared per common share | $ 0.24 | |||||||||||
Dividends payable, date to be paid | Mar. 15, 2023 | |||||||||||
Dividends payable, date of record | Mar. 01, 2023 |
Stockholders' Equity (Redeemabl
Stockholders' Equity (Redeemable Preferred Stock-Text) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Accumulated other comprehensive loss [Line Items] | |||
Payments for repurchase of redeemable preferred stock | $ 0 | $ 0 | $ 1,475 |
Redemption of preferred stock in excess of carrying value | 1,718 | ||
Additional paid-in capital | |||
Accumulated other comprehensive loss [Line Items] | |||
Redemption of preferred stock in excess of carrying value | 3,496 | ||
Abbraccio | |||
Accumulated other comprehensive loss [Line Items] | |||
Payments for repurchase of redeemable preferred stock | 1,000 | ||
Abbraccio | Additional paid-in capital | |||
Accumulated other comprehensive loss [Line Items] | |||
Redemption of preferred stock in excess of carrying value | $ 3,500 |
Stockholders' Equity (AOCL - Ta
Stockholders' Equity (AOCL - Table) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ (185,311) | $ (205,989) |
Foreign currency translation adjustment | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | (185,311) | (195,480) |
Unrealized loss on derivatives, net of tax | ||
Accumulated other comprehensive loss [Line Items] | ||
Accumulated other comprehensive loss | $ 0 | $ (10,509) |
Stockholders' Equity (OCL - Tab
Stockholders' Equity (OCL - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |||
Accumulated other comprehensive loss [Line Items] | |||||
Unrealized gain (loss) on derivatives, net of tax | $ 573 | $ 86 | $ (14,741) | ||
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | 954 | 7,392 | 9,923 | ||
Impact of terminated interest rate swaps included in Net income (loss), net of tax | 8,982 | 4,576 | 0 | ||
Other comprehensive income (loss) attributable to Bloomin' Brands | 20,778 | 5,457 | (42,334) | ||
Bloomin' Brands | |||||
Accumulated other comprehensive loss [Line Items] | |||||
Foreign currency translation adjustment | 10,169 | (6,597) | (36,852) | ||
Unrealized gain (loss) on derivatives, net of tax | 573 | 86 | (14,741) | [1] | |
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax | [2] | 954 | 7,392 | 9,923 | |
Impact of terminated interest rate swaps included in Net income (loss), net of tax | [2] | 8,982 | 4,576 | 0 | |
Total gain (loss) on derivatives, net of tax | 10,509 | 12,054 | (4,818) | ||
Other comprehensive income (loss) attributable to Bloomin' Brands | $ 20,678 | $ 5,457 | (41,670) | ||
Other comprehensive income (loss) before reclassifications, tax | $ (5,100) | ||||
[1] Unrealized loss on derivatives during 2020 is net of tax of $5.1 million. See Note 17 - Derivative Instruments and Hedging Activities for the tax impact of reclassifications and the terminated swaps. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Designated Hedges - Text) (Details) - Interest rate swap - Designated as hedging instrument | Dec. 09, 2021 USD ($) counterparty | Apr. 16, 2021 USD ($) counterparty | Oct. 25, 2018 USD ($) counterparty |
Derivative [Line Items] | |||
Derivative agreements, number of counterparties | counterparty | 12 | ||
Derivative, notional amount | $ 550,000,000 | ||
Derivative, maturity date | Nov. 30, 2022 | ||
Derivative, weighted-average fixed interest rate | 3.04% | ||
Contract termination | |||
Derivative [Line Items] | |||
Derivative agreements, number of counterparties | counterparty | 3 | 7 | |
Derivative, notional amount | $ 150,000,000 | $ 275,000,000 | |
Payment for settlement of interest rate, cash flow hedge | 4,100,000 | 13,300,000 | |
Contract termination | Interest expense | |||
Derivative [Line Items] | |||
Derivative, interest rate swaps, liabilities, fair value | $ 4,100,000 | $ 13,400,000 | |
London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
Derivative, description of terms | one-month LIBOR |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Fair Value of Interest Rate Swaps - Table) (Details) - Interest rate swap - Designated as hedging instrument - Accrued and other current liabilities $ in Thousands | Dec. 26, 2021 USD ($) | |
Derivative [Line Items] | ||
Derivative, interest rate swaps, liabilities, fair value | $ 3,056 | [1] |
Accrued interest | $ 276 | |
[1]See Note 19 - Fair Value Measurements for fair value discussion of the interest rate swaps. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Effects of Interest Rate Swap) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Derivative [Line Items] | |||
Impact of terminated interest rate swaps included in Net income (loss), net of tax | $ 8,982 | $ 4,576 | $ 0 |
Designated as hedging instrument | Interest rate swap | |||
Derivative [Line Items] | |||
Net effects of interest rate swap agreements | (954) | (7,392) | (9,923) |
Terminated interest rate swap expense recognized in Interest expense, net | (12,115) | (6,160) | 0 |
Impact of terminated interest rate swaps included in Net income (loss), net of tax | (8,982) | (4,576) | 0 |
Total net effects on Net income (loss) | (9,936) | (11,968) | (9,923) |
Designated as hedging instrument | Interest rate swap | Interest expense | |||
Derivative [Line Items] | |||
Interest rate swap expense recognized in Interest expense, net | (1,284) | (9,951) | (13,370) |
Designated as hedging instrument | Interest rate swap | Income tax expense | |||
Derivative [Line Items] | |||
Income tax benefit recognized in Provision (benefit) for income taxes | 330 | 2,559 | 3,447 |
Income tax benefit recognized in Provision (benefit) for income taxes | $ 3,133 | $ 1,584 | $ 0 |
Leases (Lessee, Lease Assets an
Leases (Lessee, Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 1,103,083 | $ 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] | $ 4,679 | $ 2,074 |
Total lease assets, net | $ 1,107,762 | $ 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] | $ 183,510 | $ 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 | $ 1,636 | $ 958 | |
Non-current operating lease liabilities | [2] | $ 1,148,379 | $ 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 | $ 3,149 | $ 1,264 | |
Total lease liabilities | 1,336,674 | 1,358,248 | |
Accumulated amortization | (3,600) | (3,300) | |
Accrued contingent percentage rent | $ 3,400 | $ 3,500 | |
[1]Net of accumulated amortization of $3.6 million and $3.3 million as December 25, 2022 and December 26, 2021, respectively.[2]Excludes current accrued contingent percentage rent of $3.4 million and $3.5 million, as of December 25, 2022 and December 26, 2021, respectively, and immaterial current and non-current COVID-19-related deferred rent accruals. |
Leases (Lease Costs) (Details)
Leases (Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||||
Schedule of Lease Costs [Line Items] | ||||||
Operating leases | [1] | $ 182,091 | $ 178,733 | $ 178,740 | ||
Variable lease cost | 6,508 | 4,350 | [2] | (2,326) | [2] | |
Amortization of leased assets | 1,420 | 1,079 | 1,248 | |||
Interest on lease liabilities | 172 | 129 | 160 | |||
Sublease revenue | (9,016) | (9,396) | (3,121) | |||
Lease costs, net | 181,175 | 174,895 | 174,701 | |||
General and administrative | ||||||
Schedule of Lease Costs [Line Items] | ||||||
Operating leases | $ 12,200 | $ 12,900 | $ 13,800 | |||
[1]Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.2 million, $12.9 million and $13.8 million for 2022, 2021 and 2020, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs for 2021 and 2020.[2] Includes COVID-19-related rent abatements for 2021 and 2020. |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments and Sublease Revenues) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Leases [Abstract] | |||
Operating lease, 2023 | [1],[2] | $ 190,933 | |
Operating lease, 2024 | [1] | 192,371 | |
Operating lease, 2025 | [1] | 179,377 | |
Operating lease, 2026 | [1] | 171,279 | |
Operating lease, 2027 | [1] | 165,906 | |
Operating lease, thereafter | [1] | 1,407,054 | |
Operating lease, total minimum lease payments | [1],[3] | 2,306,920 | |
Operating lease, interest | [1] | (974,623) | |
Operating lease liabilities | [1] | 1,332,297 | |
Finance lease, 2023 | 1,674 | ||
Finance lease, 2024 | 1,275 | ||
Finance lease, 2025 | 821 | ||
Finance lease, 2026 | 426 | ||
Finance lease, 2027 | 338 | ||
Finance lease, thereafter | 1,442 | ||
Finance lease, total minimum lease payments | 5,976 | $ 2,376 | |
Less: finance lease interest | (1,191) | $ (154) | |
Finance lease liabilities | 4,785 | ||
Sublease revenues, 2023 | (5,552) | ||
Sublease revenues, 2024 | (5,782) | ||
Sublease revenues, 2025 | (5,518) | ||
Sublease revenues, 2026 | (5,514) | ||
Sublease revenues, 2027 | (5,617) | ||
Sublease revenues, thereafter | (40,598) | ||
Sublease revenues, total minimum lease receipts | (68,581) | ||
Prepaid rent | 4,600 | ||
Lessee, operating lease, option to extend amount | 919,700 | ||
Lessee, operating lease, lease not yet commenced, unrecorded liability | $ 172,900 | ||
[1]Includes immaterial current and non-current COVID-19-related deferred rent accruals as of December 25, 2022.[2]Net of operating lease prepaid rent of $4.6 million.[3]Includes $919.7 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.9 million of signed operating leases that have not yet commenced. |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Dec. 25, 2022 | Dec. 26, 2021 | |
Leases [Abstract] | |||
Operating lease, weighted average remaining lease term | [1] | 13 years 2 months 12 days | 13 years 8 months 12 days |
Finance lease, weighted average remaining lease term | [1] | 5 years 4 months 24 days | 2 years 9 months 18 days |
Operating lease, weighted average discount rate, percent | [2] | 8.44% | 8.42% |
Finance lease, weighted average discount rate, percent | [2] | 6.63% | 5.01% |
[1]Includes lease renewal options that are reasonably certain of exercise.[2]Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement. |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 193,822 | $ 205,253 | $ 177,961 |
Leases (Schedule of Assets Leas
Leases (Schedule of Assets Lease to Third Parties) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Land | ||
Schedule of Assets Leased to Third Parties [Line Items] | ||
Land and buildings subject to or available for operating leases, gross | $ 4,906 | $ 5,021 |
Buildings | ||
Schedule of Assets Leased to Third Parties [Line Items] | ||
Land and buildings subject to or available for operating leases, gross | 4,289 | 4,987 |
Less: accumulated depreciation | (3,298) | (3,746) |
Buildings, net | $ 991 | $ 1,241 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Recurring Basis - Table) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued and other current liabilities | Accrued and other current liabilities |
Fair value, measurements, recurring | Fair value, inputs, level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 8,087 | $ 17,225 |
Fair value, measurements, recurring | Fair value, inputs, level 1 | 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, measurements, recurring | 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 | 3,301 | 6,714 |
Fair value, measurements, recurring | 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 | 4,786 | 9,039 |
Restricted cash and cash equivalents, fair value disclosure | 0 | 1,472 |
Fair value, measurements, recurring | Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair value, measurements, recurring | Fair value, inputs, level 2 | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments - interest rate swaps, current liabilities | 3,056 | |
Fair value, measurements, recurring | 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 | |
Fair value, measurements, recurring | 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 | |
Restricted cash and cash equivalents, fair value disclosure | 0 | |
Fair value, measurements, recurring | Carrying value measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8,087 | 17,225 |
Fair value, measurements, recurring | Carrying value measurement | 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, measurements, recurring | 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 | 3,301 | 6,714 |
Fair value, measurements, recurring | 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 | 4,786 | 9,039 |
Restricted cash and cash equivalents, fair value disclosure | $ 0 | $ 1,472 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurements on a Nonrecurring Basis - Table) (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment losses | $ 5,486 | $ 13,401 | $ 74,823 | |||
Assets held for sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets held for sale, impairment | 0 | 0 | 123 | |||
Operating lease, right-of-use-asset | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Operating lease assets, impairment | 1,233 | 3,950 | 30,940 | |||
Property, fixtures and equipment, net | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fixed asset impairment | 4,253 | 8,445 | 41,077 | |||
Goodwill and other assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment losses | 0 | 1,006 | 2,683 | |||
Carrying value measurement | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | 5,026 | 20,294 | 101,608 | |||
Carrying value measurement | Assets held for sale | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | [1] | 1,934 | ||||
Carrying value measurement | Assets held for sale | Fair value, inputs, level 2 | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | 0 | [1] | 0 | [1] | 752 | |
Carrying value measurement | Assets held for sale | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | 1,200 | |||||
Carrying value measurement | Operating lease, right-of-use-asset | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | [2] | 2,219 | 8,647 | 72,615 | ||
Carrying value measurement | Property, fixtures and equipment, net | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | [3] | 11,647 | 26,311 | |||
Carrying value measurement | Property, fixtures and equipment, net | Fair value, inputs, level 2 | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | 1,400 | 2,200 | ||||
Carrying value measurement | Property, fixtures and equipment, net | Fair value, inputs, level 3 | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | 2,807 | [3] | 10,207 | 24,085 | ||
Carrying value measurement | Goodwill and other assets | Fair value, inputs, level 2 | Assets measured with impairment, year-to-date | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value disclosure | [4] | $ 0 | $ 0 | $ 748 | ||
[1]Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value.[2] Carrying values measured using discounted cash flow models (Level 3). Refer to Note 5 - Impairments and Exit Costs for a more detailed discussion of impairments. Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million and $2.2 million for 2021 and 2020, respectively. All other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair value. Refer to Note 5 - Impairments and Exit Costs for a more detailed discussion of impairments. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Fair Value Inputs on a Nonrecurring Basis) (Details) - Operating lease, right-of-use-asset and property, fixtures and equipment - Fair value, inputs, level 3 - Fair value, measurements, nonrecurring | 12 Months Ended |
Dec. 27, 2020 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, weighted average cost of capital | 10.40% |
Fair value inputs, long term growth rate | 1.50% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, weighted average cost of capital | 11.30% |
Fair value inputs, long term growth rate | 2% |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Debt by Hierarchy Level) (Details) - USD ($) $ in Thousands | Dec. 25, 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 | 430,000 | 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 | 430,000 | 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 | 198,843 | 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 disclosure | 260,265 | 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 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Schedule for Allowance for Expected Credit Losses [Line Items] | ||||
Allowance for expected credit losses, beginning of the period | $ 4,050 | $ 4,095 | $ 199 | |
Provision for expected credit losses | 1,547 | 64 | 3,472 | [1] |
Charge-off of accounts | (146) | (109) | (594) | |
Allowance for expected credit losses, end of the period | 5,451 | 4,050 | 4,095 | |
ASU No. 2016-13 | ||||
Schedule for Allowance for Expected Credit Losses [Line Items] | ||||
Adjustment for adoption of ASU No. 2016-13 | $ 0 | $ 0 | $ 1,018 | |
[1] In March 2020, the Company fully reserved substantially all of its outstanding franchise receivables in response to the economic impact of the COVID-19 pandemic. See Note 3 - COVID-19 for details regarding the impact of the COVID-19 pandemic on the Company’s financial results. |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Provision - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 134,465 | $ 258,202 | $ (206,941) |
Foreign | 17,442 | (8,905) | (32,580) |
Income (loss) before provision (benefit) for income taxes | $ 151,907 | $ 249,297 | $ (239,521) |
Income Taxes (Provision (Benefi
Income Taxes (Provision (Benefit) for Income Taxes - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Current provision: | |||
Federal | $ 13,026 | $ 16,951 | $ 2,606 |
State | 10,576 | 10,917 | 2,301 |
Foreign | 5,354 | 1,862 | 2,623 |
Current provision | 28,956 | 29,730 | 7,530 |
Deferred (benefit) provision: | |||
Federal | 5,172 | (2,057) | (66,498) |
State | 3,470 | 1,194 | (12,527) |
Foreign | 5,106 | (2,483) | (9,231) |
Deferred (benefit) provision | 13,748 | (3,346) | (88,256) |
Provision (benefit) for income taxes | $ 42,704 | $ 26,384 | $ (80,726) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate - Table) (Details) | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Income Tax Disclosure [Abstract] | ||||
Income taxes at federal statutory rate | 21% | 21% | 21% | [1] |
State and local income taxes, net of federal benefit | 7.30% | 3.80% | 3.30% | [1] |
Non-deductible loss on 2025 Notes Partial Repurchase | 18% | 0% | 0% | |
Non-deductible expenses | 2.80% | 2.30% | (1.40%) | [1] |
Foreign tax rate differential | 2.30% | (0.20%) | 1.10% | [1] |
U.S. tax on foreign earnings - GILTI | 1.60% | 0% | 0% | |
Brazil tax legislation | 0.20% | 0% | 0% | |
Employment-related credits, net | (22.40%) | (13.20%) | 9.90% | [1] |
Net changes in deferred tax valuation allowances | (2.80%) | (0.70%) | (0.60%) | [1] |
Tax settlements and related adjustments | (0.10%) | (1.70%) | 0.10% | [1] |
Other, net | 0.20% | (0.70%) | 0.30% | [1] |
Total | 28.10% | 10.60% | 33.70% | [1] |
[1]Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. |
Income Taxes (Blended Rate - Na
Income Taxes (Blended Rate - Narrative) (Details) | 12 Months Ended |
Dec. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Blended federal and state statutory income tax rate | 26% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities - Table) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Deferred income tax assets: | |||
Operating lease liabilities | $ 346,482 | $ 352,041 | |
Insurance reserves | 15,695 | 14,329 | |
Unearned revenue | 52,366 | 50,284 | |
Deferred compensation | 14,726 | 25,164 | |
Net operating loss carryforwards | 14,277 | 18,227 | |
Federal tax credit carryforwards | 165,411 | 146,734 | |
Other, net | [1] | 12,248 | 21,222 |
Gross deferred income tax assets | 621,205 | 628,001 | |
Less: valuation allowance | (12,664) | (16,998) | |
Deferred income tax assets, net of valuation allowance | 608,541 | 611,003 | |
Deferred income tax liabilities: | |||
Less: operating lease right-of-use asset basis differences | (284,701) | (290,697) | |
Less: property, fixtures and equipment basis differences | (63,344) | (48,284) | |
Less: intangible asset basis differences | (109,162) | (103,954) | |
Deferred income tax assets, net | 151,334 | 168,068 | |
Deferred income tax assets, net | 153,118 | 168,068 | |
Deferred income tax liabilities, net | (1,784) | 0 | |
Deferred tax liabilities, undistributed foreign earnings | $ 300 | $ 200 | |
[1]As of December 25, 2022 and December 26, 2021, the Company maintained deferred tax liabilities for state income taxes on historical foreign earnings of $0.3 million and $0.2 million, respectively. |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance - Text) (Details) - USD ($) | Dec. 25, 2022 | Dec. 26, 2021 |
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | $ 12,664,000 | $ 16,998,000 |
Brazil | ||
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | 0 | $ 0 |
U.S. segment | ||
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | 400,000 | |
International segment | ||
Income Taxes [Line Items] | ||
Deferred tax assets, valuation allowance | $ 12,300,000 |
Income Taxes (Brazil Tax Legisl
Income Taxes (Brazil Tax Legislation - Text) (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Income Taxes [Line Items] | |||||
Brazil tax legislation, percentage | 0.20% | 0% | 0% | ||
Income taxes at federal statutory rate | 21% | 21% | 21% | [1] | |
Brazil | Secretariat of the Federal Revenue Bureau of Brazil | |||||
Income Taxes [Line Items] | |||||
Income taxes at federal statutory rate | 34% | ||||
Brazil tax legislation [Member] | Brazil | Secretariat of the Federal Revenue Bureau of Brazil | |||||
Income Taxes [Line Items] | |||||
Brazil tax legislation, percentage | 100% | ||||
Brazil tax legislation tax holiday, duration | 5 years | ||||
Income taxes at federal statutory rate | 0% | ||||
[1]Due to the pre-tax book loss, a positive percentage change in the effective income tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective income tax rate table reflects an unfavorable income tax expense. |
Income Taxes (Undistributed Ear
Income Taxes (Undistributed Earnings - Text) (Details) $ in Millions | Dec. 25, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Undistributed earnings of foreign subsidiaries | $ 23.2 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2022 | Dec. 26, 2021 | |
Income Tax Contingency [Line Items] | ||
Federal tax credit carryforwards | $ 165,411 | $ 146,734 |
Foreign loss carryforwards | 62,213 | |
Foreign credit carryforwards | 864 | |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
Federal tax credit carryforwards | 177,676 | |
General business tax credit carryforwards | $ 175,500 | |
Internal Revenue Service (IRS) | Maximum | ||
Income Tax Contingency [Line Items] | ||
General business tax credits, estimated period of use | 10 years |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits - Text) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | Dec. 29, 2019 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 18,258 | $ 19,238 | $ 25,524 | $ 27,201 |
Portion of unrecognized tax benefits, including accrued interest and penalties, that if recognized, would impact the effective tax rate | 17,900 | 18,800 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 800 | 900 | ||
Unrecognized tax benefits, increase resulting from prior period tax positions | 114 | $ 166 | $ 1,061 | |
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits, increase resulting from prior period tax positions | 1,000 | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits, increase resulting from prior period tax positions | $ 2,000 |
Income Taxes (Unrecognized Ta_2
Income Taxes (Unrecognized Tax Benefits - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the period | $ 19,238 | $ 25,524 | $ 27,201 |
Additions for tax positions taken during a prior period | 114 | 166 | 1,061 |
Reductions for tax positions taken during a prior period | (401) | (4,209) | (324) |
Additions for tax positions taken during the current period | 1,100 | 1,292 | 762 |
Settlements with taxing authorities | (375) | (2,674) | (1,290) |
Lapses in the applicable statutes of limitations | (1,424) | (854) | (1,857) |
Translation adjustments, increases | 6 | ||
Translation adjustments, decreases | (7) | (29) | |
Balance, end of the period | $ 18,258 | $ 19,238 | $ 25,524 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Guarantees) (Details) - Property lease guarantee - USD ($) $ in Millions | Dec. 25, 2022 | Dec. 26, 2021 |
Guarantor Obligations [Line Items] | ||
Lease guarantees, maximum exposure, undiscounted | $ 22.9 | |
Lease guarantees, maximum exposure at present value | 16.8 | |
Lease guarantees, current carrying value | $ 6.2 | $ 8.7 |
Commitments and Contingencies_3
Commitments and Contingencies (Purchase Obligations - Text) (Details) $ in Millions | 12 Months Ended | |
Dec. 25, 2022 USD ($) supplier | Dec. 26, 2021 USD ($) | |
Concentration Risk [Line Items] | ||
Purchase obligations | $ | $ 226.6 | $ 206.6 |
Long-term purchase commitment, period | 3 years | |
Number of primary beef suppliers | supplier | 4 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Percentage of marketplace | 80% | |
Minimum | Beef | Supplier concentration risk | Cost of goods and service, segment benchmark | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 95% |
Commitments and Contingencies_4
Commitments and Contingencies (Litigation and Other Matters - Text) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Loss Contingencies [Line Items] | ||||
Litigation liability | $ 15.1 | $ 15.1 | $ 7.1 | |
Litigation settlement expense | $ 9.4 | $ 5.4 | $ 2.3 | |
Accrued and other current liabilities | ||||
Loss Contingencies [Line Items] | ||||
Lease guarantee contingent liabilities | $ 5.9 |
Commitments and Contingencies_5
Commitments and Contingencies (Royalty Termination) (Details) $ in Millions | Aug. 02, 2021 USD ($) |
Other restaurant operating | Carrabba's Italian Grill | |
Other Commitments [Line Items] | |
Cash paid to settle royalty agreement | $ 61.9 |
Commitments and Contingencies_6
Commitments and Contingencies (Insurance, Future Payments) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 21,308 | |
2024 | 11,826 | |
2025 | 7,597 | |
2026 | 4,058 | |
2027 | 2,102 | |
Thereafter | 8,473 | |
Total | $ 55,364 | $ 54,664 |
Commitments and Contingencies_7
Commitments and Contingencies (Undiscounted Reserves to the Discounted Reserves) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 | |
Insurance [Line Items] | |||
Undiscounted reserves | $ 55,364 | $ 54,664 | |
Discount | [1] | (6,299) | (1,130) |
Discounted reserves | $ 49,065 | $ 53,534 | |
Discount rate | 4.47% | 0.69% | |
Accrued and other current liabilities | |||
Insurance [Line Items] | |||
Self insurance reserve, current | $ 20,932 | $ 22,017 | |
Other long-term liabilities, net | |||
Insurance [Line Items] | |||
Self insurance reserve, noncurrent | $ 28,133 | $ 31,517 | |
[1]Discount rates of 4.47% and 0.69% were used for December 25, 2022 and December 26, 2021, respectively. |
Segment Reporting (Text) (Detai
Segment Reporting (Text) (Details) | 12 Months Ended |
Dec. 25, 2022 reportableSegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Revenue by S
Segment Reporting (Revenue by Segment - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 4,416,508 | $ 4,122,385 | $ 3,170,561 |
U.S. segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Restaurant sales, franchise and other revenues | 3,911,870 | 3,759,981 | 2,885,542 |
International segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 504,638 | $ 362,404 | $ 285,019 |
Segment Reporting (Income from
Segment Reporting (Income from Operations Reconciliation - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | $ 330,421 | $ 308,958 | $ (174,973) | |
Loss on extinguishment and modification of debt | (107,630) | (2,073) | (237) | |
Loss on fair value adjustment of derivatives, net | (17,685) | 0 | 0 | |
Other (expense) income, net | (23) | 26 | 131 | |
Interest expense, net | (53,176) | (57,614) | (64,442) | |
Income (loss) before provision (benefit) for income taxes | 151,907 | 249,297 | (239,521) | |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 465,193 | 460,544 | (15,109) | |
Operating segments | U.S. segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 407,860 | 443,887 | (1,630) | |
Operating segments | International segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | 57,333 | 16,657 | (13,479) | |
Corporate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) from operations | $ (134,772) | $ (151,586) | (159,864) | [1] |
Corporate | Impairment and general and administrative expense | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Restructuring charges | $ 32,400 | |||
[1]Includes $32.4 million of charges for 2020 that were not allocated to the Company’s segments related to its transformational initiatives, primarily recorded within General and administrative expense and Provision for impaired assets and restaurant closings |
Segment Reporting (Depreciation
Segment Reporting (Depreciation and Amortization by Segment - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 169,617 | $ 163,391 | $ 180,261 |
Corporate | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 7,050 | 6,499 | 12,240 |
U.S. segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 139,170 | 134,243 | 144,298 |
International segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 23,397 | $ 22,649 | $ 23,723 |
Segment Reporting (Capital Expe
Segment Reporting (Capital Expenditures by Segment - Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 219,691 | $ 122,830 | $ 87,842 |
Consolidated entity, excluding consolidated VIE | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 236,519 | 126,412 | 88,994 |
Corporate | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 11,709 | 9,035 | 5,936 |
U.S. segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 196,163 | 103,303 | 64,516 |
International segment | Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 28,647 | $ 14,074 | $ 18,542 |
Segment Reporting (Total Assets
Segment Reporting (Total Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,320,425 | $ 3,294,271 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 250,420 | 284,388 |
U.S. segment | Operating segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,669,953 | 2,626,808 |
International segment | Operating segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 400,052 | $ 383,075 |
Segment Reporting (Long-lived A
Segment Reporting (Long-lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 25, 2022 | Dec. 26, 2021 |
Segment reporting information [Line Items] | ||
Long-lived assets | $ 996,289 | $ 920,682 |
U.S. segment | ||
Segment reporting information [Line Items] | ||
Long-lived assets | 891,379 | 831,634 |
Brazil | ||
Segment reporting information [Line Items] | ||
Long-lived assets | 93,972 | 73,706 |
International - other | ||
Segment reporting information [Line Items] | ||
Long-lived assets | $ 10,938 | $ 15,342 |
Segment Reporting (Revenues by
Segment Reporting (Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 27, 2020 | |
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 4,416,508 | $ 4,122,385 | $ 3,170,561 |
U.S. segment | |||
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | 3,911,870 | 3,759,981 | 2,885,542 |
Brazil | |||
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | 448,411 | 297,167 | 222,283 |
International - other | |||
Segment reporting information [Line Items] | |||
Restaurant sales, franchise and other revenues | $ 56,227 | $ 65,237 | $ 62,736 |