BLMN - Earnings call 3 2023 | Bloomin' Brands, Inc.

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Operator

Good morning, and welcome to the Bloomin' Brands, Inc.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Tara Kurian, Vice President, Corporate Finance and Investor Relations. ahead. go Please

Tara Kurian

now, good can are and section. Chris With on website XXXX in Officer. me Executive our www.bloominbrands.com access Thank third at be fiscal Deno, morning, found our call quarter By Financial Chief David President release. and Investors should Chief today's have Vice to It you, earnings and everyone. you also Executive the Meyer, our Officer; on

An explanation this the on basis. as Throughout measures call, an financial earnings non-GAAP website be we most our described. on release GAAP to our results presenting of measures conference will comparable appear reconciliations of in previously our use adjusted and directly

include Before remarks, uncertainties discussion everyone forward-looking like a to statements. part statements forward-looking of way we recent remind a trends. will cause our subject could to differ and statements, I'd risks formal in to numerous material These including of begin results that actual are that today our discussion from

these of in available our risks Others which www.sec.gov. at release. Some SEC in filings, our are are discussed are mentioned earnings

brief guidance. call, these we'll of of the current With questions. today's open like now on over and would call company to a fiscal an the recap quarter turn completed call provide we'll for highlights our financial David overview and QX up for thoughts Once fiscal third we've During XXXX performance XXXX, the Deno. remarks, that, I to

David Deno

today. everyone welcome and listening Well, to Tara, thank you,

was Combined industry. points to sales basis per the a in down reflecting As U.S. was noted QX in this compares year-over-year. and behind basis adjusted points were of diluted earnings morning's $X.XX comp XX% traffic XX growth share XXXX XX release, $X.XX. This QX earnings XXXX,

dining decline in comparable to sales Day, the From point nearly was trends. industry Labor August Following in a XXX basis trends softened. sales there September, casual

productivity initiatives. experienced year, line restaurant of we our brands versus driven XX margin last expansion in top trend. these headwinds, similar Despite basis by a change Our had points

result, a our As strong. remains QX profitability

to in changed we the from sequentially improve QX. earlier Moving forward, comp this has industry year, landscape QX although from sales expect U.S.

already seen making the are operation-centric long this October, a and strategic that company. are incorporated stronger, QX have we We in committed leaner within an to guidance. priorities our us improvement the In term, is

first, These our growth, priority; while becoming openings second, our include: fourth, driving third, preserving digitally in-restaurant priorities this off-premises assets; while investing is momentum; drive maintaining sales driven new and our same-store in growth increasing existing margins. a to top technology and refreshing finally, company more restaurant

profit operating through provide Since by XXXX, strong in and foundation sustainable despite we our These to the long-term model have and have sustained a and enable efficiency. efforts sales exciting simplification The leveraging have gains improving investments confidence efforts record to strong made in improve resulted great progress margin growth that that achievements inflation. also ahead, drive these for us priorities will we growth. have

focus foundation investments simplification top traffic made experience In priority. the been our entire and Outback. strong and is primary investments these in-restaurant has but portfolio, both strengthens to experience customer margins, and that in technology our proposition. Many been sales in have the a differentiated guest allow improving of our at healthy With across addition, value us the operating provide restaurant operational

analytics. sure needs is effort work to we continues of the we and doing customers. are and it. ongoing As customer This the always economic evolve through being lens done the of future evolve, to the and consumer our we with includes existing landscape making to consumer This ensure the continue exceed

on for. an than we to marketing our ago, we Outback just and no is reference rule, built It's our back Outback's as just that quarters discussed well We'll marketing. how and advertising our known at is heritage. bring right in on XXXX. QX attitude. be It's restaurants this But spending more campaign few brand re-energize as and more A equity

of return is traffic. do believe tactics, to not levels, to a we presence we level help higher increased a we do high-return television marketing can intend believe warranted pandemic spend our blend moving build digital of advertising free and Although forward. Utilizing

We will innovation, points. combination already leverage product a highlighting of our new price accessible

short For thoughtful spending. the growth current to driving this our is consumer environment. recognize careful [indiscernible] approach LTO about example, with return. guest in great the combo a in traffic at in as offering our the challenged be may their We'll discretionary Outback, provides be value discounting We to attractive an that more the term

the quarter, are Another At improving server our operations while providing the growth we completed meal technology enhance Ovens. our third and end handheld catalyst for rollout for are the the investments the and the and overall our satisfaction consistency, are cost-saving also guest advanced a we making company. pacing at to These of Grills Outback. investments of opportunity

drive this further the lead Now return which to This our focus improve to additional growth. and technology frequency to guest leveraging is traffic metrics, guest increased intent experience. will

in the at confident and are on necessary strategy We this disciplined our in progress our to term. the decisions are future. in in brand response and you We'll updating environment making the the up set forward remain the to long Outback for look

As for let about broader to priority company, the it me relates first the strategic development. talk

especially and remodeling, multiyear remodels remodeling this XXX on and beginning the effort to our assets we our remain upgrading opening at for On track efforts, restaurants, relocating Outback. are are year. a of We new

terms and build good seeing and reinforces Outback, The portfolio, are continue new of $X.X still the pipeline average relocations, are of year. exceeding see we and success per sales on units. another to back In returns XX operating. The relocation with across there broad new volumes restaurant out consumer program of to relocation million we appeal at our the Outback, lift outsized continues

future strategy. Our development growth runway and of a for a critical provides efforts our are part

channel. business since Complementing XXXX XX% this U.S. strategy our than is sales. of doubled our currently leading off-premises was and This represents more

is occasion highly this continue a As pioneers strength we delivery. demand to offer have are incremental in and that maintaining to go, This robust third-party in differentiated is and profitable.

runway particularly a provides our In growth. success at for Carrabba's catering future business, addition, the of

to it turn I to that of comment Before well. doing on I couple want a over very specific businesses are Chris,

off-premises quarter has comp to of includes our sales and important channels and channel. robust. excellent Off-premises contribution The X%. proving First, the demands Carrabba's is a growing which catering business. are sales, menu perfect with Carrabba's strong another this Carrabba's of be very meet from had of XX% catering to the growing

heritage. the in this of the our to launched Bristo year, variety to is option expectations. continues future. Carrabba's catering outperform of large featuring Off-premises This wide remain will earlier We company that Carrabba's a lunch-focused which sandwiches Italian part represent continue a a

Carrabba's and offer great get value openings. to and Carrabba's, combined with the known the cost productivity future experience management, which to dinners strong our grow, has a financial continues returns Additionally, right started the highlights to sales Carrabba's that earned to initiatives seasonal as and specials, innovative for offerings to restaurant product brand build and is this such we continue The stronger. pipeline wine for. out

Next, coming to in growth and expand operations, international sales capitalizing our We rapidly team had in leading the on The in and years. driven we country. Brazil outstanding by the throughout and Brazil with business market-leading significant Brazil. continue offers footprint forward profits. position another quarter in service, exceptional look the [indiscernible] restaurant to business our food our amazing

years gives flow initiative to new by and sheet. robust strong to described our and This are come. strength in foundation enhancements the growth food dedicated invest improvements unit the us balance healthy Importantly, commitments. sales supported a to thrive will a solid asset I for strong our many technology while great remain ability cash to while building development, for with and We continue a meeting delivering experience that guests business margins,

Finally, and service And our not be turn that, will to possible you our guests. outstanding results Thank with call to restaurants thoughts our I'll in center. QX. restaurant now on and without our the our great on provide support on more the over hospitality and detail Chris, delivering for who QX would teams

Christopher Meyer

net Thanks, everyone. from driven start recap would sizable from were Day revenues QX was in third the of I trends XXXX. X% financial $X.XX the of expectations. by than our billion, revenue translation. Dave, softer coming favorable by exchange September Total the and Labor dining openings, of out broader tax up casual as Brazil well and change quarter in exemption XXXX. Consistent for was morning, This industry, traffic primarily providing was fiscal with a a like saw generated which restaurant performance as good foreign we to

U.S. comparable in were basis such, points XX As sales restaurant down QX.

Average check was versus up XXXX. X.X% QX in

XX% maintain our of is future throughout proper the backdrop to XX on mentioned into The we remainder suggests will we take our average basis price must continue equation. This as do as off, At for in year. As sales, significant intend value from the approximately actions we call, year. QX. the off-premises move remain pricing QX last industry QX additional lower we on pricing points balance to pricing is rolling increased not check menu which of U.S. disciplined on softer translating

highly the third-party incremental XX% was sales. healthy delivery business and flat remains U.S. at of Importantly,

margins to an quarter putting share versus $X.XX earnings per and As in initiatives diluted the is we diluted pricing the versus into was increasingly Domestically, The level versus moderated margins are diluted was in share $X.XX offset productivity other of to somewhat versus $X.XX financial were XXXX. our XX% XX.X% overall adjusted the impact relates operating performance, restaurants per earnings inflation. levels Adjusted continue on of inflation earnings in quarter. aspects our per for from positive second and the year. share GAAP having of diluted it per our QX restaurant last earnings benefits technology QX $X.XX Adjusted XXXX. of share our

inflation closer still commodities had that do inflation, as be lap [indiscernible] which As X% in helped lower in we produce, mid-single the to dairy were to inflation commodity and expect favorability total in inflation QX. to seafood, We to some favorability levels. overall QX it digits. was We we realize. expect relates X% be to to able year up We

international Also full a business driven margins X.X%. consistent to This the year. environment. by This our inflation to continued be the our were digits. up worth Labor in X.X%. points. was Labor continues was XXX inflation restaurant noting line our year up expectations Restaurant with expectations guidance relates of despite as expense consumer for is Brazil mid-single with operating margins, growth restaurant was it basis in segment softer

Brazil of in Depreciation was continue tax up X.X% QX, investments with a in away in to compared QX will X.X% support the was as expense in benefit fourth go levels income also benefit company our infrastructure margin adjusted consistent to starting operating our We But to exemption XXXX. growth. quarter. the and increased capital reminder, the spending in Total tax Brazil in QX. from

on above were XXX operating have XXXX we XXXX. QX, we margin. focused we points the progress made adjusted Overall, basis In QX remain maintaining since margins in our income

at million end $XXX to was of QX. the Turning structure. capital our Total debt

sheet Our net and below was balance current adjusted current X.Xx, leverage ratio remains lease Xx. our leverage ratio

on terms In of X.X have Board remaining for million of through X. share quarterly of payable approved our free dividend. still debt have balanced, that year-to-date, additional million The million paydown, October. continue believe flow We shares share share of end Board we dollars $XX repurchased we'll November deploy the February a also the a XX. and repurchases, We and authorization against on on new dividend $XX is the declared $X.XX stock allocation our to cash repurchases

XXXX and our to turning QX Now guidance.

are we for account our guidance the XXXX to backdrop. adjusting industry year softer First, full

are comparable the restaurant to share is U.S. reduction expected a change guidance on $X.XX to in by sales. is driven in XX-week approximately year be This comparable This full primarily to X%. comp U.S. $X.XX. X.X% be to basis. earnings expect Adjusted We per sales

remain our as lowering as be between associated forward now are been between $XXX full with to are be earnings and able earnings We in pull rate expected to the same $XXX costs other million our projects. with we during XX metrics All and assumption release. conjunction million XX% communicated February year XX%. to tax XXXX Capital expenditures lowered we've the

trends to have it the quarter, the from October As improved fourth relates in softness. September

As a flat XX-week to XX-week X%. This expect be to reflects to U.S. comparison. we sales comparable restaurant such,

QX adjusted be to $X.XX. $X.XX expect per We between share earnings and

in environment challenging a navigated successfully QX. we summary, In

executing emerge our QX, a And the stronger better, against call will operations-focused we'll questions. that, disciplined remain strategy for up We will with open and company. we in in

Operator

[Operator Instructions].

Barclays. first with The question Jeffrey comes from Bernstein

Jeffrey Bernstein

questions. Two Great.

one, is versus heard maybe in can are I'm One lapping bounce optically that be price of theories. finally then just first just return mentioned that feel led you headwinds slowdown in post you fact comp everyone bounce the the Labor slowdown, back if back more that the bit different to wondering Day, comp seasonality taking which hold, maybe consumer you to is September. attribute that perhaps and being to. perhaps what little a the slowing. But therefore, The guess, I we've a October. like I assess a Dave, just but three

So about to the lot modest recovery. therefore, Or think I'm you just place with consumer really consumer we're seasonality then still shape. the a more good and is a it relatively wondering Is that in in how you slowdown attribute now? better . it would and weaker

David Deno

guidance. November right, primarily just macro importantly, we September, talked what we've view as as have the to uptick that seasonality we're We loan December it rates, a we're that's good headwinds about we that and the doing. in student and various we and company, got And and offers are there. seasonality doing at as as of the well, feel our also But and about what in we track Obviously, history. there's out et cetera. But look some keep repayments, interest there,

So primarily return to at historically. in but look we is a consumer think a the decent spot, think seasonality it's we

Jeffrey Bernstein

Got it.

when you like September close rather industry say although the for that year, softer dip some led weakness? but you're seasonality that it, it's so the of . the than to So to just much more was sale, sort backdrop it consumer in consumer watching not

David Deno

our the that we're we're look and we seasonality of very back. we about what forward quarter, watching But certainly, That's think. as programs and tried where incorporate what the in And we've rest to our bounce good going stand, is that to the what for closely. consumer -- feel going we in at guidance, September primarily

Jeffrey Bernstein

a directionally would pricing next that. the this guidance have inflation, think were year? to lines, to Because your of but digit there and you price to specific consumer expect said look how that One, for if year inflation those if enough relative maybe across and how you don't and don't even next think say labor But do just then traffic. and going into that is moderate to out kind offset some to pricing? that I margin, commodities could take take to on you you we And backdrop, would Chris, year. restaurant Understood. some menu preserve hit mitigate think maybe of guidance you expenses you mid-single a to about fully slow took all

will how it hit in So you do year in directional the think term? about think you or terms that offset short how about next you theoretically inflation margin and the of inflation let price, for the

Christopher Meyer

plus Yes. Jeff, offsets productivity pricing conceptually, our formula inflation. is

this I think We out it's early little December. beef probably on inflation that until Obviously, candidly, a our to talked don't year. next speculate where prior years. level about is finalize going we've in outlook to

it's commodities. us a give early on to read too So XXXX probably

as rational of everyone But of a the things a other there. the is think challenge. overall as a good look, basket, I to still remains than production other point across ability else We're are much good beef outside unknown. we, looking bit repeatedly this shown out markets the Beef little at there, pretty anecdotally, anyone to beef, there these that, company, an But is as information as sign. a which out same navigate seeing isn't say than else too have

help for that. And next So we productivity a be We'll of year. our because place have that good lot as we'll with mindset sure pricing that amount is put offset the in low can that new we as is. of ideas do initiatives that offset. does because monitor take that right the as -- look, to place what we've this a that of potentially a rollover we're we going the productivity obviously keep well from And does is got in you have reduce year to in mindful that pretty need inflation the take to pricing we're would to do normally as we consumer be. as believe possible place need where much we're -- to And

now. number of that of has Now in. for been a years consistently how Look, and in terms labor plays inflationary labor pretty

come bit. it's look, Now a down little

at year perpetuity. last it bit a certainly we're progressed, range look, if still it down where all that inflation of I just little year. of was come sort surprise quarter, from where was, low me to talking As every mid-single-digit But kind single into wouldn't it's the it in think

David Deno

want add. price And if you got versus increases. just a And in X been about on breakdown, X% our to at I our really thing change in disciplined QX. We've in industry. Jeff, careful we've pretty comp look what's going PPA the that's elsewhere

continue equation make value to we service we're help that I sure trying traffic. So grow food, to improve and as together Outback, price think especially really comes at to our

Christopher Meyer

imply is our again, again check off and tick guide, that X.X% X% piggyback to do going that, that as does range, that be to, down at we in if QX you to indicated, average in to of it, expect year average your just to the and we've that Well, progresses, as that check call going QX. look which we're see

Operator

from next Alex The Slagle question with comes Jefferies.

Alexander Slagle

right. All

more of take equipment will just think that some back but share are you there. visible you across you really dining brands, much And in I'm and performance casual to gains? that experience technology success? the how fundamental is the into actions And market takes impactful there more the in there it drive executional driving to of to still specific Are As out. know share are need Carrabba's interested execution and about that traffic kind more category to your that versus that deployed, it that aspects to recently look dynamics come out I and of stands what win . related traffic think and bigger, your elements. translates curious degree with outperformance the really thoughts deliver

David Deno

start Outback to and Carrabba's. with I'll Yes. move we'll

crucial. operations with our our X priority thing, very and Outback are experience is restaurant there at and investment which technology providing our interesting in and restaurant -- first and X top look And very customer food things the you are that operations or traffic, leveraging that If service. great is

one. that's So job

we're our sales metrics razor-focused technology, because that's Outback. and we'll big way a operating improving, leveraging are and at growing Our of to stay continue

Outback to our sure that great of spend look some help about preserve traffic and we see Chris going and And consumer is on productivity price because sure program. XXXX. we we type great margins. that value really our to about the going initiatives talked remodel increase. continue and for talked remodel equation do to got that And we'll We as we've got really you'll make that media ideas we being We want then mindful getting are We make and that see that off-premises to about some to we've into has the pay And about on more our magic experience. very price business and leverage. QX, and that a restaurants talked got update grow our then to of our as that to earlier finally, And we've grow in like.

in margins we're like right the doing to well improving. I especially, the looking the grow, just mentioned we And as the they are business, and script, in-restaurant of is on to off-premises experiences. extremely in that earn Carrabba's but Their forward. some pipeline also move build

they're in-restaurant leverage. That that done but has helped Carrabba's I business on think a great have dining, off-premises strong that off-premises focusing not business. they're to them have And also strong job. doesn't they continuing really really they a a mean So what's

Alexander Slagle

opportunities and and or feels it's was made your be peers efficient improvement volumes like expense a of restaurant place the labor, on are operating do to you've a quite has quarter years and gains the with to more X relative relative it have has up and ability big scale line. to food in over here. seen the that less . realize other this and explore I bit leverage a versus to And here? It this of the leverage But better to there your drive to much follow-up

Christopher Meyer

on initiatives and could the of I line. But not areas restaurant year Yes. are to-go think in been have goods the areas potentially sold cost expense much as things that No, the operating where I the place labor, supplies, get as productivity highly focused on you think absolutely. Certainly, line. have more tap on that like into focused we efficiency packaging this such restaurant

productivity And it you your this that then, saw again, just in particular, level in that the more product I was think quarter, a of same have we weren't had and were other point, to didn't as that that, we line able that's effectively a COGS a bit as we leverage as in labor. line also that lines. And marketing. in why And the little tick we up to

Operator

Blair. comes next Sharon question William with from The Zackfia

Sharon Zackfia

curious abate I third know the started later know negative mix about shift the a level I'm fourth you've for quarter on quarter. doing, you of into in And for in the quarter, or been this a then see guidance reasons. the to you quantify if I'm quarter. number that seeing of how October very didn't is I view as you're or thinking but positive [indiscernible]

potential where you the or [indiscernible] guidance to kind there as does kind is? uplift out account take of So that's a similar into of you guidance the putting current just trend are

Christopher Meyer

Yes.

on catering, trade, the cetera, do carry has influencing lower. revenue with negative in engineered, So a pretty was of with QX. talked is start was assumptions QX. for as mix piece, that in saw But been et center QX, you which piece the which There's We mix And and these we with down quarter. they majority in consumer areas a we've think Menu we'll has have mix app then the have alcohol that that's a the such mix check of bit shifts, So traffic average, I'll our lower move we X% it a as right? mix start are what been little know and to about. consistent down the over numbers. mix with to highly

is the to trends last the of we lap get benefit QX, started to to start we the negative late that starting to you experience good transition year. mix of Now that news some

be expect of X% in last down, seen to quarters. versus such, mix as we couple but range It to moderate that X.X% think will the X% you've probably closer I the some do So range to still the in down QX.

would embedded first, the as about trends the think relates what assumptions traffic improved That's were from guide, so I traffic think, the to to it where Now seen we in the built and October in way we've look, and in be it September. in. is;

November the lapping fairly lapping a get did We we're of do last we call. benefit year, Second, from soft that. our out call on which QX

built into as that's the So guidance well.

Third, there right, a And favor. but an from Dave the It in a is not special built presence brands do is others for our occasion. to favorable increased marketing We're the timing some is guide. give that's that dollar holiday. exact more for of to more reasons, impactful going into little talked amount Christmas competitive than there works the that is our about. also skew holiday us little And maybe why tend a that shift,

that little might of for impact QX a some positive to a So maybe in it more have others. is going than

In Elliott, terms weather. predict I winter the approach storm of think is can't our really we

extensively but QX, be we really likely in not it's things Elliott we're storm contemplated that to other as winter guide the lapping going to the some way go going So that's well. in as just you're have know because

Operator

comes with JPMorgan. question The Ivankoe John next from

John Ivankoe

a had populace own average your of high was to lot cases, volumes was I early lot just of mid-XXs, mean, staff. it's the of as it I very brand, of American could Outback peak, was brand in different X dinner-only excitement a which including in lines. a very maybe hours that like in There's, really a kind we back argue mean about some maybe really to a guess, discussion unit its kind taking where concept it I the

no energy want back obviously, Outback presumably of bring back Outback I business just what today kind to that that. And of part of be. the maybe to and and bring to is to And U.S. kind some rules understand continue of is that right you Brazil even will

the set So up long to question.

margin. and a that I'm as I Outback always money And counts embarrassed say, on for it customer higher-margin do things, just mid-XXs to remember pure dinner starting other as lunch. transaction-driven to model other on mix was maybe really was that made not a exceptional in customers value was was associate. some the PPA made course, words, point. being higher an at the and that but given than and and was only, was higher alcohol the In It the Now of business being

was back the for we kind doing major reset it customer customers store maybe opportunity that from words, Dave. and question, that a I'm kind do investments Outback an In asking the basically for transaction-driven So And time? just perception to sacrifice have it's if other more gross made model? a order and reestablishing costs brand the at do to into of question you more of bring over price is, price major Outback get be of of just kind value arguably business have years of kind of And so, XX opportunity we kind your in you ago. prime back as that the of hopefully, an margin okay an might to sacrifice

David Deno

on with here and that. into in with leading marketing is fabulous clearly, on here. and our just to Brazil help do X agree the hard talked and think And our doing business, working that we're reference of getting we executive very calls prior he's I you service the efforts, job John, to fund a we

So part one. that's

that Part X is food going the day for it's service and are to us. elements the win

sure you've to today. investing changes going investment we seen food, And very, very, remodels. about at price the which of in We're earlier call We're conscious service in in so talked Outback, be the making John. our our metrics, very

take. price. increases not price you It's of value back provide while value you just to type price service the the and that value getting is So food being customers in and price very about thoughtful

like like mix look Now right attractive at price the really stake menu points are our some you within now, if doing combo. there offer meals the we're itself, combo and and

improve bring levels, with the So continue we food. We've as We're assets. do service we've technology. to in continue the our invested move in push transactions. if back forward in investing I forward think to invested and [indiscernible] can we our that, We

that. we're offer business, that's on Now occasion, part that's launch goes, where But of think exactly very I important a our as to as continue going. and dinner far the we'll

Operator

The with Gordon next Farmer comes from Haskett. [indiscernible] question Jeff

of Senatore We'll America. to Sara go Bank from

Unknown Analyst

This on Sara. is Katherine Griffin for

wanted to kind dining, items can First, some And of in the layers, maybe outpacing dayparts, contemplating to brand? the the that sales order of I Italian of to that peers ask it just whether seem relates be as Carrabba's, category public specifically. additional to just casual about up menu about you're with talk catch company any sort you

David Deno

Well, quite doing well. think I is Carrabba's

exception -- mind, little I'll if So a on that. take you don't

we be items a improve service lot a ready There's to to that So space prepare think another we a to I very we continue There's layer sales food because we got in business, go [indiscernible] of catering operating metrics. to there's very And strong business can But in to restaurants our there. forward. careful our our in There's continue I which development. complexity that to the chance want the is and have about business. morning white we do space easy think it white for adding off-premises drive and get to because for drive think development. menu in the lunch

[indiscernible] that layers in innovation continued there, there. sales So the with restaurants

to have our space then is us. with units Our doing there. for also in Carrabba's white new going so be that an And well is opportunity off-premises which we business, is

is and So it for forward. vehicle us a well is performing really growth going

Unknown Analyst

I guess then then a follow-up on Carrabba's. And Okay. maybe just

expectations to terms season? for that mean trends, we Carrabba's catering as seasonality does your think normal . business, of the of holiday about this what sort return in Just

David Deno

seen catering levels getting we our in tried that of on but off-premises guidance, to we're bullish incorporate that looks terrific. the our are We've like what my we've Carrabba's. And very That hope. here, without business very [indiscernible] are -- sales just and the at what ahead is certainly

days. done a get of but it, the So don't job ahead has that it's I want business. team early to great growing

Operator

The question James. Vaccaro Instructions] [Operator from next Brian comes with Raymond

Brian Vaccaro

the on casual so Outback I guess compare year-on-year a just also indices have the say, I what trends a quarter. attribute points it third depends And I dining traffic so, to brand's with improvement I guess to And agree to. if seen it basis on sequential September, Outback seems similar But you curious versus improved . industry XXX assessment? like comps wanted start has October, specifically. bit versus you of what by, that it the guess you roughly to. would relative can in or And that on seems to softened level would September? you like want clarify

David Deno

will question. answer second get seen monthly I don't incorporated have But October, our want se. in into and we it's comps We to change per Yes, the a in guidance. nice trend again,

in some pretty we those and competitors of overlap, As some significant I this the this far Brian, into term, traffic. to not had go offer make things careful some long the think, got some we've for lot they about great talked and want like sense. at back Outback be do as service, the earlier deep where overlap some in a to driving would get LTOs do to for to discounting we time, have of that X offer promotions. But to We'd short-term not really interesting brand discounts right point, call And the discounting, price some in do They term. want have some great a at drive to goals rather very and is now. with make of deep great food to the same we goes, short we managing the

we're talked today. focus to So that things on going we about the

Brian Vaccaro

was spend marketing quarter? you quarter And third Okay. All ballpark the right. marketing embedded your in spend could in And the spend, level of fourth guidance? you Chris, what the on the

Christopher Meyer

Yes.

$X.X so for base if quantify in about to that from the to but QX, was million us QX year. quarter. million last the the is spend, at going at going $XX not put about think, So are I increase amount think QX look million I -- we marketing about, on $XX you up we're

Brian Vaccaro

the And million, is $X.X year-on-year? that up Okay.

Christopher Meyer

couple that's and of Brazil, but And and of in here $X.X the year-on-year, million dollars that Outback. additional Yes, there's $X up. actually in marketing primarily of million million U.S., Brian, in then QX the Brazil year-on-year. in There's we terms the U.S. up see is in there's another increased that spend was increase a digital an actually

Brian Vaccaro

to -- seem you but just spend QX, think you at responding. doesn't Outback the you've mentioned in like increased Dave, you for spend traffic through maybe but broadly, and in quarter And just the even the -- the and of you've yet Okay. more said increased sort it I year be the

break XXs. I to confidence level have current in I certain of So And into price if upper into the current a so gain teens, to . spend And guess It of you deep is too that you high environment? a your is in just price maintained through, to But LTOs get higher of not what point speak. some this lower that can environment? little to the seems understand on part don't gives a move need LTOs you discounts. want answer the traction like that levels

David Deno

to we're tested going We've we that service continue help the the to we lot I'm those of and got will other we -- we've offer and price great taken investments And now well. to has a term. at of have look spend have when kind long which seeing, importantly, a think like behind. ideas Brian, [indiscernible], drive want some that we you drive the drive, a of steak traffic, food made point well that And continue holds talking our researched and been we're into which got promise, couple for that, with to about. that that going to But and we're but service LTOs, improvements over right

Christopher Meyer

can pursuing that deep It price necessarily again, terms steak-centric cohort would that to and don't points that's couponing. a points. and And I believe in add you think It's casual motivated Outback in is use you that lend doesn't higher LTOs price deep we can spectrum model, is Yes. discounts, itself thing by discounting only LTOs. the of a where plays But I heavily and the of dining. to use customer just still

strategy, LTO ambience and Dave price more exceptional guests use at with. than are service a said, maximizing like may aggressive on food, But comfortable the like value equation, We'll we're Dave focused keep be a as others. strategy, our general value some the through said, and center, front to windows price point that

Brian Vaccaro

all and All maybe benefiting And is of point? for just now right. confirm, outbacks elaborate to X at equipment wanted on last I to this new me, Great. you then could out package the rollout rolled that . savings And cost important the of any like ramped metrics and the on stores quantify table fully some are it's and ticket turns, efficient? operations in how times, you're that it on seeing tech

David Deno

elements for side. of service the benefits financial excited and really it's I'll and about equipment. I'll Yes, financial help. if you the some that's talk food Chris, of to about our the company, and on to for follow the the want me to But We're up anything then come service going

And embedded, the restaurant steak like so accuracy, improving certainly right? help customers improvements [indiscernible] accuracy grills the and there. And That's steak out, been seeing in that. for and we're in category, thing the our that's #X the rolled with

on attentiveness also all service to forth at time have Certainly, another they carefully. don't to and That's information. toggle because that because the we're enter and we important extremely floor at the have the servers back very looking measure

we at. So turns but [indiscernible] service, help, too is X table will for financial other to important Obviously, looking and turn But from And any to for push the us. over accuracy measure an Brian, measure that we're comments. don't Chris I'll extremely fast. just the the those examples, stake are the operating too, standpoint want

Christopher Meyer

lot We've number. only to we increase year, we We're like we're productivity we're started the due that for of when yes, $XX Well, benefits putting full million for that technology is had of that restaurants. seeing is up this targeted the million and the would into thing strong I that $XX actually say to to the the increase the closer very year. a effectiveness of year, fact

of benefits, again, lot of incorporated in is the terms million In $XX a that.

of are to tables. seeing You certainly improved servers ratios

of In the the low a very, effectively that it's recooks, front-of-house we very house, the of record technology terms In reduced of that's the amount back driving financially. number. benefit

Our a food number. record at is waste now low

this It benefit package really works. really whole the entire look, So helps P&L.

see And the drive is its take looking of given business exceptional price the value when building do this. Brian, again, is food, is build service, beyond importantly, all our to provide confident frequency time just with I value come a not When we That traffic et that kind this But But into It great believe it's -- of about drive they just cetera, that guests also long amount up they the service we productivity, these equation designed at productivity investments time what frequency of back. talk are as tell technology show term. learn something ambiance, when you takes you, it's core complicated. layers not the just a aspect future again, boy, that, certainly maximizing at but that's we'll a a to and are business you this that have terribly not the to of to excellent guest layers to want over we're in to to guest, great it really do. does I'll that restaurant. traffic. come that the time time

Brian Vaccaro

turn very you I'll back right. over. Thank All it much.

Operator

closing we to for remarks. all the turn would I today. any questions for the are David Deno to over back conference Those like have

David Deno

Thank to our Have talking you, QX day. to look great today, you everyone. a Thank we you for on attending the call. forward call and

Operator

has today's conference presentation. Thank attending you now concluded. The for

disconnect. now may You

Bloomin' Brands (BLMN) 3 Nov 232023 Q3 Earnings call transcript