BLMN - Earnings call transcript Q3 2024

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Tara Kurian

Thank you, and good morning, everyone. With me on today's call are Mike Spanos, our Chief Executive Officer; and Michael Healy, Chief Financial Officer and Executive Vice President. By now, you should have access to our fiscal third quarter 2024 earnings release. It can also be found on our website at www.bloominbrands.com in the invest relation. Throughout this conference call, we will be presenting results on an adjusted basis. as use directly financial in comparable release our our to and our of on most the GAAP website explanation of measures non-GAAP reconciliations earnings An described. previously measures appear

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

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

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

Michael Spanos

and good team. Thanks, Brands a be Bloomin' morning, to is Tara, the leading everyone. It privilege

to it special all for great iconic brands, passionate casual taking environment. high-quality and and and and to excited the a a grounded so with people, a of I of have of part are has tremendous to in-laws only a handcrafted to fun and going team late beer Friday to communities. have with to steak with operations felt fresh fun with reasons: increased team with be Blooming Fleming's, team seafood Outback, the this elevated X First, Italian team files and resilient be dinner in approach have my beats a of part our and an culture Bonefish a employees, always at of my after care a my Outback night loyals mom our our wanted spending nothing members birthday am of Carrabbas, a for for I at great steak The customers, provided and mom working dinner has suppliers father in kids business. shaking We family at our restaurants brands family cocktails long-time from brands, the great the including Whether time steak a cutting who my or our experiences. been wife value at excitement my a dinner and every my learning hands-on memorable from members

team. great I growth Bloomin' growth. the a and the great guest believe consistently generate brands execute experience is with and excellence brands strategic of potential When business. business great traffic brands right, in profitable we with Second, a our is the

necessary strategic have operating a players a high and of trend steak on experience. flows. and good unlock company quickly strong category have will state, brands growth make Our we our long-term a steps Within and mindset, value to compete balance including value. are Italian cash I to financial we with deliberately good categories. the the of enhances deliver sheet casual big With ample lot confidence with the competition with us pushes in guest to an succeed resources, and in better in right dining that a the

brands ecos, associates team, Now outbackers, anglers. the you my be hopefully dedicated recognize our of to and understand that part want motivation Bloomin' thank I and to

dealing been in I've Hurricane In impressed and after Hurricane their X weeks. both resiliency span with the and with capability addition Helene to being outstanding operators, Milton of

impressive, This kindness and shortages, and I reopened serve and examples been so safely other inspiring. took our our cars, each appreciate Despite of you. every our leading each support communities. doing Our teams homes our restaurants power what such our right to of The other, and and teams been adversity one leadership and outages and damaged demonstrated thank of is each guests communities. face and dedication and have in flooded gas serving, and to of the has care and

remains is of We that detailed in a onboarding. addition strategic to in especially been He to I also together responders and donated thousands in $XXX,XXX and of and the first in to and has Dave thank a the American has We've recovery. time Outback on superb team our the have need smooth the Red and person hurricane support support invaluable executed accelerates, working work community ensure leader and been during my Cross those transition also contribution to legacy feeding on Steakhouse. to track to spent want acknowledge Deno. recovery

the get spent to foundational I the both the team directly frontline the majority on in and leading career As Marine know servicing starting Pepsi and retailers you people-intensive PepsiCo and side my for and of on workplaces, and me. both me, Corps was members delivery asset in bottling trucks system restaurants.

I portfolio also broad businesses led and at Flags of Delta. Six PepsiCo, and complex

led marketing, revenue insights, management teams. I've and experience, service food operational my to consumer addition In

the manage in will reinforce a guest-centric with My time business focus We roles operational principles. an lens. these guiding X and

team a on member First, the is focused Leadership privilege, experience.

culture Bloomin' founders. that a unique one have Brands, at We our originates from

beliefs Our measured and in by profit principles success growth sales taking result of people. the and is our and care of is states

something my that them. is proud employee belief that and well-being includes performance-based order to Throughout focused to Our working I be to want is career, building based people them be from and effectively and can of of success they is on more fun, efficiently. operators values and our and restaurant balancing support learning driving cultures, accountability for best-in-class important Listening in our part on performance.

majority elevated turn can inspires our better into and partners can close as as to time do guest the our have of experience. leaders insight to stay team my guests. our operations well I improve what in We will partners the for will member we high-quality, how caring the they managing spend we our as franchise greatest and experience, experience welcoming, and joint a venture which on improve our

on principle The to is experience. guiding second the guest focus

memorable a a value great their Consumers at precious a guests Every guests relaxing experiences execute our and hard-earned to away-from-home for occasions. want matters consistently meal us. environment to high-quality to visits in time with and spend and a repeat what ability drives money choose Our when iconic memorable is their with our experience moment brands. loyalty

third The initiatives I focusing targeted important revenue on to the by is have of guests. is whether traffic, mindset we growth strong control brands is every and principle control, on a operational the category what of have or potential of what core growth is being core. a ahead. clear portfolio It every execute success that has market, leads agenda found terms to great and simplification of Brands is focusing runway and iconic our have disciplined investments, potential. of capital long By a drive definition excellence, to the domestic our a growth and that on growth. This can and there profitability. international, in Bloomin' to on brands important

I X As I portfolio, initially our primary evaluate for areas scalable see growth.

The first and is and Outback category. state our This global on-trend biggest is Steakhouse. a an brand brand

we grown traffic. have not However, sustainably

sustainably We material all evaluating will comparable I are am improvement profitability. to sales of and Steakhouse closely elements personally that the Outback traffic, experience. at grow guest committed

will strategic succeed This about category. role a work I in take the excited the within underway, an to brand and high steak that active operationalizing the work. has we have right I'm

across our Our a to team's The white and sales experience this the and traffic day needs both share earnings shareholder scaled next capability that and to to been returns assessing comparable scale our grow We opportunity parts is in-restaurant focused Bloomin' strategically plan second growth on with with the is guest value. to and is meet on brand team I've various the the impressed Carrabba's. and on space meaningful deliver opportunity Outback and strategy call. margins brand update occasions.

are last address. Michael items it that financials, our there turn to X to I Before discuss I over to want

trends, our results and recent is the It our First the broader reflective year and year hurricanes challenging balance current of impact execution. and from is of QX full guidance. industry

Our team know better. pleased but are not can and do we hard, our is with we working performance, we

work of performance. and to committed are transparent do accurate providing and We to forecast our have

Brazil operations. strategic Partners Second, I to with Vinci partnership our am for announce pleased our

position Brazil a record a the in space. Vinci partnerships restaurant scale and excited partner a Vinci business track asset and leadership future. management of as with have have We in are the our significant in to the successful grow firm to is

been classic brands powerful XX% to retaining maximize is business. living of are ownership combining franchise expertise the model local and the has experience and my capability working It We with that internationally future partners business optimal growth. with

implications Michael the through allow We us of the We aligned both This this anticipate it year, to economic have domestic stake material financial profitable and with our closing on for grow business simplify to grow to in a and more of walk and way. will the also focus operations. transaction. transaction transaction will created a equity the parties interest

company. Brands more Next focused a year, and Bloomin' will simpler be

my As following commitments. I have lead the company, you

to First, grounded be operations in make. and need our I will strategic decisions and we

our in discuss communicate to will will guidance. our I XXXX financial path that, progress I Michael, delivering way. And And over hold to team QX and you, strong for myself and Second, results. accountable my performance third, updated a and with transparent

Michael Healy

openings like the U.S. and XXX dollar industry. relative XXXX. Mike, This quarter and you, I a of is $X U.S. primarily closures. X% billion, would was comparable comparable and third translation were negative FX XXX XXXX. restaurant performance Thank was with casual fiscal line the restaurant basis everyone. which the the decline recap to and start by hello, to net negative our sales, restaurant points, Total driven which in of basis dollar of for was revenues in traffic the financial a down points of in sales impact were dining QX the by from Brazilian providing

beginning value we Outback, in greater introduced LTOs QX. in our At

total our Outback at focus Box very this traffic X.X% Average growth, particularly as to check Outback. in was right QX a are in we Black building on on While XXXX, critical up promotional approximately was outperform of amount now, allowed of is Value to in sustainable is traffic QX environment, with and line least pricing versus the U.S. necessary. off-premises sales. XX% take expectations. committed

driven third-party an in XX% QX catering. sales, which U.S. business from of our total Our growth is increase in XX% is delivery XXXX, by

QX share was quarter Our per $X.XX earnings $X.XX in the versus for diluted XXXX. GAAP

earnings Our our QX strategic to primary and costs transition adjusted the impairment and diluted in $X.XX was due management versus closure-related fees in growth to decision is per earnings with to in we revenue and share restaurants X $X.XX The made professional share executive associated Hong Kong, asset QX efforts. per between difference charges close related adjusted diluted the XXXX. GAAP

Other X% a restaurant by and factors labor field operating X.X%. decline were points quarter. from was restaurant-level Cost primarily XXX as by across management we points. basis X% primarily margins margin oil productivity Overall, There QX higher the due points versus driven quarter margins XX basis for operating basis adjusted this and expected expenses X.X% and driven at declined were as of to inflation the are by open wage were XXX XX hourly modest Labor pricing driven QX wage expenses basis margin Commodities contributing last rate points to declined more goods by to this favorable dairy. operating inflation year. as due number of supply than inflation. in preopening year. inflationary well and initiatives. approximately better seafood, more benefits supply chain was higher expectations restaurants

of in to We in in but this increased and continue was years investments recent infrastructure inflationary. see levels our higher spending program, consistent support our signs Depreciation with growth. QX, positive category Beef within to our expense remains capital

managing and environment, the operating control. are market We challenging we costs on that our are are a focused in in

was the Turning end billion Total to of structure. cash net $X capital QX. of debt our at

we and our business broader liquidity which quarter, additional financial provides our revolver provides billion, $X.X the upsized During for to flexibility.

at shares connection of in approximately below being Xx. leverage adjusted of This lease a long-term in portion with repurchase notes. a included convertible we million. Importantly, XX.X we to million of or committed $XXX stock of our the March Year-to-date, total ratio shares our of repurchased target remain have for issued

under We is dividend $X.XX December payable also share that of have XX. our a $XX million on authorization remaining share declared quarterly a program. Board The

our to guidance. turning year Now XXXX full

the reflect trends. continued updating are softness and our our full industry year to We guidance

a basis XXX to down we As range XX down be updating comp to result, are guidance our basis points points.

being We not and mindful of actions very are contemplated pricing have guidance. prior pricing above

industry and strengthen, would Prior between to the trends, traffic are trends updating volatility industry $X.XX assumes guidance adjusted assumed in diluted updated earnings view Given no our share the we our per improvement. $X.XX. but be seeing guidance is

on guidance. on an approximately to impact year these total U.S. a our hurricanes the $X.XX and impact approximately a domestic teams. full negative Additionally, Both have sales a were had distraction our earnings updated included our basis. profitability of in and XX negatively points the comparable of were affected business in per basis quarter fourth are for by share

We are X%. be approximately our guidance to commodity updating inflation

tax rate updating between are and X% our be We adjusted X%. to

last in As we in QX to is the benefit negative on QX. be $X.XX experienced expected the for Brazil mentioned $X.XX The calendar approximately of shift call, tax the is recaptured year.

what as of of it the the points basis. the industry we to sales the be basis the seeing than impact well in down hurricane the quarter fourth environment XXX XXXX, are reflects we basis at from to the comparable quarter. As points current expect calendar fourth relates comparable approximate restaurant a experienced on XX as down U.S. start basis to points XXX restaurant This

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

$X.XX an $X.XX by Brazil grow. or benefit FX will value impact a Brazilian is with business economic this from morning, Vinci as months tax of includes for business we partnership for XX% the our Partners valuation mentioned, the in the X.Xx a of revised Total the net to our We $X.XX enterprise strategic $X.XX a aligned based an retain shift, a billion we XXXX. hurricane. ownership of announced Vinci guidance and value-added continue headwind purchase interest calendar the through business. $X.XX exemption benefit and operations. offset will royalties Importantly, from ownership Brazil the approximate approximately and on EBITDA, XX% QX this This to XX Mike expect are interests believe trailing and

to XXXX. monetize We in have remaining option stake equity an our

XXXX. in transaction anticipate We to close the

proceeds receive the and XX% upon will of X later. the year XX% closing remaining We

of will use We we proceeds after on those on planning earnings call our strategic details provide our later efforts the more year. February complete this

deliver continue us market-leading from a Additionally, actions benefit are sales not In our in results the to with growth. necessary the we and we summary, ongoing to high-growth, committed long-term and will allow consistent XXXX, to royalty satisfied stream to profit are business.

the While brands will success a we Brands. play our Outback with in role is Bloomin' for call all of that, the up our primary And focus, of open questions.

Operator

[Operator Instructions]

from Bernstein question Jeffrey with today's first comes Barclays. And

Jeffrey Bernstein

guest you had I'm short first quickly the release, just and the in I quarter could question your I talked My talked wondering I'm on days. mentioned Great. know presumably we consistent Where deliberately low-hanging do about. tide? Outback pressured the in implemented is know think elevated the fruit been And follow-up in experience, has traffic. about any you you of and there's early question. which that, you terms see which the being that you key. operations just action. just or falling stem repeat press over think opportunity then has and taking one wondering whether I next X to was

Michael Spanos

if keep just be question everybody. CEO might keep for operations the your with seeing been problem, traffic we our seeing and start it our Yes, we -- I Jeffrey. we with with better what That or in declining losing category. Thanks, of on with start start state CFO, -- for are we're morning. the same-store you your and sales, are and and is say declining right seeing, But seeing reality to now. to Helier simple I'll have all, I'd Outback, good it I'm share point first the Spanos

And The And team rooted look state that out much great in We've a on that we're write rules trend passionate very that's are is ethos that I what core in as the to they're guest on the brand. speak, is brand got the category. what the just of the very iconic about spirit If team. balance reference no a think I there. at sheet, got the great think we've a positives so very experience. I

good ample we've feel are as I got And liquidity. got said, got about. ample also We've I and we've that sheet. flows balance very a cash good So really

create great at a So which casual value to where very environment, good like in got lean accelerate, fun guest about brand. is We've feel I great just a also that. the is starts to it in and look of core a the I If and us experience. the I'd meal further with

me as consistency what has the can To be in controlling And team to me, simplifying got I to thoughtful told we excellence the -- means agenda that about we've the menu. operational at look me, that. control,

In the of don't create positioning. our a looking at that, every terms our -- addition roots. back to hands-on to accountability. with really strategic starts to team accelerating to grill more again, But how to am did going process in a we're tell and to brand experience we that the we're and bar And we're We I work that and to going everyday leading differentiating were market. Outback. be you day with give closely been we've in get an you will that, very with February, we'll better, want and and better getting go this. -- very it's coaching And team is work the but get working I'm personally the I moving.

Jeffrey Bernstein

priorities. it. names. you Got in thoughts Bonefish, around pros it's cons, mentioned mentioned especially the terms Carrabba's the you whether aware process broadly, there's of about just thought that you I'm More near-term if there, talk portfolio. activist Outback in an the and the on just and any Carrabba's could keeping thoughts wondering we're Spanos, or And

there's investor. thoughts or I'm terms could your if whatnot in you share priorities just relationship wondering an that of of any relative or So to your activist

Michael Spanos

few a there. questions got You

order. Let me reverse start in

collaborative the us sustainability to of want through especially experience. what guest guest Board say the and in there do And liked about business experience what's you passionate team how guest asking I'd is and fantastic the member with experience that that the on incredibly are a really think very have for They're Starboard we about right about relationship Starboard. there they they And a terms I've business experience. members, the of I focused were relationship. What insightful. unlocks

So I'll start there.

is If that your the would on I'll domestic X is I there's growth piece. businesses, iconic think and of on community capability with our set many portfolio, on to a opportunity the both I not great I Second, the in to is combined Brazil got domestic local growth. an spoke Outback now the company-owned internationally to get what bit about. domestic maximum the value we're link worked the through And team capability, to And which found local that for portfolio. scaled maybe domestic I lived you synergy be our years, inferred brand connect we portfolio. biggest I've our future businesses. what's a tight and question decision with committed and in your have is do you And our And operational come to excellence I go the franchise primarily combination savviness, Brazil when the experience or about best opportunities. to really guest already is there. that just all member enabled portfolio, experience. unlock

me, a is, on steady that great good the brand what's want the I manner, know in brand. we'll the a elevating traffic got nice exciting very since business. very me, in return job on They're leads done Carrabba's very the to and about to profile opportunity Pat that. smartly And white because steady do in-restaurant positive. sustained we've I focused traffic. And XXXX, exciting a a better that is -- seen good, way. is with and exploring have right do across the space is and of brand dayparts same-store team converting up as right basis growth occasions, margin profile has on deliberate I that to business. does you that which What really sales an a team Haffner, who job think The

experience. I your bonuses off was where on menu of way, simplifying team about, that there, we're question, of Bonefish. at the in that It's to the me what bar seafood part pivots back first all again, polishtine is on, out of Bonefish fresh is to in last specific that's that bar good that Jeffrey. seafood we a its ] [ energetic focused very the around brand. core The think, were going a an at. the -- that really focused to They're that's saw and And energy fresh

Operator

Jefferies. question next from Slagle with comes Alex The

Alexander Slagle

I interesting. Thanks was and it aboard, Mike. welcome thought

stands and talked what You a with what hearing worked out you of with brand about from dug as history expected coming differs mean the as you've in? in consumer initially are your I operators, kind the you that

Michael Spanos

Alex, our partners, in very managing franchisees, incredibly -- -- operators our they're the our consistent JVPs, their feedback.

want simplification they terms. in first The simplest the is

back around improve can me by of to how is giving consistent feedback second and to we experience. experience. very simplifying there. do that They're improvements. center plate barriers giving The they me the remove They're feedback that we guest to guest around want the agenda feedback what get

would second The I brand is what on the call positioning.

they to me, clear. want great That's to things said of few things. average [indiscernible] one not a and be at As very lot at a

they big every to So that trust a out have want that value guest get the day can there brand in a they a strong way. really knows from

and The I frequency. the positioning other talked about is, in thing brand me them this, on they've is terms with about agree to of

Our a let's year, comes about to guest is, that average point twice number get their X. and Outback

that gas thing they're right want And the So passion the guests serving what other. potential frequency last our we also to of They in should ] new love And steak them. and each the is of increase the serving in new stake into category, and lean believe the recruit they they the the to brand. me in the telling our is retain guests recruit in believe guests, loyal brand, they partially seafood. believe and brand, [

Alexander Slagle

an impact I back marketing, reinvestment Helpful. you mean, any that to could of look we it's just ahead margins expect I but do on into or sort guess other food I around investments as mean the labor, areas brand have quality, early, 'XX.

Michael Spanos

terms mean believer you the factor start can that the reward I on be 'XX. But lead a focused. that what P&L yourself focusing doing how dividend. and long-range real there. control lead clear February. guest, I the about we we're again this I can of planning one. by team. controlling potential of team get is one think the coaching finish start won't is a you free into into I'm step when I I is accountability Alex. unleash you What Yes, for how leading, what a is I'll the with lot you framework can in We'll on maybe our give

Second, you've time as that at redeploying can important got of the priorities well. be to on redeploying main look be can resources financial, your resources but it effort is point

got I be that, We be going don't have to at after then reinvestments looking or They think to is returns at reinvestments, we growth. also fair wherever think line costs those take at They reducing hard look them. clear it's got we We've have got should to And but targeted. on any that. be driving say to type we sharp. a are of cost top or can to look revenue

growth we have So revenue outgrowing our sustainably. cost

Operator

Next question comes JPMorgan. from John Ivankoe with

John Ivankoe

on-premise, asset your base. to experience, of presumably modern And base words, considered are at not your of at existing last relative expectations, majority XX% heard to be apply will majority reinvestment company, that be to the modern. modern. considered be and the really previous in between the we've XX% want Obviously, matters. with In and I other to anywhere conversations the to are is least it sales word a always grab least asset

financial customers are it a the So brand, pencil from address necessarily I that term? you willing wanted to burner out of investment how of longer employees, -- kind the to and return doesn't much perspective thing even need/opportunity asset if there your your base, make the for right a you just it's because just is front

Michael Spanos

Yes, you bet.

quality part I that's brands all that partners. servicing I've years our I've condition of But leadership service thing a calling doing and learned the I asset that. learned start the inside we we're results far so how about So the asset restaurant -- with fair the customers also what managing think is is best walls And much a across the the very and work think over question. really and of on would here them and food of X start one the is with

tell What seen and at And But be terms the where you with capital get business. to is everywhere. you're that. I I've I To agenda, think you're accountability base the allocation. would the getting what we'll is is leadership, that's growth can call getting we start results me, that we in What is when in what clear simplify me we right on the unlock again, right also investment always And and we're that of repair those because can part cetera. part a it could the it things. of to have out right things doing if leading you're that we right part But team right does do if capital process. and and pencil Michael's allocation. moves you with sustainability is be maintenance, et of be is make the of going which process, that do we'll And remodel, relocation, those

we companies question going people-intensive X.X, return be that. to think pencils committed base we're we're that. long out, of new I properly for out. that, growth, of the What to heavy thoughtful ratio and cash it the to And I've we'll continue going to We're is lot as focused pointed of leverage on stay how of years, your paying in of at obviously in found sustainable term disciplined business openings. to you I the capital which after inference But shareholders. net been debt lease and bit allocation, for reinvest our to that, look asset Beyond have store a then to leading be a we'll Michael down on

Michael Healy

I focus the and better we reinvest execution operations John, on think that, to piggyback And in restaurants when works better on to just as well.

them that's think an or what that this the And we And support Outback. would about and how as so certainly investment through has do strategic it an planning component asset need go as we to of part be as we to we're to conversation. prioritizing

John Ivankoe

the But -- mentioned and mean, a side. the of Is that not those an to the when at about wanting feel that average both bring take be Xx forward, interesting levels think I But and about prices current really you basis ticket. feeling a you've ticket a grill. bar to we slate do to overall absolute pricing comments. relative expectations, I but a and to average Xx I the the trying customer lot of pays? look kind from business how the take reinvestment get on on are going go we you lower interesting overall things. look price a at to of And follow-up the frequency opportunity couple constrain to amount of consumers' of how clean

Michael Spanos

all to which is up volume I add And mix lever, to lever. and I'll obviously you is found internally is as on you so Jon, being price and going on of on lever, you found a price thoughtful externally balanced terms levers well be what got be what's management. credit to I've a what benefits levers there's inflationary what traffic. and gives There the the an what competitively equation. revenue do got consumer P&L or guest always a as in Yes, There's X on your for to on between

a forward, all sharp going be lens have those So going we're balanced moving very and on we're levers. to to

Operator

comes question Brian with Stanley. next from Harbor The Morgan

Brian Harbour

help the of pieces your to start to significant of wasn't an quite with annual your too kind XQ, outlook? perspective. And some EPS wanted bit. earnings XQ hurricane us part you it guide just obviously, the is the you driving on sales, could that are I sounds that But like Maybe from change did a that impact of change

Michael Spanos

it's Spanos. moring, Good

that our the the assumed of And initial results. out look casual -- some grabbing folks share So the of if optimistic. you were in happy there, or and we forecast we growing we're improve QX for not than dine improve, would I'll that forecast performance not We assumed our arguably did -- at for faster start and with terms happen. would with

QX reflective our year-to-date our quarter consistent trends. and is forecast X So with

pricing If of you're terms look looking at we're internally we at same-store sales, traffic, what that's and at. in EBIT, where

parts -- We'll again, So exactly happy you me, take very We're drive the transparent enabled go. of what's outstanding going tend experience would a tell to forward, way. moving we're member to is experience, minuses going the What we'll find terms that's be and pluses to business we're to the to by same forecasting you the getting the candid just I what with really of I you're and not forecast. going team cut we that and I And it. and think are balanced that. give and on moving center some Mike great back feels in approach. to know a going where with of me, guest to

Michael Healy

pretty will one than the run to helps of the that few other component we Yes. as of couple for and things. [indiscernible] a finishing -- as part, The it's part, a on more the spoke perspective I QX where hurricane, Brazilian the most have for that, how a shift. about the is We as lower in only I'd bridge thing would the pretty say, anticipate We there. we But for the traffic as a We clean be. us traffic. year. most traffic been unique calendar think that's it's much unique things far what tax think it's well There's just the about do mean, running,

Michael Spanos

piece, the X weeks this during just last the our saying Brian, point well one last hurricanes. again And was teams hurricane. -- consuming the as this acknowledge to am I on Yes,

of If at are have all you it lives Milton goes back we land that in the and together, recovery still and putting through it. Helene they're the or members getting that with still and fun whether look was your team remediation --

to that that. good big be was of has past a of the and and bandwidth capacity drain one everybody the it been and energy has it's distractions, been positive. team So But and

Brian Harbour

there appreciate that. been have Outback Maybe just to think of know. to about be more you food a of specifically. changes there -- from be think this of change some I on to But Do of needs a But want what's something offering your you kind kind menu on You the menu, thinking there need Yes. view today? perspective? you Outback I mentioned like just comment Do on Understood. at is later. there. simplification. kind

Michael Spanos

to people of the seafood I starts spirit, to and menu [indiscernible] not to the core that I on -- getting back it like core simplification your being question, people think being on menu. Brian. and all all the things all that steak necessarily some with and things Again,

a looking years I better found in that, guest drives way just simplification And are at the that consistently execute over house. want the of more and items operators experience. we Our the fewer back

Operator

comes next Gordon from The question Jeffrey Haskett. Farmer with

Jeffrey Farmer

pointed of of value the the you positioned core out importance the see Can concept in questions, where on elaborate the you currently earlier value. Mike, just you some on answering Outback front?

Michael Spanos

it's that because So deal, accentuated the that if great value that That what's feel I at, the value, values fun experience. you great and benefit benefit And I an I value and that again casual outstanding and there, of value think that where first, experience that has that always price a function what's out of with start get we're of enhances about is fantastic start when value. Outback. with walk of you part me, environment. been memory guest the To great

menu, relative work into innovation the now can of As to and value. was also how value members. is feedback not what is before it we're I which team execute guests simpler question, said, for me was his and what that's where we equation a our the as given only to am I well but promotional part team everyday the drilling has make simplify simplify we other offering versus the in LTOs right the going on of And Brian doing

Jeffrey Farmer

Okay.

on this. that So I'll at just to follow leave and up it

see terms lowering sort like forward? within moving happening that XQ, thinking I of in a that not how -- this price from as of was that something terms simplistic as In outback in is I moved think you promo price, the is it strategy think about to the you vision? XXX basically Or your point is of

Michael Spanos

Eats affordability. about QX Great Yes, Barrier talking terms in you're and of

past, to doing in to these this looking to say these traffic. be just looking this What with of with course in don't want menu feedback to don't So the be them affordability What would value we and want entry think We've is to new the to execute of -- our more lot programs. attract I our in points be a we we right are offerings price to is also, core it. off core types want to run LTOs, pivot of our more. at items that. want and in menu. bringing execute we're the core to X the about broadly at how we I want and We the me the team We has sustainable given

Michael Healy

offers. team price Yes. tend we to is in the drive of We are QX, on have LTOs $XX.XX. engineer our So intentional some opening right? those items those The team to we fully entry shift lower down end a able lot -- focused. point, had more know is lower had but beginning drive value, of to points -- The price iconic more the to offers made mix, to mix, the We featured, mix. more

so we're them. able to And engineer

that good other those overall had -- to matter. the We in economics are prices that So our We we how how lower a compare steak But matters. that know we place. affordability opening know price we know points. competitors to

just some us our strategic of And what's so think we're at things about all about think the especially work the those as and that longer-term pricing looking for we appropriate we of business. are of as

Michael Spanos

it. whatever is traffic to kind and generating the offer, look on terms focus loyals the right as pricing it guests last financially Jeffrey, we we members in our making or want focus want feedback long engineering for that based on me promotions. of Michael exactly the work sure that from recruits bigger make right piece Yes. team of My That's retains is we is we it's term. at

Operator

question next Bank of is Senatore from with Sara America. The

Sara Senatore

please. questions, Two

is is the sort I my as because -- demand then that perhaps pretty of was I'm for at -- by trends, some as it consistent the to that we've want The July across anticipated into mentioned first into demand improve understanding having a well little environment has looks the and and softest, you environment performance. guess example, improved. I your through seen relative the If would industry segments. October, like dig improvement that of I look

if about made can to then then question. so -- I really or span on is you I that partners. So of a wanted ask anticipated improvement you -- the your the want managing it comment, and on had And Mike, more one to clarify the did relative if performance comment

Michael Healy

Yes, forecast. the I kind can we thought jump in of about how on

certainly, the was industry So from July point an low standpoint.

So we QX. have Black some QX we at And assumed we I rebound in we how that. off we of Box, Black did first did think of If performed better would some sequentially rebound look than everybody that. have versus off in Box that perform

point of price some So lower improvement, the to some we we LTOs. as saw especially move

gap would In through that we the guidance, our trajectory our would QX prior industry and assumed continue continue. to

now contemplated industry guidance, the industry is sort not optimism our is. and I think what we're the is that assuming in of

share, rebuilt. And that. finishing as still fight we sit year. the to expectation so just forecast pretty some very we much about how offers for have mechanically continue can share we was flattened We with we the think think take compelling but that That's

Sara Senatore

in I on do you they how the most that I the think of in participate managing economics guess think right the role partners, wondering in that General and makes Okay. perfect is the box. the the sense. sort getting And I'm important then sense that the Manager The system. of But I

the sort optimal. incentives it aligning about like an curious seems So in there, partners well And it's do is opportunity very change has I'm as others. see incentivize as if you your best an you how good incentive, it's approach make is have that them, that else not you model if something not of sure to to there a because worked for what or

Michael Spanos

growth said managing me What many in it have like growth our been aligned partners economic managing good line, the we the the of And bottom what in to that's I But ours get economic addition model when interest discounted so is and I've worked feedback Sarah, cash sales need our their flow. aligned retention our by given of model. NPEs. like have great also partners. to them we with I has results interests. or seeing a profit to incent and also well, the of percent and And we're as the mix

experience. have engagement we with most And get great -- it. We importantly, their and that's that, a guest

model about we where consistent feel interest, point, we have your get our I to from and that good contribution aligned growth. So with our do, And they and they profitability stay economic will that.

Operator

with Geiger The question UBS. Dennis next comes from

Dennis Geiger

ask if curious from and call, a high et on others you industry it's in share know to seen cetera. I of anything who a traction some we've early, couple more to wanted media, from and to hear have it leaned tied enhancements more They've marketing. social into I level marketing. but on the bit good in the really next we'll today. made

positioned in on to So guys brand thoughts you positioned the current in should stands earlier curious your how marketing where that the relative marketing what think Mike, maybe you and is for. and I'm how be the brand spots to about ad relative the

Michael Spanos

to in bigger picture, repeat Dennis, we're that maybe curve building how the positioned and the well, you're as brand, when you've To you questions to insight QX got and brand well. you're into with I'll brand QX of loyalty, I'll think I me, loyalty. trust a or start usually give for trial as and going down awareness with

loyals loyals the getting guest and So frequency loyal up. I for the and with me, the start retaining

That's brand with So and a foundation the return. trust, I that foundation if of and the of great I to -- guest to do want is the you intent average that's to them experience. an get a said, X%, as

our our of that's great or got guest great tactically, to look that want I consistent at excellence focused regardless in you great want TRPs with steak traditional a right also flat, them TV, that quarters. deliver where repeat. More experience. operational those, spends saying, and what that look basically Aussie trial. experience again. a -- both basically going of the get It's experience. want get in a in that QX reference past are recruiting. are We and specific we've To year-over-year to curve it's basically it's also to sort Outback QX, be same social our want then for to we're those get meal if great guests On that weeks at And or important. be year-over-year that they our seafood year-over-year me, to flat if the them experience recruit to at really we value, Spirit to great whether at then are flat, of We that

Michael Healy

marketing pretty have quarter. spend, evaluate Yes. some I doubt marketing share broader what is into no And in, is there are, as look are very other relevant. There's players, most what capability our the just right analytical competitive And every leaned those we spend. now of at is to that's And our think to Outback good consideration what voice accelerating are us the others channel, to going message and ROIs we Outback. a to at Outback other jump we that, what for as really doing trial When certainly we better have a right, work much think side be able and we when about operationalize is, to plan, have that strategic we're to we larger have of experience. who get the drive communicate

strategic as we longer certainly that's plan. that about think so And consideration a

Michael Spanos

this. to Yes. Dennis, I thing, last say on I'll again, me, mean,

foundation that's terms and And about is consumer first or brand in the on, of right me and what to got base. starts guest voice that we've the And marketing I spends as to service. we focus of any experience. think with think to any get push our pull

Dennis Geiger

more. one Just

fourth Anything quarter. we whether that quarter, and and details about royalty Just about share now that, transaction the right when fourth should modeling closing that think more roughly on in near the refranchising partnership. more and more Brazil, impact today? on on to maybe the thinking it's ahead, in looking that to Any

Michael Healy

Yes.

already end going we of the -- this think X/X of the enterprise We value, into We're disclose calendar of We rate, royalty get a proceeds this expect to at royalty details But We X/X again, close mechanically, to year. selling of or we business. sold grow. as hope will not $X.XX at of year Brazilian. shared to as as close a XX% by proceeds I to just but business we would the far the later. get the business get year the of that the continues close. XX% most

the to business remaining X/X of We sell have an XXXX. option in the

business to that capability. to business to with talent right right, really We've grow expect partner, lead and chosen and continue certainly that the grow. We it and augment

to We're core down business. we on XXX% excited And -- can we business. really domestic. really growing that but our a on time we're great it, allows us that it there so that their focus partner about love about obviously, focus have And excited of

the for So good growth. we're us. to economics able benefit were in

a opportunity so for it And us. was great

Operator

comes Sandler. The from with Mullan next Piper question Brian

Brian Mullan

on I to -- capital come $XX back ask outflow. just cash an annual dividend want to allocation. about to wanted the I million specifically that's

of you isn't the Mike where wondering use of on be credit just share the cash, if any it for under case is. might Any about whether dividend you given the the was make I yield maybe how that? has or feel that there debt be giving that better early looks might if it repurchases? like been review, of You remodels thoughts kind a or Spanos, market paydown

Michael Spanos

with you mentioned if a credit well, are say undervalued, about and that's we that's getting we're challenge Brian, would part the I for going. the it. point Arguably, yield, you're of where

going on be we'll we're business. and we've optimistic to going right clear strategic get But there. So we're what plan right I'm the once how. on the the LRP. base details doing confident We've the and on to through of the back the the capital done things We're debt. get been cash back And things over into right the goes to we're confident shareholders -- not levels on not time, said, allocation I as to I'm

quarter. is, we cash also a our we and said, returns dividend give -- to think our approved committed this sharp to we as we investments, use right think shareholders just it. to again, the of as the have in be kind operationally key those shareholders. to be know, right that to really part our don't But cash with here of I returns I on got when back And you We're of as

Brian Mullan

In on there first before closures. question a were that strategic domestic quarter, base. the was Spanos, just the you here. got some then store And Mike

this set you question Just X thoughts? any closures the as think in since would industry some or early of then and trends eyes, be the more given tough there is Just year my the do review? you fresh asset here could next

Michael Spanos

go as condition in managing shutting I said, working here obviously or quality. about as an part If the working our consider telling long-range that's assets, And for it right other learned store a course, new I the planning or we don't relocating, a we which we down year, partners feel what at is to in guest that then going think very process. every done right always we working our is a the We that through we've start as restaurant. we're Brian, issue, with there. and doing that disciplined process before as question, always the we'll places, if manner which looking obviously, of goes get that from get And that not experience we're And have what's the much and But how our X part Brian, same standpoint, now. we're is we we're if normal openings. process of I'm any cash. inside of asset next walls again, are it to to we also the I've going right. If us do that. decisions is about the make start remodel

Operator

Citigroup. next The Tower with comes from question Jon

Jon Tower

to I that. to out got button, about apologies. Sorry mute how my use figure

at back XX I the least going to months more way quickly business. to details business? us was just much what provide you -- past can of Brazil not too over So tell to you're the the Can just CapEx you by know that but allocated royalties, wanting

Michael Healy

million. $XX About

Jon Tower

forward. it's regarding be than Tower business speaking wanted off-premise spoke they one meeting your then far was to what of delivery? at and I'll of And comments thing Spanos, them much brand? business, And what from business part, so the with any or idea right. was you managers with All referred your Outback of for have And And the the absent One they in liked it about to the Outback, point as direct this competitors. the is about what chunk improved? a was commentary some so larger

own thoughts forward? I'm frankly, just channel feedback what from you on your that curious them going and heard So

Michael Spanos

the appreciate that. the Absolutely. on American I name. thanks And correct for Greek enunciation

But So I this it I we've off-premise, then point, days back up -- go that with say forefront. calling a would and as go your we mix good space. to I'd to many And of I on John, first pioneers your absolute And has the were picking that in start order business. been out the well. guest that my it times have to again, question what consumer in back we here. a back on worked on First, experience

managers the what to have got operators, the offer telling menu in how the great off-premise be the And are guests implies is or food that with guest and terms which we're best -- -- to will the delivery We off-premise doing. is experience of sure really the thoughtful about and part work we feel want well. that they a interaction on we and around also off-premise me making we that's as good happens travels of the

to thoughtful presence to we're a do coming tough guest food it's got value, we're balanced and off-premise, have got to great-tasting we at you've very going great and got be a where guest still great a to experience. but experience. be continue great It's So that also there, be going to to be a meal, whatever

Operator

comes from And Raymond James. the next question Brian with Vaccaro

Brian Vaccaro

how of in budget follow-ups, the the couple us remind proceeds could. can if G&A Brazil will you also, a to I expected much bill of or after-tax share what quick annual Brazil? And be? can transaction, is tax the Back Just you

Michael Healy

after with we have We're close that. not on Yes. you can don't this tax I because but we go their at back time. those G&A have through get and still me, of components all And to to going the get into to

Brian Vaccaro

you guess, back the is mentioned than towards then obviously. budget recent And highlighted million your some new half I going capital CapEx think And also unit but I -- of allocation, $XX more growth domestic in years. you towards Okay. Brazil, to

help hitting returns your domestic on to -- your just to targets remodels just you optimize growth? the to bolster thoughts and you're kind on free So maybe budget, your and Are of can seeing speak maintenance CapEx potential the they unit flow? any cash

Michael Healy

we've Yes. the hitting of opened restaurants are couple certainly past mean the over I that our years expectations.

see to combination restaurants. new those of relocations a well. we're as it's restaurants success Obviously, of the excited and new So

on and build quarters, I costs. we've -- think in increase we of think, past couple I costs the seen shared,

And we're from to where to get if aren't away those our going going the walk we those to costs deals. point returns,

return return open just stores. is priority our mean I shareholders the deliver to So expected stores and to our open to to not

We grow restaurants done additional are stores or for appropriate work think The us. whether But has that's out opening being team we is about that our so think And it's a there. growth great around talked I focus. Outback for Carrabba's engine. relocations do We've Carrabba's doing investment larger and that open we revenue. for return really more restaurants. to on date because good refine that now sales and how geography the to have some team do a can is work The lot we certainly improve

them, we're whatnot. given a scrutinizing great great the Obviously, returns, there always volume, satisfied open and make business, returns. is flipping deliver returns. each so a those we to of But and that higher builds we're of continue sure of definitely Fleming's we'll couple but the kind the year, with capacity there's magnitude but a we'll

-- As was allocation remodels? capital question far what as for your around

Brian Vaccaro

CapEx bolster you over Yes, on X, next just remodels, to maintenance flow. focused free free potential you the turn don't switch, a there to you but just light these cash or Obviously, but want like think understand optimize just things the about any cash to flow. year to stay optimize see CapEx. opportunities I as off perhaps

Michael Healy

think be I we're mean CapEx, -- allocation a a of capital key the will certainly, we that Ultimately, -- entire will consideration. about will and component as that be But strategic our doing. how be important. work Yes. key

certainly those with restaurants many great can't achieve impact the to that we but we open open we can to because allocation. So restaurants restaurants, open returns want as could and returns,

think go And restaurant But continue confident But your necessary. going so we a to nonnegotiable. determined be as we that's through remodel can to to still obviously, have The component is this of that's right be to restaurant, now, we then open base a point, the we're restaurants. to is maintain there that to magnitude you our process.

far we're about as least it, so how And as that's at -- prioritization. thinking

Brian Vaccaro

how Okay. couple could trending And in in if set last what you And could. maybe on quarter? pricing I remind additional Can one, just of see you pricing, take level pricing was if you quarters? us next third the you any pricing the don't

Michael Healy

Yes.

of a We much think, our basket. little would pretty as with the compared to I most in expected we to to headwind, we we We're kind going has in everything in do think kind part off, are still X% line can. We And price QX. trying of we're Certainly, on of expect rolled as we're pricing, be the although industry that to inflationary range obviously, especially in still we pricing have 'XX. and possible. beef and our

can sure to guests. but -- our make so on we that our be and to to we're value intentional And provide pricing continue going

so don't -- we year have as would for little possible as where to year. get our come opportunities. see and think pricing take next in And goal we we into pricing next be as We'll our don't components sure. we But extra commodities other inflationary

Operator

Instructions] [Operator

Strelzik comes The BMO. Andrew next from question with

Andrew Strelzik

quick Just for me. X ones

think the faster in revenue where you've $XX-plus costs. right has company million level opinion to Is and spoken certainly high growing your outside about productivity to. to a productivity remain kind about menu simplification, talked buckets of that You those rate. way which run still The always like than spoken of

Michael Healy

-- is us. a Certainly, always Yes. productivity component. key for

planning say restaurants through million we lot evolution I annual the our kind but was would where look it's will $XX high a of enabled of improve and time. about for to our of go whether planning not deploying And it or just is think think only over as as house house at I strategic productivity forward. But we we it. technology probably the some back technology, too that's in deliver align. is continuing efficiencies. technology of efficiencies, operations going it are base how it front of then was we're of

chain, still plenty in supply of opportunity simplification. opportunity plenty We and of think

can magnitude probably still to run But into $XX definitely get there's as we year. there. we -- that material, get So you opportunities of next but and million rate, we'll than less historical back sort

Andrew Strelzik

question that only a was in helpful. the on acceleration Okay. Flemming, then comp that And That's the a actually, saw quarter. segment

kind I driving you're that. curious consumers fine with was how shift a a perspective maybe thought in of And you're and seeing seeing interacting if broadly, So think what more what from you dining. consumer was you

Michael Spanos

in in from has pace, just reputational attentiveness you and opening brand. reputational as me, I have all about what -- And them the a so, the Fleming's. and energy flagship we And team Tampa elevating tremendous Selina, flyings the the is team a everything the guest think And experience is that fine in on on would Henry how to about tremendous. done is and our phenomenal a and space it's and as high is dialed is experience been that just the Andrew, to there experience. on I -- very agree -- brand, really, we're you're dining that nice really here they've agree really new and And fundings the me, to told complement do job. with a Fleming's. so experience is that's want on it's the really I

And the elevated because right, said, Fleming's fine as or store We a X get got would bandwidth going suggest it's thoughtful. new of XX If the year. don't them fine and get right to to X dine dining the we're want on sacrifice team the be we experience that Michael experience we to there.

Operator

This I now closing you. would like question-and-answer concludes Spanos session. for the turn Mr. Thank back any remarks. today's to to conference over Mike

Michael Spanos

us updating We earnings today. forward our look to you you. We in appreciate on everyone next for our progress Thank call. joining

Operator

concluded. now disconnect. attending you Thank now has conference you and today's for presentation, The may

Bloomin' Brands (BLMN) 8 Nov 242024 Q3 Earnings call transcript