In This Article:
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Total Revenue: $1 billion, down 4% from 2023.
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US Comparable Restaurant Sales: Negative 150 basis points.
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Traffic: Negative 440 basis points.
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Average Check Increase: 2.9% in Q3 versus 2023.
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Off-Premises Sales: 23% of total US sales.
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Third-Party Delivery Sales: 13% of total US sales, up from 12% in Q3 2023.
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GAAP Diluted EPS: $0.08 versus $0.45 in 2023.
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Adjusted Diluted EPS: $0.21 versus $0.41 in 2023.
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Adjusted Operating Margins: 3% versus 5.3% last year.
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Labor Wage Inflation: 3.8% for the quarter.
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Cost of Goods: 50 basis points favorable.
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Total Debt Net of Cash: $1 billion at the end of Q3.
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Share Repurchase: 10.1 million shares for approximately $266 million.
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Quarterly Dividend: $0.24 per share.
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Full Year 2024 Adjusted EPS Guidance: $1.72 to $1.82.
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Commodity Inflation Guidance: Approximately 1%.
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Adjusted Tax Rate Guidance: Between 6% and 7%.
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Brazil Operations Enterprise Value: BRL2.06 billion.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bloomin Brands Inc (NASDAQ:BLMN) has iconic brands with strong growth potential, particularly in the steak and Italian casual dining categories.
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The company has a strategic partnership with Vinci Partners for its Brazil operations, retaining a 33% ownership, which is expected to drive future growth.
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Despite challenges, the company has a good balance sheet with ample cash flows, providing financial stability.
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The company is focused on improving the guest experience and operational excellence, which is expected to drive traffic and profitability.
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Bloomin Brands Inc (NASDAQ:BLMN) has demonstrated resilience and community support, notably donating $500,000 to the American Red Cross for hurricane recovery efforts.
Negative Points
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Total revenues in Q3 2024 were down 4% from 2023, primarily due to a decline in comparable restaurant sales and FX translation impacts.
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US comparable restaurant sales were negative 150 basis points, with traffic down 440 basis points, reflecting broader industry challenges.
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Q3 adjusted diluted earnings per share decreased to $0.21 from $0.41 in 2023, impacted by asset impairment and closure-related charges.
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Restaurant-level margins declined by 150 basis points, driven by labor wage inflation and higher operating expenses.
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The company is not satisfied with its 2024 performance and acknowledges the need for improvement in execution and traffic growth.
Q & A Highlights
Q: In terms of operations and guest experience at Outback, where do you think improvements are needed to boost repeat traffic? Are there any immediate actions planned? A: Michael Spanos, CEO, noted that Outback has been experiencing declining same-store sales and traffic, losing share in the steak category. He emphasized the need to enhance the guest experience by offering a great meal and value in a fun environment. Spanos is personally involved in accelerating strategic work to improve Outback's performance, focusing on operational excellence and simplifying the menu.