The following is a summary of the Bloomin' Brands, Inc. (BLMN) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Bloomin' Brands reported Q2 revenue of $1.1 billion, a 3% decrease from 2023, mainly due to a decline in comparable restaurant sales, the net impact of restaurant closures and openings, and the loss of the Brazil value-added tax exemption benefit that ended in 2023.

• U.S. comparable restaurant sales were slightly negative at -0.1% with traffic down significantly by -3.8%.

• Adjusted Q2 diluted earnings per share was $0.51, a decrease from $0.70 in 2023, primarily driven by asset impairment and closure-related charges from the decision to close several restaurants.

• Adjusted operating margins decreased to 5.7% from 7.8% the previous year, influenced by higher labor and operating costs despite pricing benefits and supply chain productivity.

Business Progress:

• Bloomin' Brands has taken steps to revitalize the Outback brand by consistently delivering great experiences and improving menus with a focus on abundance and value.

• Significant investments in technology and new equipment have improved customer satisfaction metrics substantially, enhancing service and food quality.

• The company continues its rapid expansion in Brazil, despite macroeconomic challenges, planning to open 20 high-performing restaurants this year.

• They are also further developing their off-premises business which has grown significantly since 2019, including the expansion of catering services.

Opportunities:

• The normalization of inflation and potential reduction in interest rates may provide a more favorable economic environment for the company and the industry.

• Investments in technology to enhance customer experience and operational efficiency are poised to strengthen the Outback brand.

Risks:

• The casual dining industry remains challenging with soft market trends expected to continue, impacting traffic and overall financial performance.

• High inflationary pressures, particularly in beef prices, and construction costs are expected to continue posing financial challenges.

More details: Bloomin Brands IR

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