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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