The following is a summary of the Bloomin' Brands, Inc. (BLMN) Q3 2024 Earnings Call Transcript:
Financial Performance:
Bloomin' Brands reported Q3 2024 revenues of $1 billion, down 4% from 2023, primarily due to a decline in comparable restaurant sales, influenced by the FX translation of the Brazilian dollar and net impact of restaurant openings and closures.
Comparable U.S. restaurant sales were down 150 basis points, with traffic down 440 basis points, aligning with the casual dining industry trends.
Q3 GAAP diluted earnings per share was at $0.08 compared to $0.45 in 2023, and adjusted diluted earnings were $0.21 versus $0.41 due to asset impairment and other charges.Adjusted operating margins decreased to 3% from 5.3% last year, primarily impacted by labor costs and higher operating expenses.
For full year 2024, revised guidance anticipates continued industry softness with updated comp guidance range down 100 basis points to down 50 basis points, and adjusted diluted earnings per share to be between $1.72 and $1.82.
Business Progress:
Bloomin' Brands emphasized operational focus with a guest-centric approach, aiming for improved team member experience fostering better guest experiences across their brand portfolio, including Outback Steakhouse and Carrabba's.
Significant restructuring in Brazil operations via a strategic partnership with Vinci Partners, retaining a 33% ownership post-transaction, anticipated to simplify and focus domestic operations.
Continued emphasis on capital allocation towards remodeling, maintaining assets, and strategic new store openings to enhance overall business sustainability.
Opportunities:
The company is exploring strategic growth opportunities within their core brands, particularly emphasizing scalable growth in Outback Steakhouse and Carrabba's. The focus will be on enhancing guest experiences and optimizing operational efficiency to drive traffic and profitability.
Strategic partnership with Vinci Partners in Brazil is expected to enhance the focus and management of domestic operations while leveraging local expertise to maximize growth potential in Brazilian markets.
Risks:
The company faces challenges from economic softness impacting the industry, reflected in downward adjustments in annual financial guidance. Recent natural disasters like hurricanes also posed disruptions that impacted operational performance and profitability expectations.
More details: Bloomin Brands IR
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