Bloomin' Brands (BLMN) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues were $1.1 billion, down 8% year-over-year, mainly due to lapping a 53rd week and restaurant closures/openings.

• U.S. comparable restaurant sales declined 1.1%, with traffic down 5.1%, underperforming the industry.

• The company is implementing a holistic strategy focused on simplifying operations, improving guest experience, and turning around Outback Steakhouse.

• The Brazil business was refranchised, reducing risk and shifting to a royalty model, with a 33% retained stake; all Brazil restaurants now franchised.

• Leadership changes include new presidents for Outback and Carrabba's, emphasizing operational excellence.

Financial highlights

• Q4 adjusted diluted EPS was $0.38, down from $0.56 in 2023; GAAP diluted EPS was -$0.93 due to Brazil-related impairments.

• Q4 adjusted operating margin was 3.5%–4.4%, down from 7.5%–7.7% last year; restaurant-level margin declined by 130 basis points.

• Full-year 2024 (continuing ops): revenue $3.95 billion, adjusted restaurant margin 13.3%, adjusted operating income margin 5.0%, adjusted diluted EPS $1.45.

• Net loss attributable to Bloomin' Brands in Q4 2024 was $(79.5)M, compared to net income of $43.3M in Q4 2023.

• 10.1 million shares repurchased YTD for $266 million; $97 million remains under authorization.

Outlook and guidance

• 2025 U.S. comparable restaurant sales expected to be down 2% to flat; adjusted diluted EPS guidance $1.20–$1.40.

• Commodity inflation expected at 2.5%–3.5%, with beef in mid-single digits; labor inflation 4%–5%.

• Q1 2025 U.S. comp sales expected between -0.5% and -1.5%; Q1 adjusted EPS $0.55–$0.60, including $0.04 negative impact from weather/holiday shifts.

• Capital expenditures for 2025 expected at $190–$210 million, shifting focus to remodels and maintenance.

• G&A expected at $225 million for 2025, with $17 million in savings from restructuring.