Q1 2024 Bloomin' Brands Inc Earnings Call Transcript
Key Points
- Outback Steakhouse outperformed the industry by 270 basis points in Q1, with traffic as a key driver of sales momentum.
- Bloomin Brands Inc (BLMN) is making significant investments in technology and operations, enhancing guest experience and service consistency.
- The company is expanding its off-premises business, which now represents 23% of US sales, showing strong demand and growth potential.
- Bloomin Brands Inc (BLMN) plans to remodel 60 to 65 restaurants and open 40 to 45 new ones systemwide, indicating a robust pipeline and commitment to asset improvement.
- The company maintains a strong balance sheet and robust cash flow, enabling continued investment in marketing, technology, and operations.
- US comparable sales were down 160 basis points, and traffic decreased by 430 basis points in Q1 2024.
- Bloomin Brands Inc (BLMN) reported a decline in total revenues by 4% from the previous year, primarily due to negative impacts such as the calendar shift and the end of the Brazil value-added tax exemption.
- The company's Q1 GAAP diluted earnings per share was negative $0.96, influenced by the loss on extinguishment of debt.
- Inflation levels remain somewhat elevated, contributing to additional year-over-year margin unfavorability, particularly in labor costs due to wage inflation.
- The strategic review of operations in Brazil introduces uncertainty, although it presents a potential for future financial upside if new tax legislation is beneficial.
Greetings, and welcome to the Bloomin Brands Fiscal first-quarter 2024 earnings conference call. (Operator Instructions) It is now my pleasure to introduce your host, Tara Kurian, Vice President, Corporate Finance and Investor Relations. Ms. Korean, you may begin.
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Thank you, and good morning, everyone. And with me on today's call are David Deno, our Chief Executive Officer; and Michael Healy, our Chief Financial Officer, and Executive Vice President. By now you should have access to our fiscal first-quarter 2024 earnings release. It can also be found on our website at www.bloominbrands.com in the Investors section.
Throughout this conference call, we will be presenting results on an adjusted basis and explanation of our use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures appear in our earnings release
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