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Dec 27, 2020
Bloomin' Brands Q4 2020 Earnings Report
Reported continued resilience navigating a rapidly changing environment, making progress on key initiatives to improve margins and increase cash flow.
Key Takeaways
Bloomin' Brands reported Q4 2020 results, showing resilience amidst a rapidly changing environment. The company is focused on improving margins, increasing cash flow, and reducing debt. U.S. comp sales were down 12.9% through the first seven weeks of the fiscal year.
Total revenues decreased primarily due to lower comparable restaurant sales and franchise revenues due to the COVID-19 pandemic.
Restaurant-level operating margin decreased due to lower comparable restaurant sales and costs related to the COVID-19 pandemic.
GAAP operating loss income margin decreased due to a decline in restaurant-level operating margin and sales deleveraging.
Liquidity position improved due to increased sales performance and holiday gift card sales.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company remains committed to making decisions to achieve its long-term growth framework and maximize shareholder value. However, ongoing uncertainties related to the COVID-19 pandemic and evolving in-restaurant dining capacity restrictions across the country have made it difficult to forecast sales.
Positive Outlook
- Pursue previously announced transformational cost savings initiatives representing $40 million over two years. We achieved $25 million of these cost savings in 2020 and expect approximately $15 million of these savings to be realized in 2021
- Capitalize on additional margin opportunities learned during the pandemic
- Prioritize capital allocation towards debt pay down while maintaining flexibility to reinvest back in the business
Challenges Ahead
- Ongoing uncertainties related to the COVID-19 pandemic
- Evolving in-restaurant dining capacity restrictions across the country
- Difficult to forecast sales
- Commodity inflation Flat
- Labor inflation 3.0% - 3.5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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