Bloomin' Brands Results

Bloomin’ Brands Announces 2018 Q3 Diluted EPS of $0.04 and Adjusted Diluted EPS of $0.10

Q3 Comparable Restaurant Sales Growth of 4.6% at Outback and 2.9% Combined U.S. - Q3 Traffic Growth at Outback of 0.9%, 5th Consecutive Quarter of Traffic Growth

Bloomin' Brands

Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the third quarter 2018 (“Q3 2018”) compared to the third quarter 2017 (“Q3 2017”).

Highlights for Q3 2018 include the following:

  • Comparable restaurant sales were up 4.6% at U.S. Outback Steakhouse with traffic up 0.9%(1)
  • Combined U.S. comparable restaurant sales were up 2.9%(1)
  • Comparable restaurant sales were down 3.3% in Brazil but finished with positive comparable restaurant sales in the final month of the quarter
  • Opened five new restaurants, including four in international markets
(1)   For Q3 2018, comparable restaurant sales and traffic compare the thirteen weeks from July 2, 2018 through September 30, 2018 to the thirteen weeks from July 3, 2017 through October 1, 2017.

Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted earnings per share to Adjusted diluted earnings per share for the periods as indicated below.

             

      Q3  

2018   2017

CHANGE
Diluted earnings per share

$ 0.04

$ 0.06

$ (0.02 )
Adjustments

0.06  

0.08  

(0.02 )
Adjusted diluted earnings per share

$ 0.10  

$ 0.14  

$ (0.04 )
                             

____________________________

See Non-GAAP Measures later in this release.

CEO Comments

“Our momentum continued in the third quarter, and it is clear that our investments in the customer experience are working,” said Liz Smith, CEO. “At Outback, sales and traffic continued to meaningfully out-pace the industry, and we have increased our U.S. sales guidance for the year to reflect this strong performance. We have also increased our adjusted EPS guidance for the year, and now expect adjusted earnings growth of between 18% and 23% in 2018. We are on track for a very good year at Bloomin’ Brands.”

Third Quarter Financial Results

(dollars in millions)       Q3 2018   Q3 2017   CHANGE
Total revenues

$ 965.0

$ 955.6

1.0 %

 
GAAP restaurant-level operating margin

12.5 %

13.0 %

(0.5 )%
Adjusted restaurant-level operating margin (1)

12.4 %

13.0 %

(0.6 )%

 
GAAP operating income margin

1.3 %

0.5 %

0.8 %
Adjusted operating income margin (1)

2.0 %

2.6 %

(0.6 )%
____________________________
  • The increase in total revenues was primarily due to higher U.S. comparable restaurant sales and the net impact of restaurant openings and closures, partially offset by foreign currency translation.
  • The increase in GAAP operating income margin was primarily due to lower impairment and restaurant closing expenses, productivity initiatives and increases in average check. This increase was partially offset by commodity inflation, labor inflation, higher incentive compensation expense and lower comparable sales in Brazil. The impairment and restaurant closing expenses are excluded from our adjusted operating income margin.
  • There is a $7.0 million change in year-over-year incentive compensation expense driving an unfavorable 70 basis point change in Q3 2018 operating income margin. This was primarily driven by a reduction in incentive compensation expense in Q3 2017.
  • The effective income tax rate in Q3 2018 includes benefits from discrete tax items in the quarter and exercises of certain legacy stock options. These items benefited Q3 2018 diluted earnings per share by approximately $0.02.

Third Quarter Comparable Restaurant Sales(1)

THIRTEEN WEEKS ENDED SEPTEMBER 30, 2018     COMPANY-OWNED
Comparable restaurant sales (stores open 18 months or more):

U.S.

Outback Steakhouse

4.6 %
Carrabba’s Italian Grill

(0.6 )%
Bonefish Grill

1.8 %
Fleming’s Prime Steakhouse & Wine Bar

0.5 %
Combined U.S.

2.9 %

 

International

Outback Steakhouse - Brazil

(3.3 )%

____________________________

(1)   For Q3 2018, comparable restaurant sales compare the thirteen weeks from July 2, 2018 through September 30, 2018 to the thirteen weeks from July 3, 2017 through October 1, 2017.

Dividend Declaration and Share Repurchases

On October 24, 2018, our Board of Directors declared a quarterly cash dividend of $0.09 per share to be paid on November 21, 2018 to all stockholders of record as of the close of business on November 14, 2018.

On February 16, 2018, our Board of Directors approved a $150.0 million share repurchase program. As of October 29, 2018, we had $51.0 million remaining under this authorization. This authorization will expire on August 16, 2019.

Fiscal 2018 Financial Outlook

We are updating our 2018 financial outlook for adjusted diluted earnings per share, U.S. comparable restaurant sales and our tax rate. All other aspects of our full-year financial outlook as previously communicated in our July 30, 2018 earnings release remain intact. Our tax rate is now expected to be lower due to the tax benefit from the exercise of certain legacy stock options. See the table below for more detail.

         
Financial Results:

Outlook on Jul. 30

Current Outlook
Adjusted diluted earnings per share (1)

$1.38 to $1.45

$1.41 to $1.47

 
GAAP effective income tax rate (1)

2.5% to 3.5%

Approx. (4.0)%

 
Adjusted effective income tax rate (1)

4.5% to 5.5%

Approx. 1.0%

 
Other Selected Financial Data:

Combined U.S. comparable restaurant sales (2)

1.5% to 2.5%

2.0% to 2.5%

____________________________

(1)   The primary difference between our U.S. GAAP outlook and our adjusted outlook for both diluted earnings per share and effective income tax rate is driven by adjustments through Q3 2018 as reflected in Table 5 of this release, as well as anticipated adjustments in connection with our relocation and restaurant closure initiatives.
(2)

Combined U.S. comparable restaurant sales outlook is based on a comparable calendar basis. For 2018, this will compare the 52 weeks from January 1, 2018 through December 30, 2018 to the 52 weeks from January 2, 2017 through December 31, 2017.

About Bloomin’ Brands, Inc.

Bloomin’ Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has four founder-inspired brands: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company operates approximately 1,500 restaurants in 48 states, Puerto Rico, Guam and 20 countries, some of which are franchise locations.

TABLE ONE
BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

    THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED

SEPTEMBER 30,   SEPTEMBER 24,

SEPTEMBER 30,   SEPTEMBER 24,
(in thousands, except per share data)

2018

2017

2018

2017
Revenues

Restaurant sales

$ 949,400

$ 940,012

$ 3,063,887

$ 3,105,027

Franchise and other revenues

15,621  

15,575  

49,413  

41,729  
Total revenues

965,021  

955,587  

3,113,300  

3,146,756  
Costs and expenses

Cost of sales

307,493

296,632

982,415

984,510

Labor and other related

289,023

285,325

902,006

907,580

Other restaurant operating

233,744

235,944

725,468

735,480

Depreciation and amortization

50,571

47,826

151,473

142,479

General and administrative

67,691

66,063

212,516

215,059

Provision for impaired assets and restaurant closings

3,962  

18,578  

15,590  

38,253  
Total costs and expenses

952,484  

950,368  

2,989,468  

3,023,361  
Income from operations

12,537

5,219

123,832

123,395

Loss on extinguishment and modification of debt

(260 )
Other (expense) income, net

(1 )

7,531

(6 )

14,761

Interest expense, net

(11,600 )

(10,705 )

(33,229 )

(29,389 )
Income before (benefit) provision for income taxes

936

2,045

90,597

108,507

(Benefit) provision for income taxes

(3,317 )

(3,248 )

(6,516 )

17,744  
Net income

4,253

5,293

97,113

90,763

Less: net income (loss) attributable to noncontrolling interests

181  

(290 )

922  

1,422  
Net income attributable to Bloomin’ Brands

$ 4,072  

$ 5,583  

$ 96,191  

$ 89,341  

 
Earnings per share:

Basic

$ 0.04  

$ 0.06  

$ 1.04  

$ 0.91  
Diluted

$ 0.04  

$ 0.06  

$ 1.02  

$ 0.88  

 
Weighted average common shares outstanding:

Basic

92,202  

92,485  

92,197  

98,137  
Diluted

93,324  

95,655  

94,489  

101,497  

 
Cash dividends declared per common share

$ 0.09  

$ 0.08  

$ 0.27  

$ 0.24  

 
TABLE TWO
BLOOMIN’ BRANDS, INC.
SEGMENT RESULTS
(UNAUDITED)
(dollars in thousands)     THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED

SEPTEMBER 30,   SEPTEMBER 24,

SEPTEMBER 30,   SEPTEMBER 24,
U.S. Segment

2018

2017

2018

2017
Revenues

Restaurant sales

$ 848,837

$ 826,076

$ 2,742,118

$ 2,769,895

Franchise and other revenues

12,656  

12,733  

40,437  

33,383  
Total revenues

$ 861,493

$ 838,809

$ 2,782,555

$ 2,803,278

Restaurant-level operating margin

11.9 %

11.8 %

14.4 %

14.6 %
Income from operations

$ 44,598

$ 30,224

$ 230,645

$ 213,248

Operating income margin

5.2 %

3.6 %

8.3 %

7.6 %
International Segment

Revenues

Restaurant sales

$ 100,563

$ 113,936

$ 321,769

$ 335,132

Franchise and other revenues

2,965  

2,842  

8,976  

8,346  
Total revenues

$ 103,528

$ 116,778

$ 330,745

$ 343,478

Restaurant-level operating margin

17.9 %

20.7 %

18.4 %

20.7 %
Income from operations

$ 7,776

$ 8,394

$ 14,052

$ 26,757

Operating income margin

7.5 %

7.2 %

4.2 %

7.8 %
Reconciliation of Segment Income from Operations to Consolidated Income from Operations

Segment income from operations

U.S.

$ 44,598

$ 30,224

$ 230,645

$ 213,248

International

7,776  

8,394  

14,052  

26,757  
Total segment income from operations

52,374

38,618

244,697

240,005

Unallocated corporate operating expense

(39,837 )

(33,399 )

(120,865 )

(116,610 )
Total income from operations

$ 12,537  

$ 5,219  

$ 123,832  

$ 123,395  

 
TABLE THREE
BLOOMIN’ BRANDS, INC.
SUPPLEMENTAL BALANCE SHEET INFORMATION
(UNAUDITED)
(in thousands)           SEPTEMBER 30, 2018     DECEMBER 31, 2017
Cash and cash equivalents (1)

$ 78,615

$ 128,263

Net working capital (deficit) (2)

$ (392,195 )

$ (453,183 )
Total assets

$ 2,350,794

$ 2,561,894

Total debt, net

$ 1,150,791

$ 1,118,104

Total stockholders’ equity (3)

$ 60,142

$ 81,231

Common stock outstanding (3)

91,854

91,913

____________________________

(1)   Excludes restricted cash.
(2)

The Company has, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). The Company operates successfully with negative working capital because cash collected on Restaurant sales is typically received before payment is due on its current liabilities, and its inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are used to service debt obligations and to make capital expenditures.
(3)

During the thirty-nine weeks ended September 30, 2018, we repurchased 4.4 million shares of our outstanding common stock and issued 3.9 million shares of our common stock through the exercise of stock options.

 
TABLE FOUR
BLOOMIN’ BRANDS, INC.
RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATION
(UNAUDITED)

    THIRTEEN WEEKS ENDED   THIRTEEN WEEKS ENDED  

(UNFAVORABLE)

FAVORABLE CHANGE

IN ADJUSTED

SEPTEMBER 30, 2018

SEPTEMBER 24, 2017

Consolidated:

GAAP   ADJUSTED (1)

GAAP   ADJUSTED (1)

QUARTER TO DATE
Restaurant sales

100.0 %

100.0 %

100.0 %

100.0 %

 
Cost of sales

32.4 %

32.4 %

31.6 %

31.6 %

(0.8 )%
Labor and other related

30.4 %

30.4 %

30.4 %

30.4 %

%
Other restaurant operating

24.6 %

24.8 %

25.1 %

25.1 %

0.3 %

 
Restaurant-level operating margin (2)

12.5 %

12.4 %

13.0 %

13.0 %

(0.6 )%

 
Segments - Restaurant-level operating margin (2):

U.S.

11.9 %

11.8 %

11.8 %

11.8 %

%
International

17.9 %

17.9 %

20.7 %

20.7 %

(2.8 )%
                       

THIRTY-NINE WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(UNFAVORABLE)

FAVORABLE CHANGE

IN ADJUSTED

SEPTEMBER 30, 2018

SEPTEMBER 24, 2017

Consolidated:

GAAP

ADJUSTED (1)

GAAP

ADJUSTED (1)

YEAR TO DATE
Restaurant sales

100.0 %

100.0 %

100.0 %

100.0 %

 
Cost of sales

32.1 %

32.1 %

31.7 %

31.7 %

(0.4 )%
Labor and other related

29.4 %

29.4 %

29.2 %

29.2 %

(0.2 )%
Other restaurant operating

23.7 %

23.8 %

23.7 %

23.9 %

0.1 %

 
Restaurant-level operating margin (2)

14.8 %

14.7 %

15.4 %

15.2 %

(0.5 )%

 
Segments - Restaurant-level operating margin (2):

U.S.

14.4 %

14.2 %

14.6 %

14.4 %

(0.2 )%
International

18.4 %

18.2 %

20.7 %

20.7 %

(2.5 )%

____________________________

(1)   Includes adjustments recorded in Other restaurant operating for the following activities, as described in Table 5 of this release:
           

    THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED
(dollars in millions)

SEPTEMBER 30, 2018   SEPTEMBER 24, 2017

SEPTEMBER 30, 2018   SEPTEMBER 24, 2017
Restaurant and asset impairments and closing costs

$ 1.0

$

$ 3.2

$ 4.8
Restaurant relocations and related costs

0.2  

0.2  

0.6  

0.7

$ 1.2  

$ 0.2  

$ 3.8  

$ 5.5
                                 

Restaurant and asset impairments and closing costs includes $0.6 million of adjustments for the thirty-nine weeks ended September 30, 2018 recorded the International segment. All other adjustments were recorded within the U.S. segment.

(2)   The following categories of our revenue and operating expenses are not included in restaurant-level operating margin because we do not consider them reflective of operating performance at the restaurant-level within a period:

(i)

Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income.

(ii)

Depreciation and amortization which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants.

(iii)

General and administrative expense which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices.

(iv)

Asset impairment charges and restaurant closing costs which are not reflective of ongoing restaurant performance in a period.

TABLE FIVE
BLOOMIN’ BRANDS, INC.
INCOME FROM OPERATIONS, NET INCOME AND DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATIONS
(UNAUDITED)

    THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED

SEPTEMBER 30,   SEPTEMBER 24,

SEPTEMBER 30,   SEPTEMBER 24,
(in thousands, except per share data)

2018

2017

2018

2017
Income from operations

$ 12,537

$ 5,219

$ 123,832

$ 123,395

Operating income margin

1.3 %

0.5 %

4.0 %

3.9 %
Adjustments:

Restaurant and asset impairments and closing costs (1)

2,840

15,292

12,021

31,491

Severance (2)

2,528

1,015

3,493

1,015

Restaurant relocations and related costs (3)

1,560

3,743

4,638

8,101

Legal and contingent matters

758

Transaction-related expenses (4)

 

 

 

1,447  
Total income from operations adjustments

6,928  

20,050  

20,910  

42,054  
Adjusted income from operations

$ 19,465  

$ 25,269  

$ 144,742  

$ 165,449  
Adjusted operating income margin

2.0 %

2.6 %

4.6 %

5.3 %

 
Net income attributable to Bloomin’ Brands

$ 4,072

$ 5,583

$ 96,191

$ 89,341

Adjustments:

Income from operations adjustments

6,928

20,050

20,910

42,054

Gain on disposal of business and other costs (5)

(7,570 )

(14,854 )
Loss on extinguishment and modification of debt

 

 

 

260  
Total adjustments, before income taxes

6,928

12,480

20,910

27,460

Adjustment to provision for income taxes (6)

(1,643 )

(5,074 )

(3,762 )

(14,018 )
Net adjustments

5,285  

7,406  

17,148  

13,442  
Adjusted net income

$ 9,357  

$ 12,989  

$ 113,339  

$ 102,783  

 
Diluted earnings per share

$ 0.04  

$ 0.06  

$ 1.02  

$ 0.88  
Adjusted diluted earnings per share

$ 0.10  

$ 0.14  

$ 1.20  

$ 1.01  

 
Diluted weighted average common shares outstanding

93,324  

95,655  

94,489  

101,497  

____________________________

(1)   Represents asset impairment charges and related costs primarily associated with: (i) approved closure and restructuring initiatives, (ii) the restructuring of certain international markets in 2018 and (iii) the remeasurement of certain surplus properties.
(2)

Relates to severance expense incurred primarily as a result of restructuring of certain functions.
(3)

Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation program.
(4)

Relates primarily to professional fees related to certain income tax items in which the associated tax benefit is adjusted in Adjustments to provision for income taxes, as described in footnote 6 below.
(5)

Primarily relates to: (i) the sale of 54 U.S. Company-owned restaurants to existing franchisees, (ii) a gain on the sale of one Carrabba's Italian Grill restaurant and (iii) expenses related to certain surplus properties.
(6)

Represents income tax effect of the adjustments for the periods presented. Adjustments include the impact of excluding $4.6 million of discrete income tax items for the thirty-nine weeks ended September 24, 2017.

 

Following is a summary of the financial statement line item classification of the net income adjustments:

    THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED

SEPTEMBER 30,   SEPTEMBER 24,

SEPTEMBER 30,   SEPTEMBER 24,
(dollars in thousands)

2018

2017

2018

2017
Other restaurant operating

$ (1,265 )

$ (194 )

$ (3,783 )

$ (5,481 )
Depreciation and amortization

1,411

1,777

4,522

5,109

General and administrative

2,768

1,015

5,858

5,409

Provision for impaired assets and restaurant closings

4,014

17,452

14,313

37,017

Loss on extinguishment and modification of debt

260

Other (expense) income, net

(7,570 )

(14,854 )
(Benefit) provision for income taxes

(1,643 )

(5,074 )

(3,762 )

(14,018 )
Net adjustments

$ 5,285  

$ 7,406  

$ 17,148  

$ 13,442  

 
TABLE SIX
BLOOMIN’ BRANDS, INC.
SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATION
(UNAUDITED)
U.S. Segment     THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED

SEPTEMBER 30,   SEPTEMBER 24,

SEPTEMBER 30,   SEPTEMBER 24,
(dollars in thousands)

2018

2017

2018

2017
Income from operations

$ 44,598

$ 30,224

$ 230,645

$ 213,248

Operating income margin

5.2 %

3.6 %

8.3 %

7.6 %
Adjustments:

Restaurant and asset impairments and closing costs (1)

2,840

13,637

2,043

29,836

Restaurant relocations and related costs (2)

1,560

3,743

4,638

8,101

Severance (3)

688

1,576

Transaction-related expenses

 

 

 

347  
Adjusted income from operations

$ 49,686  

$ 47,604  

$ 238,902  

$ 251,532  
Adjusted operating income margin

5.8 %

5.7 %

8.6 %

9.0 %

 
International Segment

(dollars in thousands)

Income from operations

$ 7,776

$ 8,394

$ 14,052

$ 26,757

Operating income margin

7.5 %

7.2 %

4.2 %

7.8 %
Adjustments:

Severance (3)

571

290

571

290

Restaurant and asset impairments and closing costs (4)

 

1,655  

9,978  

1,655  
Adjusted income from operations

$ 8,347  

$ 10,339  

$ 24,601  

$ 28,702  
Adjusted operating income margin

8.1 %

8.9 %

7.4 %

8.4 %

 

____________________________

(1)   Represents asset impairment charges and related costs primarily associated with approved closure and restructuring initiatives and the remeasurement of certain surplus properties.
(2)

Represents asset impairment charges and accelerated depreciation incurred in connection with our relocation program.
(3)

Relates to severance expense incurred primarily as a result of restructuring of certain functions.
(4)

Represents asset impairment charges and related costs primarily associated with the restructuring of certain international markets in 2018 and approved closure and restructuring initiatives.
TABLE SEVEN
BLOOMIN’ BRANDS, INC.
COMPARATIVE RESTAURANT INFORMATION
(UNAUDITED)
Number of restaurants (at end of the period):     JULY 1, 2018   OPENINGS   CLOSURES   SEPTEMBER 30, 2018
U.S.

Outback Steakhouse

Company-owned

583

(3 )

580
Franchised

154  

1  

(2 )

153
Total

737  

1  

(5 )

733
Carrabba’s Italian Grill

Company-owned

224

224
Franchised

3  

 

 

3
Total

227  

 

 

227
Bonefish Grill

Company-owned

192

(1 )

191
Franchised

7  

 

 

7
Total

199  

 

(1 )

198
Fleming’s Prime Steakhouse & Wine Bar

Company-owned

70  

 

 

70
Other

Company-owned

5  

 

 

5
U.S. Total

1,238  

1  

(6 )

1,233
International

Company-owned

Outback Steakhouse—Brazil (1)

92

92
Other

31

2

(1 )

32
Franchised

Outback Steakhouse - South Korea

74

1

75
Other

55  

1  

 

56
International Total

252  

4  

(1 )

255
System-wide total

1,490  

5  

(7 )

1,488

____________________________

(1)   The restaurant counts for Brazil are reported as of May 31, 2018 and August 31, 2018 to correspond with the balance sheet dates of this subsidiary.
TABLE EIGHT
BLOOMIN’ BRANDS, INC.
COMPARABLE RESTAURANT SALES INFORMATION
(UNAUDITED)

    THIRTEEN WEEKS ENDED   THIRTY-NINE WEEKS ENDED

SEPTEMBER 30,   SEPTEMBER 24,

SEPTEMBER 30,   SEPTEMBER 24,

2018 (1)

2017

2018 (1)

2017
Year over year percentage change:

Comparable restaurant sales (stores open 18 months or more) (2):

U.S.

Outback Steakhouse

4.6 %

0.6 %

4.3 %

0.8 %
Carrabba’s Italian Grill

(0.6 )%

(2.8 )%

%

(2.1 )%
Bonefish Grill

1.8 %

(4.3 )%

1.1 %

(2.4 )%
Fleming’s Prime Steakhouse & Wine Bar

0.5 %

(1.0 )%

1.4 %

(1.8 )%
Combined U.S. (3)

2.9 %

(1.0 )%

2.8 %

(0.5 )%
International

Outback Steakhouse - Brazil (4)

(3.3 )%

4.8 %

(2.8 )%

6.9 %

 
Traffic:

U.S.

Outback Steakhouse

0.9 %

0.1 %

1.3 %

(1.1 )%
Carrabba’s Italian Grill

(2.9 )%

(4.2 )%

(4.8 )%

(4.5 )%
Bonefish Grill

(2.7 )%

(5.7 )%

(2.1 )%

(3.5 )%
Fleming’s Prime Steakhouse & Wine Bar

(4.2 )%

(6.5 )%

(4.7 )%

(6.6 )%
Combined U.S.

(0.5 )%

(1.9 )%

(0.6 )%

(2.3 )%
International

Outback Steakhouse - Brazil

(5.5 )%

(1.5 )%

(5.0 )%

(0.1 )%

 
Average check per person increases (5):

U.S.

Outback Steakhouse

3.7 %

0.5 %

3.0 %

1.9 %
Carrabba’s Italian Grill

2.3 %

1.4 %

4.8 %

2.4 %
Bonefish Grill

4.5 %

1.4 %

3.2 %

1.1 %
Fleming’s Prime Steakhouse & Wine Bar

4.7 %

5.5 %

6.1 %

4.8 %
Combined U.S.

3.4 %

0.9 %

3.4 %

1.8 %
International

Outback Steakhouse - Brazil

2.1 %

6.2 %

2.3 %

6.8 %

____________________________

(1)   For Q3 2018, comparable restaurant sales and traffic compare the thirteen weeks from July 2, 2018 through September 30, 2018 to the thirteen weeks from July 3, 2017 through October 1, 2017, and for the thirty-nine weeks from January 1, 2018 through September 30, 2018 to the thirty-nine weeks from January 2, 2017 through October 1, 2017.
(2)

Comparable restaurant sales exclude the effect of fluctuations in foreign currency rates. Relocated international restaurants closed more than 30 days and relocated U.S. restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(3)

Combined U.S. comparable restaurant sales for the thirteen weeks ended September 24, 2017 includes an estimated (1.0%) impact related to hurricanes that occurred during the quarter.
(4)

Includes trading day impact from calendar period reporting.
(5)

Average check per person includes the impact of menu pricing changes, product mix and discounts.



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