Bloomin’ Brands Announces 2022 Q3 Financial Results

Q3

2022

2021

CHANGE

Diluted earnings per share

$

0.34

$

0.03

$

0.31

Adjustments (1)

0.01

0.54

(0.53

)

Adjusted diluted earnings per share (1)

$

0.35

$

0.57

$

(0.22

)

___________________

(1) Q3 2021 includes a $61.9 million charge in connection with the Carrabba’s Italian Grill royalty termination. See Non-GAAP Measures later in this release.

Third Quarter Financial Results

(dollars in millions, unaudited)

Q3 2022

Q3 2021

CHANGE

Total revenues

$

1,055.8

$

1,010.5

4.5

%

GAAP Operating income margin

4.9

%

1.5

%

3.4

%

Adjusted operating income margin (1)(2)

4.9

%

8.2

%

(3.3

) %

Restaurant-level operating margin (1)

13.1

%

10.3

%

2.8

%

Adjusted restaurant-level operating margin (1)(2)

13.1

%

16.8

%

(3.7

) %

___________________
(1) See Non-GAAP Measures later in this release.
(2) Adjusted operating income and restaurant-level operating margins are lower year-over-year due to elevated inflationary pressures that were partially offset by moderate pricing increases to maintain consumer value equation.

THIRTEEN WEEKS ENDED

SEPTEMBER 25, 2022

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

COMPARABLE TO 2021

COMPARABLE TO 2019

U.S.

Outback Steakhouse

2.3%

8.5%

Carrabba’s Italian Grill

0.7%

18.0%

Bonefish Grill

(0.9) %

4.8%

Fleming’s Prime Steakhouse & Wine Bar

1.3%

29.6%

Combined U.S.

1.4%

11.2%

International

Outback Steakhouse - Brazil (1)

30.1%

25.2%

_________________
(1) Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.

THIRTEEN WEEKS ENDED

Average restaurant unit volumes (weekly):

SEPTEMBER 25, 2022

SEPTEMBER 29, 2019 (1)

U.S.

Outback Steakhouse

$

72,834

$

66,084

Carrabba’s Italian Grill

$

62,010

$

51,989

Bonefish Grill

$

57,998

$

53,549

Fleming’s Prime Steakhouse & Wine Bar

$

97,053

$

71,954

International

Outback Steakhouse - Brazil (2)

$

60,711

$

72,791

_________________
(1) Presented for comparability to pre-COVID-19 average restaurant unit volumes.
(2) Translated at average exchange rates of 5.18 and 3.88 for the thirteen weeks ended September 25, 2022 and September 29, 2019, respectively. Brazil average restaurant unit volumes for the thirteen weeks ended September 25, 2022 are up 11% on a local currency basis versus the comparable period in 2019.

Financial Results:

Prior Outlook

Current Outlook

Total revenues

$4.40B to $4.45B

$4.436B to $4.466B

GAAP diluted earnings per share (1)

$1.11 to $1.22

$1.05 to $1.15

Adjusted diluted earnings per share (2)

$2.45 to $2.55

$2.45 to $2.55

Adjusted effective income tax rate

16.5% to 17.5%

16% to 17%

_________________
(1) For GAAP purposes assumes weighted average diluted shares of approximately 99 million. The total change in GAAP earnings per share is due to revisions in estimates, including taxes.
(2) Assumes weighted average adjusted diluted shares of approximately 93 million, which includes the benefit of the convertible note hedge entered into in May 2020.

Financial Results:

Q4 2022 Outlook

Total revenues

$1.115B to $1.145B

GAAP diluted earnings per share (1)

$0.61 to $0.71

Adjusted diluted earnings per share (2)

$0.63 to $0.73

_________________
(1) For GAAP purposes assumes weighted average diluted shares of approximately 96 million.
(2) Assumes weighted average adjusted diluted shares of approximately 92 million, which includes the benefit of the convertible note hedge entered into in May 2020.

TABLE ONE

BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(in thousands, except per share data)

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Revenues

Restaurant sales

$

1,040,375

$

996,718

$

3,272,868

$

3,031,396

Franchise and other revenues

15,388

13,745

48,592

43,906

Total revenues

1,055,763

1,010,463

3,321,460

3,075,302

Costs and expenses

Food and beverage costs

332,939

304,300

1,056,768

908,272

Labor and other related

303,244

290,246

924,514

859,883

Other restaurant operating

267,944

299,788

790,583

762,531

Depreciation and amortization

42,171

40,827

125,203

122,592

General and administrative

56,089

58,880

174,009

182,590

Provision for impaired assets and restaurant closings

2,067

1,585

4,099

8,962

Total costs and expenses

1,004,454

995,626

3,075,176

2,844,830

Income from operations

51,309

14,837

246,284

230,472

Loss on extinguishment and modification of debt

—

—

(107,630

)

(2,073

)

Loss on fair value adjustment of derivatives, net

—

—

(17,685

)

—

Other income, net

—

5

—

26

Interest expense, net

(12,696

)

(14,245

)

(38,877

)

(43,863

)

Income before provision (benefit) for income taxes

38,613

597

82,092

184,562

Provision (benefit) for income taxes

5,563

(4,454

)

33,028

24,827

Net income

33,050

5,051

49,064

159,735

Less: net income attributable to noncontrolling interests

1,064

1,602

5,202

4,879

Net income attributable to Bloomin’ Brands

31,986

3,449

43,862

154,856

Convertible senior notes if-converted method interest adjustment, net of tax

—

—

—

460

Diluted net income attributable to Bloomin’ Brands

$

31,986

$

3,449

$

43,862

$

155,316

Earnings per share:

Basic

$

0.36

$

0.04

$

0.49

$

1.74

Diluted

$

0.34

$

0.03

$

0.44

$

1.42

Weighted average common shares outstanding:

Basic

89,192

89,229

89,149

88,890

Diluted

94,736

107,783

99,609

109,410

TABLE TWO

BLOOMIN’ BRANDS, INC.

SEGMENT RESULTS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

U.S. Segment

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Revenues

Restaurant sales

$

910,679

$

898,790

$

2,920,241

$

2,789,142

Franchise and other revenues

11,842

13,943

37,314

31,567

Total revenues

$

922,521

$

912,733

$

2,957,555

$

2,820,709

International Segment

Revenues

Restaurant sales

$

129,696

$

97,928

$

352,627

$

242,254

Franchise and other revenues (1)

3,546

(198

)

11,278

12,339

Total revenues

$

133,242

$

97,730

$

363,905

$

254,593

Reconciliation of Segment Income from Operations to Consolidated Income from Operations

Segment income from operations

U.S.

$

68,501

$

47,294

$

305,347

$

334,326

International

15,849

1,412

38,859

7,419

Total segment income from operations

84,350

48,706

344,206

341,745

Unallocated corporate operating expense

(33,041

)

(33,869

)

(97,922

)

(111,273

)

Total income from operations

$

51,309

$

14,837

$

246,284

$

230,472

____________________
(1) The thirteen and thirty-nine weeks ended September 26, 2021, includes an adjustment of $(3.2) million to reduce our initial recorded estimate and net $3.1 million benefit, respectively, from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”) taxes, including accrued interest, within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base.

TABLE THREE

BLOOMIN’ BRANDS, INC.

SUPPLEMENTAL BALANCE SHEET INFORMATION

SEPTEMBER 25, 2022

DECEMBER 26, 2021

(dollars in thousands)

(UNAUDITED)

Cash and cash equivalents

$

90,678

$

87,585

Net working capital (deficit) (1)

$

(635,612

)

$

(631,833

)

Total assets

$

3,219,201

$

3,294,271

Total debt, net

$

821,706

$

793,065

Total stockholders’ equity

$

240,145

$

222,850

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

TABLE FOUR

BLOOMIN’ BRANDS, INC.

RESTAURANT-LEVEL AND ADJUSTED RESTAURANT-LEVEL OPERATING INCOME AND MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

Consolidated

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Income from operations

$

51,309

$

14,837

$

246,284

$

230,472

Operating income margin

4.9

%

1.5

%

7.4

%

7.5

%

Less:

Franchise and other revenues

15,388

13,745

48,592

43,906

Plus:

Depreciation and amortization

42,171

40,827

125,203

122,592

General and administrative

56,089

58,880

174,009

182,590

Provision for impaired assets and restaurant closings

2,067

1,585

4,099

8,962

Restaurant-level operating income (1)

$

136,248

$

102,384

$

501,003

$

500,710

Restaurant-level operating margin

13.1

%

10.3

%

15.3

%

16.5

%

Adjustments:

Royalty termination expense (2)

—

61,880

—

61,880

Legal and other matters (3)

—

2,761

—

2,761

Total restaurant-level operating income adjustments

—

64,641

—

64,641

Adjusted restaurant-level operating income

$

136,248

$

167,025

$

501,003

$

565,351

Adjusted restaurant-level operating margin

13.1

%

16.8

%

15.3

%

18.6

%

_________________

(1) 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:

(a) 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.

(b) 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.

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

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

(2) Payment to the founders of our Carrabba’s Italian Grill concept in connection with an agreement to terminate future royalty payments.

(3) The thirteen and thirty-nine weeks ended September 26, 2021 include an accrual for Imposto sobre Serviços (“ISS”), a Brazilian municipal service tax, in connection with royalties from our Brazilian subsidiary over the past five years, including related penalties and interest, recorded within Other restaurant operating expense as a result of an unfavorable Brazilian Supreme Court ruling.

U.S.

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Income from operations

$

68,501

$

47,294

$

305,347

$

334,326

Operating income margin

7.4

%

5.2

%

10.3

%

11.9

%

Less:

Franchise and other revenues

11,842

13,943

37,314

31,567

Plus:

Depreciation and amortization

34,432

33,421

102,735

100,645

General and administrative

22,339

21,998

69,432

66,043

Provision for impaired assets and restaurant closings

2,068

1,539

2,317

8,678

Restaurant-level operating income

$

115,498

$

90,309

$

442,517

$

478,125

Restaurant-level operating margin

12.7

%

10.0

%

15.2

%

17.1

%

Adjustments:

Royalty termination expense (1)

—

61,880

—

61,880

Total restaurant-level operating income adjustments

—

61,880

—

61,880

Adjusted restaurant-level operating income

$

115,498

$

152,189

$

442,517

$

540,005

Adjusted restaurant-level operating margin

12.7

%

16.9

%

15.2

%

19.4

%

________________
(1) Payment to the founders of our Carrabba’s Italian Grill concept in connection with an agreement to terminate future royalty payments.

International

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Income from operations

$

15,849

$

1,412

$

38,859

$

7,419

Operating income margin

11.9

%

1.4

%

10.7

%

2.9

%

Less:

Franchise and other revenues

3,546

(198

)

11,278

12,339

Plus:

Depreciation and amortization

5,882

5,843

17,438

17,128

General and administrative

5,828

5,060

16,087

13,781

Provision for impaired assets and restaurant closings

—

28

1,775

27

Restaurant-level operating income

$

24,013

$

12,541

$

62,881

$

26,016

Restaurant-level operating margin

18.5

%

12.8

%

17.8

%

10.7

%

Adjustments:

Legal and other matters (1)

—

2,761

—

2,761

Total restaurant-level operating income adjustments

—

2,761

—

2,761

Adjusted restaurant-level operating income

$

24,013

$

15,302

$

62,881

$

28,777

Adjusted restaurant-level operating margin

18.5

%

15.6

%

17.8

%

11.9

%

________________
(1) The thirteen and thirty-nine weeks ended September 26, 2021 include an accrual for ISS, a Brazilian municipal service tax, in connection with royalties from our Brazilian subsidiary over the past five years, including related penalties and interest, recorded within Other restaurant operating expense as a result of an unfavorable Brazilian Supreme Court ruling.

TABLE FIVE

BLOOMIN’ BRANDS, INC.

RESTAURANT-LEVEL OPERATING MARGIN NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

(UNFAVORABLE)
FAVORABLE
CHANGE IN
ADJUSTED
QUARTER TO
DATE

SEPTEMBER 25, 2022

SEPTEMBER 26, 2021

Consolidated:

REPORTED

ADJUSTED

REPORTED

ADJUSTED (1)

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

32.0

%

32.0

%

30.5

%

30.5

%

(1.5

) %

Labor and other related

29.1

%

29.1

%

29.1

%

29.1

%

—

%

Other restaurant operating

25.8

%

25.8

%

30.1

%

23.6

%

(2.2

) %

Restaurant-level operating margin

13.1

%

13.1

%

10.3

%

16.8

%

(3.7

) %

THIRTY-NINE WEEKS ENDED

(UNFAVORABLE)
FAVORABLE
CHANGE IN
ADJUSTED
YEAR TO DATE

SEPTEMBER 25, 2022

SEPTEMBER 26, 2021

Consolidated:

REPORTED

ADJUSTED

REPORTED

ADJUSTED (1)

Restaurant sales

100.0

%

100.0

%

100.0

%

100.0

%

Food and beverage costs

32.3

%

32.3

%

30.0

%

30.0

%

(2.3

) %

Labor and other related

28.2

%

28.2

%

28.4

%

28.4

%

0.2

%

Other restaurant operating

24.2

%

24.2

%

25.2

%

23.0

%

(1.2

) %

Restaurant-level operating margin

15.3

%

15.3

%

16.5

%

18.6

%

(3.3

) %

_________________
(1) See Table Four Restaurant-level and Adjusted Restaurant-Level Operating Income and Margin Non-GAAP Reconciliations for details regarding restaurant-level operating margin adjustments. All restaurant-level operating margin adjustments for the periods presented were recorded within Other restaurant operating expense.

TABLE SIX

BLOOMIN’ BRANDS, INC.

ADJUSTED INCOME FROM OPERATIONS NON-GAAP RECONCILIATIONS

(UNAUDITED)

(dollars in thousands)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

Consolidated

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Income from operations

$

51,309

$

14,837

$

246,284

$

230,472

Operating income margin

4.9

%

1.5

%

7.4

%

7.5

%

Adjustments:

Total restaurant-level operating margin adjustments (1)

—

64,641

—

64,641

Legal and other matters (2)

—

3,204

—

(3,133

)

Total income from operations adjustments

—

67,845

—

61,508

Adjusted income from operations

$

51,309

$

82,682

$

246,284

$

291,980

Adjusted operating income margin

4.9

%

8.2

%

7.4

%

9.5

%

U.S. Segment

Income from operations

$

68,501

$

47,294

$

305,347

$

334,326

Operating income margin

7.4

%

5.2

%

10.3

%

11.9

%

Adjustments:

Total restaurant-level operating margin adjustments (1)

—

61,880

—

61,880

Adjusted income from operations

$

68,501

$

109,174

$

305,347

$

396,206

Adjusted operating income margin

7.4

%

12.0

%

10.3

%

14.0

%

International Segment

Income from operations

$

15,849

$

1,412

$

38,859

$

7,419

Operating income margin

11.9

%

1.4

%

10.7

%

2.9

%

Adjustments:

Total restaurant-level operating margin adjustments (1)

—

2,761

—

2,761

Legal and other matters (2)

—

3,204

—

(3,133

)

Total income from operations adjustments

—

5,965

—

(372

)

Adjusted income from operations

$

15,849

$

7,377

$

38,859

$

7,047

Adjusted operating income margin

11.9

%

7.3

%

10.7

%

2.8

%

_________________
(1) See Table Four Restaurant-level and Adjusted Restaurant-Level Operating Income and Margin Non-GAAP Reconciliations for details regarding the restaurant-level operating margin adjustments.
(2) The thirteen and thirty-nine weeks ended September 26, 2021 include an adjustment to reduce our initial recorded estimate and net benefit, respectively, from the recognition of recoverable PIS and COFINS taxes, including accrued interest within other revenues as a result of favorable court rulings in Brazil.

TABLE SEVEN

BLOOMIN’ BRANDS, INC.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATIONS

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(in thousands, except per share data)

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Diluted net income attributable to Bloomin’ Brands

$

31,986

$

3,449

$

43,862

$

155,316

Convertible senior notes if-converted method interest adjustment, net of tax (1)

—

—

—

460

Net income attributable to Bloomin’ Brands

31,986

3,449

43,862

154,856

Adjustments:

Income from operations adjustments (2)

—

67,845

—

61,508

Loss on extinguishment and modification of debt (3)

—

—

107,630

2,073

Loss on fair value adjustment of derivatives, net (3)

—

—

17,685

—

Total adjustments, before income taxes

—

67,845

125,315

63,581

Adjustment to provision for income taxes (4)

—

(15,878

)

1,322

(14,635

)

Net adjustments

—

51,967

126,637

48,946

Adjusted net income

$

31,986

$

55,416

$

170,499

$

203,802

Diluted earnings per share

$

0.34

$

0.03

$

0.44

$

1.42

Adjusted diluted earnings per share (5)

$

0.35

$

0.57

$

1.84

$

2.10

Diluted weighted average common shares outstanding

94,736

107,783

99,609

109,410

Adjusted diluted weighted average common shares outstanding (5)

91,046

97,307

92,877

97,110

_________________
(1) Adjustment for interest expense related to the convertible senior notes due in 2025 (the “2025 Notes”) weighted for the portion of the period prior to our election under the 2025 Notes indenture to settle the principal portion of the 2025 Notes in cash.
(2) See Table Six Adjusted Income from Operations Non-GAAP Reconciliations above for details regarding Income from operations adjustments.
(3) The thirty-nine weeks ended September 25, 2022 includes losses in connection the repurchase of $125 million of our outstanding 2025 Notes, as well as the settlements of the related convertible senior note hedges and warrants (the “2025 Notes Partial Repurchase”), the modification of our revolving credit facility and the extinguishment of our term loan A.
(4) The tax effect of non-GAAP adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. For the thirty-nine weeks ended September 25, 2022, the primary difference between the GAAP and adjusted effective income tax rates relate to certain non-deductible losses and other tax costs associated with the 2025 Notes Partial Repurchase.
(5) Adjusted diluted weighted average common shares outstanding was calculated excluding the dilutive effect of 3,690 and 10,476 shares for the thirteen weeks ended September 25, 2022 and September 26, 2021, respectively, and 6,732 and 10,453 shares for the thirty-nine weeks ended September 25, 2022 and September 26, 2021, respectively, to be issued upon conversion of the 2025 Notes to satisfy the amount in excess of the principal since our convertible note hedge offsets the dilutive impact of the shares underlying the 2025 Notes. For the thirty-nine weeks ended September 26, 2021, adjusted diluted weighted average common shares outstanding was also calculated assuming our February 2021 election to settle the principal portion of the 2025 Notes in cash was in effect for the entire period.

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

(dollars in thousands)

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

SEPTEMBER 25,
2022

SEPTEMBER 26,
2021

Franchise and other revenues

$

—

$

3,204

$

—

$

(3,133

)

Other restaurant operating

—

64,641

—

64,641

Loss on extinguishment and modification of debt

—

—

107,630

2,073

Loss on fair value adjustment of derivatives, net

—

—

17,685

—

Provision for income taxes

—

(15,878

)

1,322

(14,635

)

Net adjustments

$

—

$

51,967

$

126,637

$

48,946

TABLE EIGHT

BLOOMIN’ BRANDS, INC.

COMPARATIVE RESTAURANT AND OFF-PREMISES ONLY KITCHEN INFORMATION

(UNAUDITED)

Number of restaurants:

JUNE 26, 2022

OPENINGS

CLOSURES

SEPTEMBER 25, 2022

U.S.

Outback Steakhouse

Company-owned

563

1

—

564

Franchised

130

1

(3)

128

Total

693

2

(3)

692

Carrabba’s Italian Grill

Company-owned

198

1

—

199

Franchised

19

—

—

19

Total

217

1

—

218

Bonefish Grill

Company-owned

174

—

(1)

173

Franchised

7

—

—

7

Total

181

—

(1)

180

Fleming’s Prime Steakhouse & Wine Bar

Company-owned

64

—

—

64

Aussie Grill

Company-owned

5

—

—

5

U.S. total

1,160

3

(4)

1,159

International

Company-owned

Outback Steakhouse - Brazil (1)

129

8

—

137

Other (1)(2)

33

—

—

33

Franchised

Outback Steakhouse - South Korea

77

6

—

83

Other (2)

50

1

(1)

50

International total

289

15

(1)

303

System-wide total

1,449

18

(5)

1,462

System-wide total - Company-owned

1,166

10

(1)

1,175

System-wide total - Franchised

283

8

(4)

287

____________________
(1) The restaurant counts for Brazil, including Abbraccio restaurants within International Company-owned Other, are reported as of May 31, 2022 and August 31, 2022, respectively, to correspond with the balance sheet dates of this subsidiary.
(2) International Company-owned Other and International Franchised Other included two and three Aussie Grill locations, respectively, as of September 25, 2022.

Number of kitchens (1):

JUNE 26, 2022

OPENINGS

CLOSURES

SEPTEMBER 25, 2022

U.S.

Company-owned

2

—

(1)

1

International

Company-owned

1

—

(1)

—

Franchised - South Korea

49

3

(7)

45

System-wide total

52

3

(9)

46

____________________
(1) Excludes virtual concepts that operate out of existing restaurants and sports venue locations.

TABLE NINE

BLOOMIN’ BRANDS, INC.

COMPARABLE RESTAURANT SALES INFORMATION

(UNAUDITED)

THIRTEEN WEEKS ENDED

THIRTY-NINE WEEKS ENDED

SEPTEMBER 25, 2022

SEPTEMBER 25, 2022

COMPARABLE TO

COMPARABLE TO

2021

2019 (1)

2021

2019 (1)

Year over year percentage change:

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

U.S. (2)

Outback Steakhouse

2.3

%

8.5

%

3.4

%

7.0

%

Carrabba’s Italian Grill

0.7

%

18.0

%

3.6

%

14.6

%

Bonefish Grill

(0.9

) %

4.8

%

5.9

%

3.2

%

Fleming’s Prime Steakhouse & Wine Bar

1.3

%

29.6

%

15.7

%

28.2

%

Combined U.S.

1.4

%

11.2

%

4.8

%

9.4

%

International

Outback Steakhouse - Brazil (3)

30.1

%

25.2

%

48.7

%

22.3

%

Traffic:

U.S.

Outback Steakhouse

(6.8

) %

(7.3

) %

(5.5

) %

(7.4

) %

Carrabba’s Italian Grill

(8.4

) %

2.9

%

(4.4

) %

3.1

%

Bonefish Grill

(8.3

) %

(3.4

) %

(3.3

) %

(4.9

) %

Fleming’s Prime Steakhouse & Wine Bar

(4.8

) %

9.1

%

5.8

%

7.8

%

Combined U.S.

(7.2

) %

(4.4

) %

(4.7

) %

(4.6

) %

International

Outback Steakhouse - Brazil

16.7

%

20.3

%

32.1

%

22.6

%

Average check per person (4):

U.S.

Outback Steakhouse

9.1

%

15.8

%

8.9

%

14.4

%

Carrabba’s Italian Grill

9.1

%

15.1

%

8.0

%

11.5

%

Bonefish Grill

7.4

%

8.2

%

9.2

%

8.1

%

Fleming’s Prime Steakhouse & Wine Bar

6.1

%

20.5

%

9.9

%

20.4

%

Combined U.S.

8.6

%

15.6

%

9.5

%

14.0

%

International

Outback Steakhouse - Brazil

13.1

%

6.3

%

16.5

%

0.4

%

____________________
(1) Comparable restaurant sales, traffic and average check per person increases (decreases) relative to 2019 for improved comparability to pre-COVID-19 restaurant sales.
(2) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(3) Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.
(4) Includes the impact of menu pricing changes, product mix and discounts.