However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. Denny’s. Our priorities remain unchanged as we continue to address these challenging times. Second Quarter Diluted EPS and Adjusted Diluted EPS. For reference, Bloomin’ Brands has grown NOPAT by 2% compounded annually since 2012. This investment management company has a history of taking similar sized stakes in companies such as PetSmart, Whole Foods, and Pinnacle Foods while actively pursuing buyers. As a result, we are providing a general business update from our CEO, recent and First Quarter 2020 preliminary sales … However, it’s highly unlikely that Bloomin’ Brands’ revenue would go to zero. Jump forward to June 19, and consensus estimates for Bloomin’ Brands’ 2020 EPS have fallen to -$1.44/share. There have been plenty of decisions. In any scenario better than this one, BLMN holds significant upside potential, as I’ll show below. interests, Net (loss) income attributable to Bloomin’ Brands, Redemption of preferred stock in excess of carrying value, Net (loss) income attributable to common stockholders. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights, See the math behind this reverse DCF scenario, a strong correlation between improving ROIC and increasing shareholder value, NOPAT margins fall to 5% (all-time low in 2017, compared to 7% in 2019) in 2020-2021 and increase to 6% (all-time average) in 2022 and each year thereafter, Sales begin growing again in 2022, but only at 3.5% a year, which is the average global GDP growth rate since 1961, NOPAT margins fall to 5% (all-time low in 2017, compared to 7% in 2019) in 2020 and increase to 6% (all-time average) in 2021 and each year thereafter, Revenue falls 27% (vs consensus of -21% and equal to the worst-case scenario proposed by Technomic, a foodservice industry research provider) in 2020 and grows at 12% in 2021 (well below consensus of 18%), Sales grow from 2022 onward at 3.5% a year, which is the average global GDP growth rate since 1961, Strong balance sheet to survive the economic dip, Bloomin’ Brands’ successful digital presence and off-premise operations, Growing profitability compared to its peer group, Recent core earnings growth before the pandemic, Valuation implies restaurant industry never recovers, Snow Capital Small Cap Value Fund (SNWIX) – 2.1% allocation. Bloomin’ Brands has joined the virtual movement. Bloomin’ Brands’ improved capability to generate revenue in shelter-in-place conditions provides additional support for the firm’s already strong cash position. My ratings on many stocks drop temporarily due the recent economic decline. 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. Our priorities remain unchanged as we continue to address these challenging times. Number of restaurants (at end of the period): The restaurant counts for Brazil are reported as of February 29, 2020 and May 31, 2020 to correspond with the balance sheet dates of this subsidiary. Bloomin' Brands (BLMN) Q3 2020 Earnings Call Transcript Why Bloomin' Brands Is Sagging 10% Today 3 Changes Restaurant Companies Are Making After the Coronavirus Shares of Dave & Buster's (NASDAQ:PLAY), Bloomin' Brands (NASDAQ:BLMN), and The Chefs' Warehouse (NASDAQ:CHEF) all dropped roughly … Despite the current earnings trend, Bloomin’ Brands’ ability to generate significant free cash flow (FCF) has been impressive. These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. In 2017, Bloomin’ Brands decided to close 43 (3% of the 1,276 company-owned stores in 2016) underperforming restaurants. Accordingly, it is safe to assume the restaurant business will return to something, at a minimum, approaching historical levels. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. You can see all the adjustments made to Bloomin’ Brands’ balance sheet here. Company draws down revolving credit facility and withdraws financial guidance for 2020. In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. The firm beat EPS estimates in seven of the past 10 quarters, and doing so again, in the midst of such market turmoil, could send shares higher. David is CEO of New Constructs (www.newconstructs.com). © 2020 Forbes Media LLC. Group Vice President, IR & Finance A replay of this webcast will be available on the Company’s website after the call. Bloomberg the Company & Its Products The Company & its Products Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login Bloomberg Anywhere Login Bloomberg Customer Support Customer Support Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced a business update related to COVID-19 as well as recent sales results and details on cash utiliza Known for its all-day breakfast, Denny’s faces an 11.9% chance of defaulting. Since the firm kept nearly all of its employees during the lockdowns it has been more prepared than most to reopen. OSI ... [+] Restaurant Partners Inc., owner of the Outback Steakhouse chain, agreed to a sweetened $3.1 billion takeover offer from a group led by Bain Capital Partners LLC and Catterton Partners. Statement from David Deno, Chief Executive Officer. Tampa, FL 33607, ©2020 Bloomin’ Brands, Inc. All Rights Reserved. The rapid growth we experienced in off-premises sales allowed us to keep substantially all of our locations open during this time. Outback Parent Hasn’t Laid Off or Furloughed Any Employees Due to COVID-19. The firm made investments in technology infrastructure, a global supply chain management system to better forecast inventory, and systems to support its customer loyalty program. Bloomin’ Brands financial position, growing off-premise service, and well-known brands provide an excellent opportunity to gain market share during and after the COVID-19 pandemic. Figure 10: Implied Profits Assuming Moderate Recovery: Scenario 2, Sustainable Competitive Advantages Will Drive Shareholder Value Creation. Comparable restaurant sales at these locations were down 10.7% from the prior year. Bloomin’ Brands’ off-premise business has quickly become a major revenue stream that should continue after the pandemic. The following fund receives an attractive rating and allocates significantly to BLMN: Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, style, or theme. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. 2021 estimates follow a similar trend. As coronavirus lockdowns hit the U.S. in March, Bloomin’ Brands CEO David Deno called an emergency meeting for his 12-member executive team. Bloomin' CEO on reopening restaurants and Covid-19 impact. These decreases are partially offset by cost savings from our restructuring and transformation initiatives. In other words, this scenario implies that a decade after the COVID-19 pandemic, Bloomin Brands’ profits will have only recovered to just 1% above 2017 NOPAT levels – the lowest levels since the firm’s IPO in 2012 and prior to the closure of underperforming restaurants. TAMPA, Fla.--(BUSINESS WIRE)--Jul. "We collectively said, 'What we … How has Coronavirus impacted Bloomin' Brands's share price? Outback Steakhouse parent Bloomin' Brands. This casual dining firm has experienced major disruption to its operations, but investors who look past the temporary slowdown in business can still find great value long term. When COVID-19 forced many companies to lay off or furlough employees, JWU educational partner Bloomin’ Brands made sure their workers were at the forefront of their concerns. The following table includes estimated comparable restaurant sales by concept for our U.S. company-owned restaurants for the periods indicated: As of yesterday, our total liquidity position was $502 million, which includes approximately $138 million of domestic cash and $364 million of capacity on our revolving credit facility. Comparable Sales. We find that in a scenario where annual revenue fall 30% in 2020, Bloomin’ Brands … Seeking Alpha 24d. One of these locations was included within Company-owned Other and the remaining 10 were included in Franchised Outback Steakhouse - South Korea. As featured in the HBS & MIT Sloan paper, Core Earnings: New Data and Evidence, our superior data drives uniquely comprehensive and independent debt and equity investment ratings, valuation models and research tools. According to the Texas Restaurant Association, that expectation was accurate for Texas as 12% of restaurants in that state have permanently closed due to the pandemic. Below are specifics on the adjustments I make based on Robo-Analyst findings in Bloomin’ Brands’ 2019 10-K: Income Statement: I made $172 million of adjustments, with a net effect of removing $140 million in non-operating expenses (3% of revenue). Suite 500 As coronavirus lockdowns hit the U.S. in March, Bloomin’ Brands CEO David Deno called an emergency meeting for his 12-member executive team. While comparable sales will certainly decline in 2020, I, along with the International Monetary Fund (IMF) and nearly every economist in the world, believe that U.S. GDP growth will be higher in 2021 than expected before the pandemic. In April, Bloomin’ Brands and JANA Partners agreed on two new nominees to the firm’s board of directors. This closure obviously hurt revenue and profits in the short term, but allowed the firm to focus on building its brand. Our decision to not furlough any employees during this pandemic has allowed us to quickly prepare our restaurants to re-open dining rooms in a safe and efficient manner. Bloomin' Brands Sees Big Jump in Takeout and Delivery Amid COVID-19 Crisis Outback Steakhouse and Carrabba's Italian Grill parent Bloomin' Brands … Here’s a summary of why I think the moat around Bloomin’ Brands’ business will enable it to continue to generate higher NOPAT than the current market valuation implies. This worst-case scenario implies Bloomin Brands’ NOPAT eight years from now will be 22% below its 2019 NOPAT. As coronavirus lockdowns hit the U.S. in March, Bloomin Brands CEO David Deno called an emergency meeting for his 12-member executive team.. We collectively said, What we do today and over the next few months will be remembered forever, so lets be … All forward-looking statements are qualified in their entirety by this cautionary statement. Bloomin’ Brands, Inc. (Nasdaq: BLMN) today provided the following update in response to the COVID-19 outbreak: “The health and safety of our customers TAMPA, Fla.--(BUSINESS WIRE)-- Bloomin’ Brands, Inc. today announced a business update related to COVID-19 as well as second quarter 2020 financial results. Justice Department places new pressure on immigrants facing deportation . The coronavirus pandemic is likely to have materially affected Bloomin' Brands third-quarter performance. Diluted (loss) earnings per share attributable to common stockholders, Adjusted diluted (loss) earnings per share. “COVID-19 may have changed how we do business but our commitments to serving our communities, guests, and volunteers remains the same.” When the pandemic began in March, Bloomin’ Brands restaurants enhanced safety protocols, redesigned dining rooms to create larger to-go packaging areas and shifted to 100% delivery in a matter of hours. Our priorities remain unchanged as we continue to address these challenging times. See the math behind this reverse DCF scenario. Bloomin' Brands Sees Big Jump in Takeout and Delivery Amid COVID-19 Crisis Anders Bylund 4/20/2020. Following is a summary of the financial statement line item classification of the net (loss) income adjustments: SEGMENT INCOME FROM OPERATIONS NON-GAAP RECONCILIATION, Restaurant relocations and related costs (2). Nopat by 2 % compounded annually over the same time sales YoY in each year closing... 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