SEC Filing | Bloomin’ Brands, Inc.

View:

Download DOC

Download PDF

Download XLS

Download XBRL

blmn-20230326

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended March 26, 2023
or
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from ______ to ______

Commission File Number: 001-35625

https://cdn.kscope.io/6fb9183945b87bea6743972c4b6ee890-blmnlogov3.jpg

BLOOMIN’ BRANDS, INC.

(Exact name of registrant as specified in its charter)


Delaware						20-8023465
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

2202 North West Shore Boulevard, Suite 500, Tampa, FL 33607

(Address of principal executive offices) (Zip Code)

(813) 282-1225

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

$0.01 par value

BLMN

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 27, 2023, 87,293,770 shares of common stock of the registrant were outstanding.

Table of Contents

BLOOMIN’ BRANDS, INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

For the Quarterly Period Ended March 26, 2023

(Unaudited)

TABLE OF CONTENTS


	PART I — FINANCIAL INFORMATION	Page No.

Item 1.	Financial Statements (Unaudited)	3

	Consolidated Financial Statements:

	Consolidated Balance Sheets — March 26, 2023 and December 2 5 , 20 2 2	3

	Consolidated Statements of Operations and Comprehensive Income — For the Thirteen Weeks Ended March 26 , 202 3 and March 2 7 , 202 2	4

	Consolidated Statements of Changes in Stockholders’ Equity — For the Thirteen Weeks Ended March 2 6 , 202 3 and March 2 7 , 202 2	5

	Condensed Consolidated Statements of Cash Flows — For the Th ir teen Weeks Ended March 2 6 , 202 3 and March 2 7 , 202 2	6

	Notes to Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36

Item 4.	Controls and Procedures	36

	PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	37

Item 1A.	Risk Factors	37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37



Item 6.	Exhibits	38

	Signature	39

Table of Contents

BLOOMIN’ BRANDS, INC.

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


	MARCH 26, 2023		DECEMBER 25, 2022
	(UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents	$	94,441	$	84,735

Inventories	67,898		78,124

Other current assets, net	85,507		183,718
Total current assets	247,846		346,577


Property, fixtures and equipment, net	936,225		914,142
Operating lease right-of-use assets	1,091,943		1,103,083
Goodwill	272,510		273,032
Intangible assets, net	446,696		448,326
Deferred income tax assets, net	151,436		153,118
Other assets, net	85,137		82,147
Total assets	$	3,231,793	$	3,320,425


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	196,093	$	183,715
Accrued and other current liabilities	399,465		399,301
Unearned revenue	322,608		394,215

Current portion of long-term debt	2,267		1,636
Total current liabilities	920,433		978,867

Non-current operating lease liabilities	1,136,694		1,148,607


Long-term debt, net	765,702		831,656
Other long-term liabilities, net	86,123		87,386
Total liabilities	2,908,952		3,046,516
Commitments and contingencies (Note 12)


Stockholders’ equity
Bloomin’ Brands stockholders’ equity
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of March 26, 2023 and December 25, 2022	—		—
Common stock, $0.01 par value, 475,000,000 shares authorized; 87,465,214 and 87,696,200 shares issued and outstanding as of March 26, 2023 and December 25, 2022, respectively	875		877
Additional paid-in capital	1,141,017		1,161,912
Accumulated deficit	(635,451)		(706,109)
Accumulated other comprehensive loss	(186,445)		(185,311)
Total Bloomin’ Brands stockholders’ equity	319,996		271,369
Noncontrolling interests	2,845		2,540
Total stockholders’ equity	322,841		273,909
Total liabilities and stockholders’ equity	$	3,231,793	$	3,320,425

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)


	THIRTEEN WEEKS ENDED
		MARCH 26, 2023		MARCH 27, 2022
Revenues
Restaurant sales		$	1,228,234	$	1,123,575
Franchise and other revenues		16,512		16,960
Total revenues		1,244,746		1,140,535
Costs and expenses
Food and beverage		384,214		359,370
Labor and other related		341,542		312,511
Other restaurant operating		282,927		259,110
Depreciation and amortization		46,302		41,775
General and administrative		65,804		58,674
Provision for impaired assets and restaurant closings		3,324		1,839
Total costs and expenses		1,124,113		1,033,279
Income from operations		120,633		107,256



Interest expense, net		(12,444)		(13,633)
Income before provision for income taxes		108,189		93,623
Provision for income taxes		14,761		15,929
Net income		93,428		77,694
Less: net income attributable to noncontrolling interests		2,117		2,183
Net income attributable to Bloomin’ Brands		$	91,311	$	75,511



Net income		$	93,428	$	77,694
Other comprehensive income:
Foreign currency translation adjustment		(1,134)		11,283

Unrealized gain on derivatives, net of tax		—		573
Reclassification of adjustments for loss on derivatives included in Net income, net of tax		—		681
Impact of terminated interest rate swaps included in Net income, net of tax		—		3,021
Comprehensive income		92,294		93,252
Less: comprehensive income attributable to noncontrolling interests		2,117		2,183
Comprehensive income attributable to Bloomin’ Brands		$	90,177	$	91,069

Earnings per share:
Basic		$	1.02	$	0.85
Diluted		$	0.93	$	0.73
Weighted average common shares outstanding:
Basic		89,116		89,355
Diluted		98,011		103,454

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

BLOOMIN’ BRANDS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)


	BLOOMIN’ BRANDS, INC.
	COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		ACCUM- ULATED DEFICIT		ACCUMULATED OTHER COMPREHENSIVE LOSS		NON-CONTROLLING INTERESTS		TOTAL
	SHARES	AMOUNT






















Balance, December 25, 2022	87,696	$	877	$	1,161,912	$	(706,109)	$	(185,311)	$	2,540	$	273,909

Net income	—	—		—		91,311		—		2,117		93,428
Other comprehensive loss	—	—		—		—		(1,134)		—		(1,134)
Cash dividends declared, $0.24 per common share	—	—		(21,014)		—		—		—		(21,014)
Repurchase and retirement of common stock, including excise tax	(863)	(9)		—		(20,653)		—		—		(20,662)
Stock-based compensation	—	—		2,904		—		—		—		2,904

Common stock issued under stock plans (1)	632	7		(2,785)		—		—		—		(2,778)

Distributions to noncontrolling interests	—	—		—		—		—		(2,555)		(2,555)
Contributions from noncontrolling interests	—	—		—		—		—		743		743







Balance, March 26, 2023	87,465	$	875	$	1,141,017	$	(635,451)	$	(186,445)	$	2,845	$	322,841


	BLOOMIN’ BRANDS, INC.
	COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		ACCUM- ULATED DEFICIT		ACCUMULATED OTHER COMPREHENSIVE LOSS		NON-CONTROLLING INTERESTS		TOTAL
	SHARES	AMOUNT



















Balance, December 26, 2021	89,253	$	893	$	1,119,728	$	(698,171)	$	(205,989)	$	6,389	$	222,850

Net income	—	—		—		75,511		—		2,183		77,694
Other comprehensive income, net of tax	—	—		—		—		15,558		—		15,558
Cash dividends declared, $0.14 per common share	—	—		(12,559)		—		—		—		(12,559)
Repurchase and retirement of common stock	(551)	(6)		—		(11,696)		—		—		(11,702)
Stock-based compensation	—	—		4,843		—		—		—		4,843


Common stock issued under stock plans (1)	483	5		880		—		—		—		885

Purchase of noncontrolling interests, net of tax of $888	—	—		2,566		—		—		(4,454)		(1,888)

Distributions to noncontrolling interests	—	—		—		—		—		(2,641)		(2,641)
Contributions from noncontrolling interests	—	—		—		—		—		217		217



Balance, March 27, 2022	89,185	$	892	$	1,115,458	$	(634,356)	$	(190,431)	$	1,694	$	293,257

________________

(1)Net of forfeitures and shares withheld for employee taxes.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

BLOOMIN’ BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN THOUSANDS, UNAUDITED)


	THIRTEEN WEEKS ENDED
	MARCH 26, 2023		MARCH 27, 2022

Cash flows provided by operating activities:
Net income	$	93,428	$	77,694
Adjustments to reconcile Net income to cash provided by operating activities:
Depreciation and amortization	46,302		41,775
Amortization of debt discounts and issuance costs	763		1,065
Amortization of deferred gift card sales commissions	7,797		8,017
Provision for impaired assets and restaurant closings	3,324		1,839

Non-cash interest expense from terminated interest rate swaps	—		4,067
Non-cash operating lease costs	21,182		20,477


Stock-based and other non-cash compensation expense	2,904		4,843
Deferred income tax expense	1,682		3,209







Other, net	(1,823)		2,229
Change in assets and liabilities	14,109		(18,080)






Net cash provided by operating activities	189,668		147,135
Cash flows used in investing activities:




Capital expenditures	(64,415)		(40,180)
Other investments, net	1,470		1,030
Net cash used in investing activities	(62,945)		(39,150)



Cash flows used in financing activities:


Repayments of long-term debt and finance lease obligations	(385)		(2,863)
Proceeds from borrowings on revolving credit facilities	190,000		90,000
Repayments of borrowings on revolving credit facilities	(260,000)		(160,000)











(Payments of taxes) proceeds from share-based compensation, net	(2,778)		885
Distributions to noncontrolling interests	(2,555)		(2,641)
Contributions from noncontrolling interests	743		217
Purchase of noncontrolling interests	(100)		(1,000)
Payments for partner equity plan	—		(2,748)
Repurchase of common stock	(20,898)		(10,402)



Cash dividends paid on common stock	(21,014)		(12,559)

Net cash used in financing activities	(116,987)		(101,111)
Effect of exchange rate changes on cash and cash equivalents	(30)		1,965

Net increase in cash, cash equivalents and restricted cash	9,706		8,839
Cash, cash equivalents and restricted cash as of the beginning of the period	84,735		89,057
Cash, cash equivalents and restricted cash as of the end of the period	$	94,441	$	97,896
Supplemental disclosures of cash flow information:
Cash paid for interest	$	6,528	$	2,444
Cash paid for income taxes, net of refunds	$	2,458	$	2,257
Supplemental disclosures of non-cash investing and financing activities:

Leased assets obtained in exchange for new operating lease liabilities	$	11,394	$	11,515
Leased assets obtained in exchange for new finance lease liabilities	$	4,711	$	1,313
Increase (decrease) in liabilities from the acquisition of property, fixtures and equipment	$	1,159	$	(6,178)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Description of the Business and Basis of Presentation

Description of the Business - Bloomin’ Brands (“Bloomin’ Brands” or the “Company”) owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in which the Company has no direct investment are operated under franchise agreements.

Basis of Presentation - The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the Company, all adjustments necessary for fair financial statement presentation for the periods presented have been included and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 25, 2022.

Recently Issued Financial Accounting Standards Not Yet Adopted - Recent accounting guidance not discussed herein is not applicable, did not have or is not expected to have a material impact to the Company.

Reclassifications - The Company reclassified certain items in the accompanying consolidated financial statements for prior periods to be comparable with the classification for the current period, including, but not limited to, presentation of certain notes to the consolidated financial statements. These reclassifications had no effect on previously reported net income.

2. Revenue Recognition

The following table includes the categories of revenue included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated:


	THIRTEEN WEEKS ENDED
(dollars in thousands)		MARCH 26, 2023		MARCH 27, 2022
Revenues
Restaurant sales		$	1,228,234	$	1,123,575
Franchise and other revenues
Franchise revenues		13,523		13,406
Other revenues		2,989		3,554
Total Franchise and other revenues		16,512		16,960
Total revenues		$	1,244,746	$	1,140,535

Table of Contents

BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) - Continued

The following table includes the disaggregation of Restaurant sales and franchise revenues, by restaurant concept and major international market, for the periods indicated:


















	THIRTEEN WEEKS ENDED
	MARCH 26, 2023				MARCH 27, 2022
(dollars in thousands)	RESTAURANT SALES		FRANCHISE REVENUES		RESTAURANT SALES		FRANCHISE REVENUES
U.S.
Outback Steakhouse	$	628,183	$	8,544	$	595,393	$	8,459
Carrabba’s Italian Grill	188,042		795		175,628		661
Bonefish Grill	157,689		171		151,416		177
Fleming’s Prime Steakhouse & Wine Bar	102,773		—		97,662		—
Other	3,882		15		3,536		5
U.S. total	1,080,569		9,525		1,023,635		9,302
International
Outback Steakhouse - Brazil (1)	122,016		—		85,301		—
Other (1)(2)	25,649		3,998		14,639		4,104
International total	147,665		3,998		99,940		4,104
Total	$	1,228,234	$	13,523	$	1,123,575	$	13,406

________________

(1)Restaurant sales in Brazil increased $9.6 million during the thirteen weeks ended March 26, 2023 in connection with value added tax exemptions resulting from recent tax legislation. See Note 11 - Income Taxes for details regarding the Brazil tax legislation.

(2)Includes Restaurant sales for Company-owned Outback Steakhouse restaurants outside of Brazil and Abbraccio restaurants in Brazil. Franchise revenues primarily include revenues from franchised Outback Steakhouse restaurants.

The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance Sheets as of the periods indicated:


(dollars in thousands)	MARCH 26, 2023		DECEMBER 25, 2022
Other current assets, net
Deferred gift card sales commissions	$	13,403	$	17,755

Unearned revenue
Deferred gift card revenue	$	314,096	$	386,495
Deferred loyalty revenue	6,024		5,628
Deferred franchise fees - current	471		460
Other	2,017		1,632
Total Unearned revenue	$	322,608	$	394,215

Other long-term liabilities, net
Deferred franchise fees - non-current	$	4,193	$	4,126

The following table is a rollforward of deferred gift card sales commissions for the periods indicated:


	THIRTEEN WEEKS ENDED
(dollars in thousands)		MARCH 26, 2023		MARCH 27, 2022
Balance, beginning of the period		$	17,755	$	17,793
Deferred gift card sales commissions amortization		(7,797)		(8,017)
Deferred gift card sales commissions capitalization		4,403		4,169
Other		(958)		(912)
Balance, end of the period		$	13,403	$	13,033

Table of Contents

BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) - Continued

The following table is a rollforward of unearned gift card revenue for the periods indicated:


	THIRTEEN WEEKS ENDED
(dollars in thousands)		MARCH 26, 2023		MARCH 27, 2022
Balance, beginning of the period		$	386,495	$	387,945
Gift card sales		53,005		50,280
Gift card redemptions		(118,283)		(116,622)
Gift card breakage		(7,121)		(6,629)
Balance, end of the period		$	314,096	$	314,974

3. Earnings Per Share

The following table presents the computation of basic and diluted earnings per share for the periods indicated:


	THIRTEEN WEEKS ENDED
(in thousands, except per share data)		MARCH 26, 2023		MARCH 27, 2022
Net income attributable to Bloomin’ Brands		$	91,311	$	75,511





Basic weighted average common shares outstanding		89,116		89,355

Effect of dilutive securities:
Stock options		401		370
Nonvested restricted stock units		269		279
Nonvested performance-based share units		286		276
Convertible senior notes		4,831		8,732
Warrants		3,108		4,442
Diluted weighted average common shares outstanding		98,011		103,454

Basic earnings per share		$	1.02	$	0.85
Diluted earnings per share		$	0.93	$	0.73

Share-based compensation-related weighted average securities outstanding not included in the computation of earnings per share because their effect was antidilutive were as follows for the periods indicated:


	THIRTEEN WEEKS ENDED
(shares in thousands)		MARCH 26, 2023	MARCH 27, 2022
Stock options		725	1,417
Nonvested restricted stock units		120	217
Nonvested performance-based share units		344	365

4. Stock-based Compensation Plans

The Company recognized stock-based compensation expense as follows for the periods indicated:


	THIRTEEN WEEKS ENDED
(dollars in thousands)		MARCH 26, 2023		MARCH 27, 2022
Performance-based share units		$	923	$	2,619
Restricted stock units		1,963		1,810
Stock options		—		377

		$	2,886	$	4,806

Table of Contents

BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) - Continued

In February 2023, the Company granted performance-based share units (“PSUs”) subject to final payout modification by a Relative Total Shareholder Return (“Relative TSR”) modifier. This Relative TSR modifier can adjust the final payout outcome by 75%, 100% or 125% of the achieved performance metric, with the overall payout capped at 200% of the annual target grant. These PSUs have a three-year cliff vesting period and their fair value was estimated using the Monte Carlo simulation model.

The following table presents a summary of the Company’s PSU activity:


(in thousands, except per unit data)	PERFORMANCE-BASED SHARE UNITS	WEIGHTED AVERAGE GRANT DATE FAIR VALUE PER UNIT		AGGREGATE INTRINSIC VALUE (1)
Outstanding as of December 25, 2022	874	$	24.83	$	18,323
Granted	301	$	29.01
Performance adjustment (2)	154	$	19.84
Vested	(470)	$	19.84
Forfeited	(32)	$	26.39
Outstanding as of March 26, 2023	827	$	26.92	$	20,630
Expected to vest as of March 26, 2023	1,067			$	26,611

________________

(1)Based on the $20.96 and $24.94 share price of the Company’s common stock on December 23, 2022 and March 24, 2023, the last trading day of the year ended December 25, 2022 and the thirteen weeks ended March 26, 2023, respectively.

(2)Represents adjustment to 148% payout for PSUs granted during 2020.

Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated:


	THIRTEEN WEEKS ENDED
	MARCH 26, 2023			MARCH 27, 2022
Assumptions:
Risk-free interest rate (1)	4.26		%	1.64		%
Dividend yield (2)	3.47		%	2.31		%

Volatility (3)	51.02		%	49.11		%

Grant date fair value per unit (4)	$	29.01		$	26.10

________________

(1)Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit.

(2)Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term.

(3)Based on the historical volatility of the Company’s stock over the last seven years.

(4)Represents a premium above the per share value of the Company’s common stock for the Relative TSR modifier as of the grant date of 2.7% and 7.9% as of March 26, 2023 and March 27, 2022, respectively.

The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of March 26, 2023:


	UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands)		REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)
Performance-based share units	$	16,617	2.0
Restricted stock units	$	11,864	2.2

Table of Contents

BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) - Continued

5. Other Current Assets, Net

Other current assets, net, consisted of the following as of the periods indicated:


(dollars in thousands)	MARCH 26, 2023		DECEMBER 25, 2022
Prepaid expenses	$	27,856	$	29,343
Accounts receivable - gift cards, net	8,515		85,606
Accounts receivable - vendors, net	10,209		25,385
Accounts receivable - franchisees, net	3,755		2,550
Accounts receivable - other, net	17,488		18,408
Deferred gift card sales commissions	13,403		17,755


Other current assets, net	4,281		4,671
	$	85,507	$	183,718

6. Long-term Debt, Net

Following is a summary of outstanding Long-term debt, net, as of the periods indicated:


	MARCH 26, 2023				DECEMBER 25, 2022
(dollars in thousands)	OUTSTANDING BALANCE		INTEREST RATE		OUTSTANDING BALANCE		INTEREST RATE
Senior secured credit facility - revolving credit facility (1)	$	360,000	6.28	%	$	430,000	5.79	%
2025 Notes	105,000		5.00	%	105,000		5.00	%
2029 Notes	300,000		5.13	%	300,000		5.13	%
Finance lease liabilities	9,114				4,785

Less: unamortized debt discount and issuance costs	(6,145)				(6,493)

Total debt, net	767,969				833,292
Less: current portion of long-term debt	(2,267)				(1,636)
Long-term debt, net	$	765,702			$	831,656

________________

(1)Interest rate represents the weighted average interest rate as of the respective periods.

Debt Covenants - As of March 26, 2023 and December 25, 2022, the Company was in compliance with its debt covenants.

7. Convertible Senior Notes

2025 Notes - In connection with dividends paid during the thirteen weeks ended March 26, 2023, the conversion rate for the Company’s remaining convertible senior notes due 2025 (“2025 Notes”) decreased to approximately $11.49 per share, which represents 87.059 shares of common stock per $1,000 principal amount of the 2025 Notes, or a total of approximately 9.141 million shares.

Table of Contents

BLOOMIN’ BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) - Continued

The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated:


(dollars in thousands)	MARCH 26, 2023		DECEMBER 25, 2022
Long-term debt, net
Principal	$	105,000	$	105,000
Less: debt issuance costs (1)	(1,744)		(1,939)
Net carrying amount	$	103,256	$	103,061

________________

(1)Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life.

Following is a summary of interest expense for the 2025 Notes by component for the periods indicated:


	THIRTEEN WEEKS ENDED
(dollars in thousands)		MARCH 26, 2023		MARCH 27, 2022
Coupon interest		$	1,313	$	2,875
Debt issuance cost amortization		195		404
Total interest expense (1)		$	1,508	$	3,279

________________

(1)The effective rate of the 2025 Notes over their expected life is 5.85%.

Based on the daily closing prices of the Company’s stock during the quarter ended March 26, 2023, the remaining holders of the 2025 Notes are eligible to convert their 2025 Notes during the second quarter of 2023.

8. Stockholders’ Equity

Share Repurchases - On February 8, 2022, the Company’s Board of Directors (the “Board”) approved a share repurchase program (the “2022 Share Repurchase Program”) under which the Company was authorized to repurchase up to $125.0 million of its outstanding common stock. During the thirteen weeks ended March 26, 2023, the Company fully utilized the remaining share repurchase authorization under the 2022 Share Repurchase Program. On February 7, 2023, the Company’s Board approved a new $125.0 million authorization (the “2023 Share Repurchase Program”) expiring on August 7, 2024. As of March 26, 2023, $119.4 million remained available for repurchase under the 2023 Share Repurchase Program.