Delaware | 001-35625 | 20-8023465 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | ||
99.1 | Press Release of Bloomin’ Brands, Inc. dated February 19, 2015 |
BLOOMIN’ BRANDS, INC. | |||
(Registrant) | |||
Date: | February 19, 2015 | By: | /s/ David J. Deno |
David J. Deno | |||
Executive Vice President and Chief Financial and Administrative Officer (Principal Financial Officer) |
NEWS | Exhibit 99.1 | |||
Chris Meyer | ||||
Group Vice President, IR & Finance | ||||
(813) 830-5311 |
• | Total revenues increased 5.5% to $1.1 billion |
• | Comparable sales for Company-owned core domestic concepts increased 4.2% with a traffic increase of 1.0% |
• | System-wide development was 18 new restaurants, including five Outback Steakhouse restaurants in Brazil |
• | Adjusted net income* was $35.5 million versus $34.2 million in the fourth quarter of 2013 and U.S. GAAP Net income attributable to Bloomin’ Brands was $22.4 million versus $59.0 million in the fourth quarter of 2013 |
• | Total revenues increased 7.6% to $4.4 billion |
• | Comparable sales for Company-owned core domestic concepts increased 2.0% with flat traffic |
• | System-wide development was 57 new restaurants, including 15 Outback Steakhouse restaurants in Brazil |
• | Adjusted net income* was $140.8 million versus $142.4 million in 2013 and U.S. GAAP Net income attributable to Bloomin’ Brands was $91.1 million versus $208.4 million in 2013 |
FISCAL YEAR | |||||||||||||||||||||||
Q4 2014 | Q4 2013 | CHANGE | 2014 | 2013 | CHANGE | ||||||||||||||||||
Adjusted diluted earnings per share* | $ | 0.28 | $ | 0.27 | $ | 0.01 | $ | 1.10 | $ | 1.11 | $ | (0.01 | ) | ||||||||||
Adjustments* | (0.11 | ) | 0.19 | (0.30 | ) | (0.39 | ) | 0.52 | (0.91 | ) | |||||||||||||
Diluted earnings per share | $ | 0.17 | $ | 0.46 | $ | (0.29 | ) | $ | 0.71 | $ | 1.63 | $ | (0.92 | ) | |||||||||
* | Denoted items are non-GAAP measurements, which include adjustments to the financial results as determined under U.S. GAAP. See Reconciliations of Non-GAAP Measures to U.S. GAAP Results included later in this release. |
(dollars in millions): | Q4 2014 | Q4 2013 | % Change | |||||||
Total revenues | $ | 1,108.5 | $ | 1,050.6 | 5.5 | % | ||||
Adjusted restaurant level operating margin* | 15.7 | % | 15.9 | % | (0.2 | )% | ||||
U.S. GAAP restaurant level operating margin | 16.3 | % | 14.8 | % | 1.5 | % | ||||
Adjusted operating income margin* | 5.2 | % | 6.1 | % | (0.9 | )% | ||||
U.S. GAAP operating income margin | 3.7 | % | 3.0 | % | 0.7 | % |
* | Denoted items are non-GAAP measurements, which include adjustments to the financial results as determined under U.S. GAAP. See Reconciliations of Non-GAAP Measures to U.S. GAAP Results included later in this release. |
• | The increase in Total revenues was primarily due to additional sales from acquired restaurants in Brazil, additional revenues from new restaurant openings and an increase in domestic comparable restaurant sales at our existing restaurants. The increase in restaurant sales was partially offset by the loss of one operating day due to the the Company’s change to a 52-53 week fiscal year, the closing of 52 restaurants since September 30, 2013 and a decline in comparable restaurant sales in the Company’s South Korea restaurants. |
• | The decrease in Adjusted restaurant-level operating margin was primarily due to lunch expansion rollout costs, commodity inflation and higher than normal health insurance claims. This decrease was partially offset by productivity savings and higher domestic average unit volumes. |
• | The decrease in Adjusted operating income margin was driven primarily by higher employee incentive compensation costs, higher depreciation and amortization for Brazil acquisition-related assets as well as new financial systems, and lower Adjusted restaurant-level operating margin as described above. |
• | The effective income tax rate on an adjusted basis for fiscal 2014 was 24.8%. The fiscal 2014 tax rate was lower than expected and was driven by the mix of income across our domestic and international portfolio, unplanned one-time tax benefits and the benefit of recently enacted tax regulations. |
THIRTEEN WEEKS ENDED DECEMBER 28, 2014 | COMPANY- OWNED | ||
Domestic comparable restaurant sales (stores open 18 months or more) | |||
Outback Steakhouse | 6.4 | % | |
Carrabba’s Italian Grill | 0.3 | % | |
Bonefish Grill | 0.7 | % | |
Fleming’s Prime Steakhouse and Wine Bar | 3.4 | % |
• | Blended comparable restaurant sales for Company-owned core domestic concepts were up 4.2% due to increases in general menu prices and a strengthening of the dinner sales trend relative to the third quarter. Customer traffic increased by 1.0% driven primarily by lunch expansion and promotions. |
SEPTEMBER 28, 2014 | OPENINGS | CLOSURES | DECEMBER 28, 2014 | ||||||||
Outback Steakhouse | |||||||||||
Company-owned—international (1) (2) (3) | 176 | 8 | (17 | ) | 167 | ||||||
Franchised—international | 51 | 4 | — | 55 | |||||||
Carrabba’s Italian Grill—Company-owned | 243 | 1 | (2 | ) | 242 | ||||||
Bonefish Grill-Company—owned | 196 | 5 | — | 201 | |||||||
System-wide development | 18 | (19 | ) |
(1) | Includes five openings in Brazil, two openings in South Korea and one opening in Hong Kong. Includes 16 closures in South Korea and one closure in Mexico. |
(2) | The restaurant count for Brazil is reported as of November 30, 2014 to correspond with the balance sheet date of this subsidiary and, therefore, excludes one restaurant that opened in December 2014. |
(3) | The restaurant count as of December 28, 2014 includes 21 locations scheduled to close during 2015 primarily in South Korea. |
• | In our November 4, 2014 earnings release, we announced our intention to close 36 underperforming international locations as part of the International Restaurant Closure Initiative. The Company incurred pre-tax restaurant closing costs of $10.3 million in the fourth quarter, including costs associated with lease obligations and employee terminations. Additional restaurant closing costs associated with this initiative of $9.0 million to $12.0 million are expected in the first quarter of 2015. |
• | In September 2014, the Company reclassified its Roy’s assets and liabilities as held for sale. Following the decision to sell, we recorded pre-tax impairment and other charges of $7.4 million and $6.1 million during the thirteen weeks ended December 28, 2014 and September 28, 2014, respectively. In January 2015, we sold the Roy’s concept. |
• | During the third quarter of 2014, we initiated an organizational realignment that optimized certain support functions in our corporate office. As a result of this realignment, the Company incurred $3.7 million and $5.4 million of expense for severance and related items during the thirteen weeks ended December 28, 2014 and September 28, 2014, respectively. |
Current Outlook | ||
Financial Results | ||
Total revenues (in millions) | At least $4,490 | |
Adjusted diluted earnings per share (1) | At least $1.27 | |
Percentage increase from 2014 (2) | At least 15% | |
GAAP Diluted earnings per share | At least $1.14 | |
Other Selected Financial Data (in millions, or as otherwise indicated): | ||
Comparable sales for Company-owned core domestic concepts | At least 1.5% | |
Commodity inflation | 4% - 6% | |
Effective income tax rate* | 25% - 27% | |
Number of new system-wide restaurants | 40 - 50 | |
Capital expenditures | $235 - $255 |
* | Denoted item is expressed on an adjusted basis |
(1) | The 2015 Adjusted diluted earnings per share guidance excludes the following adjustments: (i) $5.1 million of estimated pre-tax amortization for the intangibles acquired in connection with the Brazil acquisition and (ii) $9.0 million to $12.0 million of estimated restaurant closing expenses related to our International Restaurant Closure Initiative. |
(2) | Fiscal 2014 included 362 days whereas fiscal 2015 will include 364 days, which will impact fiscal first quarter 2015 results. |
THIRTEEN WEEKS ENDED | THREE MONTHS ENDED | FISCAL YEAR | |||||||||||||
DECEMBER 28, 2014 | DECEMBER 31, 2013 | 2014 | 2013 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||
Revenues | |||||||||||||||
Restaurant sales | $ | 1,101,604 | $ | 1,041,274 | $ | 4,415,783 | $ | 4,089,128 | |||||||
Other revenues | 6,882 | 9,281 | 26,928 | 40,102 | |||||||||||
Total revenues | 1,108,486 | 1,050,555 | 4,442,711 | 4,129,230 | |||||||||||
Costs and expenses | |||||||||||||||
Cost of sales | 354,574 | 340,811 | 1,435,359 | 1,333,842 | |||||||||||
Labor and other related | 309,539 | 299,602 | 1,218,961 | 1,157,622 | |||||||||||
Other restaurant operating | 257,776 | 246,790 | 1,049,053 | 964,279 | |||||||||||
Depreciation and amortization | 47,369 | 42,874 | 190,911 | 164,094 | |||||||||||
General and administrative | 82,649 | 69,521 | 304,382 | 268,928 | |||||||||||
Provision for impaired assets and restaurant closings | 15,911 | 20,132 | 52,081 | 22,838 | |||||||||||
Income from operations of unconsolidated affiliates | — | (276 | ) | — | (7,730 | ) | |||||||||
Total costs and expenses | 1,067,818 | 1,019,454 | 4,250,747 | 3,903,873 | |||||||||||
Income from operations | 40,668 | 31,101 | 191,964 | 225,357 | |||||||||||
Loss on extinguishment and modification of debt | — | — | (11,092 | ) | (14,586 | ) | |||||||||
Gain on remeasurement of equity method investment | — | 36,608 | — | 36,608 | |||||||||||
Other expense, net | (1,415 | ) | (119 | ) | (1,244 | ) | (246 | ) | |||||||
Interest expense, net | (14,114 | ) | (18,188 | ) | (59,658 | ) | (74,773 | ) | |||||||
Income before provision (benefit) for income taxes | 25,139 | 49,402 | 119,970 | 172,360 | |||||||||||
Provision (benefit) for income taxes | 1,205 | (11,512 | ) | 24,044 | (42,208 | ) | |||||||||
Net income | 23,934 | 60,914 | 95,926 | 214,568 | |||||||||||
Less: net income attributable to noncontrolling interests | 1,525 | 1,932 | 4,836 | 6,201 | |||||||||||
Net income attributable to Bloomin’ Brands | $ | 22,409 | $ | 58,982 | $ | 91,090 | $ | 208,367 | |||||||
Net income | $ | 23,934 | $ | 60,914 | $ | 95,926 | $ | 214,568 | |||||||
Other comprehensive (loss) income: | |||||||||||||||
Foreign currency translation adjustment | (42,700 | ) | (15,618 | ) | (31,731 | ) | (17,597 | ) | |||||||
Reclassification of accumulated foreign currency translation adjustment for previously held equity investment | — | 5,980 | — | 5,980 | |||||||||||
Unrealized losses on derivatives, net of tax | (1,907 | ) | — | (2,393 | ) | — | |||||||||
Comprehensive (loss) income | (20,673 | ) | 51,276 | 61,802 | 202,951 | ||||||||||
Less: comprehensive income attributable to noncontrolling interests | 1,525 | 1,932 | 4,836 | 6,201 | |||||||||||
Comprehensive (loss) income attributable to Bloomin’ Brands | $ | (22,198 | ) | $ | 49,344 | $ | 56,966 | $ | 196,750 | ||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.48 | $ | 0.73 | $ | 1.69 | |||||||
Diluted | $ | 0.17 | $ | 0.46 | $ | 0.71 | $ | 1.63 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 125,484 | 124,005 | 125,139 | 122,972 | |||||||||||
Diluted | 128,822 | 127,980 | 128,317 | 128,074 |
DECEMBER 28, 2014 | DECEMBER 31, 2013 | ||||||
(unaudited) | |||||||
Cash and cash equivalents (1) | $ | 165,744 | $ | 209,871 | |||
Net working capital (deficit) (2) | (239,559 | ) | (263,874 | ) | |||
Total assets | 3,344,286 | 3,278,476 | |||||
Total debt, net (3) | 1,315,843 | 1,419,143 | |||||
Total stockholders’ equity | 556,449 | 482,709 |
(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) | The Company completed a refinancing of its Senior Secured Credit Facility in May 2014. The total indebtedness of the Company remained unchanged as a result of the refinancing. |
THIRTEEN WEEKS ENDED DECEMBER 28, 2014 | THREE MONTHS ENDED DECEMBER 31, 2013 | (UNFAVORABLE) FAVORABLE CHANGE IN ADJUSTED | ||||||||||||
U.S. GAAP | ADJUSTED (1) | U.S. GAAP | ADJUSTED (2) | QUARTER TO DATE | ||||||||||
Restaurant sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 32.2 | % | 32.2 | % | 32.7 | % | 32.7 | % | 0.5 | % | ||||
Labor and other related | 28.1 | % | 28.1 | % | 28.8 | % | 27.6 | % | (0.5 | )% | ||||
Other restaurant operating | 23.4 | % | 24.0 | % | 23.7 | % | 23.7 | % | (0.3 | )% | ||||
Restaurant-level operating margin | 16.3 | % | 15.7 | % | 14.8 | % | 15.9 | % | (0.2 | )% |
FISCAL YEAR 2014 | FISCAL YEAR 2013 | (UNFAVORABLE) FAVORABLE CHANGE IN ADJUSTED | ||||||||||||
U.S. GAAP | ADJUSTED (1) | U.S. GAAP | ADJUSTED (2) | YEAR TO DATE | ||||||||||
Restaurant sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 32.5 | % | 32.5 | % | 32.6 | % | 32.6 | % | 0.1 | % | ||||
Labor and other related | 27.6 | % | 27.6 | % | 28.3 | % | 27.9 | % | 0.3 | % | ||||
Other restaurant operating | 23.8 | % | 24.0 | % | 23.6 | % | 23.6 | % | (0.4 | )% | ||||
Restaurant-level operating margin | 16.1 | % | 15.9 | % | 15.5 | % | 15.9 | % | — | % |
(1) | Includes adjustments primarily related to a $6.1 million legal settlement gain and the reversal of $0.8 million and $2.9 million of deferred rent liabilities associated with the International and Domestic Restaurant Closure Initiatives for the thirteen weeks and fiscal year ended December 28, 2014, respectively, which were recorded in Other restaurant operating. |
(2) | Includes adjustments for payroll tax audit contingencies of $12.0 million and $17.0 million for the three months and fiscal year ended December 31, 2013, respectively, which were recorded in Labor and other related. |
THIRTEEN WEEKS ENDED | THREE MONTHS ENDED | FISCAL YEAR | |||||||||||||
(in thousands, except per share amounts) | DECEMBER 28, 2014 | DECEMBER 31, 2013 | 2014 | 2013 | |||||||||||
Income from operations | $ | 40,668 | $ | 31,101 | $ | 191,964 | $ | 225,357 | |||||||
Operating income margin | 3.7 | % | 3.0 | % | 4.3 | % | 5.5 | % | |||||||
Adjustments: | |||||||||||||||
Transaction-related expenses (1) | 229 | 2,246 | 1,347 | 3,888 | |||||||||||
Severance (2) | 3,683 | — | 9,045 | — | |||||||||||
Asset impairments and related costs (3) | 7,538 | — | 24,490 | — | |||||||||||
Restaurant relocations and related costs (4) | 249 | — | 249 | — | |||||||||||
Restaurant impairments and closing costs (5) | 10,339 | 18,695 | 26,841 | 18,695 | |||||||||||
Payroll tax audit contingency (6) | — | 12,000 | — | 17,000 | |||||||||||
Legal settlement | (6,070 | ) | — | (6,070 | ) | — | |||||||||
Purchased intangibles amortization (8) | 1,417 | 560 | 5,952 | 560 | |||||||||||
Adjusted income from operations | $ | 58,053 | $ | 64,602 | $ | 253,818 | $ | 265,500 | |||||||
Adjusted operating income margin | 5.2 | % | 6.1 | % | 5.7 | % | 6.4 | % | |||||||
(CONTINUED...) | |||||||||||||||
THIRTEEN WEEKS ENDED | THREE MONTHS ENDED | FISCAL YEAR | |||||||||||||
(in thousands, except per share amounts) | DECEMBER 28, 2014 | DECEMBER 31, 2013 | 2014 | 2013 | |||||||||||
Net income attributable to Bloomin’ Brands | $ | 22,409 | $ | 58,982 | $ | 91,090 | $ | 208,367 | |||||||
Adjustments: | |||||||||||||||
Transaction-related expenses (1) | 229 | 2,246 | 1,347 | 3,888 | |||||||||||
Severance (2) | 3,683 | — | 9,045 | — | |||||||||||
Asset impairments and related costs (3) | 7,538 | — | 24,490 | — | |||||||||||
Restaurant relocations and related costs (4) | 249 | — | 249 | — | |||||||||||
Restaurant impairments and closing costs (5) | 10,339 | 18,695 | 26,841 | 18,695 | |||||||||||
Payroll tax audit contingency (6) | — | 12,000 | — | 17,000 | |||||||||||
Loss on disposal of business (7) | 770 | — | 770 | — | |||||||||||
Legal settlement | (6,070 | ) | — | (6,070 | ) | — | |||||||||
Purchased intangibles amortization (8) | 1,417 | 560 | 5,952 | 560 | |||||||||||
Loss on extinguishment and modification of debt (9) | — | — | 11,092 | 14,586 | |||||||||||
Gain on remeasurement of equity method investment (10) | — | (36,608 | ) | — | (36,608 | ) | |||||||||
Total adjustments, before income taxes | 18,155 | (3,107 | ) | 73,716 | 18,121 | ||||||||||
Adjustment to provision (benefit) for income taxes (11) | (5,094 | ) | (21,697 | ) | (23,996 | ) | (84,114 | ) | |||||||
Net adjustments | 13,061 | (24,804 | ) | 49,720 | (65,993 | ) | |||||||||
Adjusted net income | $ | 35,470 | $ | 34,178 | $ | 140,810 | $ | 142,374 | |||||||
Diluted earnings per share | $ | 0.17 | $ | 0.46 | $ | 0.71 | $ | 1.63 | |||||||
Adjusted diluted earnings per share | $ | 0.28 | $ | 0.27 | $ | 1.10 | $ | 1.11 | |||||||
Basic weighted average common shares outstanding | 125,484 | 124,005 | 125,139 | 122,972 | |||||||||||
Effect of diluted securities | |||||||||||||||
Stock options | 3,153 | 3,711 | 3,079 | 4,902 | |||||||||||
Nonvested restricted stock and restricted stock units | 152 | 230 | 91 | 191 | |||||||||||
Unvested performance-based share units | 33 | 34 | 8 | 9 | |||||||||||
Diluted weighted average common shares outstanding | 128,822 | 127,980 | 128,317 | 128,074 |
(1) | Transaction-related expenses primarily related to the following: (i) secondary offerings of our common stock completed in November 2014, March 2014 and May 2013; (ii) the refinancing of the Senior Secured Credit Facility in May 2014, and (iii) costs incurred in 2013 to acquire a controlling ownership interest in our Brazilian operations. |
(2) | Related to severance expense incurred as a result of our organizational realignment. |
(3) | Represents asset impairment charges and related costs associated with our decision to sell the Roy’s concept and corporate aircraft. |
(4) | Represents accelerated depreciation incurred in connection with the Outback Steakhouse relocation program. |
(5) | Represents impairments and expenses incurred for the International and Domestic Restaurant Closure Initiatives. |
(6) | Related to an IRS payroll tax audit for the employer’s share of FICA taxes for cash tips. |
(7) | Represents a loss recognized on the sale of one Company-owned Outback Steakhouse location in Mexico to an existing franchisee. |
(8) | Represents non-cash intangible amortization recorded as a result of the acquisition of our Brazilian operations. |
(9) | Relates to the refinancing in May 2014 and repricing in April 2013 of our Senior Secured Credit Facility. |
(10) | Represents recognition of a gain on remeasurement of the previously held equity investment in connection with the Brazil acquisition. |
(11) | Income tax effect of adjustments for the thirteen weeks and fiscal year ended December 28, 2014 was calculated based on the statutory rate applicable to jurisdictions in which the above non-GAAP adjustments relate. For the three months and fiscal year ended December 31, 2013, we utilized a normalized annual effective tax rate of 22.0%, which excludes the income tax benefit of the valuation allowance release. |
THIRTEEN WEEKS ENDED | THREE MONTHS ENDED | FISCAL YEAR | |||||||||||||
(in thousands) | DECEMBER 28, 2014 | DECEMBER 31, 2013 | 2014 | 2013 | |||||||||||
Net income attributable to Bloomin’ Brands | $ | 22,409 | $ | 58,982 | $ | 91,090 | $ | 208,367 | |||||||
Provision (benefit) for income taxes | 1,205 | (11,512 | ) | 24,044 | (42,208 | ) | |||||||||
Interest expense, net | 14,114 | 18,188 | 59,658 | 74,773 | |||||||||||
Depreciation and amortization | 47,369 | 42,874 | 190,911 | 164,094 | |||||||||||
EBITDA | 85,097 | 108,532 | 365,703 | 405,026 | |||||||||||
Impairments, closings and disposals (1) | 7,370 | 1,716 | 26,610 | 3,716 | |||||||||||
Transaction-related expenses (2) | 229 | 2,246 | 1,347 | 3,888 | |||||||||||
Stock-based compensation expense | 4,268 | 3,239 | 16,107 | 13,857 | |||||||||||
Other losses (gains) (3) | 28 | (61 | ) | (477 | ) | 328 | |||||||||
Severance (4) | 3,683 | — | 9,045 | — | |||||||||||
Restaurant impairment and closing costs (5) | 10,339 | 18,695 | 26,841 | 18,695 | |||||||||||
Payroll tax audit contingency (6) | — | 12,000 | — | 17,000 | |||||||||||
Loss on disposal of business (7) | 770 | — | 770 | — | |||||||||||
Legal settlement | (6,070 | ) | — | (6,070 | ) | — | |||||||||
Loss on extinguishment and modification of debt (8) | — | — | 11,092 | 14,586 | |||||||||||
Gain on remeasurement of equity method investment (9) | — | (36,608 | ) | — | (36,608 | ) | |||||||||
Adjusted EBITDA | $ | 105,714 | $ | 109,759 | $ | 450,968 | $ | 440,488 |
(1) | Represents non-cash impairment charges for fixed assets and intangible assets and net gains or losses on the disposal of fixed assets. Includes asset impairment charges associated with our decision to sell the Roy’s concept and corporate aircraft. |
(2) | Transaction-related expenses primarily related to the following: (i) secondary offerings of our common stock completed in November 2014, March 2014 and May 2013; (ii) the refinancing the Senior Secured Credit Facility in May 2014, and (iii) costs incurred in 2013 to acquire a controlling ownership interest in our Brazilian operations. |
(3) | Represents (income) expense incurred as a result of (losses) gains on our partner deferred compensation participant investment accounts, foreign currency transaction loss (gain) and the loss (gain) on the cash surrender value of executive life insurance. |
(4) | Related to severance expense incurred as a result of our organizational realignment. |
(5) | Represents impairments and expenses incurred for the International and Domestic Restaurant Closure Initiatives. |
(6) | Related to an IRS payroll tax audit for the employer’s share of FICA taxes for cash tips. |
(7) | Represents a loss recognized on the sale of one Company-owned Outback Steakhouse location in Mexico to an existing franchisee. |
(8) | Relates to the refinancing in May 2014 and repricing in April 2013 of our Senior Secured Credit Facility. |
(9) | Represents recognition of a gain on remeasurement of the previously held equity investment in connection with the Brazil acquisition. |
DECEMBER 28, | DECEMBER 31, | ||||
2014 | 2013 | ||||
Number of restaurants (at end of the period): | |||||
Outback Steakhouse | |||||
Company-owned—domestic | 648 | 663 | |||
Company-owned—international (1) (2) (3) | 167 | 169 | |||
Franchised—domestic | 105 | 105 | |||
Franchised—international | 55 | 51 | |||
Total | 975 | 988 | |||
Carrabba’s Italian Grill | |||||
Company-owned | 242 | 239 | |||
Franchised | 1 | 1 | |||
Total | 243 | 240 | |||
Bonefish Grill | |||||
Company-owned | 201 | 187 | |||
Franchised | 5 | 7 | |||
Total | 206 | 194 | |||
Fleming’s Prime Steakhouse & Wine Bar | |||||
Company-owned | 66 | 65 | |||
Roy’s (4) | |||||
Company-owned | 20 | 21 | |||
System-wide total | 1,510 | 1,508 |
(1) | Effective November 1, 2013, the Company acquired a controlling interest in the Brazilian Joint Venture resulting in the consolidation and reporting of 47 restaurants (as of the acquisition date) as Company-owned locations. |
(2) | The restaurant count for Brazil is reported as of November 30, 2014 and excludes one restaurant opened in December 2014. |
(3) | The restaurant count as of December 28, 2014, includes 21 locations scheduled to close during 2015, including 20 in South Korea. |
(4) | On January 26, 2015, we sold our Roy’s concept. |