Bloomin' Brands, Inc. reported a challenging financial performance for the thirteen weeks ended September 29, 2024, with total revenues of $1,038.8 million, a decrease of 3.8% from $1,079.8 million in the same period of 2023. Restaurant sales also declined, totaling $1,025.1 million compared to $1,064.4 million a year earlier. The company's net income for the quarter fell sharply to $7.5 million, down from $45.4 million in the prior year, resulting in diluted earnings per share of $0.08, compared to $0.45 in 2023.

For the thirty-nine weeks ended September 29, 2024, Bloomin' Brands reported a net loss of $45.1 million, a stark contrast to the net income of $208.9 million for the same period in 2023. This resulted in a diluted loss per share of $0.56, compared to earnings of $2.08 in the previous year. The decline in profitability was attributed to lower restaurant sales, increased labor and commodity costs due to inflation, and higher impairment and closure costs.

The company’s total current assets decreased to $261.1 million from $343.3 million at the end of 2023, while total current liabilities also fell to $849.0 million from $1,002.3 million. However, long-term debt rose significantly to $1,092.2 million from $780.7 million, contributing to an accumulated deficit that worsened to $(846.4 million) from $(528.8 million) at the end of 2023.

Strategically, Bloomin' Brands has been restructuring its operations, including the closure of 36 underperforming U.S. restaurants and nine locations in Hong Kong, which incurred significant impairment charges. The company also announced plans to sell 67% of its Brazil operations for approximately $243 million, retaining a minority interest. This transaction is expected to close by the end of 2024 and will allow the Brazilian restaurants to operate as unconsolidated franchisees.

In terms of cash flow, net cash provided by operating activities decreased to $108.4 million for the thirty-nine weeks ended September 29, 2024, down from $373.6 million in the previous year. The company’s capital expenditures for 2024 are estimated to be between $260 million and $270 million, reflecting ongoing investments in restaurant development and technology.

Overall, Bloomin' Brands is navigating a challenging market environment, marked by declining sales and profitability, while implementing strategic changes to enhance its operational efficiency and financial stability.