On Wednesday, Bloomin’ Brands voted to reinstate the salary of CEO David Deno with the brand reopening more than three-fourths of its U.S. footprint.
Deno announced in April that he would forgo his base salary “in excess of the amount necessary to cover his required contributions to his employee benefits and related payroll taxes.” His paychecks were used to aid front-line employees.
The board of directors, which agreed to forgo any cash retainer in April, will also have its compensation reinstated.
On June 11, Bloomin’ reported that nearly 400 Outback restaurants have reopened dining rooms and that the brand was approaching 90 percent of pre-COVID sales. At the time, Deno said Bloomin’ expected to have “substantially” all of its domestic dining rooms opened by the end of June. However, it is unclear whether the record-high rises in COVID cases around the country have affected those plans.
Bloomin’ also added industry veterans John Gainor Jr. and Lawrence Jackson to its board of directors, increasing the size to 10 members from eight. The additions were pursuant to an agreement that Bloomin’ and Jana Partners entered into in April. Jana owns 7.35 million shares, or 8.4 percent of the company.
“John and Lawrence bring new and valuable expertise that will complement our Board of Directors,” said Jim Craigie, chairman of the board, in a statement. “John’s deep restaurant and franchising experience, coupled with Lawrence’s restaurant background, private equity experience and leadership in the global procurement space, will improve our ability to maximize shareholder value.”
Gainor previously served as CEO of Dairy Queen from 2008 until he retired in 2017. Before his role as CEO, he worked as Dairy Queen’s chief supply chain officer. He also serves on the board for Jack in the Box and Saia. Gainor will join the brand’s Nominating and Corporate Governance Committee.
Jackson worked as CEO of global procurement and EVP and chief people officer at Walmart and in executive roles at Dollar General, Safeway, and PepsiCo. He currently serves as a senior adviser at New Mountain Capital. He is chairman of SourceMark, where he was CEO from 2010 to 2012. Jackson will join the Audit Committee.
“We have developed a good working relationship with the Board of Directors and Dave and hold John and Lawrence in the highest regard,” said Barry Rosenstein, managing partner of Jana Partners, in a statement. “We are encouraged by the steps the Company has been taking, including these director additions, and by the Board’s ongoing commitment to pursuing all avenues to create stockholder value.”
The announcement comes after Jana’s attempts in the past couple of years to convince the large casual-dining company to sell or break into two organizations—one focused on Outback and the other looking over smaller chains. Almost two years ago, one of Jana’s efforts resulted in a seat on the board, still held by Wendy Beck.
Jana is the same fund that took a stake in Whole Foods Market in 2017. In that case, Jana pushed Whole Foods to explore strategic alternatives. On June 16, Amazon sent a shock wave through foodservice with its $13.7 billion purchase of the supermarket behemoth.
Deno, the company’s former EVP and chief financial and administrative officer, was appointed CEO in March 2019. He has been with Bloomin’ since 2012. He previously served as the president of Best Buy’s Asia division and CFO for Best Buy International. His career includes stops at PepsiCo/YUM! Brands and eight years at Burger King.
Deno entered into an amended and restated officer employment agreement with Bloomin’ on April 1, 2019, for a five-year term with optional one-year renewals, under which his base salary would be $900,000. Additionally, Deno’s annual target bonus would be 150 percent of base salary (prorated effective April 1, 2019), and he received a one-time equity award having an aggregate target grant date fair market value of $5 million. Beginning in 2020, the target value of his annual equity award under this plan would be four times Deno’s base salary.
Here is a look at Bloomin’s latest financial update across the board, provided in early June.
Week ending March 1
- Outback: 0.4 percent
- Carrabba’s: 6.5 percent
- Bonefish: 5 percent
- Fleming’s: –1.9 percent
Week ending March 8
- Outback: 0.5 percent
- Carrabba’s: 0.7 percent
- Bonefish: –4.5 percent
- Fleming’s: –7 percent
Week ending March 15
- Outback: –18 percent
- Carrabba’s: –16.2 percent
- Bonefish: –23.4 percent
- Fleming’s: –23.2 percent
Week ending March 22
- Outback: –63.7 percent
- Carrabba’s: –67.5 percent
- Bonefish: –83.4 percent
- Fleming’s: –82.3 percent
Week ending March 29
- Outback: –63.5 percent
- Carrabba’s: –68.7 percent
- Bonefish: –82.7 percent
- Fleming’s: –85.6 percent
Week ending April 5
- Outback: –60.6 percent
- Carrabba’s: –64.7 percent
- Bonefish: –79.2 percent
- Fleming’s: –82.7 percent
Week ending April 12
- Outback: –52.2 percent
- Carrabba’s: –53 percent
- Bonefish: –68.2 percent
- Fleming’s: –63.9 percent
Week ending April 19
- Outback: –40.3 percent
- Carrabba’s: –54 percent
- Bonefish: –74.3 percent
- Fleming’s: –77.9 percent
Week ending April 26
- Outback: –41 percent
- Carrabba’s: –50.3 percent
- Bonefish: –72.6 percent
- Fleming’s: –73.7 percent
Week ending May 3
- Outback: –38.4 percent
- Carrabba’s: –47.2 percent
- Bonefish: –70.7 percent
- Fleming’s: –74.1 percent
Week ended May 10
- Outback: –32.8 percent
- Carrabba’s: –39 percent
- Bonefish Grill: –62.4 percent
- Fleming’s: –66.9 percent
Week ended May 17
- Outback: –30.6 percent
- Carrabba’s: –35.2 percent
- Bonefish Grill: –61.8 percent
- Fleming’s: –61.5 percent
Week ended May 31
- Outback: –24.8 percent
- Carrabba’s: –24.1 percent
- Bonefish Grill: –48.6 percent
- Fleming’s: –36.9 percent
Week ending June 6
- Outback: –24.7 percent
- Carrabba’s: –21.4 percent
- Bonefish Grill: –40.5 percent
- Fleming’s: –45.2 percent
Here is a comparison of restaurants with in-restaurant dining versus those with off-premises-only models. It provides a pretty clear view why Bloomin’ is optimistic so far.
Outback
Restaurants with dine-in service
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $66,180
- Same-store sales: –22.2 percent
- Number of restaurants: 178
Week ended May 17
- Average sales volumes: $54,464
- Same-store sales: –16.9 percent
- Number of restaurants: 239
Week ended May 24
- Average sales volumes: $54,490
- Same-store sales: –17.1 percent
- Number of restaurants: 277
Week ended May 31
- Average sales volumes: $57,276
- Same-store sales: –13.2 percent
- Number of restaurants: 360
Week ended June 6
- Average sales volumes: $57,223
- Same-store sales: –13.6 percent
- Number of restaurants: 373
Restaurants with off-premises-only dining
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $53,684
- Same-store sales: –37.6 percent
- Number of restaurants: 393
Week ended May 17
- Average sales volumes: $40,480
- Same-store sales: –40.1 percent
- Number of restaurants: 332
Week ended May 24
- Average sales volumes: $40,518
- Same-store sales: –36.8 percent
- Number of restaurants: 294
Week ended May 31
- Average sales volumes: $36,352
- Same-store sales: –44.7 percent
- Number of restaurants: 211
Week ended June 6
- Average sales volumes: $36,248
- Same-store sales: –45.5 percent
- Number of restaurants: 198
Carrabba’s
Restaurants with dine-in service
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $57,070
- Same-store sales: –30 percent
- Number of restaurants: 92
Week ended May 17
- Average sales volumes: $42,351
- Same-store sales: –26.5 percent
- Number of restaurants: 114
Week ended May 24
- Average sales volumes: $43,510
- Same-store sales: –24.2 percent
- Number of restaurants: 125
Week ended May 31
- Average sales volumes: $45,099
- Same-store sales: –16.1 percent
- Number of restaurants: 150
Week ended June 6
- Average sales volumes: $46,334
- Same-store sales: –13.3 percent
- Number of restaurants: 153
Restaurants with off-premises-only dining
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $35,886
- Same-store sales: –47.8 percent
- Number of restaurants: 112
Week ended May 17
- Average sales volumes: $25,369
- Same-store sales: –48.2 percent
- Number of restaurants: 90
Week ended May 24
- Average sales volumes: $27,039
- Same-store sales: –44.3 percent
- Number of restaurants: 79
Week ended May 31
- Average sales volumes: $24,405
- Same-store sales: –49.1 percent
- Number of restaurants: 54
Week ended June 6
- Average sales volumes: $25,507
- Same-store sales: –48 percent
- Number of restaurants: 51
Bonefish
Restaurants with dine-in service
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $39,209
- Same-store sales: –51.4 percent
- Number of restaurants: 61
Week ended May 17
- Average sales volumes: $30,465
- Same-store sales: –48.4 percent
- Number of restaurants: 83
Week ended May 24
- Average sales volumes: $33,013
- Same-store sales: –44.4 percent
- Number of restaurants: 99
Week ended May 31
- Average sales volumes: $34,421
- Same-store sales: –38 percent
- Number of restaurants: 123
Week ended June 6
- Average sales volumes: $38,708
- Same-store sales: –30.7 percent
- Number of restaurants: 133
Restaurants with off-premises-only dining
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $25,072
- Same-store sales: –67.8 percent
- Number of restaurants: 128
Week ended May 17
- Average sales volumes: $15,692
- Same-store sales: –72.6 percent
- Number of restaurants: 106
Week ended May 24
- Average sales volumes: $17,010
- Same-store sales: –69.4 percent
- Number of restaurants: 90
Week ended May 31
- Average sales volumes: $17,569
- Same-store sales: –68.4 percent
- Number of restaurants: 66
Week ended June 6
- Average sales volumes: $19,447
- Same-store sales: –64.5 percent
- Number of restaurants: 56
Fleming’s
Restaurants with dine-in service
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $69,378
- Same-store sales: –52.8 percent
- Number of restaurants: 2
Week ended May 17
- Average sales volumes: $44,407
- Same-store sales: –32.2 percent
- Number of restaurants: 28
Week ended May 24
- Average sales volumes: $49,225
- Same-store sales: –31.1 percent
- Number of restaurants: 33
Week ended May 31
- Average sales volumes: $47,440
- Same-store sales: –17 percent
- Number of restaurants: 42
Week ended June 6
- Average sales volumes: $47,995
- Same-store sales: –30.2 percent
- Number of restaurants: 48
Restaurants with off-premises-only dining
Week ended May 10 (includes benefit of Mother’s Day)
- Average sales volumes: $41,908
- Same-store sales: –67.4 percent
- Number of restaurants: 63
Week ended May 17
- Average sales volumes: $21,340
- Same-store sales: –77.1 percent
- Number of restaurants: 37
Week ended May 24
- Average sales volumes: $27,343
- Same-store sales: –69.1 percent
- Number of restaurants: 32
Week ended May 31
- Average sales volumes: $30,827
- Same-store sales: –62.3 percent
- Number of restaurants: 23
Week ended June 6
- Average sales volumes: $18,273
- Same-store sales: –78.9 percent
- Number of restaurants: 17
