Bloomin' Brands, Inc. reported results for the fourth quarter and fiscal year ended December 27, 2015 compared to the fourth quarter and fiscal year ended December 28, 201.
Key highlights for Q4 2015 include the following:
- Adjusted restaurant margin was 16.5 percent versus 15.7 percent in Q4 2014 and U.S. GAAP restaurant margin was 16.1 percent versus 16.3 percent in Q4 2014,
- Added 11 new restaurants, including eight in international markets.
- Comparable sales for Outback Steakhouse in Brazil increased 7.3 percent.
Key highlights for Fiscal Year 2015 include the following:
- Adjusted restaurant margin was 16.5 percent versus 15.9 percent in Fiscal Year 2014 and U.S. GAAP restaurant margin was 16.5 percent versus 16.1 percent in Fiscal Year 2014.
- Added 49 new restaurants, including 29 in international markets.
The company repurchased approximately 7.6 million shares of common stock for a total of $170 million.
Subsequent to Q4 2015:
- Extinguished the 2012 CMBS Loan using proceeds from a new $300 million bridge loan and borrowings from the percent revolving credit facility. Interest savings of approximately $12 million in 2016 are anticipated.
- The company's board of directors authorized a new $250 million share repurchase program.
"Our fourth quarter earnings were in line with expectations and we achieved our earnings objectives for the year," says Liz Smith, CEO. "2015 was highlighted by the strength of our International business and ongoing productivity efforts, which led to 60 basis points of adjusted restaurant margin expansion. We delivered this result in the face of elevated commodities, wage inflation and foreign currency headwinds."
Smith continues, "As we enter 2016, the underlying health of our portfolio remains strong. We are making the necessary investments to enhance our domestic sales performance while executing against our broader portfolio strategies."
Fourth Quarter Financial Results
The decrease in total revenues was primarily due to the effect of foreign currency translation, lower comparable restaurant sales and lower revenue due to the sale of Roy's, partially offset by the net benefit of new restaurant openings and closings.
The increases in adjusted restaurant-level operating margin and adjusted operating income margin were primarily due to productivity savings, lower advertising expense and menu pricing. These increases were partially offset by commodity and wage inflation.
The difference between adjusted and U.S. GAAP restaurant-level operating margins was due to legal settlement expenses in Q4 2015 and a legal settlement gain in Q4 2014.
The decrease in U.S. GAAP operating income margin in Q4 2015 was due to lower U.S. GAAP restaurant-level operating margin as described above and costs related to the Bonefish Restructuring, partially offset by the lapping of costs related to the International Restaurant Closure Initiative and impairment costs related to the sale of Roy's.