Bloomin' Brands, Inc. · NASDAQ:BLMN
Bloomin' Brands — Investor Day (December 2014)
91 slides from Bloomin' Brands's investor day presentation, Dec 16, 2014
Slide 1: Analyst & Investor Day December 16, 2014
Analyst & Investor Day December 16, 2014
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation, including those relating to future business outlook and economic performance, long-term growth goals, finances, dividend and share repurchase plans and other expectations and objectives of management are not based on historical fact
Slide 3: Liz Smith, CEO
Liz Smith CEO BLOOMIN’ BRANDS#
Slide 4: Strong Platform for Sustainable Growth
Portfolio of founder-inspired leading brands Significant opportunities for sales growth Culture of continuous innovation and productivity Disciplined stewards of capital Seasoned global management team Strong Platform for Sustainable Growth
Slide 5: Differentiated Brands with Leading Market Positions
50% 17% 14% 6% 13% $4.3 bn Sales LTM Sales by Concept (3) Diversified Brand Portfolio Brand Market Position (2) Locations (1) 753 #1 244 #2 201 #2 66 #4 Brazil / Korea 227 #1/#2 (1) Includes company-owned and franchise restaurants as of September 28, 2014. (2) Based on Euromonitor for 2013. (3) Last
Slide 6: Cumulative Comp Sales vs. Industry
Cumulative Comp Sales vs. Industry Annual Comp Sales Cumulative Note: Based on core domestic concepts 2.7% 4.9% 3.7% 1.2% 1.3% +14 pts -1 pts -0.6% 1.5% 0.6% -1.4% -0.8% 2010 2011 2012 2013 2014 YTD Cumulative BLMN Knapp (Casual) +13 pts of traffic -10 pts of traffic
Slide 7: Recognized for Our Culture / Performance
Recognized for Our Culture / Performance
Slide 8: Market Overview Since IPO
Market Overview Since IPO
Slide 9: Recent Improvement in Macro Environment
0 50 100 150 200 250 300 A ug u s t 2 0 1 2 S e p te m be r 2 0 1 2 O c tober 2 0 1 2 N ov e m be r 2 0 1 2 D e c e m b e r 2 0 1 2 J a nuar y 2 0 1 3 Feb rua ry 2 0 1 3 Mar c h 2 0 1 3 A pr il 2 0 1 3 Ma y 2 0 1 3 J une 2 0 1 3 J u ly 2 0 1 3 A ug u s t 2 0 1 3 S e p te m be r 2 0 1 3 O c tober 2 0
Slide 10: Disposable Income vs Knapp Sales
-8% -6% -4% -2% 0% 2% 4% 6% A U G 2 0 1 2 SEP 2 0 1 2 O C T 2 0 1 2 N O V 2 0 1 2 DE C 2 0 1 2 J A N 2 0 1 3 FEB 2 0 1 3 M A R 2 0 1 3 AP R 2 0 1 3 M A Y 2 0 1 3 J U N 2 0 1 3 J UL 2 0 1 3 A U G 2 0 1 3 SEP 2 0 1 3 O C T 2 0 1 3 N O V 2 0 1 3 DE C 2 0 1 3 J A N 2 0 1 4 FEB 2 0 1 4 M A R 2 0 1 4 AP R
Slide 11: CDR Traffic has Declined Since 2006
Source: Knapp Data ending 11/2/14 -2.8% -3.3% -5.4% -5.6% -2.5% -0.4% -1.5% -2.8% -2.9% -7% -6% -5% -4% -3% -2% -1% 0% C'06 C'07 C'08 C'09 C'10 C'11 C'12 C'13 YTD'14 Knapp CDR Traffic Trend BLM IPO Expectation 0% -1% CDR Traffic has Declined Since 2006
Slide 12: We Have Consistently Outperformed Segment and Gained Share
7.5% 4.2% 3.1% 5.5% 4.1% 4.9% 4.4% 2.7% 4.0% 4.0% 2.4% 2.5% 2.8% 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 2014 YTD Gap to Knapp CDR Traffic We Have Consistently Outperformed Segment and Gained Share Note: Based on core domestic concepts
Slide 13: CDR International Growth Outlook Remains Robust
0% 2% 4% 6% 8% 10% 12% 14% 16% Asia Pacific Australasia Eastern Europe Latin America Middle East and Africa Western Europe C A G R 2 0 1 4 -1 8 0% 10% 20% 30% 40% 50% 60% 100% Home Delivery/Takeaway Cafés/Bars Full-Service Restaurants Fast Food Self-Service Cafeterias Street Stalls/ Kiosks % o f T o
Slide 14: Korea CDR Sales Index Has Collapsed Since 2012 Peak
Competitive Unit Expansion since 2008: +88% CDR Sales: -27% vs. 2012 However, Korea CDR Sales Index Has Collapsed Since Its Peak in 2012 Source: CDR Sales Index figures taken from TNS Tracker 200 250 300 350 400 450 500 550 600 25 30 35 40 45 50 55 60 2008 2009 2010 2011 2012 2013 2014 Uni ts C D R
Slide 15: BLMN Domestic Portfolio Strategy Adapted to New Environment
Incremental Unit Potential •3%+ •Approx. 2%+ • Bonefish: 150+ •Carrabba’s: 160+ • Bonefish: 150+ •Outback Relocations: 100+ •Outback (new): 50+ • Fleming’s: 35+ •Carrabba’s: on hold BLMN Domestic Portfolio Strategy Adapted to New Environment Domestic Comp Sales IPO Now • -1% – +1% • -2% – 0% Knapp
Slide 16: International Opportunity Remains Strong With Updated Priorities
70% 30% 92% 8% 2015E 2012 Future State • Ring-fence Korea • Launch Carrabba’s Brazil • Refine China business model • Grow existing portfolio • Focus on Korea and Brazil • Outback centric • LATAM and China leadership • Expand Portfolio International Opportunity Remains Strong With Updated Priorities
Slide 17: Sustainable Growth Strategy Update
Sustainable Growth Strategy Update
Slide 18: Three Platforms for Sustainable Growth Unchanged
Continuous Productivity Mindset to Fund Investment World Class Team and Infrastructure to Build Scale Three Platforms for Sustainable Growth Unchanged 3 Accelerate International Growth 2 Domestic New Unit Expansion 1 Grow Comp Sales & Profitability
Slide 19: Grow Comp Store Sales: Core AUVs Continue to Grow
Grow Comp Store Sales: Core AUVs Continue to Grow Across The Portfolio 1 $2,500 $2,600 $2,700 $2,800 $2,900 $3,000 $3,100 $3,200 $3,300 $3,400 2009 2010 2011 2012 2013 Est. 2014 Core Domestic Annual AUVs Core Domestic $2,500 $2,600 $2,700 $2,800 $2,900 $3,000 $3,100 $3,200 $3,300 $3,400 2009 Est. 20
Slide 20: Grow Comp Sales and Profitability
•Deliver Superior brand experience – Ongoing menu and marketing innovation – Significant investment in digital and technology • Expand occasions and frequency – Focus on $25 billion domestic lunch segment – BBI fair share would be $1.4 billion • Strong remodel and relocation program Grow Comp Sales
Slide 21: Deliver Superior Brand Experience Across Portfolio
• Celebrate Best at Steak • Expand Beyond Special Occasion • Return to Polished Casual • The Contemporary Steakhouse Deliver Superior Brand Experience Across Portfolio
Slide 22: Accelerated Digital Investment Across the Customer Experience
Pay Recognition of Visit Deciding What & Where Preparing for Visit Arriving Ordering Waiting for Food Eating Reason for next Visit • 2014: – Developed Digital Road Map – Immediate Enhancements • Virtual waitlist • Upgrade websites • Ordering & pay online • 2015: – 2x investment Accelerated Digital I
Slide 23: Outback Comp Sales Growth 2010-2014
Comp Sales Growth 2010-2014 1.5% 4.0% 4.4% 1.6% 2.1% 2010 2011 2012 2013 YTD Q3 2014 Growth in Momentum Category 1 Most recent unit counts for Longhorn Steakhouse and Texas Roadhouse vs. year end 2009 (SEC Filings) Competitors Increased Footprint by 34% Units Over Timeframe1
Slide 24: 2010 Outback Brand Refresh Strategic Pillars
The 2010 Outback Brand Refresh Defined 4 Strategic Pillars to Restore Growth Outback is Steak Authority Expand Variety Communicate Fresh Deliver Everyday Affordability Enhance Dining Experience Celebrate Best at Steak
Slide 25: In Q3 2014, We Reaffirmed Our Steak Authority
In Q3 2014, We Reaffirmed Our Steak Authority New Menu Design, Plate ware, In-Restaurant Messaging Product Spec Operations & Training Advertising/Marketing 360° “Best at Steak”
Slide 26: Carrabba's Gaining Share in a Difficult Segment
Comp Sales Growth 2010-2014 Gaining Share in a Difficult Segment Italian Market Share(1) 7.0% 7.3% 7.5% 7.5% 7.8% 2.9% 4.6% 1.7% -0.2% -1.4% 2010 2011 2012 2013 YTD Q3 2014 1 NPD Crest
Slide 27: Redefine the Carrabba's Experience
Redefine the Carrabba’s Experience Carrabba’s Brand Refresh Defines 4 Strategic Pillars to Restore Growth in 2015 Deliver Approachable Value Refresh Menu with Lighter Options to Drive Frequency Contemporize the In-Restaurant Experience Remove Operations Complexity
Slide 28: Launch A Less Complex, More Affordable Menu in 2015
More Entry Level Options Broader Variety Across Price Points Communicate Value through Marketing Balance Indulgence with More Everyday Options Small Plates for Sharing Lighter Items <600 Calories Continue to Evolve Decor More Contemporary Uniforms Update Music and Lighting Reduce Menu Items Reduce I
Slide 29: Bonefish Grill: Still Growing Share, But Growth Has Slowed
Comp Store Sales 2010 - 2014 6.5% 8.3% 3.2% 0.0% 0.5% 2010 2011 2012 2013 YTD Q3 2014 Still Growing Share, But Growth Has Slowed
Slide 30: Return to Roots of Culinary Innovation
Return to Roots of Culinary Innovation Core Menu Refresh 2008 2014 Promotional Programs to Bridge Gap Return to Continuous Innovation
Slide 31: Bonefish New Core Menu and Initiatives
New Core Menu: • Launched New Menu July 2014 – 36 New items and 3 new food platforms – Increase in customer satisfaction • Seasonal menus corresponding to fishing seasons Innovative, Independent, Polished, Unique Private Dining Program: New Bar Menu: • Launched August 2014 • Launches January 2015 On
Slide 32: Fleming's Consistently Outperforming Segment
10.4% 7.4% 5.1% 4.5% 3.1% 2010 2011 2012 2013 YTD Q3 2014 Upscale, Stylish, Lively and Indulgent Consistently Outperforming Segment Continuous Innovation Comp Store Sales
Slide 33: $25 Billion Lunch Segment
54% Current Potential 59% Current Potential Dinner 66% Other 5% Lunch 29% (1) For year ended June 30, 2014, as compiled by NPD/CREST. (2) As of September 28, 2014. •Weekday opportunity now ~70% • Lunch is 85% incremental • Lunch growing on year-over-year basis •BBI fair share: $1.4B Industry Sales S
Slide 34: Outback National Lunch Launch Q2 2015
Outback National Lunch Launch Q2 2015 •National Launch Q2 2015 • Full Media Support •Lunch menu & service model Lunch Facts
Slide 35: Multi-year Remodel Program Elevates Portfolio Brand Image
• Interior remodel completed in 2013 • 30+ Exteriors in test • 40% fleet remodel complete • +3% lift holding • Updated look for all new units • Multi-year refresh underway • Updated look for all new units • Multi-year refresh underway Multi-year Remodel Program Elevates Portfolio Brand Image and Enh
Slide 36: Outback Exterior
Outback Exterior
Slide 37: Carrabba's Remodel
Carrabba’s Remodel
Slide 38: Bonefish Remodel Consistent with Contemporary Polished Position
Bonefish Remodel Consistent with Contemporary Polished Position
Slide 39: Three Platforms for Sustainable Growth Unchanged
Continuous Productivity Mindset to Fund Investment World Class Team and Infrastructure to Build Scale Three Platforms for Sustainable Growth Unchanged 3 Accelerate International Growth 1 Grow Comp Sales & Profitability 2 Domestic New Unit Expansion
Slide 40: Domestic New Unit Expansion: Portfolio Re-Prioritization
Domestic New Unit Expansion: Portfolio Re-Prioritization 2 Growth: Ramp to 3.5% (75% Domestic) • 2% annual growth (50% Domestic) • Intense Competition for “A” Sites Brand Bonefish Re-Prioritization: Carrabba’s • Bonefish • Outback – New + Relocations • Fleming’s • Carrabba’s: on-hold IPO Now
Slide 41: Existing Footprint at IPO
Existing Footprint at IPO 9 9 CARRAREAS DONE Sy ) Sits
Slide 42: Growth Since IPO Relocations
Growth Since IPO Relocations
Slide 43: Long-term Market Potential Unit Potential
Long-term Market Potential Unit Potential [xx] [xx] [xx] [xx] Relocations
Slide 44: Acceleration of Relocation Opportunity
Acceleration of Relocation Opportunity • Identified opportunity for 100+ across Outback – Initial tests have proven successful • Revitalization of these assets enables us to: – Increase site visibility and access – Contemporize image – Capitalize on lunch daypart
Slide 45: Three Platforms for Sustainable Growth Unchanged
Continuous Productivity Mindset to Fund Investment World Class Team and Infrastructure to Build Scale Three Platforms for Sustainable Growth Unchanged 1 Grow Comp Sales & Profitability 2 Domestic New Unit Expansion 3 Accelerate International Growth
Slide 46: Platform for International Growth
3 South Korea Brazil Hong Kong China - 3 units North America Middle East Latin America Asia Pacific Locations by Ownership Type (1) (3) Company-owned (176) Franchise (51) 106 59 7 33 9 6 3 Mexico - 1 unit Platform for International Growth (1) As of September 28, 2014 (2) Includes $546 million in sal
Slide 47: International Growth Priorities
Grow Company and Joint-Venture Markets Ring-fence Korea Selectively Franchise • Brazil •China • Andean Cluster International Growth Priorities • Reduce footprint from 106 to 72 • Financial exposure contained • Southeast Asia • Middle East 2 3 1 46 new openings since IPO, including 40+% of 2014 openi
Slide 48: Launch 2nd Concept Globally
Launch 2nd Concept Globally • Bringing Carrabba’s to Brazil • Locally adapting the brand • First two stores to open in São Paulo in March 2015 • Italian is the #2 segment • Leveraging strong in-market capability
Slide 49: Three Platforms for Sustainable Growth: Productivity
Mindset to Fund Investment World Class Team and Infrastructure to Build Scale Three Platforms for Sustainable Growth Unchanged 1 Grow Comp Sales & Profitability 2 Domestic New Unit Expansion 3 Accelerate International Growth Productivity Continuous
Slide 50: Strong Productivity Mindset
Strong Productivity Mindset $48 $75 $46 $43 $59 $59 >$50 2008 2009 2010 2011 2012 2013 2014E • Deep and talented team with cross- functional commitment • Solid pipeline of ideas and new initiatives • Productivity savings helps fund innovation, offset food inflation headwinds and increase margins • T
Slide 51: Strong Operational Leadership Combined With Functional Expertise
Concepts Strong Operational Leadership Combined With Functional Expertise Liz Smith Chief Executive Officer Mike Kappitt SVP, Global Chief Marketing Officer Joe Kadow EVP, Chief Legal Officer Donagh Herlihy EVP, Digital & Chief Information Officer David Deno EVP, CFAO John Li SVP, Chief R&D Officer
Slide 52: 2015 and Beyond
- 2015 and Beyond
Slide 53: Bloomin' Brands Go Forward Business Model
Bloomin’ Brands Go Forward Business Model Approx. 2% Comp Sales Growth Sales Levers Flat to Down Domestic Segment International Expansion Disciplined Pricing Margin Levers Ongoing Productivity Efforts Investing Ahead of Growth +10% increasing to +15% Long-term EPS Growth Target1 1 Adjusted Diluted E
Slide 54: Free Cash Flow Used Primarily For Debt Repayment
Domestic Debt pay-down • New Development - Bonefish • Renovations - Fleet • Relocations - Outback • Maintenance • Digital & IT Initiatives BLMN Free Cash Flow Has Been Used Primarily For Debt Repayment Capex & Maintenance Excess Cash Flow • Brazil • China International Note: Cash uses above exclude
Slide 55: In 2015 We Return Cash to Shareholders
In 2015 We Return Cash to Shareholders •Implementing a $100M program over 18 months •$0.24 per annum beginning Q1 •Approximate 1% dividend yield at today’s price Dividend Share Buyback Discretionary Cash
Slide 56: Disciplined Cash Flow Investment Funds Growth in 2015
Dividend Domestic Debt Pay-down • New Development - Bonefish • Renovations - Fleet • Relocations - Outback • Maintenance • Digital & IT Initiatives Disciplined Cash Flow Investment Funds Growth and Strengthens Balance Sheet in 2015 Capex & Maintenance Excess Cash Flow • Brazil • China • Balanced str
Slide 57: 2015 Expectations
At least 10% Adjusted Diluted EPS Growth At least 15% Adjusted EPS Growth As Reported (1) Maintain Gap to Knapp At least 1.5% Core Domestic Comp Expand franchise and JV markets 2015 Expectations Building Fleming’s pipeline Outback new units & relocation Bonefish remains primary driver Domestic New U
Slide 58: We Remain Very Bullish About Long-term Growth Opportunities
Adding It All Up… We Remain Very Bullish About Our Long-term Growth Opportunities •Well-positioned brands in their respective categories • Established global platform with growth opportunities • Significant margin improvement opportunities • Improving capital structure that provides more flexibility
Slide 59: David Deno, Chief Financial and Administrative Officer
David Deno Chief Financial and Administrative Officer
Slide 60: Agenda
Agenda 1) 2014 Update 2) Long-term Growth Goals 3) 2015 Guidance 4) Dividend / Share Repurchase Program 5) Segment Reporting
Slide 61: 2014 Update
2014 Update
Slide 62: 2014 Guidance
2014 Guidance Domestic Comp Sales: At Least 1.5% Adj. Diluted EPS: $1.05 – $1.10 GAAP Diluted EPS: $0.68 – $0.73 Number of New System-wide Restaurants: 55 Capital Expenditures: $215M - $235M Commodity Costs: Approx. 3%
Slide 63: Reiterating Key Aspects of 2014 Guidance
Reiterating Key Aspects of 2014 Guidance • Domestic Comparable Restaurant Sales – Comp sales expected to be at least 1.5% • Adjusted Net Income and Adjusted Diluted EPS – No change to guidance – at or above the midpoint of range – Increased growth in sales offset by higher health insurance claims an
Slide 64: Long-term Growth Goals
~ Long-term _ Growth Goals
Slide 65: 3-Year Plan Goals (Annual)
3-Year Plan Goals (Annual) Domestic Comp Sales: Approx. 2% • 2015 expectations at least 1.5% Adj. Diluted EPS Growth: 10% increasing to 15% Capital Expenditures: $235M - $290M Commodity Costs: +3% Number of New System-wide Restaurants: 60 – 90 • 2015 expectations 40 to 50
Slide 66: Financial Goals Adapted to Reflect Current Environment
Financial Goals Adapted to Reflect Current Environment What’s Changed? What Hasn’t Changed? • Domestic Comp Sales reflect CDR market trends • Reprioritized new unit development • International opportunity bigger than expected • Productivity pipeline and initiatives strong • Significant margin improv
Slide 67: Productivity Opportunity Remains Robust
Productivity Opportunity Remains Robust $59 $59 >$50 >$50 2012 2013 2014E 2015-17E Annual Productivity Savings ($ in millions) Cumulative Cost Savings Achieved 2008-2013 = $330 million • Labor optimization • Supply chain efficiencies • Theoretical food costing • Facilities management • High-Performa
Slide 68: Winning Formula: Pricing + Productivity Offsets Inflation
Winning Formula: Pricing + Productivity Offsets Inflation • Inflationary pressures expected to continue – Commodity pressures – Wage inflation – Rent • Productivity is the lever that allows for prudent levels of pricing • Pricing below inflation protects traffic
Slide 69: Long-term Margin Growth
Long-term Margin Growth • Korea set us back in 2014 • Continue to narrow gap through 2017 – Opportunities in Labor and Food Cost management and leverage G&A • Long-term adjusted operating margin goal approaching 8% – Quality of ingredients and scratch-made process will not be sacrificed Adjusted Ope
Slide 70: Accelerating International Development
Accelerating International Development International Domestic • Brazil • China • Franchise • Bonefish • Outback • Fleming’s [_] to [_] stores [_] to [_] stores
Slide 71: Relocation Tests Have Proven Successful
Relocation Tests Have Proven Successful and Program Will Accelerate • Identified opportunity for 100+ across Outback – Ramp up to 10+ each year • 20 - 40% lifts observed in test • Going forward, will add back asset impairment costs related to Outback relocation program Before After
Slide 72: Capital Expectations – Disciplined Stewards of Capital
Capital Expectations – Disciplined Stewards of Capital •Capital expenditures guided by: – Highest levels of return – Investment ahead of growth • 2016 and beyond: – Increased spend in the range of $270M to $290M per year – Build out new restaurant pipeline with emphasis on International growth All I
Slide 73: PropCo Overview
PropCo Overview • PropCo owns 259 properties – Financed through a CMBS structure ($473M balance(1)) – Matures April 2017 • Limited desire to own properties in the future 100% ownership Master Lease 100% ownership OSI Restaurant Partners “OpCo” (business) Private Restaurant Properties “PropCo” (real
Slide 74: EPS Growth Goals
EPS Growth Goals • 10% increasing to 15% Adj. Diluted EPS growth during plan horizon • Enablers to EPS growth – Continued recovery in category with BLMN comp sale increases – Easing of long-term commodity expectations – Acceleration of International growth – Share repurchases
Slide 75: 2015 Guidance
2015 Guidance
Slide 76: 2015 Guidance
Domestic Comp Sales: At least 1.5% Adj. Diluted EPS Growth As Reported: At least 15% Adj. Diluted EPS Growth(1)(2): At least 10% (comparable) Number of New System-wide Restaurants: 40 – 50 Capital Expenditures: $235M - $255M Commodity Costs: 4% - 6% 2015 Guidance (1) Fiscal 2014 included 362 days wh
Slide 77: Key Assumptions Behind 2015 Guidance
Key Assumptions Behind 2015 Guidance • Domestic comp sales growth of at least 1.5% – Cautious approach to segment sales trend assuming industry comp sales down slightly – Maintain a >200bp over-delivery vs. Knapp •Development of 40 to 50 new restaurants – Openings reflect portfolio reprioritization
Slide 78: Disciplined G&A Mindset Funds Investment Spending
• Expect an approximate 5% increase in 2015 G&A spend which includes: – $5M to $10M of incremental strategic investment spending • Technology and Digital • China and Latin America – $10M to $15M in incentive compensation “reload” due to 2014 under-performance Disciplined G&A Mindset Funds Investment
Slide 79: Key Assumptions Behind 2015 Guidance
Key Assumptions Behind 2015 Guidance •Other factors: – FOREX curve for the Brazilian Real suggests a $9M headwind in 2015 – Higher expected commodity costs (4 - 6%) due to higher beef costs
Slide 80: Dividend / Share Repurchase Program
Dividend / Share Repurchase Program
Slide 81: Historic Approach to Capital Structure
Historic Approach to Capital Structure Historical Adjusted Net Debt / EBITDAR(2) $83 $168 $147 $128 $92 2009 2010 2011 2012 2013 ($ in millions) Free Cash Flow (1) Capital Spend Total $58 $60 $121 $179 $237 Note: (1) Free cash flow (“FCF”) defined as Adjusted EBITDA less cash taxes, cash interest, r
Slide 82: Strong FCF Generation Provides Flexibility
Strong FCF Generation Provides Flexibility in Achieving Priorities Since the IPO, FCF has been used almost exclusively for debt repayment Capital Allocation CapEx / Intl’ Development Deleveraging Share Repurchase Dividend
Slide 83: New Program Specifics
New Program Specifics Specifics of Cash Return to Shareholders: • Dividend – Announced today a dividend policy of $0.24 / share per annum beginning Q1 2015 – Approximate 1% dividend yield at today’s stock price • Share Repurchase Program – $100M Share Repurchase Program – 18-month time horizon • Lon
Slide 84: Segment Reporting
Segment Reporting
Slide 85: Segment Reporting Increases Visibility
Segment Reporting Increases Visibility • Evolution: – Growth in International requires more visibility – Due in part to the acquisition of Brazil, we are realigning our operating segments • Solution: – Beginning with Q1 2015, we will report two segments: • U.S. segment • International segment – In a
Slide 86: What Are Our Goals Moving Forward?
What Are Our Goals Moving Forward? Disciplined Stewards Of Capital Long-term Goals Drivers • Continued traffic gains • Responsible price increases • Acceleration of new store expansion driven by Bonefish and International • Ongoing productivity gains • Fixed cost leverage Approx. 2% comp sales gro
Slide 87: Appendix
Appendix
Slide 88: Adjusted Operating Income Margin Reconciliation
Adjusted Operating Income Margin Reconciliation $ in thousands (1) Transaction-related expenses primarily relate to the following: (i) costs incurred in connection with the IPO completed in 2012, which include certain executive and stock-based compensation costs; (ii) secondary offerings of our comm
Slide 89: Adjusted EBITDAR Reconciliation
Adjusted EBITDAR Reconciliation $ in thousands 2009 2010 2011 2012 2013 Net (loss) income attributable to Bloomin' Brands (64,463)$ 52,968$ 100,005$ 49,971$ 208,367$ (Benefit) provision for income taxes (2,462) 21,300 21,716 12,106 (42,208) Interest expense, net 115,880 91,428 83,387 86,642 74,773 D
Slide 90: Adjusted EBITDAR Reconciliation - Continued
Adjusted EBITDAR Reconciliation - Continued (1) Represents non-cash impairment charges for fixed assets and intangible assets, cash and non-cash expense from restaurant closings and net gains or losses on the disposal of fixed assets. (2) Transaction-related expenses primarily relate to the followin
Slide 91: Free Cash Flows Reconciliation
Free Cash Flows Reconciliation $ in thousands 2009 2010 2011 2012 2013 Adjusted EBITDA 319,925$ 338,898$ 361,479$ 396,306$ 440,488$ Cash paid for interest 109,023 96,718 72,099 78,216 71,397 Cash paid for income taxes, net of refunds 21,342 10,779 27,699 24,276 33,673 Required Principal Payments 13,