Quarterlytics / Consumer Cyclical / Restaurants / Bloomin' Brands, Inc.

Bloomin' Brands, Inc.

blmn · NASDAQ Consumer Cyclical
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Ticker blmn
Exchange NASDAQ
Sector Consumer Cyclical
Industry Restaurants
Employees 81000
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FY2021 Annual Report · Bloomin' Brands, Inc.
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 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 26, 2021

or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

1934
For the transition period from ______ to ______

Commission File Number: 001-35625

BLOOMIN’ BRANDS, INC.

(Exact name of registrant as specified in its charter) 

Delaware
(State or other jurisdiction of incorporation or organization)

20-8023465
(I.R.S. Employer
Identification No.)

2202 North West Shore Boulevard, Suite 500, Tampa, FL 33607
(Address of principal executive offices) (Zip Code)

(813) 282-1225
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Common Stock $0.01 par value

Trading Symbol(s)
BLMN

Name of each exchange on which registered
The Nasdaq Stock Market LLC
(Nasdaq Global Select Market)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒  No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐  No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth
company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated Filer  ☐ Non-accelerated Filer ☐
Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of common stock held by non-affiliates (based on the closing price on the last business day of the registrant’s most recently
completed second fiscal quarter as reported on the Nasdaq Global Select Market) was $2.4 billion.

As of February 18, 2022, 89,425,680 shares of common stock of the registrant were outstanding.

Portions of the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III, Items 10-14
of this Annual Report on Form 10-K.

DOCUMENTS INCORPORATED BY REFERENCE

Table of Contents

BLOOMIN’ BRANDS, INC.

INDEX TO ANNUAL REPORT ON FORM 10-K
For Fiscal Year 2021

TABLE OF CONTENTS

Item 1. Business

Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments

Item 2. Properties
Item 3. Legal Proceedings
Item 4. Mine Safety Disclosures

PART I

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6. [Reserved]
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Item 8. Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A. Controls and Procedures
Item 9B. Other Information
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

PART III

Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accounting Fees and Services

Item 15. Exhibits and Financial Statement Schedules
Item 16. Form 10-K Summary
Signatures

PART IV

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112
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PART I

Cautionary Statement

BLOOMIN’ BRANDS, INC.

This  Annual  Report  on  Form  10-K  (the  “Report”)  includes  statements  that  express  our  opinions,  expectations,  beliefs,  plans,  objectives,
assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended  (the  “Exchange  Act”).  These  forward-looking  statements  can  generally  be  identified  by  the  use  of  forward-looking  terminology,
including  the  terms  “believes,”  “estimates,”  “anticipates,”  “expects,”  “feels,”  “seeks,”  “forecasts,”  “projects,”  “intends,”  “plans,”  “may,”
“will,” “should,” “could” or “would” or, in each case, their negative or other variations or comparable terminology, although not all forward-
looking statements are accompanied by such terms. These forward-looking statements include all matters that are not historical facts. They
appear  in  a  number  of  places  throughout  this  Report  and  include  statements  regarding  our  intentions,  beliefs  or  current  expectations
concerning,  among  other  things,  our  results  of  operations,  financial  condition,  liquidity,  prospects,  growth,  strategies  and  the  industry  in
which we operate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that
may or may not occur in the future. Although we base these forward-looking statements on assumptions that we believe are reasonable when
made,  we  caution  you  that  forward-looking  statements  are  not  guarantees  of  future  performance  and  that  our  actual  results  of  operations,
financial  condition  and  liquidity,  and  industry  developments  may  differ  materially  from  statements  made  in  or  suggested  by  the  forward-
looking  statements  contained  in  this  Report.  In  addition,  even  if  our  results  of  operations,  financial  condition  and  liquidity,  and  industry
developments  are  consistent  with  the  forward-looking  statements  contained  in  this  Report,  those  results  or  developments  may  not  be
indicative  of  results  or  developments  in  subsequent  periods.  Important  factors  that  could  cause  actual  results  to  differ  materially  from
statements made or suggested by forward-looking statements include, but are not limited to, those described in the “Risk Factors” section of
this Report and the following:

(i)

(ii)

Consumer reactions to public health and food safety issues;

The  severity,  extent  and  duration  of  the  COVID-19  pandemic,  its  impacts  on  our  business  and  results  of  operations,  financial
condition and liquidity, including any adverse impact on our stock price and on the other factors listed below, and the responses of
domestic and foreign federal, state and local governments to the pandemic;

(iii) Minimum wage increases, additional mandated employee benefits and fluctuations in the cost and availability of employees;

(iv)

Fluctuations in the price and availability of commodities;

(v)

(vi)

Our  ability  to  compete  in  the  highly  competitive  restaurant  industry  with  many  well-established  competitors  and  new  market
entrants;

Economic conditions and their effects on consumer confidence and discretionary spending, consumer traffic, the cost and availability
of credit and interest rates;

(vii)

Our ability to recruit and retain high-quality leadership, restaurant-level management and team members;

(viii) Our ability to preserve and grow the reputation and value of our brands, particularly in light of changes in consumer engagement

with social media platforms and limited control with respect to the operations of our franchisees;

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BLOOMIN’ BRANDS, INC.

(ix)

Our ability to protect our information technology systems from interruption or security breach, including cyber security threats, and
to protect consumer data and personal employee information;

(x)

Dependence on a limited number of suppliers and distributors to meet our beef and other major product supply needs;

(xi)

(xii)

The  effects  of  international  economic,  political  and  social  conditions  and  legal  systems  on  our  foreign  operations  and  on  foreign
currency exchange rates;

Our ability to comply with governmental laws and regulations, the costs of compliance with such laws and regulations and the effects
of changes to applicable laws and regulations, including tax laws and unanticipated liabilities, and the impact of any litigation;

(xiii) Our  ability  to  effectively  respond  to  changes  in  patterns  of  consumer  traffic,  consumer  tastes  and  dietary  habits,  including  by

maintaining relationships with third party delivery apps and services;

(xiv) Our ability to implement our remodeling, relocation and expansion plans due to uncertainty in locating and acquiring attractive sites
on  acceptable  terms,  obtaining  required  permits  and  approvals,  recruiting  and  training  necessary  personnel,  obtaining  adequate
financing and estimating the performance of newly opened, remodeled or relocated restaurants;

(xv)

(xvi)

Seasonal  and  periodic  fluctuations  in  our  results  and  the  effects  of  significant  adverse  weather  conditions  and  other  disasters  or
unforeseen events;

The effects of our leverage and restrictive covenants in our various credit facilities on our ability to raise additional capital to fund
our operations, to make capital expenditures to invest in new or renovate restaurants and to react to changes in the economy or our
industry; and

(xvii) Any impairment in the carrying value of our goodwill or other intangible or long-lived assets and its effect on our financial condition

and results of operations.

Given these risks and uncertainties, we caution you not to place undue reliance on these forward-looking statements. Any forward-looking
statement that we make in this Report speaks only as of the date of such statement, and we undertake no obligation to update any forward-
looking  statement  or  to  publicly  announce  the  results  of  any  revision  to  any  of  those  statements  to  reflect  future  events  or  developments.
Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance,
unless specifically expressed as such, and should only be viewed as historical data.

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Item 1.    Business

BLOOMIN’ BRANDS, INC.

Bloomin’ Brands, Inc. (“Bloomin’ Brands,” the “Company,” “we,” “us,” and “our” and similar terms mean Bloomin’ Brands, Inc. and its
subsidiaries  except  where  the  context  otherwise  requires)  is  one  of  the  largest  casual  dining  restaurant  companies  in  the  world,  with  a
portfolio  of  leading,  differentiated  restaurant  concepts.  We  have  four  founder-inspired  concepts:  Outback  Steakhouse,  Carrabba’s  Italian
Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Our restaurant concepts range in price point and degree of formality from
casual (Outback Steakhouse and Carrabba’s Italian Grill) to upscale casual (Bonefish Grill) and fine dining (Fleming’s Prime Steakhouse &
Wine Bar). OSI Restaurant Partners, LLC (“OSI”), a wholly-owned subsidiary of Bloomin’ Brands, is our primary operating entity.

COVID-19 Pandemic Impact on Our Business

In March 2020, we temporarily closed all restaurant dining rooms to comply with state and local regulations in response to the COVID-19
pandemic (“COVID-19”). In early May 2020, we began to reopen our restaurant dining rooms with limited seating capacity in compliance
with  state  and  local  regulations.  The  temporary  closure  of  our  dining  rooms  and  the  limitations  on  seating  capacity  due  to  the  COVID-
19 pandemic resulted in significantly reduced traffic in our restaurants which negatively impacted our operating results during 2020.

During 2021, the recovery of in-restaurant dining continued as COVID-19 capacity restrictions were eased or eliminated. Though concerns
over variants of COVID-19 impacted recovery, we continued to retain a significant portion of the incremental off-premises volume achieved
while our dining rooms were closed last year.

MARKETS

As  of  December  26,  2021,  we  owned  and  operated  1,169  full-service  restaurants  and  off-premises  only  kitchens  and  franchised  329  full-
service restaurants and off-premises only kitchens across 47 states, Guam and 17 countries.

Our Segments

We consider our restaurant concepts and international markets to be operating segments, which reflects how we manage our business, review
operating  performance  and  allocate  resources.  We  aggregate  our  operating  segments  into  two  reportable  segments,  U.S.  and  international.
The U.S. segment includes all restaurants operating in the U.S. while restaurants operating outside the U.S. are included in the international
segment. Following is a summary of reportable segments as of December 26, 2021:

REPORTABLE SEGMENT (1)

CONCEPT

GEOGRAPHIC LOCATION

U.S.

International

Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
Outback Steakhouse
Carrabba’s Italian Grill (Abbraccio)

United States of America

Brazil, Hong Kong/China
Brazil

_________________
(1)

Includes franchise locations. See Item 2. Properties for disclosure of our restaurant count by country and territory.

U.S. Segment

As of December 26, 2021, in our U.S. segment, we owned and operated 1,013 full-service restaurants and off-premises only kitchens and
franchised 157 full-service restaurants across 47 states.

Outback Steakhouse - Outback Steakhouse is a casual steakhouse restaurant concept focused on steaks, bold flavors and Australian decor.
The Outback Steakhouse menu offers seasoned and seared or wood-fire grilled steaks, chops,

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BLOOMIN’ BRANDS, INC.

chicken,  seafood,  pasta,  salads  and  seasonal  specials.  The  menu  also  offers  a  selection  of  specialty  appetizers,  including  our  signature
Bloomin’ Onion , and desserts, together with full bar service.

®

Carrabba’s Italian Grill - Offering authentic Italian cuisine passed down from its founders’ family recipes, Carrabba’s Italian Grill uses high
quality  ingredients  to  prepare  fresh  and  handmade  dishes  cooked  to  order  in  a  lively  exhibition  kitchen.  Featuring  a  wood-burning  grill
inspired by the many tastes of Italy, guests can enjoy signature dishes such as Chicken Bryan and Pollo Rosa Maria, wood-fire grilled steaks
and chops, small plates and classic Italian pasta dishes in a welcoming, contemporary atmosphere.

Bonefish  Grill  -  Bonefish  Grill  specializes  in  market-fresh  fish  from  around  the  world,  hand-cut  in-house  every  day,  savory  wood-grilled
specialties, and locally created, seasonal Partner Selection dishes featuring high-quality and fresh ingredients. Offering a selection of classic
and signature hand-crafted cocktails, using just-squeezed juices, edible garnishes, and house infusions, Bonefish Grill also features a distinct
list of wines, which are the perfect match for any food pairing.

Fleming’s Prime Steakhouse & Wine Bar - Fleming’s Prime Steakhouse & Wine Bar is a contemporary steakhouse concept featuring prime
cuts of beef, fresh fish, seafood and poultry, salads and side dishes. Guests will find a passion for steak and wine, reflected in an exceptional
menu of hand-cut steaks and an award-winning list of wines by the glass. The steak selection features USDA Prime corn-fed beef, both wet-
and dry-aged for flavor and texture, in a variety of sizes and cuts.

International Segment

We  have  local  management  to  support  and  grow  restaurants  in  each  of  the  countries  where  we  have  Company-owned  operations.  Our
international operations are integrated with our corporate headquarters to leverage enterprise-wide capabilities, including marketing, finance,
real estate, information technology, legal, human resources, supply chain management and productivity.

As of December 26, 2021, in our international segment, we owned and operated 156 full-service restaurants and off-premises only kitchens
and  franchised  172  full-service  restaurants  and  off-premises  only  kitchens  across  17  countries  and  Guam.  See  Item  2.  Properties  for
disclosure of our international restaurant count by country and territory.

Outback  Steakhouse  -  Our  international  Outback  Steakhouse  restaurants  have  a  menu  similar  to  our  U.S.  menu  with  additional  variety  to
meet local taste preferences. In addition to the traditional Outback Special sirloin, a typical international menu may feature local beef cuts
such as the Aussie Grilled Picanha in Brazil.

Carrabba’s  Italian  Grill  (Abbraccio  Cucina  Italiana)  -  Abbraccio  Cucina  Italiana,  our  international  Carrabba’s  Italian  Grill  restaurant
concept, offers a blend of traditional and modern Italian dishes. The menu varies, with additional pasta and pizza offerings, to account for
local tastes and customs. Abbraccio Cucina Italiana also has a range of beverage options, including classically inspired cocktails and local
favorites with an Italian twist.

Restaurant Development

We utilize the ownership structure and market entry strategy that best fits the needs for a particular market, including Company-owned units
and franchises, as determined by demand, cost structure and economic conditions.

U.S. Development - We opportunistically pursue unit growth across our concepts through existing geography fill-in and market expansion
opportunities.

During  2021,  we  opened  our  first  Outback  Steakhouse  utilizing  a  smaller-scaled  “Joey”  prototype.  The  Joey  prototype  was  designed  to
increase return on investment through a reduced restaurant footprint with a more efficient layout. We plan to open additional Joey Outback
Steakhouse restaurants during 2022.

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BLOOMIN’ BRANDS, INC.

During 2021, we continued to test and develop our first fast-casual concept, Aussie Grill by Outback (“Aussie Grill”). Originally created for
our international franchisees, Aussie Grill offers steak, burgers, chicken and salad with fast-casual convenience. After successfully launching
Aussie Grill internationally, we added Company-owned locations in the U.S. and in May 2020 opened the first free standing restaurant. We
opened two additional U.S. Aussie Grill restaurants during 2021 and additional locations are planned to open in 2022.

International  Development  -  We  continue  to  pursue  international  expansion  opportunities,  leveraging  established  equity  and  franchise
markets in South America and Asia, and in strategically selected emerging and high-growth developed markets, with a focus on Brazil.

Off-Premises Only Expansion - Since 2019, our franchisee in South Korea has rolled out delivery-only kitchens, which are food preparation
and cooking facilities that are not located in a traditional retail space and are limited to delivery-only. These kitchens allow for the expansion
of our restaurant concepts into areas where traditional retail space is not available or cost prohibitive. As of December 26, 2021, there were
40 delivery-only kitchens operating in South Korea and 24 additional locations are planned to open in 2022.

System-wide Restaurant Summary - Following is a system-wide rollforward of our full-service restaurants in operation during 2021:

Number of restaurants:
U.S.:

Outback Steakhouse
Company-owned
Franchised
Total

Carrabba’s Italian Grill
Company-owned
Franchised
Total

Bonefish Grill

Company-owned
Franchised
Total

Fleming’s Prime Steakhouse & Wine Bar

Company-owned

Aussie Grill

Company-owned (1)

U.S. total

International:

Company-owned

Outback Steakhouse - Brazil (2)
Other (1)(3)

Franchised

Outback Steakhouse - South Korea (1)
Other (3)

International total

System-wide total

System-wide total - Company-owned

System-wide total - Franchised

DECEMBER 27,
2020

2021 ACTIVITY

OPENINGS

CLOSURES

DECEMBER 26,
2021

U.S. STATE
COUNT

568
138
706

199
21

220

180
7

187

63

3 

1,179 

109 
32 

76 
56 

273 
1,452 

1,154
298

3 
— 
3 

— 
— 

— 

— 
— 

— 

1 

2 

6 

13 
1 

5 
4 

23 
29 

20 
9 

(7)
(8)
(15)

— 
(1)

(1)

(2)
— 

(2)

— 

— 

(18)

— 
— 

(3)
(6)

(9)
(27)

(9)
(18)

46

29

30

25

1

564
130
694

199
20

219

178
7

185

64

5

1,167 

122 
33 

78 
54 

287 
1,454 

1,165
289

____________________
(1)
(2)

Restaurant counts as of December 27, 2020 have been adjusted to exclude off-premises only kitchens included in the table below.
The restaurant counts for Brazil are reported as of November 30, 2020 and 2021, respectively, to correspond with the balance sheet dates of this subsidiary.

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BLOOMIN’ BRANDS, INC.

(3)

International Company-owned Other included one and two Aussie Grill locations as of December 27, 2020 and December 26, 2021, respectively. International
Franchised Other included three Aussie Grill locations as of December 27, 2020 and December 26, 2021.

Following is a system-wide rollforward of our off-premises only kitchens in operation during 2021:

Number of kitchens (1):

U.S:

Company-owned

International:

Company-owned
Franchised - South Korea

System-wide total

DECEMBER 27,
2020

2021 ACTIVITY

OPENINGS

CLOSURES

DECEMBER 26,
2021

2 

1 
19 
22 

2 

— 
21 
23 

(1)

— 
— 
(1)

3 

1 
40 
44 

____________________
(1)

Excludes virtual concepts that operate out of existing restaurants and sports venue locations.

Competition

The restaurant industry is highly competitive with a substantial number of restaurant operators that compete directly and indirectly with us in
respect  to  price,  service,  location  and  food  quality,  and  there  are  other  well-established  competitors  with  significant  financial  and  other
resources. There is also active competition for management personnel, attractive suitable real estate sites, supplies and restaurant employees.
In addition, competition is influenced strongly by marketing and brand reputation. At an aggregate level, all major casual dining restaurants
in markets in which we operate would be considered competitors of our concepts. We also face growing competition from the supermarket
industry which offers expanded selections of prepared meals. In addition, improving product offerings and convenience options from quick
service  and  fast-casual  restaurants  and  the  expansion  of  home  delivery  services,  together  with  negative  economic  conditions,  could  cause
consumers to choose less expensive alternatives than our restaurants. Internationally, we face increasing competition due to an increase in the
number of casual dining restaurant options in the markets in which we operate.

REVENUE GENERATING ACTIVITIES

We generate our revenues from our Company-owned restaurants and through sales of franchise rights and ongoing royalties and other fees
from our franchised restaurants.

Company-owned Restaurants - Company-owned restaurants are restaurants wholly-owned by us or in which we have a majority ownership.
The results of operations of Company-owned restaurants are included in our consolidated operating results and the portion of income or loss
attributable to the noncontrolling interests is eliminated in our Consolidated Statements of Operations and Comprehensive Income (Loss).

Historically,  we  paid  royalties  that  ranged  from  0.5%  to  1.5%  of  U.S.  sales  on  the  majority  of  our  Carrabba’s  Italian  Grill  restaurants,
pursuant  to  agreements  we  entered  into  with  the  Carrabba’s  Italian  Grill  founders  (“Carrabba’s  Founders”).  Each  Carrabba’s  Italian  Grill
restaurant located outside the U.S. paid a one-time lump sum fee to the Carrabba’s Founders in place of a continuing royalty fee. In August
2021, we entered into the Purchase and Sale of Royalty Payment Stream and Termination of Royalty Agreement (the “Royalty Termination
Agreement”) with the Carrabba’s Founders, pursuant to which our obligation to pay future royalties and lump sum royalty fees on Carrabba’s
Italian Grill (and Abbraccio) restaurants was terminated.

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BLOOMIN’ BRANDS, INC.

Following are sales by occasion, sales mix by product type and average check per person for Company-owned restaurants during 2021:

Outback
Steakhouse

Carrabba’s
Italian Grill

Bonefish Grill

U.S.

Fleming’s 
Prime Steakhouse 
& Wine Bar

INTERNATIONAL

Outback
Steakhouse
Brazil

Occasion:
In-restaurant sales
Off-premises sales

Sales mix by product type:
Food & non-alcoholic beverage
Alcoholic beverage

68 %
32 %

92 %
8 %

63 %
37 %

90 %
10 %

81 %
19 %

82 %
18 %

Average check per person ($USD)
Average check per person (R$)

$

24 

$

23 

$

30 

$

91 %
9 %

79 %
21 %

90 

$
R$

75 %
25 %

92 %
8 %

9 
50 

Delivery  -  During  2019,  we  completed  the  rollout  of  in-house  delivery  for  substantially  all  Outback  Steakhouse  and  the  majority  of
Carrabba’s Italian Grill Company-owned restaurants and expanded our delivery platform through partnerships with leading national delivery
services for our Outback Steakhouse, Carrabba’s Italian Grill and certain Bonefish Grill restaurants.

In March 2020, we pivoted to an off-premises only model in response to the COVID-19 pandemic. While our dining rooms were closed in
the  U.S.  we  tripled  our  off-premises  sales  per  restaurant,  and  since  reopening  our  restaurant  dining  rooms  in  May  2020,  have  maintained
strong retention of off-premises sales.

Unaffiliated Franchise Program - Our unaffiliated franchise agreements grant third parties rights to establish and operate a restaurant using
one of our concepts. Franchised restaurants are required to be operated in accordance with the franchise agreement and in compliance with
their respective concept’s standards and specifications.

Under our franchise agreements, each franchisee is required to pay an initial franchise fee and monthly royalties based on a percentage of
gross restaurant sales. Initial franchise fees for full-service restaurants are generally $40,000 for U.S. franchisees and range between $30,000
and  $75,000  for  international  franchisees,  depending  on  the  market.  Initial  franchise  fees  for  international  delivery-only  kitchens  are
generally  $10,000.  Some  franchisees  may  also  pay  advertising  and  administration  fees  based  on  a  percentage  of  gross  restaurant  sales.
Following is a summary of royalty fee percentages based on our existing unaffiliated franchise agreements:

(as a % of gross Restaurant sales)
U.S. franchisees (1)
International franchisees (2)

MONTHLY ROYALTY FEE
PERCENTAGE

3.50% - 5.75%
2.00% - 5.00%

_________________
(1)

U.S.  franchisees  must  also  contribute  a  percentage  of  gross  sales  for  national  marketing  programs  and  spend  a  certain  percentage  of  gross  sales  on  local
advertising. For most U.S. franchisees, there is a maximum of 8.0% of gross restaurant sales for combined national marketing and local advertising.
International franchisees must spend a certain percentage of gross sales on local advertising, which varies depending on the market.

(2)

On December 27, 2020, we entered into an agreement (the “Resolution Agreement”) with Cerca Trova Southwest Restaurant Group, LLC
(d/b/a  Out  West  Restaurant  Group)  and  certain  of  its  affiliates  (collectively,  “Out  West”),  a  franchisee  of  approximately  80  Outback
Steakhouse  restaurants  in  the  western  United  States  as  of  December  26,  2021.  Under  the  terms  of  the  agreement,  advertising  fees  were
reduced to 2.25% of gross sales until December 31, 2023 or upon the earlier occurrence of certain specified events, including the sale of all
or substantially all of the assets or equity of Out West, bankruptcy or a liquidation event.

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Out West also entered into a forbearance agreement with its lenders that, in conjunction with the Resolution Agreement which, among other
things, provides for a pre-determined calculation of available monthly cash (“Available Cash”) that Out West may use to settle its obligations
due to us and its lenders. Under the Resolution Agreement, if Out West is unable to satisfy monthly royalty or advertising fees with Available
Cash, such amounts will be automatically deferred under the Resolution Agreement.

See Note 4 - Revenue Recognition of the Notes to Consolidated Financial Statements for further details regarding the Resolution Agreement.

RESOURCES

Sourcing and Supply - We take a global approach to procurement and supply chain management, with our corporate team serving all U.S. and
international concepts. In addition, we have dedicated supply chain management personnel for our Company-owned international operations
in South America and Asia. The global supply chain management organization is responsible for all food and operating supply purchases as
well as a large percentage of purchases of field and corporate services.

We address the end-to-end costs associated with the products and goods we purchase by utilizing a combination of global, regional and local
suppliers  to  capture  efficiencies  and  economies  of  scale.  This  “total  cost  of  ownership”  (“TCO”)  approach  focuses  on  the  initial  purchase
price,  coupled  with  the  cost  structure  underlying  the  procurement  and  order  fulfillment  process.  The  TCO  approach  includes  monitoring
commodity markets and trends to execute product purchases at the most advantageous times.

We have a distribution program that includes food, beverage, smallwares and packaging goods in all major markets. Where applicable, this
program is managed by a custom distribution company that only provides products approved for our system. This customized relationship
also enables our staff to effectively manage and prioritize our supply chain.

Beef represents the majority of purchased proteins. In 2021, we primarily purchased our U.S. beef raw materials from four beef suppliers and
our Brazil beef raw materials from three beef suppliers. Due to the nature of our industry, we expect to continue purchasing a substantial
amount  of  beef  from  a  small  number  of  suppliers.  Other  major  commodity  categories  purchased  include  seafood,  poultry,  produce,  dairy,
bread, oils and pasta, and energy sources to operate our restaurants, such as natural gas and electricity. The cost of such commodities may
fluctuate widely due to government policy and regulation, changing weather patterns and conditions, climate change, and other supply and/or
demand impacting events such as the COVID-19 pandemic, geopolitical events, or other unforeseen circumstances.

Serving  safe  and  high  quality  food  has  always  been  our  priority.  We  utilize  both  an  internal  food  safety  team  responsible  for  supplier
evaluations  and  external  third  parties  who  inspect  supplier  adherence  and  restaurant  practices  to  monitor  quality,  food  safety  and  product
specifications.  All  of  our  restaurants  implement  best  practices  for  food  handling,  monitoring  and  innovating  to  improve  procedures.  Our
restaurant teams have many touch points to seek to ensure food safety, quality, and freshness through all phases of preparation.

We  are  committed  to  building  long-term  partnerships  with  suppliers  who  are  dedicated  to  delivering  safe,  high  quality  ingredients  in  a
sustainable way. All suppliers are required to comply with our Supplier Code of Ethics and we strive to source only products that are raised
in a sustainable, ethical and humane manner.

Information Systems - We leverage technology to support areas such as digital marketing and customer engagement, business analytics and
decision  support,  restaurant  operations  and  productivity  initiatives  related  to  optimizing  our  staffing,  food  waste  management  and  supply
chain efficiency.

To  drive  customer  engagement,  we  continue  to  invest  in  data  and  technology  infrastructure,  including  brand  websites,  digital  marketing,
online ordering and mobile apps. To increase customer convenience, we are leveraging

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our  online  ordering  infrastructure  to  facilitate  expanded  off-premises  dining  systems.  Additionally,  we  developed  systems  to  support  our
customer loyalty program with a focus on increasing traffic to our restaurants. In recent years, we have made investments in a global supply
chain management system to improve inventory forecasting and replenishment in our restaurants, which helps us manage food quality and
cost. We also continue to invest in a range of tools and infrastructure to support risk management and cyber security.

Our integrated point-of-sale system allows us to transact business in our restaurants and communicate sales data through a secure corporate
network  to  our  enterprise  resource  planning  system  and  data  warehouse.  Our  Company-owned  restaurants,  and  most  of  our  franchised
restaurants, are connected through a portal that provides our employees and franchise partners with access to business information and tools
that allow them to collaborate, communicate, train and share information.

We maintain a robust system to ensure network security and safeguard against data loss. See Item 1A. Risk Factors for additional discussion
of our cyber security measures.

Advertising and Marketing - We advertise through a diverse set of media channels including but not limited to national/spot television, radio,
social  media,  search  engines  and  other  digital  tactics.  Our  concepts  have  active  public  relations  programs  and  also  rely  on  national
promotions, site visibility, local marketing, digital marketing, direct mail, billboards and point-of-sale materials to promote our restaurants.
Recently, we increased our focus on data segmentation and personalization, customer relationship management and digital advertising to be
more  efficient  and  relevant  with  our  advertising  expenditures.  Internationally,  we  have  teams  in  our  developed  markets  that  engage  local
agencies to tailor advertising to each market and develop relevant and timely promotions based on local consumer demand.

Our multi-branded loyalty program, Dine Rewards, is designed to drive incremental traffic and provide data for customer segmentation and
personalization opportunities.

Restaurant Management - The Restaurant Managing Partner has primary responsibility for the day-to-day operation of the restaurant and is
required  to  follow  Company-established  operating  standards.  Area  Operating  Partners  for  our  casual  dining  concepts  oversee  restaurant
operations and Restaurant Managing Partners within a specific region.

In addition to base salary, Area Operating Partners, Restaurant Managing Partners and Chef Partners generally receive performance-based
bonuses  for  providing  management  and  supervisory  services  to  their  restaurants,  certain  of  which  may  be  based  on  a  percentage  of  their
restaurants’ monthly operating results or cash flows and/or total controllable income.

Restaurant  Managing  Partners  and  Chef  Partners  in  the  U.S.  may  also  participate  in  deferred  compensation  and  other  performance-based
compensation programs. To fund deferred compensation arrangements, we may invest in corporate-owned life insurance policies, which are
held within an irrevocable grantor or “rabbi” trust account for settlement of certain of our obligations under the deferred compensation plans.

Many of our international Restaurant Managing Partners are given the option to purchase participation interests in the cash distributions of
the restaurants they manage. The amount, terms and availability vary by country.

®

®

Trademarks - We regard our Outback , Outback Steakhouse , Carrabba’s Italian Grill , Bonefish Grill  and Fleming’s Prime Steakhouse &
Wine Bar  service marks and our Bloomin’ Onion  trademark as having significant value and as being important factors in the marketing of
our restaurants. We have also obtained trademarks and service marks for these and several of our other menu items and various advertising
slogans both in the U.S. and in other countries where we operate. We are aware of names and marks similar to the service marks of ours used
by other persons in certain geographic areas in which we have restaurants. However, we believe such uses will not adversely affect us. Our
policy is to, whenever possible, pursue registration of our marks in countries where we

®

®

®

®

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operate and to vigorously oppose any infringement of our marks. We also have registered domain names for each of our concepts.

We license the use of our registered trademarks to franchisees and third parties through franchise and license arrangements. The franchise and
license  arrangements  restrict  franchisees’  and  licensees’  activities  with  respect  to  the  use  of  our  trademarks  and  impose  quality  control
standards in connection with goods and services offered in connection with the trademarks.

SEASONALITY

Our  business  is  subject  to  seasonal  fluctuations.  Historically,  customer  traffic  patterns  for  our  established  U.S.  restaurants  are  generally
highest in the first quarter of the year and lowest in the third quarter of the year. International customer traffic patterns vary by market with
Brazil historically experiencing minimal seasonal traffic fluctuations. Holidays may affect sales volumes seasonally in some of our markets.
However, the COVID-19 pandemic has had and may continue to have an impact on consumer behaviors and customer traffic that may result
in  temporary  changes  in  the  seasonal  fluctuations  of  our  business.  Additionally,  severe  storms,  extended  periods  of  inclement  weather  or
climate extremes resulting from climate change may also affect the seasonal operating results of the areas impacted.

See Item 1A. Risk Factors for discussion of risks related to seasonal and periodic fluctuations.

GOVERNMENT REGULATION

We are subject to various federal, state, local and international laws affecting our business. Each of our restaurants is subject to licensing and
regulation  by  a  number  of  governmental  authorities,  which  may  include,  among  others,  alcoholic  beverage  control,  health  and  safety
agencies, environmental and fire agencies in the state, municipality or country in which the restaurant is located.

U.S.  -  During  2020,  several  governmental  bodies  in  the  U.S.  addressed  the  spread  of  COVID-19  by  imposing  limitations  on  business
operations or recommending that residents and/or employers adopt “social distancing”, vaccination and/or testing measures. Since the onset
of the COVID-19 pandemic, formal and informal restraints, as well as consumer behavior, have materially affected the way we operate our
business and serve our guests.

Alcoholic beverage sales represent 11% of our U.S. restaurant sales. Alcoholic beverage control regulations require each of our restaurants to
apply to a state authority and, in certain locations, county or municipal authorities for a license or permit to sell alcoholic beverages on the
premises and, where applicable, a permit to provide service for extended hours and on Sundays. At the onset of the COVID-19 pandemic,
many  state  governors  entered  executive  orders  allowing  restaurants  to  sell  alcohol  for  carry-out  or  delivery.  In  most  jurisdictions,  alcohol
licenses for restaurants did not previously allow for off-premises sales. Many of these executive orders remain in effect, with some states
passing permanent legislation. We are currently offering alcohol to-go from certain locations from each of our restaurant concepts.

Our restaurant operations are also subject to federal and state laws for such matters as:

immigration, employment, minimum wage, overtime, tip credits, worker conditions and health care;

•
• menu labeling and food safety;
•

the Americans with Disabilities Act, which, among other things, requires our restaurants to meet federally mandated requirements for
the disabled; and
information security, data privacy, anti-corruption/anti-bribery, cashless payments and gift cards.

•

International  -  Our  restaurants  outside  of  the  U.S.  are  subject  to  similar  regional  and  local  laws  and  regulations  as  our  U.S.  restaurants,
including COVID-19-related mandates, labor, food safety, data privacy, anti-corruption/anti-bribery and information security.

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See Item 1A - Risk Factors for a discussion of risks relating to federal, state, local and international regulation of our business.

HUMAN CAPITAL RESOURCES

Employees - As of December 26, 2021, we employed approximately 82,000 Team Members (our employees), of which approximately 700
are corporate personnel, including more than 200 in international markets.

We are committed to nurturing an inclusive, service-focused culture, founded on respecting and valuing every person, regardless of gender,
race, ethnic origin, religion, sexual orientation, ability, or age. We track a variety of workforce statistics to help us understand the gender,
racial and ethnic diversity of our U.S. Team Members, including the following as of the period indicated:

KEY STATISTICS
Restaurant Support Center
Operations Leadership
Hourly Team Members

DECEMBER 26, 2021

WOMEN
64%
36%
51%

PEOPLE OF COLOR
(1)
21%
30%
48%

_________________
(1)

Denotes U.S. Team Members that identify as Black/African American, Hispanic/Latinx, Asian, Native American, Pacific Islander, or two or more races.

Various jurisdictional mandated industry-wide labor agreements, which are renewed annually, apply to certain of our employees in Brazil.

Celebrating  Our  People  –  Team  Members,  guests,  suppliers,  and  neighbors  have  always  been  the  heart  of  our  Company’s  culture,  driven
each  day  by  our  founding  Principles  &  Beliefs,  which  include  treating  each  individual  as  we  would  want  to  be  treated.  We  believe  that
creating exceptional guest experiences begins with providing a positive, supportive work environment that welcomes individual differences
and  allows  employees  to  grow  and  have  fun.  We  focus  on  developing  genuine,  emotional  guest  connections  through  friendly  service  and
high-quality food. We embrace the communities we serve, from feeding first responders to supporting worthy causes, especially in the Tampa
Bay area of Florida, home to our Restaurant Support Center.

Diversity, Equity & Inclusion - We aim to cultivate a welcoming, safe, and inclusive environment that celebrates diverse backgrounds and
provides equitable access to opportunities. We deliver on this by ensuring everyone is trained, understands their role in inclusivity, and is held
accountable in making our restaurants a place where everyone is valued for who they are and what they bring to the table.

We are constantly working to improve how we support our Team Members. As a part of these efforts, we continually assess our overall racial
diversity at Bloomin’ Brands as we strive to reflect the diversity of the communities we serve. We actively engage and listen to our Team
Members  as  they  share  personal  perspectives  that  could  serve  as  insight  for  others.  We  have  a  Diversity  &  Inclusion  Council  comprising
individuals across the Company, at all levels, to help guide, monitor, and reinforce short- and long-term diversity and inclusion goals.

Together we drive diversity, equity and inclusion through:

•

•

Leadership & Talent: attracting, retaining, developing and promoting diverse employees who reflect our communities at all levels of
leadership. During 2021, we introduced updated leadership competencies, with inclusive leadership as a core behavior at every level
of  the  organization.  We  launched  new  leadership  development  programs  including  Company-sponsored  executive  coaching,  the
Women of Color LeadHERship Development Program and the McKinsey Black Leaders Academy.
Training  &  Education:  strengthening  our  training  and  education  programs  to  include  listening,  sharing  and  storytelling.  Putting
learning into action to inspire change and lead a culture of authenticity.

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•

Employee Resource Groups: connecting Team Members through dedicated networks focused on relationship building, professional
growth and development, and purposeful community involvement, providing direct impact and value to the business. During 2021,
we actively inspired a sense of community through three Employee Resource Groups:

◦ Women’s  Interests  Network  (WIN):  To  accelerate  the  advancement  of  women  working  at  Bloomin’  Brands  by  sharing
information,  best  practices,  education  and  experience,  and  in  so  doing  helping  one  another  develop  leadership  skills  and
career advancement opportunities.
Black  Interests  Group  (BIG):  To  elevate  Black  talent  at  Bloomin’  Brands  by  building  strong  networks  that  champion
professional growth, mentoring and leadership opportunities across the entire organization.

◦

◦ BELONG: To celebrate understanding, acceptance and involvement of the LGBTQ+ community, fostering an environment

where our people belong and thrive.

• Meaningful  Partnerships:  being  good  stewards  of  our  communities  and  engaging  with  organizations  dedicated  to  cultivating  more

diverse and inclusive communities, including:

◦ Harvest Food Donation
◦ National Urban League
◦ Woman’s Foodservice Forum
◦ Multicultural Foodservice & Hospitality Alliance
◦ National Diversity Council
◦ Autism Speaks
◦ Habitat for Humanity
◦ Big Brothers, Big Sisters of America
◦ Boys & Girls Clubs

We use surveys to seek feedback from our Team Members on a variety of topics that include, but are not limited to, confidence in leadership,
our company culture and overall satisfaction with the Company. We regularly monitor and evaluate turnover and attrition metrics throughout
our  management  teams.  Annual  strategic  talent  reviews  and  succession  planning  for  executive-level  roles,  senior  management  and  key
restaurant leadership positions help ensure consistency in management talent quality.

We are committed to high standards of ethical, moral, and legal business conduct and strive to be an open and honest workplace, providing a
positive work environment and fostering a culture of integrity and ethical decision-making. To support this commitment, we have a Code of
Conduct  that  provides  clear  direction  for  behavioral  expectations.  Every  employee,  officer  and  director  completes  situational  training
annually. In addition, we maintain an Ethics and Compliance Hotline (the “Hotline”), where violations and other workplace concerns can be
reported.  Team  Members  can  confidentially,  and  if  desired,  anonymously,  use  the  Hotline  to  make  a  report  online  or  to  a  live  third-party
operator in several languages, 24 hours a day, seven days a week. Annually, we provide training and education to our salaried employees and
most hourly employees with respect to our Code of Conduct, including our anti-corruption and anti-bribery policies.

Workplace Safety - Employee health and safety in the workplace is of utmost importance to our Company. We believe that all employees,
regardless  of  job  role  or  title,  have  a  shared  responsibility  in  the  promotion  of  health  and  safety  in  the  workplace.  We  are  committed  to
providing  and  following  safety  laws  and  rules,  including  internal  policies  and  procedures.  This  commitment  means  carrying  out  company
activities in ways that preserve and promote a clean, safe and healthy environment.

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Total Rewards - Our total rewards philosophy is to motivate and retain our Team Members by offering, what we believe to be, competitive
salary  packages.  To  align  Team  Member  objectives  with  the  Company  and  ultimately  our  stockholders,  Bloomin’  Brands  offers  programs
that  reward  long-term  performance.  Additionally,  we  offer  a  well-rounded  benefit  package  that  includes  the  following,  along  with  other
benefits:

• Comprehensive  health  insurance  coverage  for  Team  Members  working  an  average  of  30  or  more  hours  each  week.  This  program
includes  wellness  programs  intended  to  proactively  support  healthcare  and  access  to  a  health  savings  account  that  is  eligible  for
employer contributions and is fully portable.

• Virtual therapy that takes place via mobile device or computer, allowing all Team Members, regardless of insurance enrollment with
our Company, to access help when and where they need it, along with guided meditation options. The mental well-being of our Team
Members is important to us.

• Our  non-executive  salaried  Team  Members  are  eligible  to  receive  matching  contributions  in  our  401(k)  plan  and  have  access  to

financial wellness resources.

Company  Response  to  COVID-19  -  During  2021,  as  the  COVID-19  pandemic  continued  to  impact  the  lives  of  our  Team  Members,  we
offered educational resources to inform their vaccination decision. We also provided paid time off for hourly Team Members who elected to
be vaccinated.

In  2020,  in  response  to  the  COVID-19  global  crisis,  we  did  not  furlough  any  Team  Members  and  provided  $44.9  million  of  relief  pay,
excluding employee retention tax credits earned, for our field hourly Team Members who were impacted by closed dining rooms. We also
paid  the  employee  portion  of  benefits  premiums  for  Team  Members  who  received  relief  pay.  In  addition,  Team  Members  who  were
quarantined or who had a personal illness related to COVID-19 received pay.

Employee  Support  and  Community  Engagement  -  Our  commitment  to  our  Team  Members  does  not  stop  with  competitive  salaries,
development  and  benefits.  In  1999,  we  created  a  trust  (the  “Trust”)  to  support  our  Team  Members  in  times  of  personal  hardship.  All
contributions to the Trust are voluntary, employee-funded, and are not solicited from suppliers, customers or friends. Due to the incredible
generosity  and  caring  nature  of  our  Team  Members,  the  Trust  is  able  to  make  meaningful  monetary  support  to  our  Team  Members  who
experience very difficult, often unexpected and catastrophic issues, in their lives. Since 2017, the Trust has paid approximately $1.6 million
to the benefit of over 1,100 Team Members who applied for support.

We are inspired by the generosity of our Team Members and encourage them to give back to their communities. To facilitate this community
engagement,  Team  Members  at  the  Restaurant  Support  Center  are  given  paid  time  off  for  approved  community  service  activities  during
scheduled work hours.

Information About Our Executive Officers - Below is a list of the names, ages, positions and a brief description of the business experience of
each of our executive officers as of February 18, 2022:

NAME

David J. Deno
Christopher Meyer
Kelly Lefferts
Gregg Scarlett
Patrick Murtha

AGE

POSITION

64
50
55
60
63

Chief Executive Officer
Executive Vice President, Chief Financial Officer
Executive Vice President, Chief Legal Officer and Secretary
Executive Vice President, Chief Operating Officer, Casual Dining Restaurants
Executive Vice President, Fleming’s, International & Human Resources

David J. Deno has served as Chief Executive Officer and as a member of our Board of Directors since April 2019. Mr. Deno previously
served as our Executive Vice President and Chief Financial and Administrative Officer from October 2013 to April 2019 and as Executive
Vice President and Chief Financial Officer from May 2012 to October 2013. Prior to joining the Company, Mr. Deno was Chief Financial
Officer of the international division of Best Buy Co., Inc. from December 2009 to May 2012. Mr. Deno has also previously served as Chief
Financial Officer and later Chief Operating Officer of Yum! Brands, Inc.

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Christopher  Meyer  has  served  as  Executive  Vice  President,  Chief  Financial  Officer  since  April  2019.  Mr.  Meyer  previously  served  as
Group Vice President, Finance, Treasury and Accounting from November 2017 to April 2019 and Group Vice President, Financial Planning
& Analysis and Investor Relations from September 2014 to November 2017.

Kelly Lefferts has served as Executive Vice President, Chief Legal Officer since July 2019. Ms. Lefferts served as Group Vice President and
U.S. General Counsel of Bloomin’ Brands from September 2015 to July 2019 and Vice President and Assistant General Counsel of Bloomin’
Brands from January 2008 to September 2015. She has also served as Secretary of Bloomin’ Brands since February 2016.

Gregg  Scarlett  has  served  as  Executive  Vice  President,  Chief  Operating  Officer,  Casual  Dining  Restaurants  since  February  2020.  Mr.
Scarlett previously served as Executive Vice President, President of Outback Steakhouse from July 2016 to February 2020; Executive Vice
President,  President  of  Bonefish  Grill  from  March  2015  to  July  2016;  Senior  Vice  President,  Casual  Dining  Restaurant  Operations  from
January 2013 to April 2015; and Senior Vice President of Operations for Outback Steakhouse from March 2010 to January 2013.

Patrick  Murtha  has  served  as  Executive  Vice  President,  Fleming’s,  International  &  Human  Resources  since  April  2021.  Mr.  Murtha
previously  served  as  Executive  Vice  President  and  President,  International  from  November  2013  to  January  2018  and  Executive  Vice
President, Chief Human Resources Officer from February 2021 to April 2021. He also served as Interim Chief Human Resources Officer
from September 2020 to February 2021. Prior to joining the Company, Mr. Murtha was the Principal Consultant of Murtha Consulting from
January 2018 to December 2020. Mr. Murtha also previously served as Chairman of the Board and Managing Director of KFC, Japan, Ltd.,
Chief Operating Officer of Pizza Hut and Chief People Officer of Yum! Restaurants International.

Additional Information - We make available, free of charge, through our internet website www.bloominbrands.com, our Annual Report on
Form  10-K,  Quarterly  Reports  on  Form  10-Q,  Current  Reports  on  Form  8-K,  Proxy  Statements  and  amendments  to  those  reports  filed  or
furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after electronically filing such material
with  the  Securities  and  Exchange  Commission  (“SEC”).  Our  reports  and  other  materials  filed  with  the  SEC  are  also  available  at
www.sec.gov. The reference to these website addresses does not constitute incorporation by reference of the information contained on the
websites and should not be considered part of this Report.

Item 1A.    Risk Factors

The  risk  factors  set  forth  below  should  be  carefully  considered.  The  risks  described  below  are  those  that  we  believe  could  materially  and
adversely affect our business, financial condition or results of operations, however, they are not the only risks facing us. Additional risks and
uncertainties not currently known to us or those we currently view to be immaterial may also materially and adversely affect our business,
financial condition or results of operations.

Risks Related to Our Business and Industry

Food safety and food-borne illness concerns in our restaurants or throughout the industry or supply chain may have an adverse effect on
our business by reducing demand and increasing costs.

Regardless of the source or cause, any report of food-borne illnesses and other food safety issues, whether at one of our restaurants or in the
industry or supply chain, generally could have a negative impact on our traffic and sales and adversely affect the reputation of our brands.
Food safety issues could be caused by suppliers or distributors and, as a result, be out of our control and this risk may be exacerbated by
current supply chain issues, which could delay deliveries and necessitate alternative sourcing on short notice. Health concerns or outbreaks of
disease in a food product could also reduce demand for particular menu offerings. Even instances of food-borne illness, food tampering or
food  contamination  occurring  solely  at  restaurants  of  other  companies  could  result  in  negative  publicity  about  the  food  service  industry
generally and adversely impact our sales. Social media has dramatically increased the rate at which negative publicity, including as it relates
to food-borne illnesses, can be disseminated

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before there is any meaningful opportunity to respond or address an issue. The occurrence of food-borne illnesses or food safety issues could
also adversely affect the price and availability of affected ingredients, resulting in higher costs and lower margins.

The  COVID-19  pandemic  has  disrupted  and  is  expected  to  continue  to  disrupt  our  business,  and  could  continue  to  materially  and
adversely affect our business, revenues, financial condition and results of operations for an extended period of time.

The  COVID-19  pandemic  and  related  preventative  and  protective  measures  have  negatively  impacted,  and  are  expected  to  continue  to
impact, our business globally. In the United States and in foreign countries in which we operate, individuals are encouraged to practice social
distancing,  and  numerous  jurisdictions  have  imposed  on  a  temporary  or  on-going  basis,  and  others  in  the  future  may  impose  or  reinstate,
restrictions  from  gathering  in  groups,  shelter-in-place  orders  and  similar  governmental  orders  and  restrictions  for  residents  to  control  the
spread  of  COVID-19,  all  of  which  impacts  our  ability  to  operate  our  business.  These  preventative  and  protective  measures,  which  vary
significantly  across  the  jurisdictions  where  our  restaurants  are  located,  create  a  rapidly  changing  and  complicated  system  for  ensuring
compliance and predicting our revenues and cost structure.

In  response  to  the  COVID-19  pandemic  and  these  changing  conditions,  we  modified  work  hours  for  our  team  members,  identified  and
implemented  cost  savings  measures  throughout  our  operations,  shifted  the  majority  of  our  corporate  employees  to  remote  working  and
temporarily  limited  our  services  in  the  U.S.  to  carry-out  and  delivery  only  from  March  2020  through  early  May  2020.  Depending  on  the
future course of the COVID-19 pandemic and future outbreaks and variants of the virus, we could face additional closures or limitations on
our services or capacity for our restaurant dining rooms. If we revert to solely or primarily off-premises sales, there can be no assurance that
our off-premises sales will grow or remain at levels experienced while our dining rooms were previously closed.

Further, if the business interruptions caused by COVID-19 worsen and we were again required to suspend operations or limit capacity in our
restaurant dining rooms or our assumptions regarding liquidity needs prove inaccurate, we could face liquidity challenges and would need to
seek  additional  sources  of  liquidity.  There  can  be  no  guarantee  that  additional  liquidity  will  be  readily  available  or  available  on  favorable
terms, especially the longer the COVID-19 pandemic lasts.

Our  restaurant  operations  could  be  further  disrupted  if  any  of  our  employees  are  diagnosed  with  COVID-19,  since  this  could  require
restaurant closures or require some or all of a restaurant’s employees to self-quarantine. If our customers become ill, a significant percentage
of  our  or  our  suppliers’  or  distributors’  workforce  is  unable  to  work,  or  if  there  are  similar  disruptions  in  the  supply  chain  generally  for
certain products, whether because of illness, quarantine, limitations on travel or other government restrictions in connection with COVID-19,
we could face disruptions to restaurant operations, cost increases and shortages of food or other supplies, or reputational harm or negative
publicity directed at our brands that causes customers to avoid our restaurants, potentially materially adversely affecting our operations and
sales.

In addition, the operations of our franchisees are subject to the same risks discussed above with respect to our business, and the COVID-19
pandemic  has  and  may  continue  to  cause  financial  distress  to  our  franchisees.  We  have  deferred  or  permanently  waived  certain  of  our
franchisees’ payment obligations as a result, which deferments or waived payments may not be sufficient if financial distress continues. In
some cases, we are contingently liable for franchisee lease obligations, and a failure by a franchisee to perform its obligations under such
lease could result in direct payment obligations for us.

We have and could continue to experience other material impacts as a result of COVID-19, including, but not limited to, impairment charges.
We cannot accurately predict the amount and timing of any further impairment of assets. A significant amount of judgment is involved in
determining if an indication of impairment exists and the COVID-19 pandemic has made developing forecasts for, and the accounting of,
valuation of goodwill and certain other assets slower and more difficult. Should the value of goodwill or other intangible or long-lived assets
become

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further impaired, there could be an adverse effect on our financial condition and consolidated results of operations. To the extent the COVID-
19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described
in this Report.

We are subject to various federal and state employment and labor laws and regulations.

Various employment and labor laws and regulations govern our relationships with our employees throughout the world and affect operating
costs. These laws and regulations relate to matters including employment discrimination, minimum wage requirements, overtime, tip credits,
unemployment  tax  rates,  workers’  compensation  rates,  working  conditions,  immigration  status,  tax  reporting  and  other  wage  and  benefit
requirements.  Any  significant  additional  government  regulations  and  new  laws  governing  our  relationships  with  employees,  including
minimum  wage  increases,  mandated  benefits  or  other  requirements  that  impose  additional  obligations  on  us,  including  any  temporary  or
permanent  measures  implemented  in  response  to  COVID-19,  could  increase  our  costs  and  adversely  affect  our  business  and  results  of
operations.

As a significant number of our food service and preparation personnel are paid at rates related to the applicable minimum wage, federal, state
and local proposals related to minimum wage requirements or similar matters could, to the extent implemented, materially increase our labor
and  other  costs.  As  minimum  wage  increases  continue  to  be  implemented  in  states  in  which  we  operate,  we  expect  our  labor  costs  will
continue to increase. In addition, President Biden has called for an increase in the federal minimum wage from $7.25 per hour to $15.00 per
hour, which, if implemented, would materially increase our labor and other costs. Our distributors and suppliers could also be affected by
higher minimum wage, benefit standards and compliance costs, which could result in higher costs for goods and services supplied to us. In
addition, we rely on our employees to accurately disclose the full amount of their tip income, and we base our FICA tax reporting on the
disclosures provided to us by such tipped employees. Inaccurate employee FICA tax reporting could subject us to monetary liabilities, which
could harm our business, results of operations and financial condition.

Increased commodity, energy and other costs could decrease our profit margins or cause us to limit or otherwise modify our menus or
increase  prices,  which  could  adversely  affect  our  business.  Further,  if  our  suppliers  or  custom  distributors  are  unable  to  fulfill  their
obligations  under  their  contracts  or  we  are  unable  to  develop  or  maintain  relationships  with  these  or  new  suppliers  or  distributors,  if
needed, we could encounter supply shortages and incur higher costs.

The  performance  of  our  restaurants  depends  on  our  ability  to  anticipate  and  react  to  changes  in  the  price  and  availability  of  food
commodities.  Our  business  also  incurs  significant  costs  for  energy,  insurance,  labor,  marketing  and  real  estate.  Prices  may  be  affected  by
supply,  market  changes,  increased  competition,  the  general  risk  of  inflation,  changes  in  laws,  shortages  or  interruptions  in  supply  due  to
weather,  disease  or  other  conditions  beyond  our  control,  labor  shortages  or  other  reasons.  We  are  anticipating  commodity  inflation  of
approximately 11.0% to 13.0% and mid-single digit labor cost inflation during 2022, but there can be no assurance it will not be greater than
that or that we will be able to pass through increased costs in our prices. Increased prices or shortages could affect the cost and quality of the
items we buy or require us to raise prices, limit our menu options or implement alternative processes or products. As a result, these events,
combined with other more general economic and demographic conditions, could impact our pricing and negatively affect our sales and profit
margins.

We  depend  on  frequent  deliveries  of  fresh  food  products  that  meet  our  specifications,  and  we  have  a  limited  number  of  suppliers  and
distributors  for  our  major  products,  such  as  beef.  These  factors  subject  us  to  the  risk  that  shortages  or  interruptions  in  products  could
adversely affect the availability, quality or cost of products or require us to incur more costs to obtain adequate products if we are unable to
manage  supply  chain  risk.  During  2021,  we  purchased:  (i)  more  than  90%  of  our  U.S.  beef  raw  materials  from  four  beef  suppliers  that
represent more than 80% of the total beef marketplace in the U.S. and (ii) more than 95% of our Brazil beef raw materials from three beef
suppliers that represent approximately 50% of the total beef marketplace in Brazil. Due to the nature of our industry, we expect to continue to
purchase a substantial amount of our beef from a small number of suppliers. Global economic factors continue to place significant pressure
on suppliers, making the supply environment more expensive and causing

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supply chain issues. Supply shortages or disruptions caused by inclement weather, climate change, natural disasters, pandemics (including
COVID-19),  financial  or  solvency  issues  of  our  suppliers  or  distributors,  fuel  increases  or  other  conditions  beyond  our  control  could
adversely  affect  our  operations  and  operating  results.  In  addition,  if  any  of  our  suppliers  or  distributors  were  unable  to  fulfill  their
responsibilities or we were unable to maintain current purchasing terms or ensure service availability and we were unable to locate substitutes
in a timely manner, especially given the prolonged effects of COVID-19, we may encounter supply shortages, lose consumers and experience
an  increase  in  costs  in  seeking  alternative  supplier  or  distribution  services.  The  failure  to  develop  and  maintain  supplier  and  distributor
relationships and any resulting disruptions to the provision of food and other supplies to our restaurant locations could adversely affect our
operating results.

The restaurant industry is highly competitive and consumer options for other prepared food offerings continue to expand. Our inability to
compete effectively could adversely affect our business, financial condition and results of operations.

A substantial number of restaurant operators compete directly and indirectly with us with respect to price, service, location and food quality,
some of which are well-established with significant resources. There is also active competition for management, team members and other
personnel, and attractive suitable real estate sites. Consumer tastes, nutritional and dietary trends, traffic patterns and the type, number and
location  of  competing  restaurants  often  affect  the  restaurant  business,  and  our  competitors  may  react  more  efficiently,  creatively  and
effectively to those conditions. In addition, our competitors may generate or better implement business strategies that improve the value and
relevance  of  their  brands  and  reputation,  relative  to  ours.  For  example,  our  competitors  may  more  successfully  implement  menu  or
technology  initiatives,  such  as  remote  ordering,  social  media  or  mobile  technology  platforms  that  expedite  or  enhance  the  customer
experience. In addition, our competitors may more successfully implement delivery and off-site initiatives or implement other measures to
better  address  COVID-related  business  risks.  Further,  we  face  growing  competition  from  quick  service  and  fast-casual  restaurants,  the
supermarket  industry  and  meal  kit  and  food  delivery  providers,  with  the  improvement  of  prepared  food  offerings  and  the  trend  towards
convergence in grocery, deli, retail and restaurant services. We believe all of the above factors have increased competitive pressures in the
casual dining sector in recent periods and we believe they will continue to present a challenging competitive environment in future periods. If
we are unable to continue to compete effectively, our traffic, sales and margins could decline and our business, financial condition and results
of operations would be adversely affected.

Failure to recruit, train and retain high-quality leadership, restaurant-level management and team members may inhibit our ability to
operate and grow successfully.

Our success will continue to depend, to a significant extent, on our leadership team and other key management personnel. If we are unable to
attract and retain sufficiently experienced and capable management personnel, our business and financial results may suffer.

Our restaurant-level management and team members are largely responsible for the quality of our service. Our guests may be dissatisfied and
our sales may decline if we fail to recruit, train and retain managers and team members that effectively implement our business strategy and
provide  high  quality  guest  service.  There  is  active  competition  for  quality  management  personnel  and  hourly  team  members,  and  such
competition could require us to pay higher wages or incur higher costs for retaining and incentivizing our management personnel and hourly
team members. If we experience high turnover, we may experience higher labor costs and have a shortage of adequate management personnel
required for future growth. A shortage of team members also could cause our restaurants to operate with reduced staff, which could adversely
affect our ability to provide high quality guest service.

Challenging economic, political and social conditions may have a negative effect on our business and financial results.

Challenging  economic,  political  and  social  conditions  may  negatively  impact  consumer  spending  and  thus  cause  a  challenging  sales
environment in the casual dining sector and a decline in our financial results. For example,

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international,  domestic  and  regional  economic  conditions,  consumer  income  levels,  financial  market  volatility,  inflation,  social  unrest  and
governmental,  political  and  budget  matters  may  have  a  negative  effect  on  consumer  confidence  and  discretionary  spending,  which  the
restaurant industry depends upon. Protests, demonstrations, riots, civil disturbance, disobedience, insurrection, or social and other political
unrest, such as those seen in recent years, have and may continue to result in restrictions, curfews, or other actions and give rise to significant
changes in regional and global economic conditions. If such events or disruptions persist for a prolonged period of time, our overall business
and results of operations may be adversely affected.

In  addition,  it  is  difficult  to  predict  what  impact,  if  any,  changes  in  federal  policy,  including  tax  policies,  will  have  on  our  industry,  the
economy as a whole, consumer confidence and discretionary spending. As a result, the nature, timing and impact on our business of potential
changes to the current legal and regulatory frameworks are uncertain. It is also difficult to predict what the long-term economic impacts of
the ongoing COVID-19 pandemic may be.

A decline in economic, political or social conditions or negative developments with respect to any of the other factors mentioned above, or a
perception  that  such  decline  or  negative  developments  are  imminent,  generally  or  in  particular  markets  in  which  we  operate,  and  our
consumers’ reactions to these trends could result in increased pressure with respect to our pricing, traffic levels, commodity and other costs
and  the  continuation  of  our  innovation  and  productivity  initiatives,  which  could  negatively  impact  our  business  and  results  of  operations.
Further, poor economic conditions may force nearby businesses to shut down, which could cause our restaurant locations to be less attractive.

Cyber  security  breaches  of  confidential  consumer,  personal  employee  and  other  material  information  and  other  threats  to  our
technological systems may adversely affect our business.

A cyber incident that compromises the information of our consumers or employees, whether affecting our technological systems or those of
third-party service providers that we rely on, could result in widespread negative publicity, damage to the reputation of our brands, a loss of
consumers, an interruption of our business and legal liabilities.

The majority of our restaurant sales are by credit or debit cards, and we maintain certain personal information regarding our employees and
confidential  information  about  our  customers,  franchisees  and  suppliers.  Although  we  segment  our  card  data  environment  and  employ  a
cyber  security  protection  program  based  upon  industry  frameworks,  as  well  as  scan  and  improve  our  environment  for  any  vulnerabilities,
perform penetration testing and engage third parties to assess effectiveness of our security measures with oversight by our Audit Committee,
there are no assurances that such programs will prevent or detect all potential cyber security breaches or technological failures.

Our  operations  and  corporate  functions  rely  heavily  on  information  systems,  including  point-of-sale  processing  in  our  restaurants,
management of our supply chain, payment of obligations, collection of cash, data warehousing to support analytics, finance and accounting
systems, mobile technologies to enhance the customer experience and other various processes and procedures, some of which are handled by
third  parties.  Our  ability  to  efficiently  and  effectively  manage  our  business  depends  significantly  on  the  reliability  and  capacity  of  these
systems. The failure of these systems to operate effectively, system maintenance problems, upgrading or transitioning to new platforms, or
any cyber incident relating to these systems could expose our systems or information to cyber threats, result in delays in consumer service,
reduced efficiency in our operations or result in negative publicity. Despite our security measures, our technology systems may be vulnerable
to damage, disability or failures due to physical theft, fire, power loss, telecommunications failure or other catastrophic events, as well as
from internal and external security breaches, employee error or malfeasance, denial of service and ransomware attacks, viruses, worms and
other disruptive problems.

From  time  to  time  we  have  been,  and  likely  will  continue  to  be,  the  target  of  attempted  cyber  and  other  security  threats,  including  those
common to most industries and those targeting us due to the confidential consumer information we obtain through our electronic processing
of credit and debit card transactions. A security breach or

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even  a  perceived  security  breach  or  failure  to  appropriately  respond  to  a  cyber  incident  could  result  in  litigation  or  governmental
investigation,  as  well  as  damage  to  our  reputation  and  brands.  We  are  subject  to  a  variety  of  continuously  evolving  laws  and  regulations
regarding  privacy,  data  protection  and  data  security  at  federal,  state  and  international  levels.  The  California  Consumer  Privacy  Act,  for
example, became effective January 1, 2020 and provides a new private right of action to California residents related to data breaches and
imposes new disclosure and other requirements on companies with respect to their data collection, use and sharing practices as they relate to
California  residents.  A  claim  or  investigation  resulting  from  a  cyber  or  other  security  threat  to  our  systems  and  data  may  have  a  material
adverse effect on our business and the potential of incurring significant remediation costs, to the extent such costs are not covered by our
applicable insurance policies. As cyber security risk and applicable laws and regulations evolve, we may incur significant additional costs in
technology, third-party services and personnel to maintain systems designed to anticipate and prevent cyber-attacks.

Our  inability  or  failure  to  recognize,  respond  to  and  effectively  manage  the  accelerated  impact  of  social  media  could  have  a  material
adverse impact on our business.

Social  media  allows  individuals  to  access  a  broad  audience  of  consumers  and  other  interested  persons.  The  availability  of  information  on
social media platforms is virtually immediate as is its impact, and users can post information often without filters or checks on the accuracy
of  the  content  posted.  Adverse  or  inaccurate  information  concerning  our  Company  or  concepts  may  be  posted  at  any  time,  and  such
information can quickly reach a wide audience. Social media has also been utilized to target specific companies or brands as a result of a
variety of actions or inactions, or perceived actions or inactions, and such campaigns can rapidly accelerate and impact consumer behavior.
The harm may be immediate without affording us an opportunity for redress or correction, and it is challenging to monitor, anticipate and
promptly  respond  to  such  developments.  These  factors  could  have  a  material  adverse  effect  on  our  business.  Regardless  of  its  basis  or
validity, any unfavorable publicity could adversely affect public perception of our brands.

Our failure to use social media responsibly in our marketing efforts may further expose us to these risks. As part of our marketing efforts, we
rely on search engine marketing and social media platforms to attract and retain guests. We need to continuously innovate and develop our
social  media  strategies  in  order  to  maintain  broad  appeal  with  guests  and  brand  relevance.  We  also  continue  to  invest  in  other  digital
marketing initiatives that allow us to reach our guests across multiple digital channels and build their awareness of, engagement with, and
loyalty to our brands. These initiatives may not be successful, resulting in expenses incurred without the benefit of higher revenues, increased
employee engagement or brand recognition. In addition, a variety of risks are associated with the use of social media, including the improper
disclosure  of  proprietary  or  personal  information  and  negative  publicity.  The  inappropriate  use  of  social  media  vehicles  by  our  guests  or
employees could increase our costs, lead to litigation or result in negative publicity that could damage our reputation.

We  face  a  variety  of  risks  associated  with  doing  business  in  foreign  markets  that  could  have  a  negative  impact  on  our  financial
performance.

We have a significant number of restaurants outside of the United States, and we intend to continue our efforts to grow internationally. There
is  no  assurance  that  international  operations  will  be  profitable  or  international  growth  will  continue.  In  addition,  if  we  have  a  significant
concentration of restaurants in a foreign market the impact of any negative local conditions can have a sizable impact on our results.

Our  foreign  operations  are  subject  to  all  of  the  same  risks  as  our  U.S.  restaurants,  as  well  as  additional  risks  including,  among  others,
international  economic,  political,  social  and  legal  conditions  and  the  possibility  of  instability  and  unrest,  differing  cultures  and  consumer
preferences,  diverse  government  regulations  and  tax  systems,  corruption,  anti-American  sentiment,  the  ability  to  source  high  quality
ingredients and other commodities in a cost-effective manner, uncertain or differing interpretations of rights and obligations in connection
with international franchise agreements and the collection of ongoing royalties from international franchisees, the availability and costs of
land, construction and financing, and the availability of experienced management, appropriate franchisees and area operating partners.

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Local or regional events or conditions in our international markets could affect our results. For example, during 2019, Hong Kong political
protests  led  to  violence  and  disrupted  business  operations.  In  recent  years,  there  were  protests  in  cities  throughout  the  U.S.  as  well  as
globally, including in Hong Kong, in connection with civil rights, liberties, and social and governmental reform.

Currency regulations and fluctuations in exchange rates could also affect our performance. We have operations in many foreign countries,
including  direct  investments  in  restaurants  in  Brazil  and  Hong  Kong/China,  as  well  as  international  franchises.  As  a  result,  we  may
experience  losses  from  fluctuations  in  foreign  currency  exchange  rates  or  any  hedging  arrangements  that  we  enter  into  to  offset  such
fluctuations, and such losses could adversely affect our overall sales and earnings.

We  are  subject  to  governmental  regulation  of  our  foreign  operations,  including  antitrust  and  tax  requirements,  anti-boycott  regulations,
import/export/customs regulations and other international trade regulations, the USA Patriot Act and the Foreign Corrupt Practices Act. Any
new regulatory or trade initiatives could impact our operations in certain countries. Failure to comply with any such legal requirements could
subject us to monetary liabilities and other sanctions, which could harm our business, results of operations and financial condition.

The food service industry is affected by consumer preferences and perceptions. Changes in these preferences and perceptions may lessen
the demand for our products, which would reduce sales and harm our business.

Food  service  businesses  are  affected  by  changes  in  consumer  tastes  and  demographic  trends.  For  instance,  if  prevailing  health  or  dietary
preferences  cause  consumers  to  avoid  steak  and  other  products  we  offer  in  any  of  our  concepts  in  favor  of  foods  or  ingredients  that  are
perceived  as  healthier  or  otherwise  reflect  popular  demand,  our  business  and  operating  results  would  be  harmed.  Various  factors  such  as
menu labeling rules, nutritional guidelines and academic studies may impact consumer choice and cause consumers to select foods other than
those  that  are  offered  by  our  restaurants.  If  we  are  unable  to  anticipate  or  successfully  respond  to  changes  in  consumer  preferences,  our
results of operations could be adversely affected, generally or in particular concepts or markets.

Our relationships with third party delivery services and ability to grow sales through delivery orders are subject to risks.

We maintain relationships with various third-party delivery apps and services. Our sales may be negatively affected if these platforms are
damaged  or  interrupted  through  technological  failures  or  otherwise.  This  could  cause  reputational  harm  or  adversely  impact  sales  and
customer satisfaction. Our sales through these services may also depend on the availability of delivery drivers, who are generally independent
contractors.

Changes in tax laws and unanticipated tax liabilities could adversely affect the taxes we pay and our profitability.

We are subject to income and other taxes in the United States and numerous foreign jurisdictions. Our effective income tax rate and other
taxes in the future could be adversely affected by a number of factors, including changes in the mix of earnings in countries with different
statutory  tax  rates,  changes  in  the  valuation  of  deferred  tax  assets  and  liabilities,  changes  in  U.S.  or  foreign  tax  laws,  comprehensive  tax
reform measures or other legislative changes and the outcome of income tax audits. For example, the U.S. and Brazil have recently proposed
significant changes to their respective tax laws. Although we cannot predict whether or in what form these proposals may pass, several of the
proposals considered, if enacted into law, could have a material impact on our effective income tax rate, income tax expense and cash flows.
Although we believe our tax estimates are reasonable, the final determination of tax audits could be materially different from our historical
income tax provisions and accruals. The results of a tax audit could have a material effect on our results of operations or cash flows in the
period or periods for which that determination is made. In addition, our effective income tax rate and our results may be impacted by our
ability  to  realize  deferred  tax  benefits,  including  our  FICA  tip  credit  carryforwards,  and  by  any  increases  or  decreases  of  our  valuation
allowances applied to our existing deferred tax assets.

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Our failure to comply with government regulation related to our restaurant operations, and the costs of compliance or non-compliance,
could adversely affect our business.

We  are  subject  to  various  federal,  state,  local  and  foreign  laws  affecting  our  business.  Each  of  our  restaurants  is  subject  to  licensing  and
regulation by a number of governmental authorities, which may include, among others, alcoholic beverage control, food safety, nutritional
menu  labeling,  health  care,  environmental  and  fire  agencies  in  the  state,  municipality  or  country  in  which  the  restaurant  is  located.  Our
suppliers  are  also  subject  to  regulation  in  some  of  these  areas.  Any  difficulties  or  inabilities  to  retain  or  renew  licenses,  or  increased
compliance costs due to changed regulations, could adversely affect operations at existing restaurants. Additionally, difficulties in obtaining
or failing to obtain the required licenses or approvals could delay or prevent the development of new restaurants. We are subject to various
U.S. federal, state and international laws and regulations related to the offer and sale of franchises. Failure to comply with these laws could
adversely affect the results we generate from franchises or otherwise impose costs on us. Alcoholic beverage sales represent ten percent of
our consolidated restaurant sales and are subject to extensive state and local licensing and other regulations. The failure of a restaurant to
obtain  or  retain  a  liquor  license  would  adversely  affect  that  restaurant’s  operations.  In  addition,  we  are  subject  to  “dram  shop”  statutes  in
certain states. These statutes generally provide a person injured by an intoxicated person the right to recover damages from an establishment
that wrongfully served alcoholic beverages to the intoxicated person. We may also incur costs of and challenges in ensuring compliance with
measures implemented in response to COVID-19, such as requirements for physical barriers or other preventative measures in restaurants or
vaccination or testing requirements for our employees, which can vary by the location of the restaurant and may continue to change.

Failure  to  achieve  projected  cost  savings  from  our  efficiency  initiatives  could  adversely  affect  our  results  of  operations  and  eliminate
potential funding for growth opportunities.

In recent years, we have identified strategies and taken steps to reduce operating costs and free up resources to reinvest in our business. These
strategies include improved supply chain management, implementing labor scheduling tools and integrating restaurant information systems
across  our  brands.  In  addition,  during  2020,  we  implemented  certain  measures  to  reduce  costs  and  preserve  liquidity  in  response  to  the
impacts of COVID-19. If we were required to implement similar measures in the future, they may not be sustainable or may be detrimental to
continued  operations.  We  continue  to  evaluate  and  implement  further  cost-saving  initiatives.  However,  the  ability  to  reduce  our  operating
costs through these initiatives is subject to risks and uncertainties, such as our ability to obtain improved supply pricing and the reliability of
any new suppliers or technology, and we cannot assure that these activities, or any other activities that we may undertake in the future, will
achieve the desired cost savings and efficiencies. Failure to achieve such desired savings could adversely affect our results of operations and
financial condition and curtail investment in growth opportunities.

There are risks and uncertainties associated with initiatives that we may implement.

From time to time, we consider various initiatives in order to grow and evolve our business and brands and improve our operating results.
These initiatives could include, among other things, acquisitions, development or dispositions of restaurants or brands, new joint ventures,
new  franchise  arrangements,  restaurant  closures  and  changes  to  our  operating  model.  There  can  be  no  assurance  that  any  such  actions  or
initiatives will be successful or deliver their anticipated benefits. We may be exposed to new and unforeseen risks and challenges, particularly
if  we  enter  into  markets  or  engage  in  activities  with  which  we  have  no  or  limited  prior  experience,  and  it  may  be  difficult  to  predict  the
success  of  such  endeavors.  If  we  incur  significant  expenses  or  divert  management,  financial  and  other  resources  to  any  initiative  that  is
unsuccessful or does not meet our expectations, our results of operations and financial condition would be adversely affected. We may also
incur  significant  asset  impairment  and  other  charges  in  connection  with  any  such  initiative.  Regardless  of  the  ultimate  success  of  any
initiative, the implementation and integration of new business or operational processes could be disruptive to our current operations. Even if
we test and evaluate an initiative on a limited basis, the diversion of management time and resources could have an adverse effect on our
business.

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BLOOMIN’ BRANDS, INC.

Our success depends substantially on the value of our brands and our ability to execute innovative marketing and consumer relationship
initiatives to maintain brand relevance and drive profitable sales growth.

Our success depends on our ability to preserve and grow our brands. Our brand value and reputation are especially important to differentiate
our concepts in the highly competitive casual dining sector to achieve sustainable same-restaurant sales growth and warrant new unit growth.
Brand value and reputation is based in large part on consumer perceptions, which are driven by both our actions and by actions beyond our
control, such as new brand strategies or their implementation, business incidents, ineffective advertising or marketing efforts, or unfavorable
mainstream or social media publicity involving us, our industry, our franchisees, or our suppliers. A failure to innovate and extend our brands
in  ways  that  are  relevant  to  consumers  and  occasions  in  order  to  generate  sustainable  same-restaurant  traffic  growth,  and  produce  non-
traditional sales and earnings growth opportunities, could have an adverse effect on our results of operations. Additionally, insufficient focus
on our competition or failure to adequately address declines in the casual dining industry, could adversely impact results of operations.

If our competitors increase their spending on advertising, promotions and loyalty programs, if our advertising, media or marketing expenses
increase,  or  if  our  advertising,  promotions  and  loyalty  programs  become  less  effective  than  those  of  our  competitors,  or  if  we  do  not
adequately leverage technology and data analytic capabilities needed to generate concise competitive insight, our results of operations could
be materially and adversely affected.

Risks associated with our remodeling, relocation and expansion plans may have adverse effects on our operating results.

As  part  of  our  business  strategy,  we  intend  to  continue  to  remodel,  relocate  and  expand  our  current  portfolio  of  restaurants.  Our  2022
development  schedule  calls  for  the  construction  of  approximately  30  new  system-wide  locations,  with  half  in  Brazil.  A  variety  of  factors
could cause the actual results and outcome of those plans to differ from the anticipated results, including among other things, the availability
and terms on which we can lease attractive sites for new or relocated restaurants, availability and terms of funding, recruiting, training and
retaining skilled management and restaurant employees, construction or other delays, the availability of construction materials or restaurant
equipment, construction and renovation costs and consumer tastes and acceptance of our restaurant concepts and awareness of our brands in
new regions.

It is difficult to estimate the performance of newly opened restaurants and whether they may attract customers away from other restaurants
we own. If new or existing restaurants do not meet targeted performance, it could have a material adverse effect on our operating results,
including any impairment losses that we may be required to recognize.

Some of the challenges described above could be more significant in international markets in which we have more limited experience, either
generally  or  with  a  particular  brand.  Those  markets  are  likely  to  have  different  competitive  conditions,  consumer  tastes,  discretionary
spending patterns and brand awareness, which may cause our new restaurants to be less successful than restaurants in our existing markets or
make it more difficult to estimate the performance of new restaurants.

In addition, in an effort to increase same-restaurant sales and improve our operating performance, we continue to make improvements to our
facilities  through  remodels  and  relocations  and  close  underperforming  restaurants.  We  incur  significant  lease  termination  or  continuation
expenses  and  asset  impairment  and  other  charges  when  we  close  or  relocate  a  restaurant.  If  the  expenses  associated  with  remodels,
relocations or closures are higher than anticipated, we cannot find suitable locations or remodeled or relocated restaurants do not perform as
expected, these initiatives may not yield the desired return on investment, which could have a negative effect on our operating results.

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BLOOMIN’ BRANDS, INC.

We have limited control with respect to the operations of our franchisees, which could have a negative impact on our business.

Our franchisees are contractually obligated to operate their restaurants in accordance with our standards and we provide training and support
to franchisees. However, franchisees are independent third parties that we do not control, and these franchisees own, operate and oversee the
daily  operations  of  their  restaurants.  As  a  result,  the  ultimate  success  and  quality  of  any  franchise  restaurant  rests  with  the  franchisee.  If
franchisees  do  not  successfully  operate  restaurants  in  a  manner  consistent  with  our  product  and  service  quality  standards  and  contractual
requirements, our image and reputation could be harmed, which in turn could adversely affect our business and operating results.

A significant portion of our financial results are dependent upon the operational and financial success of our franchisees. If sales trends or
economic conditions worsen for franchisees, their financial results may worsen and our royalty, rent and other fee revenues may decline. In
addition, we may also incur expenses in connection with supporting franchise restaurants that are underperforming. When Company-owned
restaurants are sold to a franchisee, one of our subsidiaries is often required to remain responsible for lease payments for the sold restaurants
to  the  extent  the  purchasing  franchisees  default  on  their  leases.  During  periods  of  declining  sales  and  profitability  of  franchisees,  the
incidence of franchisee defaults for these lease payments may increase and we may be required to make lease payments and seek recourse
against the franchisee or agree to repayment terms.

Our business is subject to seasonal and periodic fluctuations, and past results are not indicative of future results.

Historically, consumer traffic patterns for our established restaurants are generally highest in the first quarter of the year and lowest in the
third quarter of the year. Holidays may also affect sales volumes seasonally in some of the markets in which we operate. The COVID-19
pandemic  may  also  have  an  impact  on  consumer  behaviors  and  customer  traffic  that  may  result  in  temporary  changes  in  the  seasonal
fluctuations  of  our  business.  In  addition,  our  quarterly  results  have  been  and  will  continue  to  be  affected  by  the  timing  of  new  restaurant
openings and their associated pre-opening costs, as well as restaurant closures and exit-related costs, debt extinguishment and modification
costs and impairments of goodwill, intangible assets and property, fixtures and equipment. As a result of these and other factors, our financial
results for any quarter may not be indicative of the results that may be achieved for a full year.

Significant adverse weather conditions and other disasters or unforeseen events could negatively impact our results of operations.

Adverse  weather  conditions  and  natural  disasters  and  other  unforeseen  events,  such  as  winter  storms,  severe  temperatures,  thunderstorms,
floods,  hurricanes  and  earthquakes,  terrorist  attacks,  war  and  widespread/pandemic  illness,  and  the  effects  of  such  events  on  economic
conditions  and  consumer  spending  patterns,  could  disrupt  our  operations  or  supply  chain  and  negatively  impact  our  results  of  operations.
Temporary and prolonged restaurant closures may occur and consumer traffic may decline due to the actual or perceived effects from these
events. For example, the COVID-19 pandemic, severe winter weather conditions and hurricanes have impacted our traffic, and that of our
franchises, and results of operations in recent years. Although we cannot predict when or where we will be negatively impacted by adverse
weather  events,  to  the  extent  that  climate  change  or  other  factors  result  in  more  frequent,  widespread  or  severe  events,  it  could  adversely
impact our results. U.S. and foreign governmental officials also have placed an increasing focus on environmental matters, including climate
change, reduction of greenhouse gases and water consumption. This increased focus could lead to legislative, regulatory or other efforts to
combat these environmental concerns. These efforts could result in further increases in taxes, cost of supplies, transportation and utilities,
which could increase our operating costs and those of our franchisees and require future investments in facilities and equipment. There may
also be increased pressure for us to make commitments, set targets or establish goals to take actions to meet them, which could expose us and
our franchisees to market, operational, execution and reputational costs or risks.

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BLOOMIN’ BRANDS, INC.

Our failure or inability to enforce our trademarks or other proprietary rights could adversely affect our competitive position or the value
of our brand.

Our  trademarks,  including  Outback  Steakhouse,  Carrabba’s  Italian  Grill,  Bonefish  Grill,  Fleming’s  Prime  Steakhouse  &  Wine  Bar  and
Bloomin’ Onion, and other proprietary rights are important to our success and our competitive position. The protective actions that we take
may  not  be  sufficient  to  prevent  unauthorized  usage  or  imitation  by  others,  which  could  harm  our  image,  brand  or  competitive  position.
Furthermore, our ability to protect trademarks and other proprietary rights may be more limited in certain international markets where we
operate.

Litigation could have a material adverse impact on our business and our financial performance.

We are subject to lawsuits, administrative proceedings and claims that arise in the regular course of business. These matters typically involve
claims  by  consumers  and  others  regarding  issues  such  as  food  borne  illness,  food  safety,  premises  liability,  “dram  shop”  statute  liability,
promotional  advertising  and  other  operational  issues  common  to  the  food  service  industry,  as  well  as  contract  disputes  and  intellectual
property infringement matters. We are also subject to employee claims against us based on, among other things, discrimination, harassment,
wrongful  termination,  disability,  or  violation  of  wage  and  labor  laws.  We  are  also  subject  to  the  risk  of  being  named  a  joint  employer  of
workers of our franchisees for alleged violations of labor and wage laws. These claims may divert our financial and management resources
that  would  otherwise  be  used  to  benefit  our  operations.  The  ongoing  expense  of  any  resulting  lawsuits,  and  any  substantial  settlement
payment  or  damage  award  against  us,  could  adversely  affect  our  business  and  results  of  operations.  Significant  legal  fees  and  costs  in
complex class action litigation or an adverse judgment or settlement that is not insured or is in excess of insurance coverage could have a
material adverse effect on our financial position and results of operations.

Risks Related to Our Indebtedness

We may not be able to generate sufficient cash to service all of our indebtedness and operating lease obligations, and we may be forced to
take other actions to satisfy our obligations under our indebtedness and operating lease obligations, which may not be successful. If we
fail  to  meet  these  obligations,  we  would  be  in  default  under  our  debt  agreements  and  the  lenders  could  elect  to  declare  all  amounts
outstanding under them to be immediately due and payable and terminate all commitments to extend further credit.

Our ability to make scheduled payments on our debt obligations and to satisfy our operating lease obligations depends upon our financial
condition and operating performance, which is subject to prevailing economic and competitive conditions and to financial, business and other
factors,  many  of  which  are  beyond  our  control.  We  cannot  be  certain  that  we  will  maintain  a  level  of  cash  flow  from  operating  activities
sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness, or to pay our operating lease obligations. For
example, if COVID-19 conditions worsen, inflation persists, or our financial position deteriorates, our revenues and liquidity position may
decline. If our cash flow and capital resources are insufficient to fund our debt service obligations and operating lease obligations, we may be
forced  to  reduce  or  delay  capital  expenditures,  sell  assets,  seek  additional  capital  or  restructure  or  refinance  our  indebtedness.  These
alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. In the absence of sufficient
operating results and resources, we could face substantial liquidity problems and might be required to dispose of material assets or operations
or take other actions to meet our debt service and other obligations. Our debt agreements restrict our ability to dispose of assets and how we
may use the proceeds from the disposition. We may not be able to consummate those dispositions or to obtain the proceeds that we could
otherwise realize from such dispositions and any such proceeds that are realized may not be adequate to meet any debt service obligations
then due. The failure to meet our debt service obligations or the failure to remain in compliance with the financial covenants under our debt
agreements would constitute an event of default under those agreements and the lenders could elect to declare all amounts outstanding under
them to be immediately due and payable and terminate all commitments to extend further credit.

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BLOOMIN’ BRANDS, INC.

Our leverage could adversely affect our ability to raise additional capital to fund our operations or limit our ability to react to changes in
the economy or our industry.

As of December 26, 2021, our total net indebtedness was $793.1 million and we had $699.3 million in available unused borrowing capacity
under  our  revolving  credit  facility,  net  of  undrawn  letters  of  credit  of  $20.7  million.  In  May  2020,  we  issued  $230.0  million  of  5.00%
convertible senior notes due in 2025 (the “2025 Notes”) and in April 2021 we issued $300.0 million of 5.125% senior notes due in 2029 (the
“2029 Notes”).

Based on the daily closing prices of our stock during the quarter ended December 26, 2021, holders of the 2025 Notes are eligible to convert
their 2025 Notes during the first quarter of 2022.

Our leverage could have important consequences, including:

• making it more difficult for us to make payments on indebtedness;
•
•
•

increasing our vulnerability to general economic, industry and competitive conditions and the various risks we face in our business;
increasing our cost of borrowing or limiting our ability to obtain additional financing if needed;
reducing our ability to use our cash flow to fund our operations, capital expenditures, dividend payments, and future business and
strategic opportunities; and
limiting  our  ability  to  adjust  to  changing  market  conditions  and  placing  us  at  a  competitive  disadvantage  compared  to  our
competitors who may not be as highly leveraged.

•

We  may  incur  substantial  additional  indebtedness  in  the  future,  subject  to  the  restrictions  contained  in  our  credit  agreement.  If  new
indebtedness is added to our current debt levels, the related risks that we now face could increase.

We cannot be certain that our financial condition or credit and other market conditions will be favorable when our credit agreement matures
in 2026, or at any earlier time we may seek to refinance our debt. If we are unable to refinance our indebtedness on favorable terms, our
financial condition and results of operations would be adversely affected.

Our debt agreements contain restrictions that limit our flexibility in operating our business.

Certain of our debt agreements limit our and our subsidiaries’ abilities to, among other things, incur or guarantee additional indebtedness, pay
dividends on, redeem or repurchase our capital stock, make certain acquisitions or investments, incur or permit to exist certain liens, enter
into transactions with affiliates or sell our assets to, merge or consolidate with or into, another company. Our debt agreements require us to
satisfy certain financial tests and ratios. Our ability to satisfy such tests and ratios may be affected by events outside of our control.

If we breach the covenants under our debt agreements, the lenders could elect to declare all amounts outstanding under the agreements to be
immediately due and payable and terminate all commitments to extend further credit. If we are unable to repay those amounts, the lenders
could proceed against the collateral granted to them to secure that indebtedness. We have pledged substantially all of our assets as collateral
under our credit agreement. If our lenders accelerate the repayment of borrowings, we cannot be certain that we will have sufficient assets to
repay them.

Risks Related to Our Common Stock

Our ability to raise capital in the future may be limited, which could make us unable to fund our capital requirements.

Our business and operations may consume resources faster than we anticipate. In the future, we may need to raise additional funds through
the issuance of new equity securities, debt or a combination of both. Additional financing may not be available on favorable terms or at all. If
adequate funds are not available on acceptable terms, we may be unable to fund our capital requirements. If we issue new debt securities, the
debt holders would have rights

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BLOOMIN’ BRANDS, INC.

senior to common stockholders to make claims on our assets, and the terms of any debt could restrict our operations, including our ability to
pay  dividends  on  our  common  stock.  If  we  issue  additional  equity  securities,  existing  stockholders  may  experience  dilution,  and  the  new
equity securities could have rights senior to those of our common stock. Because our decision to issue securities in any future offering will
depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future
offerings.

Thus,  our  stockholders  bear  the  risk  of  our  future  securities  offerings  reducing  the  market  price  of  our  common  stock  and  diluting  their
interest.

Our stock price is subject to volatility.

The  stock  market  in  general  is  highly  volatile.  As  a  result,  the  market  price  of  our  common  stock  is  similarly  volatile.  The  price  of  our
common stock could be subject to wide fluctuations in response to a number of factors, some of which may be beyond our control. These
factors  include  actual  or  anticipated  fluctuations  in  our  operating  results,  changes  in  or  our  ability  to  achieve  estimates  of  our  operating
results by analysts, investors or management, analysts’ recommendations regarding our stock or our competitors’ stock, sales of substantial
amounts of our common stock by our stockholders, actions or announcements by us or our competitors, the maintenance and growth of the
value of our brands, litigation, legislation or other regulatory developments affecting us or our industry, widespread/pandemic illness, natural
disasters, cyber-attacks, terrorist acts, war or other calamities and changes in general market and economic conditions.

Provisions in our certificate of incorporation and bylaws and Delaware law may discourage, delay or prevent a change of control of our
company or changes in our management and, therefore, may depress the trading price of our stock.

Our certificate of incorporation and bylaws include certain provisions (including provisions related to our classified board structure through
2024 and supermajority voting requirements) that could have the effect of discouraging, delaying or preventing a change of control of our
company or changes in our management. These provisions may discourage, delay or prevent a transaction involving a change in control of
the Company that is in the best interests of our stockholders. Even in the absence of a takeover attempt, the existence of these provisions may
adversely affect the prevailing market price of our common stock if they are viewed as discouraging future takeover attempts.

Section  203  of  the  Delaware  General  Corporation  Law  may  affect  the  ability  of  an  “interested  stockholder”  to  engage  in  certain  business
combinations, including mergers, consolidations or acquisitions of additional shares, for a period of three years following the time that the
stockholder becomes an “interested stockholder.” An “interested stockholder” is defined to include persons owning directly or indirectly 15%
or more of the outstanding voting stock of a corporation. Although we have elected in our certificate of incorporation not to be subject to
Section  203  of  the  Delaware  General  Corporation  Law  our  certificate  of  incorporation  contains  provisions  that  have  the  same  effect  as
Section 203, except that they provide that our former private equity sponsors will not be deemed to be “interested stockholders,” regardless
of the percentage of our voting stock owned by them, and accordingly will not be subject to such restrictions.

General Risk Factors

An impairment in the carrying value of our goodwill or other intangible or long-lived assets could adversely affect our financial condition
and results of operations.

Along with other intangible assets, we test goodwill for impairment annually and whenever events or changes in circumstances indicate that
its  carrying  value  may  not  be  recoverable.  We  also  evaluate  long-lived  assets  on  a  quarterly  basis  or  whenever  events  or  changes  in
circumstances  indicate  that  the  carrying  value  may  not  be  recoverable.  We  cannot  accurately  predict  the  amount  and  timing  of  any
impairment of assets. A significant amount of judgment is involved in determining if an indication of impairment exists. Should the value of
goodwill or other

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intangible  or  long-lived  assets  become  impaired,  there  could  be  an  adverse  effect  on  our  financial  condition  and  consolidated  results  of
operations.

Failure to maintain effective systems of internal control over financial reporting and disclosure controls and procedures could adversely
affect our business and financial results.

Effective internal control over financial reporting is necessary for us to provide accurate financial information. If we are unable to adequately
maintain effective internal control over financial reporting, we may not be able to accurately report our financial results. Furthermore, we
cannot be certain that our internal control over financial reporting and disclosure controls and procedures will prevent all possible error and
fraud, including through cyber-attacks. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute
assurance that all control issues and instances of error or fraud, if any, in our company have been detected. These inherent limitations include
the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake, which could
have  an  adverse  impact  on  our  business.  A  significant  financial  reporting  failure  or  a  lack  of  sufficient  internal  control  over  financial
reporting could cause a loss of investor confidence and decline in the market price of our common stock, increase our costs, lead to litigation
or result in negative publicity that could damage our reputation.

Future changes to existing accounting rules, accounting standards, new pronouncements and varying interpretations of pronouncements, or
the questioning of current accounting practices may adversely affect our reported financial results. Additionally, our assumptions, estimates
and  judgments  related  to  complex  accounting  matters  could  significantly  affect  our  financial  results.  Generally  accepted  accounting
principles and related accounting pronouncements, implementation guidelines and interpretations with regard to a wide range of matters that
are relevant to our business, including but not limited to, revenue recognition, impairment of long-lived assets, leases and related economic
transactions,  derivatives,  intangibles,  self-insurance,  income  taxes,  property  and  equipment,  unclaimed  property  laws  and  litigation,  and
stock-based compensation are highly complex and involve many subjective assumptions, estimates and judgments by us. Changes in these
rules or their interpretation or changes in underlying assumptions, estimates or judgments by us could significantly change our reported or
expected financial performance.

Our insurance policies may not provide adequate levels of coverage against all claims, and fluctuating insurance requirements and costs
could negatively impact our profitability.

We carry insurance programs with specific retention levels or high per-claim deductibles for a significant portion of our risks and associated
liabilities with respect to workers’ compensation, general liability, liquor liability, employment practices liability, property, health benefits,
cyber security and other insurable risks. However, there are types of losses we may incur that cannot be insured against or that we believe are
not commercially reasonable to insure. These losses, if they occur, could have a material and adverse effect on our business and results of
operations. Additionally, if our insurance costs increase, there can be no assurance that we will be able to successfully offset the effect of
such increases and our results of operations may be adversely affected.

Item 1B. Unresolved Staff Comments

Not applicable.

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Item 2.    Properties

BLOOMIN’ BRANDS, INC.

We  had  1,498  system  wide  full-service  restaurants  and  off-premises  only  kitchens  located  across  47  states,  Guam  and  17  countries  as  of
December 26, 2021. The following is a summary of our restaurant and kitchen locations by country and territory as of December 26, 2021:

COMPANY-OWNED

FRANCHISED

United States

International:
Brazil (1)
China (Mainland)
Hong Kong

Total international Company-owned

Total Company-owned

1,013  United States

International:
Argentina
Australia
Bahamas
Canada

135 
1 
20 
156 

Costa Rica
Dominican Republic
Guam
Indonesia

Total international franchised

1,169  Total franchised

Japan

2 
8  Mexico
1 
3 

Philippines
Qatar

Saudi Arabia
South Korea
Turks and Caicos

1 
1 
1 
3 

157 

10 
5 
3 
4 

11 
118 
1 

172 
329 

____________________
(1)

The count for Brazil is reported as of November 30, 2021 to correspond with the balance sheet date of this subsidiary.

We lease substantially all of our restaurant properties from third parties. As of December 26, 2021, our Company-owned restaurants were
located on the following sites by segment:

Company-owned sites
Leased sites:

Land, ground and building leases
Space and in-line leases

Total Company-owned restaurant sites

U.S.

INTERNATIONAL

TOTAL

PERCENTAGE OF
TOTAL

26 

682 
305 
1,013 

— 

— 
156 
156 

26 

682 
461 
1,169 

2 %

58 %
40 %
100 %

We also lease corporate offices in Tampa, Florida and São Paulo, Brazil.

Item 3.    Legal Proceedings

For a description of our legal proceedings, see Note 22 - Commitments and Contingencies of the Notes to Consolidated Financial Statements
of this Report.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

BLOOMIN’ BRANDS, INC.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information - Our common stock is listed on the Nasdaq Global Select Market under the symbol “BLMN”.

Dividends - We began paying quarterly cash dividends on shares of our common stock in 2015 but suspended dividends in early 2020 at the
onset of the COVID-19 pandemic. Under our Second Amended and Restated Credit Agreement (the “Credit Agreement”), we were restricted
from  paying  dividends  until  after  September  26,  2021  and  we  were  compliant  with  our  financial  covenants.  We  were  compliant  with  our
financial covenants as of December 26, 2021 and in February 2022, our Board of Directors (our “Board”) declared a quarterly cash dividend.
Future dividend payments will depend on continued compliance with our financial covenants, as well as our earnings, financial condition,
capital expenditure requirements, surplus and other factors that our Board considers relevant.

Holders  -  As  of  February  18,  2022,  there  were  104  holders  of  record  of  our  common  stock.  The  number  of  registered  holders  does  not
include holders who are beneficial owners whose shares are held in street name by brokers and other nominees.

Securities Authorized for Issuance Under Equity Compensation Plans - The following table presents the securities authorized for issuance
under our equity compensation plans as of December 26, 2021:

(shares in thousands)

(a)

(b)

(c)

PLAN CATEGORY

NUMBER OF SECURITIES
TO BE ISSUED UPON
EXERCISE OF
OUTSTANDING OPTIONS,
WARRANTS AND RIGHTS
(1)

WEIGHTED AVERAGE
EXERCISE PRICE OF
OUTSTANDING OPTIONS,
WARRANTS AND RIGHTS
(2)

NUMBER OF SECURITIES
REMAINING AVAILABLE
FOR FUTURE ISSUANCE
UNDER EQUITY
COMPENSATION PLANS
(EXCLUDING SECURITIES
REFLECTED IN COLUMN
(a)) (3)

Equity compensation plans approved by security holders

5,765  $

20.42 

8,911 

____________________
(1)

(2)
(3)

Includes  1,489  shares  issuable  in  respect  to  restricted  stock  units  and  performance-based  share  units  (assuming  target  achievement  of  applicable  performance
metrics).
Amounts in this column relate only to options exercisable for common shares.
The  shares  remaining  available  for  issuance  may  be  issued  in  the  form  of  stock  options,  restricted  stock  units  or  other  stock  awards  under  the  2020  Omnibus
Incentive Compensation Plan.

Unregistered Sales of Equity Securities - Convertible Senior Notes and Warrants - In May 2020, we issued $230.0 million of 5.00% senior
notes that are convertible into approximately 19.348 million shares of our common stock, at the initial conversion rate, and mature on May 1,
2025, unless earlier converted, redeemed or purchased by us (the “2025 Notes”). In connection with the offering of the 2025 Notes, we also
sold warrants for approximately 19.348 million shares of our common stock with an initial strike price of $16.64.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers - We did not repurchase any shares of our outstanding common stock
during the thirteen weeks ended December 26, 2021. On February 8, 2022, our Board approved a share repurchase program (the “2022 Share
Repurchase Program”), as announced in our press release issued on February 18, 2022, under which we are authorized to repurchase up to
$125.0 million of our outstanding common stock. The 2022 Share Repurchase Program will expire on August 9, 2023.

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Stock Performance Graph - The following graph depicts total return to stockholders from December 23, 2016 through December 26, 2021,
relative to the performance of the Standard & Poor’s 500 Index and the Standard & Poor’s 500 Consumer Discretionary Sector, a peer group.
The graph assumes an investment of $100 in our common stock and in each index on December 23, 2016 (the last business day of the fiscal
year of investment) and the reinvestment of dividends paid since that date. The stock price performance shown in the graph is not necessarily
indicative of future price performance.

DECEMBER 23,
2016

DECEMBER 31,
2017

DECEMBER 30,
2018

DECEMBER 29,
2019

DECEMBER 27,
2020

DECEMBER 26,
2021

100.00  $
100.00  $

118.89  $
120.51  $

99.68  $
114.23  $

125.24  $
151.89  $

110.66  $
176.78  $

100.00  $

121.35  $

121.01  $

157.41  $

204.58  $

122.33 
228.79 

258.53 

Bloomin’ Brands, Inc.
(BLMN)
Standard & Poor’s 500
Standard & Poor’s Consumer
Discretionary

$
$

$

Item 6. [Reserved]

32

Table of Contents

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of financial condition and results of operations should be read in conjunction with our consolidated
financial statements and the related notes. For discussion of our consolidated and segment-level results of operations, non-GAAP measures,
and liquidity and capital resources for fiscal year 2019, see our Annual Report on Form 10-K for the year ended December 27, 2020, filed
with the SEC on February 24, 2021.

Overview

We are one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. As of
December  26,  2021,  we  owned  and  operated  1,169  full-service  restaurants  and  off-premises  only  kitchens  and  franchised  329  full-service
restaurants  and  off-premises  only  kitchens  across  47  states,  Guam  and  17  countries.  We  have  four  founder-inspired  concepts:  Outback
Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.

Financial Highlights

Our financial highlights for 2021 include the following:

• U.S. combined and Outback Steakhouse comparable restaurant sales of 30.5% and 24.2%, respectively, relative to 2020 and 4.5%

and 3.2%, respectively, relative to 2019;

• An increase in Total revenues of 30.0%, as compared to 2020, and a decrease in Total revenues of 0.4%, as compared to 2019;
• Restaurant-level operating margin of 16.5% for 2021, as compared to 9.9% and 14.9% for 2020 and 2019, respectively;
• Decrease in General and administrative expense of $8.7 million and $29.6 million, as compared to 2020 and 2019, respectively;
•

Income from operations of $309.0 million in 2021, as compared to Loss from operations of $(175.0) million in 2020 and Income
from operations of $191.1 million in 2019; and

• Diluted earnings (loss) per share attributable to common stockholders of $2.00 in 2021 as compared to $(1.85) and $1.45 in 2020 and

2019, respectively.

Business Strategies

In 2022, our key business strategies include:

•

Enhance the 360-Degree Customer Experience to Drive Sustainable Healthy Sales Growth. We plan to continue to make investments
to  enhance  our  core  guest  experience,  increase  off-premises  dining  occasions,  remodel  and  relocate  restaurants,  invest  in  digital
marketing  and  data  personalization  and  utilize  the  Dine  Rewards  loyalty  program  and  multimedia  marketing  campaigns  to  drive
sales.

• Drive  Long-Term  Shareholder  Value.  We  plan  to  drive  long-term  shareholder  value  by  reinvesting  operational  cash  flow  into  our

business, improving our credit profile and returning excess cash to shareholders through share repurchases and dividends.

•

•

Enrich  Engagement  Among  Stakeholders.  We  take  the  responsibility  to  our  people,  customers  and  communities  seriously  and
continue to invest in programs that support the well-being of those engaged with us.

Accelerate  Growth  Opportunities.  We  believe  a  substantial  development  opportunity  remains  for  our  concepts  in  the  U.S.  and
internationally through existing geography fill-in and market expansion. We will

33

Table of Contents

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

continue to pursue U.S. fill-in opportunities in key states such as Florida and Texas with Outback, and California and Florida with
Fleming’s.  We  will  also  focus  on  geographic  regions  in  South  America,  with  strategic  expansion  in  Brazil,  and  pursue  global
franchise opportunities.

We intend to fund our business strategies, drive revenue growth and margin improvement, in part by reinvesting savings generated by cost
savings and productivity initiatives across our businesses.

Key Financial Performance Indicators

Key measures that we use in evaluating our restaurants and assessing our business include the following:

•

Average restaurant unit volumes—average sales (excluding gift card breakage) per restaurant to measure changes in customer traffic,
pricing and development of the brand;

• Comparable  restaurant  sales—year-over-year  comparison  of  the  change  in  sales  volumes  (excluding  gift  card  breakage)  for
Company-owned restaurants that are open 18 months or more in order to remove the impact of new restaurant openings in comparing
the operations of existing restaurants;

•

•

System-wide  sales—total  restaurant  sales  volume  for  all  Company-owned  and  franchise  restaurants,  regardless  of  ownership,  to
interpret the overall health of our brands;

Restaurant-level  operating  margin,  Income  (loss)  from  operations,  Net  income  (loss)  and  Diluted  earnings  (loss)  per  share—
financial measures utilized to evaluate our operating performance.

Restaurant-level  operating  margin  is  widely  regarded  in  the  industry  as  a  useful  metric  to  evaluate  restaurant-level  operating
efficiency and performance of ongoing restaurant-level operations, and we use it for these purposes, overall and particularly within
our  two  segments.  Our  restaurant-level  operating  margin  is  expressed  as  the  percentage  of  our  Restaurant  sales  that  Food  and
beverage costs, Labor and other related expenses and Other restaurant operating expenses (including advertising expenses) represent,
in  each  case  as  such  items  are  reflected  in  our  Consolidated  Statements  of  Operations  and  Comprehensive  Income  (Loss).  The
following categories of our revenue and operating expenses are not included in restaurant-level operating margin because we do not
consider them reflective of operating performance at the restaurant-level within a period:

(i) Franchise  and  other  revenues  which  are  earned  primarily  from  franchise  royalties  and  other  non-food  and  beverage  revenue

streams, such as rental and sublease income.

(ii) Depreciation and amortization which, although substantially all of which is related to restaurant-level assets, represent historical

sunk costs rather than cash outlays for the restaurants.

(iii) General  and  administrative  expense  which  includes  primarily  non-restaurant-level  costs  associated  with  support  of  the

restaurants and other activities at our corporate offices.

(iv) Asset impairment charges and restaurant closing costs which are not reflective of ongoing restaurant performance in a period.

Restaurant-level operating margin excludes various expenses, as discussed above, that are essential to support the operations of our
restaurants and may materially impact our Consolidated Statements of Operations and Comprehensive Income (Loss). As a result,
restaurant-level  operating  margin  is  not  indicative  of  our  consolidated  results  of  operations  and  is  presented  exclusively  as  a
supplement to, and not a substitute for, Net income (loss) or Income (loss) from operations. In addition, our presentation of restaurant
operating margin may not be comparable to similarly titled measures used by other companies in our industry; and

34

Table of Contents

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

•

Adjusted restaurant-level operating margin, Adjusted income (loss) from operations, Adjusted net income (loss) and Adjusted diluted
earnings  (loss)  per  share—non-GAAP  financial  measures  utilized  to  evaluate  our  operating  performance,  which  definitions,
usefulness and reconciliations are described in more detail in the “Non-GAAP Financial Measures” section below.

Selected Operating Data

The table below presents the number of our full-service restaurants in operation as of the periods indicated:

Number of restaurants (at end of the period):
U.S.:

DECEMBER 26, 2021

DECEMBER 27, 2020

Outback Steakhouse
Company-owned
Franchised
Total
Carrabba’s Italian Grill
Company-owned
Franchised
Total
Bonefish Grill

Company-owned
Franchised
Total

Fleming’s Prime Steakhouse & Wine Bar

Company-owned

Aussie Grill

Company-owned (1)

U.S. total

International:

Company-owned

Outback Steakhouse - Brazil (2)
Other (1)(3)

Franchised

Outback Steakhouse - South Korea (1)
Other (3)

International total

System-wide total

System-wide total - Company-owned

System-wide total - Franchised

564
130
694

199
20
219

178
7
185

64

5 

568
138
706

199
21
220

180
7
187

63

3 

1,167 

1,179 

122 
33 

78 
54 
287 
1,454

1,165
289

109 
32 

76 
56 
273 
1,452

1,154
298

____________________
(1)
(2)
(3)

Restaurant counts as of December 27, 2020 have been adjusted to exclude off-premises only locations included in the table below.
The restaurant counts for Brazil are reported as of November 30, 2021 and 2020, respectively, to correspond with the balance sheet dates of this subsidiary.
International Company-owned Other included two and one Aussie Grill locations as of December 26, 2021 and December 27, 2020, respectively. International
Franchised Other included three Aussie Grill locations as of December 26, 2021 and December 27, 2020.

35

Table of Contents

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

The table below presents the number of our off-premises only kitchens in operation as of the periods indicated:

Number of kitchens (at end of the period) (1):
U.S:

Company-owned

International:

Company-owned
Franchised - South Korea

System-wide total

____________________
(1)

Excludes virtual concepts that operate out of existing restaurants and sports venue locations.

Results of Operations

DECEMBER 26, 2021

DECEMBER 27, 2020

3 

1 
40 
44 

2 

1 
19 
22 

The following table sets forth the percentages of certain items in our Consolidated Statements of Operations in relation to Total revenues or
Restaurant sales for the periods indicated:

FISCAL YEAR

2021

2020

Revenues

Restaurant sales
Franchise and other revenues

Total revenues

Costs and expenses

Food and beverage costs (1)
Labor and other related (1)
Other restaurant operating (1)
Depreciation and amortization
General and administrative
Provision for impaired assets and restaurant closings

Total costs and expenses

Income (loss) from operations
Loss on extinguishment and modification of debt
Other income, net
Interest expense, net
Income (loss) before provision (benefit) for income taxes
Provision (benefit) for income taxes
Net income (loss)

Less: net income (loss) attributable to noncontrolling interests

Net income (loss) attributable to Bloomin’ Brands

98.5 %
1.5 

100.0 

30.3 
28.4 
24.8 
4.0 
6.0 
0.3 
92.5 
7.5 
(0.1)

*

(1.4)
6.0 
0.6 
5.4 
0.2 
5.2 %

99.2 %
0.8 

100.0 

31.3 
32.0 
26.9 
5.7 
8.0 
2.4 
105.5 
(5.5)

(*)
*

(2.1)
(7.6)
(2.6)
(5.0)

(*)
(5.0)%

____________________
(1)
*

As a percentage of Restaurant sales.
Less than 1/10  of one percent of Total revenues.

th

36

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Table of Contents

REVENUES

Restaurant Sales

Following is a summary of the change in Restaurant sales for the period indicated:

(dollars in millions)
For fiscal year 2020
Change from:

Comparable restaurant sales (1)
Restaurant openings (1)
Restaurant closures
Effect of foreign currency translation

For fiscal year 2021

FISCAL YEAR
2021

3,144.6 

912.7 
54.4 
(35.3)
(15.3)
4,061.1 

$

$

____________________
(1)

Summation of quarterly changes for restaurant openings and comparable restaurant sales will not total to annual amounts as the restaurants that meet the definition
of a comparable restaurant will differ each period based on when the restaurant opened.

The increase in Restaurant sales in 2021 as compared to 2020 was primarily due to: (i) higher comparable restaurant sales from recovery of
in-restaurant dining from the significantly reduced levels in 2020 after the onset of the pandemic and strong retention of off-premises sales
and (ii) the opening of 48 new restaurants not included in our comparable restaurant sales base. The increase in Restaurant sales was partially
offset by the closure of 46 restaurants since December 29, 2019 and the effect of foreign currency translation of the Brazilian Real relative to
the U.S. dollar.

Average Restaurant Unit Volumes and Operating Weeks

Following is a summary of the average restaurant unit volumes and operating weeks for the periods indicated:

(dollars in thousands)
Average restaurant unit volumes:

U.S.
Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
International
Outback Steakhouse - Brazil (1)

Operating weeks:

U.S.
Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
International
Outback Steakhouse - Brazil

____________________
(1)

Translated at average exchange rates of 5.33 and 4.85 for 2021 and 2020, respectively.

37

$
$
$
$

$

FISCAL YEAR

2021

2020

3,822  $
3,283  $
3,036  $
5,208  $

2,286  $

29,415 
10,348 
9,318 
3,321 

5,907 

3,062 
2,468 
2,135 
3,189 

1,996 

29,714 
10,474 
9,651 
3,418 

5,389 

 
 
Table of Contents

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Comparable Restaurant Sales, Traffic and Average Check Per Person Increases (Decreases)

Following is a summary of comparable restaurant sales, traffic and average check per person increases (decreases) for the periods indicated:

FISCAL YEAR

2021

2020

COMPARABLE TO 2019
(1)

COMPARABLE TO 2020 COMPARABLE TO 2019

Year over year percentage change:

Comparable restaurant sales (stores open 18 months or more):
U.S. (2)

Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
Combined U.S.

International

Outback Steakhouse - Brazil (3)

Traffic:
U.S.

Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
Combined U.S.

International

Outback Steakhouse - Brazil

Average check per person (4):
U.S.

Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
Combined U.S.

International

Outback Steakhouse - Brazil

3.2 %
10.5 %
(1.7)%
13.4 %
4.5 %

(12.0)%

(2.6)%
6.4 %
(2.0)%
3.8 %
(0.6)%

(3.6)%

5.8 %
4.1 %
0.3 %
9.6 %
5.1 %

(8.2)%

24.2 %
32.2 %
40.6 %
60.9 %
30.5 %

28.7 %

18.1 %
24.6 %
24.3 %
41.7 %
20.7 %

23.5 %

6.1 %
7.6 %
16.3 %
19.2 %
9.8 %

5.6 %

(16.9)%
(16.4)%
(30.1)%
(29.5)%
(19.9)%

(31.4)%

(17.6)%
(14.6)%
(20.0)%
(26.7)%
(17.6)%

(21.5)%

0.7 %
(1.8)%
(10.1)%
(2.8)%
(2.3)%

(9.9)%

____________________
(1)

Represents comparable restaurant sales, traffic and average check per person increases (decreases) relative to fiscal year 2019 for improved comparability due to
the impact of COVID-19 on fiscal year 2020 restaurant sales.
Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
Excludes the effect of fluctuations in foreign currency rates. Includes trading day impact from calendar period reporting.
Average check per person includes the impact of menu pricing changes, product mix and discounts.

(2)
(3)
(4)

38

 
Table of Contents

Franchise and other revenues

(dollars in millions)
Franchise revenues (1)
Other revenues (2)

Franchise and other revenues

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

FISCAL YEAR

2021

2020

$

$

45.5  $
15.8 
61.3  $

21.2 
4.7 
25.9 

____________________
(1)

(2)

Represents franchise royalties, advertising fees and initial franchise fees. Franchise revenues increased during 2021 primarily due to higher franchise sales as a
result of the impact of COVID-19 on 2020 franchise sales.
Includes a $3.1 million benefit in 2021 from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social
Security (“COFINS”) taxes in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base. The amount recognized
as a result of the favorable court rulings primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest, and will be recovered
by offsetting future PIS and COFINS taxes due.

Franchisee Deferred Payment Agreement - On December 27, 2020, we entered into the Resolution Agreement with Out West, who currently
franchises  approximately  80  Outback  Steakhouse  restaurants  in  the  western  United  States,  primarily  in  California.  Under  the  terms  of  the
Resolution Agreement, we agreed to permanently waive all past due royalties and advertising fees for the period of February 24, 2020 to July
26, 2020 and defer, among other items, all past due royalties and advertising fees for the period of July 27, 2020 to November 22, 2020 due
to the significant impact of the COVID-19 pandemic on Out West’s business. See Note 4 - Revenue Recognition of the Notes to Consolidated
Financial Statements for further details regarding the Resolution Agreement.

During 2021, Out West franchise revenues recovered, approaching historical levels. Following is a summary of franchise and other revenues
and comparable restaurant sales for Out West franchised locations for the periods indicated:

(dollars in millions)
Franchise revenues
Other revenues

Franchise and other revenues (1)

FISCAL YEAR

2021

2020

$

$

22.4 
5.3 
27.7 

$

$

4.4 
1.0 
5.4 

Out West comparable restaurant sales (stores open 18 months or more)

50.7 %

(32.9)%

____________________
(1)

Franchise and other revenues during 2020 were significantly impacted by the COVID-19 pandemic. During 2021, we collected Out West monthly royalty and advertising fees, and
$5.1 million of past due amounts deferred under the Resolution Agreement.

COSTS AND EXPENSES

Food and beverage costs

(dollars in millions)
Food and beverage costs
% of Restaurant sales

FISCAL YEAR

2021

2020

CHANGE

$

1,229.7 

$

30.3 %

982.7 
31.3 %

(1.0)%

Food and beverage costs decreased as a percentage of Restaurant sales in 2021 as compared to 2020 primarily due to: (i) 0.9% from increases
in average check per person, primarily driven by reduced discounting and an increase in menu pricing, (ii) 0.4% from the impact of certain
cost savings initiatives and (iii) 0.3% from inventory obsolescence and spoilage costs during 2020 associated with the COVID-19 pandemic.
These decreases were partially offset by an increase as a percentage of Restaurant sales of 0.6% from commodity inflation.

39

Table of Contents

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

In 2022, we anticipate approximately 11.0% to 13.0% commodity inflation, with approximately 70% of our estimated annual food purchases
currently covered by fixed contracts and the remainder subject to floating market prices.

Labor and other related expenses

(dollars in millions)
Labor and other related

% of Restaurant sales

FISCAL YEAR

2021

2020

CHANGE

$

1,154.6 

$

28.4 %

1,005.3 

32.0 %

(3.6)%

Labor  and  other  related  expenses  include  all  direct  and  indirect  labor  costs  incurred  in  operations,  including  distribution  expense  to
Restaurant Managing Partners and other field incentive compensation expenses. Labor and other related expenses decreased as a percentage
of Restaurant sales in 2021 as compared to 2020 primarily due to 4.1% from leveraging increased restaurant sales and 0.8% from the 2020
impact  of  net  relief  pay.  These  decreases  were  partially  offset  by  increases  as  a  percentage  of  Restaurant  sales  of  0.8%  from  wage  rate
increases and 0.4% from higher management bonus.

In 2022, we anticipate high-single digit labor cost inflation.

Other restaurant operating expenses

(dollars in millions)
Other restaurant operating
% of Restaurant sales

FISCAL YEAR

2021

2020

CHANGE

$

1,006.4 

$

24.8 %

846.6 
26.9 %

(2.1)%

In August 2021, we entered into the Royalty Termination Agreement with the Carrabba’s Founders for $61.9 million in cash. See Note 22 -
Commitments and Contingencies for additional details. We recorded Carrabba’s Italian Grill royalty expense of $3.0 million and $3.8 million
during fiscal years 2021 and 2020, respectively.

Other  restaurant  operating  expenses  include  certain  unit-level  operating  costs  such  as  operating  supplies,  rent,  repairs  and  maintenance,
advertising  expenses,  utilities,  pre-opening  costs  and  other  occupancy  costs.  A  substantial  portion  of  these  expenses  is  fixed  or  indirectly
variable. Other restaurant operating expenses decreased as a percentage of Restaurant sales in 2021 as compared to 2020 primarily due to: (i)
3.2%  from  leveraging  increased  restaurant  sales,  (ii)  1.0%  from  lower  advertising  expense  and  (iii)  0.3%  from  a  decrease  in  off-premises
related costs. These decreases were partially offset by increases as a percentage of Restaurant sales of 1.5% from the Carrabba’s Italian Grill
royalty termination payment and 0.8% from higher utilities, operating and rent expense.

Depreciation and amortization

(dollars in millions)
Depreciation and amortization

FISCAL YEAR

2021

2020

CHANGE

$

163.4  $

180.3  $

(16.9)

Depreciation and amortization decreased in 2021 as compared to 2020 primarily due to a decreased level of capital expenditures since 2018,
as compared to historical levels, and asset impairments during 2020.

40

Table of Contents

General and administrative

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

General and administrative expense includes salaries and benefits, management incentive programs, related payroll tax and benefits, other
employee-related costs and professional services. Following is a summary of the change in General and administrative expense for the period
indicated:

(dollars in millions)
For fiscal year 2020
Change from:

Transformational costs
Severance
Expected credit losses and contingent lease liabilities
Travel and entertainment
Employee stock-based compensation
Incentive compensation
Other

For fiscal year 2021

Provision for impaired assets and restaurant closings

(dollars in millions)
Provision for impaired assets and restaurant closings

FISCAL YEAR
2021

254.4 

(12.7)
(7.0)
(6.9)
(2.3)
9.7 
7.6 
2.8 
245.6 

$

$

FISCAL YEAR

2021

2020

CHANGE

$

13.7  $

76.4  $

(62.7)

During  2020,  we  recognized  asset  impairment  and  closure  charges  of  $66.5  million  and  $3.6  million  within  the  U.S.  and  international
segments, respectively, primarily related to the COVID-19 pandemic. COVID-19-related pre-tax asset impairments and closure costs include
$23.8 million in connection with the closure of 22 U.S. restaurants and from the update of certain cash flow assumptions, including lease
renewal  considerations.  During  2020,  we  also  recognized  asset  impairment  charges  related  to  transformational  initiatives  of  $6.3  million,
which  were  not  allocated  to  our  operating  segments.  See  Note  5  -  Impairments,  Exit  Costs  and  Disposals  of  the  Notes  to  Consolidated
Financial Statements for further information.

The impairment and closure charges during 2021 resulted primarily from locations identified for closure or relocation.

Income (loss) from operations

(dollars in millions)
Income (loss) from operations

% of Total revenues

FISCAL YEAR

2021

2020

CHANGE

$

309.0 

$

7.5 %

(175.0)

(5.5)%

13.0 %

Income from operations during 2021 as compared to Loss from operations during 2020 was primarily due to: (i) higher comparable restaurant
sales and franchise revenues, (ii) COVID-19 pandemic related charges and the impact of transformational and restructuring initiatives during
2020,  (iii)  lower  advertising  expense,  (iv)  the  2020  impact  of  net  relief  pay,  (v)  lower  depreciation  and  amortization  expense  and  (vi)  the
impact of certain cost savings initiatives. These increases were partially offset by: (i) the Carrabba’s Italian Grill royalty termination payment,
(ii) higher labor costs and commodity inflation, (iii) an increase in incentive compensation and management bonus and (iv) higher utilities
and operating expense.

41

Table of Contents

Interest expense, net

(dollars in millions)
Interest expense, net

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

FISCAL YEAR

2021

2020

CHANGE

$

57.6  $

64.4  $

(6.8)

The decrease in Interest expense, net during 2021 as compared to 2020 was primarily due to: (i) lower revolver and term loan borrowings, (ii)
the  discontinuance  of  debt  discount  amortization  related  to  our  2025  Notes  resulting  from  the  modified  retrospective  adoption  of  a  new
accounting standard during 2021 and (iii) lower interest rates on our unhedged variable rate debt. These decreases were partially offset by
increases in interest expense from our 2029 Notes issued in April 2021 and our 2025 Notes issued in May 2020.

Provision (benefit) for income taxes

(dollars in millions)
Income (loss) before provision (benefit) for income taxes
Provision (benefit) for income taxes
Effective income tax rate

FISCAL YEAR

2021

2020

CHANGE

$
$

249.3 
26.4 
10.6 %

$
$

(239.5)
(80.7)
33.7 %

$
$

488.8 
107.1 
(23.1)%

The net decrease in the effective income tax rate in 2021 as compared to 2020 was primarily due to the benefit of FICA tax credits on certain
employees’ tips reducing the effective income tax rate in 2021 as a result of pre-tax book income as compared to increasing the effective
income tax rate in 2020 as a result of pre-tax book loss.

We have a blended federal and state statutory rate of approximately 26%. The effective income tax rate was lower in 2021 and higher in 2020
than the blended federal and state statutory rate primarily due to the benefit of tax credits for FICA taxes on certain employees’ tips.

Segments

We consider our restaurant concepts and international markets as operating segments, which reflects how we manage our business, review
operating performance and allocate resources. Resources are allocated and performance is assessed by our Chief Executive Officer, whom we
have determined to be our Chief Operating Decision Maker (“CODM”). We aggregate our operating segments into two reportable segments,
U.S.  and  international.  The  U.S.  segment  includes  all  restaurants  operating  in  the  U.S.  while  restaurants  operating  outside  the  U.S.  are
included in the international segment.

Revenues for both segments include only transactions with customers and exclude intersegment revenues. Excluded from Income (loss) from
operations for U.S. and international are certain legal and corporate costs not directly related to the performance of the segments, most stock-
based compensation expenses and certain bonus expenses.

During  2020,  we  recorded  $32.4  million  of  pre-tax  charges  as  a  part  of  transformational  initiatives.  These  costs  were  primarily  recorded
within General and administrative expense and Provision for impaired assets and restaurant closings and were not allocated to our segments
since our CODM does not consider the impact of transformational initiatives when assessing segment performance.

Refer to Note 23 - Segment Reporting of the Notes to Consolidated Financial Statements for reconciliations of segment income (loss) from
operations to the consolidated operating results.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

U.S. Segment

(dollars in thousands)
Revenues

Restaurant sales
Franchise and other revenues

Total revenues

Restaurant-level operating margin

Income (loss) from operations

Operating income (loss) margin

Restaurant sales

Following is a summary of the change in U.S. segment Restaurant sales for the period indicated:

(dollars in millions)
For fiscal year 2020
Change from:

Comparable restaurant sales (1)
Restaurant openings (1)
Restaurant closures

For fiscal year 2021

FISCAL YEAR

2021

2020

$

$

$

3,714,848 
45,133 
3,759,981 

17.1 %

443,887 

11.8 %

$

$

$

2,869,547 
15,995 
2,885,542 

9.8 %

(1,630)

(0.1)%

FISCAL YEAR
2021

2,869.5 

854.9 
25.2 
(34.7)
3,714.9 

$

$

____________________
(1)

Summation of quarterly changes for restaurant openings and comparable restaurant sales will not total to annual amounts as the restaurants that meet the definition
of a comparable restaurant will differ each period based on when the restaurant opened.

The increase in U.S. Restaurant sales in 2021 as compared to 2020 was primarily due to: (i) higher comparable restaurant sales from recovery
of in-restaurant dining from the significantly reduced levels in 2020 after the onset of the pandemic and strong retention of off-premises sales
and (ii) the opening of 15 new restaurants not included in our comparable restaurant sales base. These increases were partially offset by the
closure of 45 restaurants since December 29, 2019.

Income (loss) from operations

U.S.  Income  from  operations  generated  during  2021  as  compared  to  Loss  from  operations  during  2020  was  primarily  due  to:  (i)  higher
comparable restaurant sales and franchise revenues, (ii) COVID-19 pandemic related charges during 2020, (iii) the 2020 impact of net relief
pay, (iv) lower advertising expense, (v) lower delivery-related costs and (vi) the impact of certain cost savings initiatives. These increases
were  partially  offset  by:  (i)  the  Carrabba’s  Italian  Grill  royalty  termination  payment,  (ii)  higher  labor  costs  and  commodity  inflation,  (iii)
higher utilities and operating expense and (iv) higher management bonus.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

International Segment

(dollars in thousands)
Revenues

Restaurant sales
Franchise and other revenues

Total revenues

Restaurant-level operating margin

Income (loss) from operations

Operating income (loss) margin

Restaurant sales

FISCAL YEAR

2021

2020

$

$

$

346,245 
16,159 
362,404 

12.7 %

16,657 

4.6 %

$

$

$

275,089 
9,930 
285,019 

8.3 %

(13,479)

(4.7)%

Following is a summary of the change in international segment Restaurant sales for the period indicated:

(dollars in millions)
For fiscal year 2020
Change from:

Comparable restaurant sales (1)
Restaurant openings (1)
Effect of foreign currency translation
Restaurant closures

For fiscal year 2021

FISCAL YEAR
2021

275.1 

57.8 
29.2 
(15.3)
(0.6)
346.2 

$

$

____________________
(1)

Summation of quarterly changes for restaurant openings and comparable restaurant sales will not total to annual amounts as the restaurants that meet the definition
of a comparable restaurant will differ each period based on when the restaurant opened.

The  increase  in  international  Restaurant  sales  in  2021  as  compared  to  2020  was  primarily  due  to:  (i)  higher  comparable  restaurant  sales
principally attributable to the impact of the COVID-19 pandemic on fiscal year 2020 international Restaurant sales and (ii) the opening of 33
new restaurants not included in our comparable restaurant sales base. These increases were partially offset by the effect of foreign currency
translation of the Brazil Real relative to the U.S. dollar.

Income (loss) from operations

International Income from operations generated during 2021 as compared to Loss from operations during 2020 was primarily due to higher
restaurant sales due to the reopening of restaurant dining rooms and increases in average check per person. These increases were partially
offset by: (i) additional utilities, rent and operating expense, (ii) commodity inflation and (iii) higher labor costs.

Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. GAAP, we provide certain non-GAAP measures, which present operating results
on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with U.S. GAAP
and  include  the  following:  (i)  system-wide  sales,  (ii)  Adjusted  restaurant-level  operating  margins,  (iii)  Adjusted  income  (loss)  from
operations and the corresponding margins, (iv) Adjusted net income (loss) and (v) Adjusted diluted earnings (loss) per share.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our
performance based on U.S. GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain
items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies.
However,  our  inclusion  of  these  adjusted  measures  should  not  be  construed  as  an  indication  that  our  future  results  will  be  unaffected  by
unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that
the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and our Board
evaluate our operating performance, allocate resources and establish employee incentive plans.

These non-GAAP financial measures are not intended to replace U.S. GAAP financial measures, and they are not necessarily standardized or
comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we
include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our
core  operations  in  a  period,  and  those  that  may  vary  from  period  to  period  without  correlation  to  our  core  performance  in  that  period.
However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly
addressed  by,  or  changes  to,  our  guidelines  will  be  considered  by  our  disclosure  committee.  Refer  to  the  reconciliations  of  non-GAAP
measures for descriptions of the actual adjustments made in the current period and the corresponding prior period.

System-Wide  Sales  -  System-wide  sales  is  a  non-GAAP  financial  measure  that  includes  sales  of  all  restaurants  operating  under  our  brand
names,  whether  we  own  them  or  not.  Management  uses  this  information  to  make  decisions  about  future  plans  for  the  development  of
additional restaurants and new concepts, as well as evaluation of current operations. System-wide sales comprise sales of Company-owned
and franchised restaurants. For a summary of sales of Company-owned restaurants, refer to Note 4 - Revenue Recognition  of  the  Notes  to
Consolidated Financial Statements.

The  following  table  provides  a  summary  of  sales  of  franchised  restaurants  for  the  periods  indicated,  which  are  not  included  in  our
consolidated financial results. Franchise sales within this table do not represent our sales and are presented only as an indicator of changes in
the  restaurant  system,  which  management  believes  is  important  information  regarding  the  health  of  our  restaurant  concepts  and  in
determining our royalties and/or service fees.

(dollars in millions)

U.S.

Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
U.S. total
International

Outback Steakhouse - South Korea
Other
International total

Total franchise sales (1)

FISCAL YEAR

2021

2020

$

$

445  $
44 
11 
500 

305 
112 

417 
917  $

327 
32 
8 
367 

253 
66 

319 
686 

____________________
(1)

Franchise sales are not included in Total revenues in the Consolidated Statements of Operations and Comprehensive Income (Loss).

45

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Restaurant-level  operating  margin  -  The  following  tables  reconcile  consolidated  and  segment  Income  (loss)  from  operations  and  the
corresponding margins to Restaurant-level operating income and the corresponding margins for the periods indicated:

Consolidated
(dollars in thousands)
Income (loss) from operations

Operating income (loss) margin

Less:

Franchise and other revenues

Plus:

Depreciation and amortization
General and administrative
Provision for impaired assets and restaurant closings

Restaurant-level operating income

Restaurant-level operating margin

U.S.
(dollars in thousands)
Income (loss) from operations

Operating income (loss) margin

Less:

Franchise and other revenues

Plus:

Depreciation and amortization
General and administrative
Provision for impaired assets and restaurant closings

Restaurant-level operating income

Restaurant-level operating margin

International
(dollars in thousands)
Income (loss) from operations

Operating income (loss) margin

Less:

Franchise and other revenues

Plus:

Depreciation and amortization
General and administrative
Provision for impaired assets and restaurant closings

Restaurant-level operating income

Restaurant-level operating margin

$

$

$

$

$

$

FISCAL YEAR

2021

2020

308,958 

$

7.5 %

(174,973)

(5.5)%

61,292 

163,391 
245,616 
13,737 

670,410 

$

25,925 

180,261 
254,356 
76,354 

310,073 

16.5 %

9.9 %

FISCAL YEAR

2021

2020

443,887 

$

11.8 %

45,133 

134,244 
89,314 
12,368 
634,680 

$

(1,630)

(0.1)%

15,995 

144,298 
88,536 
66,487 
281,696 

17.1 %

9.8 %

FISCAL YEAR

2021

2020

16,657 

$

4.6 %

16,159 

22,650 
19,679 
1,100 
43,927 

12.7 %

$

(13,479)

(4.7)%

9,930 

23,722 
18,916 
3,640 
22,869 

8.3 %

46

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Adjusted restaurant-level operating margin - Restaurant-level operating margin is calculated as Restaurant sales after deduction of the main
restaurant-level operating costs, which includes Food and beverage costs, Labor and other related and Other restaurant operating expense.
Adjusted  restaurant-level  operating  margin  is  Restaurant-level  operating  margin  adjusted  for  certain  items,  as  noted  below.  The  following
table presents the percentages of certain operating cost financial statement line items in relation to Restaurant sales for the periods indicated:

Restaurant sales

Food and beverage costs
Labor and other related
Other restaurant operating

Restaurant-level operating margin

FISCAL YEAR

2021

2020

U.S. GAAP

ADJUSTED (1)

U.S. GAAP

ADJUSTED (1)

100.0 %

100.0 %

100.0 %

100.0 %

30.3 %
28.4 %
24.8 %

16.5 %

30.3 %
28.4 %
23.2 %

18.1 %

31.3 %
32.0 %
26.9 %

9.9 %

30.9 %
32.0 %
26.9 %

10.2 %

_________________
(1)

Includes  (favorable)  unfavorable  adjustments  recorded  in  Other  restaurant  operating  expense  (unless  otherwise  noted  below)  for  the  following  activities,  as
described in the Adjusted income (loss) from operations, Adjusted net income (loss) and Adjusted diluted earnings (loss) per share table  below  for  the  periods
indicated:

(dollars in millions)
Royalty termination expense
Legal and other matters
COVID-19-related costs (i)
Asset impairments and closing costs

_________________
(i)

Includes $11.0 million of adjustments recorded in Food and beverage costs.

FISCAL YEAR

2021

2020

(61.9) $
(2.7)
— 
— 

(64.6) $

— 
— 
(14.3)
2.7 

(11.6)

$

$

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Adjusted  income  (loss)  from  operations,  Adjusted  net  income  (loss)  and  Adjusted  diluted  earnings  (loss)  per  share  -  The  following  table
reconciles Adjusted income (loss) from operations and the corresponding margins, Adjusted net income (loss) and Adjusted diluted earnings
(loss) per share to their respective most comparable U.S. GAAP measures for the periods indicated:

(in thousands, except share and per share data)
Income (loss) from operations

Operating income (loss) margin

Adjustments:

Royalty termination expense (1)
Severance and other transformational costs (2)
Legal and other matters (3)
COVID-19-related costs (4)
Asset impairments and closure costs (5)

Total income (loss) from operations adjustments
Adjusted income (loss) from operations

Adjusted operating income (loss) margin

Diluted net income (loss) attributable to common stockholders

Convertible senior notes if-converted method interest adjustment, net of tax (6)

Net income (loss) attributable to common stockholders
Adjustments:

Income (loss) from operations adjustments
Loss on extinguishment and modification of debt
Amortization of debt discount (7)
Total adjustments, before income taxes

Adjustment to provision for income taxes (8)
Redemption of preferred stock in excess of carrying value (9)

Net adjustments

Adjusted net income (loss)

Diluted earnings (loss) per share attributable to common stockholders (10)

Adjusted diluted earnings (loss) per share (11)

Diluted weighted average common shares outstanding (10)

Adjusted diluted weighted average common shares outstanding (11)

FISCAL YEAR

2021

2020

$

308,958 

$

(174,973)

7.5 %

(5.5)%

61,880 
2,764 
(372)
— 
— 
64,272 
373,230 

9.1 %

215,900 
345 
215,555 

64,272 
2,073 
— 
66,345 
(21,222)
— 
45,123 
260,678 

2.00 

2.70 

107,803 

96,426 

$

$

$

$

$

— 
32,404 
178 
93,811 
(2,205)
124,188 
(50,785)

(1.6)%

(162,211)
— 
(162,211)

124,188 
— 
6,275 
130,463 
(32,526)
3,496 
101,433 
(60,778)

(1.85)

(0.69)

87,468 

87,468 

$

$

$

$

$

_________________
(1)

(2)
(3)

(4)

Payment made to the Carrabba’s Founders in connection with the Royalty Termination Agreement. See Note 22 - Commitments and Contingencies of the Notes to
Consolidated Financial Statements for additional details regarding the Royalty Termination Agreement.
Severance, professional fees and other costs incurred as a result of transformational and restructuring activities.
For 2021, includes: (i) a $3.1 million benefit from the recognition of recoverable PIS and COFINS taxes, including accrued interest, within other revenues as a
result  of  favorable  court  rulings  and  (ii)  an  accrual  of  $2.7  million  for  Imposto  sobre  Serviços  (“ISS”),  a  Brazilian  municipal  service  tax,  in  connection  with
royalties from our Brazilian subsidiary over the past five years, including related penalties and interest, recorded within Other restaurant operating expense as a
result of an unfavorable Brazilian Supreme Court ruling.
Costs incurred in connection with the COVID-19 pandemic, primarily consisting of fixed asset and right-of-use asset impairments, restructuring charges, inventory
obsolescence  and  spoilage,  contingent  lease  liabilities  and  current  expected  credit  losses.  See  Note  3  -  2020 COVID-19 Charges  of  the  Notes  to  Consolidated
Financial Statements for additional details regarding the impact of certain COVID-19 pandemic-related charges on our financial results.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

(5)
(6)

(7)

(8)

(9)
(10)
(11)

Primarily includes a lease termination gain of $2.8 million.
Adjustment for interest expense related to the 2025 Notes weighted for the portion of the period prior to our election under the 2025 Notes indenture to settle the
principal portion of our 2025 Notes in cash. The calculation of adjusted diluted earnings per share excludes 2025 Notes interest adjustment.
Amortization of debt discount related to the issuance of the 2025 Notes. See Note 14 - Convertible Senior Notes of the Notes to Consolidated Financial Statements
for details.
Income tax effect of the adjustments for the periods presented. Also includes a $4.2 million adjustment during 2021 for the reduction of certain unrecognized tax
benefits related to tax positions taken during a prior period.
Consideration paid in excess of the carrying value for the redemption of preferred stock of our Abbraccio concept.
Due to the GAAP net loss, the effect of dilutive securities was excluded from the calculation of GAAP diluted loss per share for 2020.
For fiscal year 2021, adjusted diluted weighted average common shares outstanding was calculated: (i) assuming our February 2021 election to settle the principal
portion of the 2025 Notes in cash was in effect for the entire fiscal year and (ii) excluding the dilutive effect of 9,992 shares to be issued upon conversion of the
2025 Notes to satisfy the amount in excess of the principal since our convertible notes hedge offsets the dilutive impact of the shares underlying the 2025 Notes.

Liquidity and Capital Resources

Cash and Cash Equivalents

As of December 26, 2021, we had $87.6 million in cash and cash equivalents, of which $26.6 million was held by foreign affiliates. The
international jurisdictions in which we have significant cash do not have any known restrictions that would prohibit repatriation.

As of December 26, 2021, we had aggregate accumulated foreign earnings of approximately $28.8 million. This amount consisted primarily
of historical earnings from 2017 and prior that were previously taxed in the U.S. under the 2017 Tax Cuts and Jobs Act and post-2017 foreign
earnings, which we may repatriate to the U.S. without additional material U.S. federal income tax. These amounts are no longer considered
indefinitely reinvested in our foreign subsidiaries. See Note 21 - Income Taxes of the Notes to Consolidated Financial Statements for further
information regarding our indefinite reinvestment assertion.

Borrowing Capacity and Debt Service

Credit Facilities  -  Following  is  a  summary  of  our  outstanding  credit  facilities  as  of  the  dates  indicated  and  principal  payments  and  debt
issuance during the periods indicated:

SENIOR SECURED CREDIT
FACILITY

FORMER CREDIT FACILITY

(dollars in thousands)
Balance as of December 29, 2019

2020 new debt
2020 payments

Balance as of December 27, 2020

2021 new debt
2021 payments

Balance as of December 26, 2021 (1)

TERM LOAN A

REVOLVING
FACILITY

TERM LOAN
A

REVOLVING
FACILITY

2025 NOTES

2029 NOTES

TOTAL CREDIT
FACILITIES

$

$

— 
— 
— 

— 
200,000 
(5,000)
195,000 

$

$

— 
— 
— 

— 
455,000 
(375,000)
80,000 

$

$

450,000  $
— 
(25,000)

425,000 
— 
(425,000)

599,000  $
505,000 
(657,000)

447,000 
15,000 
(462,000)

—  $

—  $

— 
230,000 
— 

230,000 
— 
— 
230,000 

$

$

— 
— 
— 

— 
300,000 
— 
300,000 

$

$

1,049,000 
735,000 
(682,000)

1,102,000 
970,000 
(1,267,000)
805,000 

Interest rates, as of December 26, 2021
(2)
Principal maturity date

1.60 %
April 2026

3.75 %
April 2026

5.00 %
May 2025

5.13 %
April 2029

____________________
(1)
(2)

Subsequent to December 26, 2021, we repaid the remaining $80.0 million balance on our revolving credit facility.
Interest rate for Term loan A represents the weighted average interest rate. Interest rate for the revolving credit facility represents the base rate option elected in
anticipation of impending repayment.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

As of December 26, 2021, we had $699.3 million in available unused borrowing capacity under our revolving credit facility, net of letters of
credit of $20.7 million.

2029 Notes - On April 16, 2021, we issued $300.0 million aggregate principal amount of senior unsecured notes due 2029. The 2029 Notes
mature on April 15, 2029, unless earlier redeemed or purchased by us. The 2029 Notes bear cash interest at an annual rate of 5.125% payable
semi-annually in arrears on April 15 and October 15 of each year.

The net proceeds from the 2029 Notes were approximately $294.5 million, after deducting the initial purchaser’s discount and our offering
expenses. The net proceeds were used to repay a portion of our outstanding Term loan A and revolving credit facility in conjunction with the
refinancing of our Former Credit Facility.

Credit Agreement - On April 16, 2021, we and OSI, as co-borrowers, entered into the Credit Agreement, which provides for senior secured
financing  of  up  to  $1.0  billion  consisting  of  a  $200.0  million  Term  loan  A  and  an  $800.0  million  revolving  credit  facility  (the  “Senior
Secured Credit Facility”). The Senior Secured Credit Facility matures on April 16, 2026 and replaced our prior senior secured financing of up
to $1.5 billion (the “Former Credit Facility”).

Our Senior Secured Credit Facility contains mandatory prepayment requirements for Term loan A, including the requirement that we prepay
outstanding amounts under these loans with 50% of our annual excess cash flow, as defined in the Credit Agreement, commencing with the
fiscal year ending December 25, 2022. The amount of outstanding loans required to be prepaid in accordance with the debt covenants may
vary  based  on  our  Consolidated  Senior  Secured  Net  Leverage  Ratio  and  year  end  results.  Other  than  the  annual  required  minimum
amortization premiums of $10.0 million, we do not anticipate any other payments will be required through December 25, 2022.

See Note 13 - Long-term Debt, Net for additional details regarding the 2029 Notes and Credit Agreement.

As  of  December  26,  2021  and  December  27,  2020,  we  were  in  compliance  with  our  debt  covenants.  We  believe  that  we  will  remain  in
compliance with our debt covenants during the next 12 months.

Cash  Flow  Hedges  of  Interest  Rate  Risk  -  In  October  2018,  we  entered  into  variable-to-fixed  interest  rate  swap  agreements  with  12
counterparties to hedge a portion of the cash flows of our variable rate debt. The swap agreements have an aggregate notional amount of
$550.0 million  and  mature  on  November  30,  2022.  We  pay  a  weighted  average  fixed  rate  of  3.04%  on  the  notional  amount  and  receive
payments  from  the  counterparties  based  on  the  one-month  London  Inter-Bank  Offered  Rate  (“LIBOR”)  rate.  See  Note  17  -  Derivative
Instruments and Hedging Activities of the Notes to Consolidated Financial Statements for further information.

In connection with the refinancing of the Former Credit Facility, on April 16, 2021 we terminated our variable-to-fixed interest rate swap
agreements with seven counterparties having an aggregate notional amount of $275.0 million for a payment of approximately $13.3 million,
including  accrued  interest.  Following  these  terminations,  $13.4  million  of  unrealized  losses  related  to  the  terminated  swap  agreements
included in Accumulated Other Comprehensive Loss (“AOCL”) will be amortized on a straight-line basis to Interest expense, net over the
remaining original term of the terminated swaps.

As a result of our anticipated decrease in variable rate debt balances due to significant voluntary debt payments, on December 9, 2021 we
terminated  our  variable-to-fixed  interest  rate  swap  agreements  with  three  counterparties  having  an  aggregate  notional  amount  of  $150.0
million  for  a  payment  of  approximately  $4.1  million,  including  accrued  interest.  Following  these  terminations,  $4.1  million  of  unrealized
losses related to the terminated swap agreements included in AOCL will be amortized to Interest expense, net during 2022.

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Use of Cash

BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Cash flows generated from operating activities and availability under our revolving credit facility are our principal sources of liquidity, which
we  use  for  operating  expenses,  debt  payments,  share  repurchases  and  dividend  payments,  development  of  new  restaurants,  remodeling  or
relocating older restaurants and investment in technology.

We  believe  that  our  expected  liquidity  sources  are  adequate  to  fund  debt  service  requirements,  lease  obligations,  capital  expenditures  and
working  capital  obligations  during  the  12  months  following  this  filing.  However,  our  ability  to  continue  to  meet  these  requirements  and
obligations will depend on, among other things, our ability to achieve anticipated levels of revenue and cash flow and our ability to manage
costs and working capital successfully.

Capital Expenditures - We estimate that our capital expenditures will total approximately $225 million to $240 million in 2022. The amount
of actual capital expenditures may be affected by general economic, financial, competitive, legislative and regulatory factors, among other
things, including raw material constraints.

Material Cash Requirements - The following table presents current and long-term material cash requirements as of December 26, 2021:

(dollars in thousands)
Operating leases (1)
Long-term debt:
Principal (2)
Interest (3)

Purchase obligations (4)
Other obligations (5)

Total

PAYMENTS DUE BY PERIOD

TOTAL

LESS THAN
1 YEAR

1-3
YEARS

3-5
YEARS

MORE THAN
5 YEARS

$

2,383,335  $

185,093  $

372,180  $

335,428  $

1,490,634 

807,376 
187,845 
206,634 
58,963 
3,644,153  $

$

10,976 
38,524 
167,753 
20,939 
423,285  $

23,683 
69,711 
37,100 
10,842 
513,516  $

472,717 
44,376 
1,781 
3,247 
857,549  $

300,000 
35,234 
— 
23,935 
1,849,803 

____________________
(1)

(2)

(3)

(4)

(5)

Amounts represent undiscounted future minimum rental commitments under non-cancelable operating leases. Includes $1.0 billion related to lease renewal options
that are reasonably certain of exercise.
Includes Senior Secured Credit Facility, 2029 Notes, 2025 Notes and finance lease obligations. Amount is not reduced by unamortized debt issuance costs and
finance lease interest totaling $14.3 million.
Projected future interest payments on long-term debt are based on interest rates in effect as of December 26, 2021 and assume only scheduled principal payments.
Estimated interest expense includes the impact of remaining variable-to-fixed interest rate swap agreements.
Purchase obligations include agreements to purchase goods or services that are enforceable, legally binding and specify all significant terms, including fixed or
minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. We have purchase obligations
with various vendors that consist primarily of inventory, technology, restaurant-level service contracts and advertising.
Includes other long-term liabilities, primarily consisting of deferred compensation obligations, deposits and other accrued obligations. Unrecognized tax benefits
are excluded from this table since it is not possible to estimate when these future payments will occur.

Dividends and Share Repurchases - In April 2021, we entered into our Credit Agreement, the terms of which contained certain restrictions on
cash  dividends  and  share  repurchases  until  after  September  26,  2021  and  we  were  compliant  with  our  financial  covenants.  We  were
compliant with our financial covenants as of December 26, 2021 and we believe that we will remain in compliance with our debt covenants
during the next 12 months. As such, absent unanticipated circumstances, we do not believe that compliance with our financial covenants will
materially limit our ability to pay dividends in the near term and future dividend payments will depend on various other factors considered by
our Board as noted below.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

During the first quarter of 2020, we declared and paid dividends of $0.20 per share. We did not pay dividends during 2021. In February 2022,
our Board declared a quarterly cash dividend of $0.14 per share, payable on March 16, 2022 to shareholders of record at the close of business
on March 2, 2022.

We did not repurchase any shares of our outstanding common stock during 2021. On February 8, 2022, our Board approved the 2022 Share
Repurchase Program under which we are authorized to repurchase up to $125.0 million of our outstanding common stock. The 2022 Share
Repurchase Program will expire on August 9, 2023.

Following is a summary of our former share repurchase programs as of December 26, 2021 (dollars in thousands):

SHARE REPURCHASE
PROGRAM

BOARD APPROVAL
DATE

AUTHORIZED

REPURCHASED

CANCELLED OR
EXPIRED

REMAINING

2014
2015
2016
July 2016
2017
2018
2019

December 12, 2014
August 3, 2015
February 12, 2016
July 26, 2016
April 21, 2017
February 16, 2018
February 12, 2019

$
$
$
$
$
$
$

Total share repurchase programs

100,000  $
100,000 
250,000 
300,000 
250,000 
150,000 
150,000 

$

100,000  $
69,999  $
139,892  $
247,731  $
195,000  $
113,967  $
106,992  $
973,581 

—  $
30,001  $
110,108  $
52,269  $
55,000  $
36,033  $
43,008  $

— 
— 
— 
— 
— 
— 
— 

The following table presents our dividends and share repurchases for the periods indicated:

(dollars in thousands)
Fiscal year 2021
Fiscal year 2020
Fiscal year 2019
Fiscal year 2018
Fiscal year 2017
Fiscal year 2016
Fiscal year 2015

Total

DIVIDENDS PAID

SHARE REPURCHASES

TOTAL

$

$

—  $

17,480 
35,734 
33,312 
30,988 
31,379 
29,332 
178,225  $

—  $
— 
106,992 
113,967 
272,736 
309,887 
169,999 
973,581  $

— 
17,480 
142,726 
147,279 
303,724 
341,266 
199,331 
1,151,806 

Our  ability  to  pay  dividends  and  make  share  repurchases  is  dependent  on  our  ability  to  obtain  funds  from  our  subsidiaries,  continued
compliance with the financial covenants in our debt agreements and the existence of surplus, as well as our earnings, financial condition,
capital expenditure requirements and other factors that our Board deems relevant.

Lease Guarantees - We guarantee certain lease agreements primarily related to divested restaurant properties in circumstances where we have
assigned our lease interest. In the event of non-payment by the primary lessees, we may be required to satisfy these lease agreements with
cash. See Note 22 - Commitments and Contingencies for additional details regarding our lease guarantees.

Deferred  Compensation  Programs  -  Certain  Restaurant  Managing  Partners  and  Chef  Partners  in  the  U.S.  (“U.S.  Partners”)  participate  in
deferred  compensation  programs  that  are  subject  to  the  rules  of  Section  409A  of  the  Internal  Revenue  Code.  The  deferred  compensation
obligations due under these plans was $15.5 million and $28.1 million as of December 26, 2021 and December 27, 2020, respectively. We
invest in various corporate-owned life insurance policies, which are held within an irrevocable grantor or rabbi trust account for settlement of
our  obligations  under  the  deferred  compensation  plans.  The  obligation  for  U.S.  Partners’  deferred  compensation  was  fully  funded  as  of
December 26, 2021.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Summary of Cash Flows and Financial Condition

Cash Flows -The following table presents a summary of our cash flows provided by (used in) operating, investing and financing activities for
the periods indicated:

(dollars in thousands)
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

Net (decrease) increase in cash, cash equivalents and restricted cash

FISCAL YEAR

2021

2020

$

$

402,455  $
(104,745)
(317,419)
(1,642)
(21,351) $

138,849 
(76,639)
(16,773)
(2,174)
43,263 

Operating activities - Net  cash  provided  by  operating  activities  increased  during  2021  as  compared  to  2020  primarily  due  to  a  significant
improvement  in  revenues  and  operating  results,  partially  offset  by:  (i)  cash  paid  in  connection  with  the  Carrabba’s  Italian  Grill  royalty
termination, (ii) timing of collections of gift card receivables, (iii) higher inventory purchases, (iv) payment of payroll taxes deferred in 2020
as  a  result  of  the  Coronavirus,  Aid,  Relief  and  Economic  Security  Act,  (v)  cash  paid  to  terminate  interest  rate  swap  agreements  and  (vi)
timing of operational payments and receipts.

Investing activities - The increase in net cash used in investing activities during 2021 as compared to 2020 was primarily due to higher capital
expenditures, partially offset by higher proceeds from the disposal of property, fixtures and equipment.

Financing activities - The increase in net cash used in financing activities during 2021 as compared to 2020 was primarily due to our capital
restructuring and debt payments throughout the fiscal year that lowered bank debt and unsecured notes by an aggregate of $297.0 million.

Financial  Condition  -  Following  is  a  summary  of  our  current  assets,  current  liabilities  and  working  capital  (deficit)  as  of  the  periods
indicated:

(dollars in thousands)
Current assets
Current liabilities

Working capital (deficit)

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

352,792  $
984,625 
(631,833) $

323,854 
950,104 
(626,250)

Working capital (deficit) includes: (i) Unearned revenue primarily from unredeemed gift cards of $398.8 million and $381.6 million as of
December 26, 2021 and December 27, 2020, respectively, and (ii) current operating lease liabilities of $177.0 million and $176.8 million as
of December 26, 2021 and December 27, 2020, respectively, with the corresponding operating right-of-use assets recorded as non-current on
our  Consolidated  Balance  Sheets.  We  have,  and  in  the  future  may  continue  to  have,  negative  working  capital  balances  (as  is  common  for
many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales are typically
received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories.
Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make
capital expenditures.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with U.S. GAAP. The preparation of these accompanying consolidated financial statements requires us to
make  estimates  and  judgments  that  affect  the  reported  amounts  of  assets,  liabilities,  revenues  and  expenses,  and  related  disclosure  of
contingent assets and liabilities during the reporting period. We base our estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value
of  assets  and  liabilities  that  are  not  readily  apparent  from  other  sources.  Actual  results  may  differ  from  these  estimates  under  different
assumptions  or  conditions.  We  consider  an  accounting  estimate  to  be  critical  if  it  requires  assumptions  to  be  made  and  changes  in  these
assumptions could have a material impact on our consolidated financial condition or results of operations.

Impairment or Disposal of Long-Lived Assets - Long-lived assets are reviewed for impairment whenever events or changes in circumstances
indicate  that  the  carrying  value  may  not  be  recoverable.  The  evaluation  is  performed  at  the  lowest  level  of  identifiable  cash  flows
independent of other assets. For long-lived assets deployed at our restaurants, we review for impairment at the individual restaurant level.

When evaluating for impairment, the total future undiscounted cash flows expected to be generated by the assets are compared to the carrying
amount. If the total future undiscounted cash flows expected to be generated by the assets are less than the carrying amount, this may be an
indicator of impairment. An impairment loss is recognized in earnings when the asset’s carrying value exceeds its estimated fair value. Fair
value is generally estimated using a discounted cash flow model. The key estimates and assumptions used in this model are future cash flow
estimates, with material changes generally driven by changes in expected use, and the discount rate. These estimates are subjective and our
ability to realize future cash flows and asset fair values is affected by factors such as ongoing maintenance and improvement of the assets,
changes in economic conditions and changes in our operating performance. Historically, the change in useful lives of our assets as a result of
planned closures or the decision not to renew leases has been a key factor in the impairment we have recognized.

Goodwill and Indefinite-Lived Intangible Assets - Goodwill and indefinite-lived intangible assets are tested for impairment annually in the
second fiscal quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

We  may  elect  to  perform  a  qualitative  assessment  to  determine  whether  it  is  more  likely  than  not  that  a  reporting  unit  is  impaired.  In
considering  the  qualitative  approach,  we  evaluate  factors  including,  but  not  limited  to,  macro-economic  conditions,  market  and  industry
conditions,  commodity  cost  fluctuations,  competitive  environment,  share  price  performance,  results  of  prior  impairment  tests,  operational
stability and the overall financial performance of the reporting units.

If the qualitative assessment is not performed or if we determine that it is not more likely than not that the fair value of the reporting unit
exceeds the carrying value, the fair value of the reporting unit is calculated. Fair value of a reporting unit is the price a willing buyer would
pay for the reporting unit and is estimated by utilizing a weighted average of the income approach, using a discounted cash flow model, and,
when appropriate, the market approach including the guideline public company method and guideline transaction method. The key estimates
and  assumptions  used  in  these  models  are  future  cash  flow  estimates,  which  are  heavily  influenced  by  revenue  growth  rates,  operating
margins and capital expenditures. These estimates are subjective, and our ability to achieve the forecasted cash flows used in our fair value
calculations  is  affected  by  factors  such  as  the  success  of  strategic  initiatives,  changes  in  economic  conditions,  changes  in  our  operating
performance and changes in our business strategies. The fair value of the trade names is determined through a relief from royalty method.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

The carrying value of the reporting unit or trade name is compared to its estimated fair value, with any excess of carrying value over fair
value deemed to be an indicator of impairment.

The carrying value of goodwill as of December 26, 2021 was $268.4 million. We performed our annual impairment test in the second quarter
of 2021 by utilizing the qualitative approach and determined that there were no events or circumstances to indicate that it was more likely
than not that the fair value of our reporting units was less than their carrying values.

Sales  declines  at  our  restaurants,  unplanned  increases  in  commodity  or  labor  costs,  deterioration  in  overall  economic  conditions  and
challenges in the restaurant industry may result in future impairment charges. It is possible that changes in circumstances or changes in our
judgments, assumptions and estimates could result in an impairment charge of a portion or all of our goodwill or other intangible assets.

Leases - We use judgment to determine the reasonably certain lease term, which in turn, impacts the applicable incremental borrowing rate
(“IBR”)  used  to  calculate  the  initial  lease  liability  for  each  portfolio  of  leases.  Other  assumptions  used  in  determining  our  incremental
borrowing rate include our implied credit rating and an estimate of secured borrowing rates based on comparable market data. We determined
the present value of the lease liabilities by using a country specific IBR and applying a single rate to the respective portfolio of leases based
on term, regardless of the underlying asset type.

The  reasonably  certain  lease  term  used  in  the  evaluation  of  existing  leases  at  transition  and  new  leases  after  adoption  of  the  new  lease
standard includes renewal option periods only in instances in which the exercise of the renewal option is reasonably certain because failure to
exercise  such  an  option  would  result  in  an  economic  penalty.  Such  an  economic  penalty  would  typically  result  from  having  to  abandon  a
building or equipment with remaining economic value upon vacating a property.

We use our estimated IBR, which is derived from information available at the lease commencement date, in determining the present value of
lease  payments.  We  give  consideration  to  market  data  as  well  as  publicly  available  data  for  instruments  with  similar  characteristics  when
calculating our IBR.

At  the  inception  of  each  lease,  we  evaluate  the  property  and  the  lease  to  determine  whether  the  lease  is  an  operating  lease  or  a  financing
lease. This lease accounting evaluation may require significant judgment in determining the fair value and useful life of the leased property
and  the  appropriate  reasonably  certain  lease  term.  These  judgments  may  produce  materially  different  amounts  of  rent  expense  in  a  given
reporting period than would be reported if different assumed lease terms were used.

Insurance Reserves - We carry insurance programs with specific retention levels or high per-claim deductibles for a significant portion of
expected losses under our workers’ compensation, general or liquor liability, health, property and management liability insurance programs.
For some programs, we maintain stop-loss coverage to limit the exposure relating to certain risks.

We record a liability for all unresolved claims and for an estimate of incurred but not reported claims at the anticipated cost that falls below
our specified retention levels or per-claim deductible amounts. Our liability for insurance claims was $53.5 million and $52.8 million as of
December  26,  2021  and  December  27,  2020,  respectively.  In  establishing  our  reserves,  we  consider  certain  actuarial  assumptions  and
judgments  regarding  economic  conditions,  and  the  frequency  and  severity  of  claims.  The  establishment  of  the  reserves  utilizing  such
estimates and assumptions is in part based on the premise that historical claims experience is indicative of current or future expected activity,
which could differ significantly. Reserves recorded for workers’ compensation and general or liquor liability claims are discounted using the
average of the one-year and five-year risk-free rate of monetary assets that have comparable maturities.

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BLOOMIN’ BRANDS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

If actual results are not consistent with our estimates or assumptions, we may be exposed to losses or gains that could be material. A 50 basis
point change in the discount rate in our insurance claim liabilities as of December 26, 2021, would have affected net earnings by $0.8 million
in 2021.

Income Taxes - Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of
assets  and  liabilities  and  their  respective  tax  basis.  Deferred  tax  assets  and  liabilities  are  measured  using  the  tax  rates,  based  on  certain
judgments  regarding  enacted  tax  laws  and  published  guidance,  in  effect  in  the  years  in  which  we  expect  those  temporary  differences  to
reverse. As of December 26, 2021, tax loss carryforwards and credit carryforwards that do not have a valuation allowance are expected to be
recoverable within the applicable statutory expiration periods. We currently expect to utilize general business tax credit carryforwards within
a 10-year period. However, our ability to utilize these tax credits could be adversely impacted by, among other items, a future “ownership
change”  as  defined  under  Section  382  of  the  Internal  Revenue  Code.  A  valuation  allowance  is  established  against  the  deferred  tax  assets
when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in assumptions regarding our level
and  composition  of  earnings,  tax  laws  or  the  deferred  tax  valuation  allowance  and  the  results  of  tax  audits,  may  materially  impact  the
effective income tax rate.

While  we  consider  all  of  our  tax  positions  to  be  fully  supportable,  our  income  tax  returns,  like  those  of  most  companies,  are  periodically
audited by U.S. and foreign tax authorities. In determining taxable income, income or loss before taxes is adjusted for differences between
local tax laws and generally accepted accounting principles. A tax benefit from an uncertain position is recognized only if it is more likely
than not that the position is sustainable based on its technical merits. For uncertain tax positions that do not meet this threshold, we recognize
a liability. The liability for unrecognized tax benefits requires significant management judgment regarding exposures about our various tax
positions. These assumptions and probabilities are reviewed and updated based upon new information. An unfavorable tax settlement could
require the use of cash and an increase in the amount of income tax expense we recognize. As of December 26, 2021, we had $18.8 million
of unrecognized tax benefits, including accrued interest and penalties, that if recognized, would impact our effective income tax rate.

Recently Issued Financial Accounting Standards

For a description of recently issued Financial Accounting Standards that we adopted in 2021 and, that are applicable to us and likely to have
material  effect  on  our  consolidated  financial  statements,  but  have  not  yet  been  adopted,  see  Note  2  -  Summary  of  Significant  Accounting
Policies of the Notes to Consolidated Financial Statements.

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Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We  are  exposed  to  market  risk  from  changes  in  commodity  prices,  labor  inflation  and  foreign  currency  exchange  rates.  During  2021,  we
substantially  reduced  our  variable  rate  debt  borrowings  and  terminated  a  significant  portion  of  our  interest  rate  swap  agreements,  which
significantly reduced our market risk exposure related to interest rate risk.

Commodity Pricing Risk

Many  of  the  ingredients  used  in  the  products  sold  in  our  restaurants  are  commodities  that  are  subject  to  unpredictable  price  volatility.
Although we attempt to minimize the effect of price volatility by negotiating fixed price contracts for the supply of key ingredients, there are
no established fixed price markets for certain commodities such as produce and wild fish, and we are subject to prevailing market conditions
when purchasing those types of commodities. Other commodities are purchased based upon negotiated price ranges established with vendors
with  reference  to  the  fluctuating  market  prices.  The  related  agreements  may  contain  contractual  features  that  limit  the  price  paid  by
establishing certain price floors and caps. As of December 26, 2021, approximately 70% of our estimated 2022 annual food purchases were
covered by fixed contracts, most of which are scheduled to expire during 2022.

During  2021,  commodity  markets  began  experiencing  elevated  levels  of  inflation  across  all  proteins  given  strong  consumer  demand  and
product  shortages  due  to  supply  chain  disruptions.  In  addition,  higher  input  costs  across  labor,  fuel,  freight  and  packaging  contributed  to
increases as well. We anticipate commodity inflation to be approximately 11.0% to 13.0% for 2022. Extreme changes in commodity prices or
long-term  changes  could  affect  our  financial  results  adversely.  We  expect  that  in  most  cases  increased  commodity  prices  could  be  passed
through to our customers through increases in menu prices. However, if there is a time lag between the increasing commodity prices and our
ability to increase menu prices, or if we believe the commodity price increase to be short in duration and we choose not to pass on the cost
increases,  our  short-term  financial  results  could  be  negatively  affected.  Additionally,  from  time  to  time,  competitive  circumstances  could
limit menu price flexibility, and in those cases, margins would be negatively impacted by increased commodity prices. Currently we do not
use financial instruments to hedge our commodity risk.

In addition to the market risks identified above, we are subject to business risk as our U.S. beef supply is highly dependent upon a limited
number of vendors. If these vendors were unable to fulfill their obligations under their contracts, we could encounter supply shortages and
incur  higher  costs  to  secure  adequate  supplies.  See  Note  22  -  Commitments  and  Contingencies  of  the  Notes  to  Consolidated  Financial
Statements for further details.

Labor Inflation

Our  restaurant  operations  are  subject  to  federal  and  state  minimum  wage  and  other  laws  governing  such  matters  as  working  conditions,
overtime and tip credits. A significant number of our restaurant team members are paid at rates related to the federal and/or state minimum
wage and, accordingly, increases in the minimum wage increase our labor costs. To the extent permitted by competition and the economy, we
have  mitigated  increased  costs  by  increasing  menu  prices  and  may  continue  to  do  so  if  deemed  necessary  in  future  years.  Substantial
increases in costs and expenses could impact our operating results to the extent such increases cannot be passed through to our guests. We
anticipate high-single digit labor cost inflation during 2022.

Foreign Currency Exchange Rate Risk

We  are  subject  to  foreign  currency  exchange  risk  for  our  restaurants  operating  in  foreign  countries.  Our  exposure  to  foreign  currency
exchange risk is primarily related to fluctuations in the Brazilian Real relative to the U.S. dollar. Our operations in other markets consist of
Company-owned  restaurants  on  a  smaller  scale  than  Brazil.  If  foreign  currency  exchange  rates  depreciate  in  the  countries  in  which  we
operate,  we  may  experience  declines  in  our  operating  results.  Currently,  we  do  not  use  financial  instruments  to  hedge  foreign  currency
exchange rate changes.

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BLOOMIN’ BRANDS, INC.

For 2021, 8.8% of our revenue was generated in foreign currencies. A 10% change in average foreign currency rates against the U.S. dollar
would  have  increased  or  decreased  our  Total  revenues  for  our  foreign  entities  by  $38.9  million.  The  10%  change  would  not  have  had  a
material effect on Net income.

Interest Rate Risk

We are exposed to market risk from fluctuations in interest rates, which could affect our consolidated balance sheet, earnings and cash flows.
As of December 26, 2021, our interest rate risk was primarily from variable interest rate changes on our Senior Secured Credit Facility. We
manage  our  exposure  to  market  risk  through  regular  operating  and  financing  activities  and  when  deemed  appropriate,  through  the  use  of
derivative  financial  instruments.  We  use  derivative  financial  instruments  as  risk  management  tools  and  not  for  speculative  purposes.  To
manage  the  risk  of  fluctuations  in  variable  interest  rate  debt,  we  have  interest  rate  swaps.  As  of  December  26,  2021,  we  had  interest  rate
swaps with an aggregate notional amount of $125.0 million that mature on November 30, 2022. See Note 17 - Derivative Instruments and
Hedging Activities of the Notes to Consolidated Financial Statements for further information.

We  utilize  valuation  models  to  estimate  the  effects  of  changing  interest  rates.  As  of  December  26,  2021,  a  potential  change  from  a
hypothetical 100 basis point increase/decrease in short-term interest rates would not materially impact the fair value of our interest rate swaps
or our annual interest expense.

This market risk discussion contains forward-looking statements. Actual results may differ materially from the discussion based upon general
market conditions and changes in U.S. and global financial markets.

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Item 8. Financial Statements and Supplementary Data

INDEX TO FINANCIAL INFORMATION

PAGE NO.

Management’s Annual Report on Internal Control over Financial Reporting

Report of Independent Registered Public Accounting Firm (PCAOB ID 238)

Consolidated Balance Sheets — December 26, 2021 and December 27, 2020

Consolidated Statements of Operations and Comprehensive Income (Loss) —
For Fiscal Years 2021, 2020 and 2019

Consolidated Statements of Changes in Stockholders’ Equity —
For Fiscal Years 2021, 2020 and 2019

Consolidated Statements of Cash Flows —
For Fiscal Years 2021, 2020 and 2019

Notes to Consolidated Financial Statements

59

60

61

64

65

66

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Management’s Annual Report on Internal Control over Financial Reporting

Management  is  responsible  for  establishing  and  maintaining  adequate  internal  control  over  financial  reporting,  as  such  term  is  defined  in
Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain
to  the  maintenance  of  records  that  in  reasonable  detail  accurately  and  fairly  reflect  the  transactions  and  dispositions  of  the  assets  of  the
Company;  (ii)  provide  reasonable  assurance  that  transactions  are  recorded  as  necessary  to  permit  preparation  of  financial  statements  in
accordance  with  generally  accepted  accounting  principles,  and  that  receipts  and  expenditures  of  the  Company  are  being  made  only  in
accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or
timely  detection  of  unauthorized  acquisition,  use  or  disposition  of  the  Company’s  assets  that  could  have  a  material  effect  on  the  financial
statements.

Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements prepared for external purposes in accordance with generally accepted accounting principles. Because of its
inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness  to  future  periods  are  subject  to  the  risk  that  controls  may  become  inadequate  because  of  changes  in  conditions,  or  that  the
degree of compliance with the policies or procedures may deteriorate.

Under  the  supervision  and  with  the  participation  of  management,  including  our  Chief  Executive  Officer  and  Chief  Financial  Officer,  we
carried  out  an  evaluation  of  the  effectiveness  of  our  internal  control  over  financial  reporting  as  of  December  26,  2021  using  the  criteria
described in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013  Framework)  (“COSO”).  Based  upon  our  evaluation,  management  concluded  that  our  internal  control  over  financial  reporting  was
effective as of December 26, 2021.

The effectiveness of our internal control over financial reporting as of December 26, 2021 has been audited by PricewaterhouseCoopers LLP,
an independent registered public accounting firm, as stated in their report which is included herein.

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BLOOMIN’ BRANDS, INC.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Bloomin’ Brands, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We  have  audited  the  accompanying  consolidated  balance  sheets  of  Bloomin’  Brands,  Inc.  and  its  subsidiaries  (the  “Company”)  as  of
December  26,  2021  and  December  27,  2020,  and  the  related  consolidated  statements  of  operations  and  comprehensive  income  (loss),  of
changes in stockholders’ equity and of cash flows for each of the three years in the period ended December 26, 2021, including the related
notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial
reporting as of December 26, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).

In  our  opinion,  the  consolidated  financial  statements  referred  to  above  present  fairly,  in  all  material  respects,  the  financial  position  of  the
Company as of December 26, 2021 and December 27, 2020, and the results of its operations and its cash flows for each of the three years in
the period ended December 26, 2021 in conformity with accounting principles generally accepted in the United States of America. Also in
our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 26, 2021,
based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Changes in Accounting Principles

As  discussed  in  Note  2  to  the  consolidated  financial  statements,  the  Company  changed  the  manner  in  which  it  accounts  for  convertible
instruments and contracts in an entity’s own equity in 2021 and the manner in which it accounts for leases in 2019.

Basis for Opinions

The  Company’s  management  is  responsible  for  these  consolidated  financial  statements,  for  maintaining  effective  internal  control  over
financial  reporting,  and  for  its  assessment  of  the  effectiveness  of  internal  control  over  financial  reporting,  included  in  the  accompanying
Management’s  Annual  Report  on  Internal  Control  over  Financial  Reporting.  Our  responsibility  is  to  express  opinions  on  the  Company’s
consolidated  financial  statements  and  on  the  Company’s  internal  control  over  financial  reporting  based  on  our  audits.  We  are  a  public
accounting  firm  registered  with  the  Public  Company  Accounting  Oversight  Board  (United  States)  (PCAOB)  and  are  required  to  be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or
fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our  audits  of  the  consolidated  financial  statements  included  performing  procedures  to  assess  the  risks  of  material  misstatement  of  the
consolidated  financial  statements,  whether  due  to  error  or  fraud,  and  performing  procedures  that  respond  to  those  risks.  Such  procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also
included  evaluating  the  accounting  principles  used  and  significant  estimates  made  by  management,  as  well  as  evaluating  the  overall
presentation  of  the  consolidated  financial  statements.  Our  audit  of  internal  control  over  financial  reporting  included  obtaining  an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

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BLOOMIN’ BRANDS, INC.

Definition and Limitations of Internal Control over Financial Reporting

A  company’s  internal  control  over  financial  reporting  is  a  process  designed  to  provide  reasonable  assurance  regarding  the  reliability  of
financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with  generally  accepted  accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of
records  that,  in  reasonable  detail,  accurately  and  fairly  reflect  the  transactions  and  dispositions  of  the  assets  of  the  company;  (ii)  provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that
was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to
the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of
critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to
which it relates.

Valuation of Insurance Reserves

As described in Notes 2 and 22 to the consolidated financial statements, the Company’s consolidated discounted insurance reserves balance
was  $53.5  million  as  of  December  26,  2021.  The  Company  carries  insurance  programs  with  specific  retention  levels  or  high  per-claim
deductibles  for  a  significant  portion  of  expected  losses  under  its  workers’  compensation,  general  or  liquor  liability,  health,  property  and
management liability insurance programs. The Company records a liability for all unresolved claims and for an estimate of incurred but not
reported claims at the anticipated cost that falls below its specified retention levels or per-claim deductible amounts. In establishing reserves,
management considers certain actuarial assumptions and judgments regarding economic conditions and the frequency and severity of claims.
Reserves recorded for workers’ compensation and general liability claims are discounted using the average of the one-year and five-year risk-
free rate of monetary assets that have comparable maturities.

The principal considerations for our determination that performing procedures relating to the valuation of insurance reserves is a critical audit
matter  are  (i)  the  significant  judgment  by  management  when  developing  the  estimated  reserves,  which  in  turn  led  to  (ii)  a  high  degree  of
auditor judgment, subjectivity, and effort in performing procedures and evaluating the actuarial assumptions related to economic conditions
and  the  frequency  and  severity  of  claims,  and  (iii)  the  audit  effort  included  the  involvement  of  professionals  with  specialized  skill  and
knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the
consolidated  financial  statements.  These  procedures  included  testing  the  effectiveness  of  controls  relating  to  the  valuation  of  insurance
reserves.  These  procedures  also  included,  among  others  (i)  evaluating  management’s  process  for  developing  the  insurance  reserves,  (ii)
evaluating  the  appropriateness  of  management’s  actuarial  methods  used,  (iii)  evaluating  the  reasonableness  of  the  actuarial  assumptions
related to economic conditions and the frequency and severity of claims, and (iv) testing the completeness and accuracy of underlying

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BLOOMIN’ BRANDS, INC.

data  used  in  the  valuation.  Evaluating  the  actuarial  assumptions  related  to  economic  conditions  and  the  frequency  and  severity  of  claims
involved  evaluating  whether  the  assumptions  were  reasonable  considering  inflation  and  the  environment,  and  whether  these  assumptions
were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in
evaluating  the  appropriateness  of  management’s  actuarial  methods  used  in  determining  the  insurance  reserves  and  evaluating  the
reasonableness of assumptions related to economic conditions.

/s/ PricewaterhouseCoopers LLP

Tampa, Florida
February 23, 2022

We have served as the Company’s auditor since 1998.

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BLOOMIN’ BRANDS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

DECEMBER 26, 2021

DECEMBER 27, 2020

ASSETS
Current assets

Cash and cash equivalents
Restricted cash and cash equivalents
Inventories
Other current assets, net
Total current assets

Property, fixtures and equipment, net
Operating lease right-of-use assets
Goodwill
Intangible assets, net
Deferred income tax assets, net
Other assets, net

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities

Accounts payable
Accrued and other current liabilities
Unearned revenue
Current portion of long-term debt

Total current liabilities

Non-current operating lease liabilities
Long-term debt, net
Other long-term liabilities, net

Total liabilities

Commitments and contingencies (Note 22)
Stockholders’ equity

Bloomin’ Brands stockholders’ equity

Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued and outstanding as of
December 26, 2021 and December 27, 2020
Common stock, $0.01 par value, 475,000,000 shares authorized; 89,252,823 and 87,855,571 shares
issued and outstanding as of December 26, 2021 and December 27, 2020, respectively
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive loss

Total Bloomin’ Brands stockholders’ equity

Noncontrolling interests

Total stockholders’ equity

Total liabilities and stockholders’ equity

$

$

$

$

87,585  $
1,472 
79,112 
184,623 
352,792 
842,012 
1,130,873 
268,444 
453,412 
168,068 
78,670 
3,294,271  $

167,978  $
406,894 
398,795 
10,958 
984,625 
1,179,447 
782,107 
125,242 
3,071,421 

— 

893 
1,119,728 
(698,171)
(205,989)
216,461 
6,389 
222,850 
3,294,271  $

109,980 
428 
61,928 
151,518 
323,854 
887,687 
1,172,910 
271,164 
459,983 
153,883 
92,626 
3,362,107 

141,457 
388,321 
381,616 
38,710 
950,104 
1,217,921 
997,770 
185,355 
3,351,150 

— 

879 
1,132,808 
(918,096)
(211,446)
4,145 
6,812 
10,957 
3,362,107 

The accompanying notes are an integral part of these consolidated financial statements.

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BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS, EXCEPT PER SHARE DATA)

Revenues

Restaurant sales
Franchise and other revenues

Total revenues

Costs and expenses

Food and beverage costs
Labor and other related
Other restaurant operating
Depreciation and amortization
General and administrative
Provision for impaired assets and restaurant closings

Total costs and expenses

Income (loss) from operations
Loss on extinguishment and modification of debt
Other income (expense), net
Interest expense, net
Income (loss) before provision (benefit) for income taxes
Provision (benefit) for income taxes
Net income (loss)

Less: net income (loss) attributable to noncontrolling interests

Net income (loss) attributable to Bloomin’ Brands
Redemption of preferred stock in excess of carrying value

Net income (loss) attributable to common stockholders

Net income (loss)
Other comprehensive income (loss):

Foreign currency translation adjustment
Unrealized gain (loss) on derivatives, net of tax
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax
Amortization of terminated interest rate swaps, net of tax

Comprehensive income (loss)

Less: comprehensive income (loss) attributable to noncontrolling interests

Comprehensive income (loss) attributable to Bloomin’ Brands

Earnings (loss) per share attributable to common stockholders:

Basic

Diluted

Weighted average common shares outstanding:

Basic

Diluted

Cash dividends declared per common share

2021

FISCAL YEAR

2020

2019

4,061,093  $
61,292 
4,122,385 

3,144,636  $
25,925 
3,170,561 

1,229,689 
1,154,623 
1,006,371 
163,391 
245,616 
13,737 
3,813,427 

308,958 
(2,073)
26 
(57,614)
249,297 
26,384 

222,913 
7,358 

982,702 
1,005,295 
846,566 
180,261 
254,356 
76,354 
3,345,534 

(174,973)
(237)
131 
(64,442)
(239,521)
(80,726)

(158,795)
(80)

215,555 
— 
215,555  $

(158,715)
(3,496)
(162,211) $

4,075,014 
64,375 
4,139,389 

1,277,824 
1,207,289 
982,051 
196,811 
275,239 
9,085 
3,948,299 

191,090 
— 
(143)
(49,257)
141,690 
7,573 

134,117 
3,544 

130,573 
— 
130,573 

222,913  $

(158,795) $

134,117 

(6,597)
86 
7,392 
4,576 
228,370 
7,358 
221,012  $

2.42  $

2.00  $

88,981 

107,803 

(37,516)
(14,741)
9,923 
— 
(201,129)
(744)
(200,385) $

(1.85) $

(1.85) $

87,468 

87,468 

(16,625)
(11,944)
1,805 
— 
107,353 
3,801 
103,552 

1.47 

1.45 

88,839 

89,777 

—  $

0.20  $

0.40 

$

$

$

$

$

$

$

The accompanying notes are an integral part of these consolidated financial statements.

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BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT PER SHARE DATA)

Balance, December 30, 2018
Cumulative-effect from a change
in accounting principle, net of
tax
Net income
Other comprehensive (loss)
income, net of tax
Cash dividends declared, $0.40
per common share
Repurchase and retirement of
common stock
Stock-based compensation
Common stock issued under
stock plans (1)
Purchase of noncontrolling
interests
Distributions to noncontrolling
interests
Contributions from
noncontrolling interests
Balance,
December 29, 2019
Cumulative-effect from a change
in accounting principle, net of
tax
Net loss
Other comprehensive loss, net of
tax
Cash dividends declared, $0.20
per common share
Stock-based compensation
Consideration for preferred stock
in excess of carrying value, net
of tax
Common stock issued under
stock plans (1)
Purchase of noncontrolling
interests
Distributions to noncontrolling
interests
Contributions from
noncontrolling interests
Equity component value of
convertible note issuance, net of
tax of $650
Sale of common stock warrant
Purchase of convertible note
hedge
Balance,
December 27, 2020

BLOOMIN’ BRANDS

COMMON STOCK

SHARES

AMOUNT

ADDITIONAL
PAID-IN
CAPITAL

ACCUM-
ULATED
DEFICIT

ACCUMULATED
OTHER
COMPREHENSIVE
LOSS

NON-
CONTROLLING
INTERESTS

TOTAL

91,272  $

913  $

1,107,582  $

(920,010) $

(142,755) $

9,087  $

54,817 

— 
— 

— 

— 

(5,469)
— 

1,143 

— 

— 

— 

— 
— 

— 

— 

(55)
— 

11 

— 

— 

— 

— 
— 

— 

(35,734)

— 
19,951 

2,696 

(157)

— 

— 

141,285 
130,573 

— 

— 

(106,937)
— 

— 

— 

— 

— 

— 
— 

— 
3,544 

141,285 
134,117 

(27,055)

291 

(26,764)

— 

— 
— 

— 

34 

— 

— 

— 

— 
— 

— 

82 

(35,734)

(106,992)
19,951 

2,707 

(41)

(7,214)

(7,214)

1,349 

1,349 

86,946  $

869  $

1,094,338  $

(755,089) $

(169,776) $

7,139  $

177,481 

— 
— 

— 

— 
— 

— 

910 

— 

— 

— 

— 
— 

— 

— 
— 

— 

— 
— 

— 

10 

— 

— 

— 

— 
— 

— 

— 
— 

— 

(17,480)
14,802 

(3,496)

(17)

(156)

— 

— 

64,367 
46,690 

(66,240)

(4,292)
(158,715)

— 
— 

— 
(80)

(4,292)
(158,795)

— 

— 
— 

— 

— 

— 

— 

— 

— 
— 

— 

(42,187)

(147)

(42,334)

— 
— 

517 

— 

— 

— 

— 

— 
— 

— 

— 
— 

(17,480)
14,802 

1,261 

(1,718)

— 

96 

(7)

(60)

(1,908)

(1,908)

451 

451 

— 
— 

— 

64,367 
46,690 

(66,240)

87,856  $

879  $

1,132,808  $

(918,096) $

(211,446) $

6,812  $

10,957 

(CONTINUED...)

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BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT PER SHARE DATA)

BLOOMIN’ BRANDS

COMMON STOCK

SHARES

AMOUNT

ADDITIONAL
PAID-IN
CAPITAL

ACCUM-
ULATED
DEFICIT

ACCUMULATED
OTHER
COMPREHENSIVE
LOSS

NON-
CONTROLLING
INTERESTS

TOTAL

87,856  $

879  $

1,132,808  $

(918,096) $

(211,446) $

6,812  $

10,957 

— 
— 

— 
— 

1,397 

— 

— 

— 
— 

— 
— 

14 

— 

— 

— 
89,253  $

— 
893  $

(47,323)
— 

— 
24,405 

9,836 

2 

— 

— 

4,370 
215,555 

— 
— 

— 

— 

— 

— 

— 
— 

5,457 
— 

— 

— 

— 

— 

1,119,728  $

(698,171) $

(205,989) $

— 
7,358 

(42,953)
222,913 

— 
— 

— 

(5)

5,457 
24,405 

9,850 

(3)

(9,123)

(9,123)

1,347 
6,389  $

1,347 
222,850 

Balance,
December 27, 2020
Cumulative-effect from a change
in accounting principle, net of
tax
Net income
Other comprehensive income,
net of tax
Stock-based compensation
Common stock issued under
stock plans (1)
Purchase of noncontrolling
interests
Distributions to noncontrolling
interests
Contributions from
noncontrolling interests
Balance, December 26, 2021

________________
(1)

Net of forfeitures and shares withheld for employee taxes.

The accompanying notes are an integral part of these consolidated financial statements.

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BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

Cash flows provided by operating activities:
Net income (loss)
Adjustments to reconcile Net income (loss) to cash provided by operating activities:

Depreciation and amortization
Amortization of debt discounts and issuance costs
Amortization of deferred gift card sales commissions
Provision for impaired assets and restaurant closings
Amortization of unrealized loss on terminated interest rate swaps
Non-cash operating lease costs
Provision for expected credit losses and contingent lease liabilities
Inventory obsolescence and spoilage
Stock-based and other non-cash compensation expense
Deferred income tax benefit
(Gain) loss on disposal of property, fixtures and equipment
Other, net
Change in assets and liabilities:

(Increase) decrease in inventories
(Increase) decrease in other current assets
(Increase) decrease in other assets
Decrease in operating right-of-use assets, net
Increase (decrease) in accounts payable and accrued and other current liabilities
Increase in unearned revenue
Decrease in operating lease liabilities
(Decrease) increase in other long-term liabilities
Net cash provided by operating activities

Cash flows used in investing activities:

Proceeds from disposal of property, fixtures and equipment
Proceeds from sale-leaseback transactions, net
Capital expenditures
Other investments, net

Net cash used in investing activities

68

2021

FISCAL YEAR

2020

2019

$

222,913  $

(158,795) $

134,117 

163,391 
4,494 
26,012 
13,737 
6,160 
78,272 
946 
— 
24,405 
(3,346)
(1,322)
1,516 

(18,210)
(58,397)
(2,073)
160 
25,619 
17,225 
(90,387)
(8,660)
402,455 

180,261 
10,142 
20,927 
76,354 
— 
74,436 
7,225 
10,169 
14,802 
(88,256)
1,261 
(4,956)

19,857 
14,392 
3,688 
412 
(61,638)
10,569 
(50,626)
58,625 
138,849 

9,322 
— 
(122,830)
8,763 
(104,745) $

$

2,178 
— 
(87,842)
9,025 
(76,639) $

196,811 
2,517 
26,094 
9,085 
— 
73,357 
— 
— 
24,651 
(25,890)
(2,984)
(10,265)

(15,388)
(40,519)
(890)
391 
(23,497)
26,676 
(69,886)
13,223 
317,603 

18,291 
7,085 
(161,926)
5,259 
(131,291)

(CONTINUED...)

 
 
 
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BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

Cash flows used in financing activities:

Proceeds from issuance of long-term debt
Repayments of long-term debt and finance lease obligations
Proceeds from borrowings on revolving credit facilities
Repayments of borrowings on revolving credit facilities
Financing fees
Proceeds from issuance of senior notes
Proceeds from issuance of convertible senior notes
Proceeds from issuance of warrants
Purchase of convertible note hedge
Issuance costs related to senior notes
Proceeds (payments of taxes) from share-based compensation, net
Distributions to noncontrolling interests
Contributions from noncontrolling interests
Purchase of limited partnership and noncontrolling interests
Payments for partner equity plan
Repurchase of common stock
Cash dividends paid on common stock
Redemption of subsidiary preferred stock
Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash as of the beginning of the period

Cash, cash equivalents and restricted cash as of the end of the period
Supplemental disclosures of cash flow information:

Cash paid for interest
Cash paid for income taxes, net of refunds

Supplemental disclosures of non-cash investing and financing activities:

Leased assets obtained in exchange for new operating lease liabilities
Leased assets obtained in exchange for new finance lease liabilities
Increase (decrease) in liabilities from the acquisition of property, fixtures and equipment

2021

FISCAL YEAR

2020

2019

$

$

$
$

$
$
$

200,000  $
(431,166)
470,000 
(837,000)
(5,868)
300,000 
— 
— 
— 
(5,546)
9,850 
(9,123)
1,347 
(3)
(9,910)
— 
— 
— 

(317,419)
(1,642)
(21,351)
110,408 
89,057  $

47,036  $
36,336  $

43,363  $
1,238  $
2,344  $

—  $

(26,326)
505,000 
(657,000)
(3,096)
— 
230,000 
46,690 
(66,240)
(8,416)
(7)
(1,908)
451 
(60)
(16,906)
— 
(17,480)
(1,475)

(16,773)
(2,174)
43,263 
67,145 
110,408  $

52,630  $
8,415  $

19,451  $
1,367  $
1,152  $

— 
(27,259)
670,800 
(671,300)
— 
— 
— 
— 
— 
— 
2,707 
(7,214)
1,349 
(41)
(15,675)
(106,992)
(35,734)
— 

(189,359)
(1,631)
(4,678)
71,823 
67,145 

47,893 
23,995 

67,955 
208 
(2,899)

 The accompanying notes are an integral part of these consolidated financial statements.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.           Description of Business

Bloomin’ Brands, Inc. (“Bloomin’ Brands” or the “Company”), a holding company that conducts its operations through its subsidiaries, is
one  of  the  largest  casual  dining  restaurant  companies  in  the  world,  with  a  portfolio  of  leading,  differentiated  restaurant  concepts.  OSI
Restaurant Partners, LLC (“OSI”) is the Company’s primary operating entity.

The Company owns and operates casual, upscale casual and fine dining restaurants. The Company’s restaurant portfolio has four concepts:
Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. Additional Outback Steakhouse,
Carrabba’s  Italian  Grill  and  Bonefish  Grill  restaurants  in  which  the  Company  has  no  direct  investment  are  operated  under  franchise
agreements.

2.           Summary of Significant Accounting Policies

Basis of Presentation - The  Company’s  consolidated  financial  statements  include  the  accounts  and  operations  of  Bloomin’  Brands  and  its
subsidiaries.

To  ensure  timely  reporting,  the  Company  consolidates  the  results  of  its  Brazil  operations  on  a  one-month  calendar  lag.  There  were  no
intervening events that would materially affect the Company’s consolidated financial position, results of operations or cash flows as of and
for the year ended December 26, 2021.

COVID-19  Pandemic  -  In  March  2020,  the  Company  temporarily  closed  all  restaurant  dining  rooms  to  comply  with  state  and  local
regulations in response to the COVID-19 pandemic (“COVID-19”). In early May 2020, the Company began to reopen its restaurant dining
rooms with limited seating capacity in compliance with state and local regulations. The temporary closure of the Company’s dining rooms
and  the  limitations  on  seating  capacity  due  to  the  COVID-19  pandemic  resulted  in  significantly  reduced  traffic  in  its  restaurants  which
negatively impacted its operating results during 2020. See Note 3 - 2020 COVID-19 Charges for details regarding certain charges resulting
from the COVID-19 pandemic.

During 2021, the recovery of in-restaurant dining continued as COVID-19 capacity restrictions were eased or eliminated. Concerns over the
variants  of  COVID-19  impacted  this  recovery,  however,  the  Company  continued  to  retain  a  significant  portion  of  the  incremental  off-
premises volume achieved while its dining rooms were closed last year.

Principles of Consolidation - All intercompany accounts and transactions have been eliminated in consolidation.

The  Company  consolidates  variable  interest  entities  where  it  has  been  determined  that  the  Company  is  the  primary  beneficiary  of  those
entities’ operations. The Company is a franchisor of 329 full-service restaurants and off-premises kitchens as of December 26, 2021, but does
not possess any ownership interests in its franchisees and does not provide material direct financial support to its franchisees. These franchise
relationships are not deemed variable interest entities and are not consolidated.

Investments  in  entities  the  Company  does  not  control,  but  where  the  Company’s  interest  is  generally  between  20%  and  50%  and  the
Company has the ability to exercise significant influence over the entity, are accounted for under the equity method.

Fiscal  Year  -  The  Company  utilizes  a  52-53-week  year  ending  on  the  last  Sunday  in  December.  In  a  52-week  fiscal  year,  each  quarterly
period is comprised of 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter. All periods presented consisted
of 52 weeks.

Use of Estimates - The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the

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reported  amounts  of  assets  and  liabilities  and  disclosure  of  contingent  assets  and  liabilities  at  the  date  of  the  financial  statements  and  the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.

Cash and Cash Equivalents - Cash equivalents consist of investments that are readily convertible to cash with an original maturity date of
three months or less. Cash and cash equivalents include $41.3 million and $37.1 million, as of December 26, 2021 and December 27, 2020,
respectively, for amounts in transit from credit card companies since settlement is reasonably assured.

Concentrations of Credit and Counterparty Risk - Financial instruments that potentially subject the Company to a concentration of credit risk
and credit losses are through credit card and trade receivables consisting primarily of amounts due for gift card, vendor, franchise and other
receivables.  Gift  card,  vendor  and  other  receivables  consist  primarily  of  amounts  due  from  gift  card  resellers  and  vendor  rebates.  The
Company considers the concentration of credit risk for gift card, vendor and other receivables to be minimal due to the payment histories and
general  financial  condition  of  its  gift  card  resellers  and  vendors.  Amounts  due  from  franchisees  consist  of  initial  franchise  fees,  royalty
income and advertising fees. See Note 8 - Other Current Assets, Net for disclosure of trade receivables by category as of December 26, 2021
and December 27, 2020.

Financial instruments that potentially subject the Company to concentrations of counterparty risk are cash and cash equivalents, restricted
cash  and  derivatives.  The  Company  attempts  to  limit  its  counterparty  risk  by  investing  in  certificates  of  deposit,  money  market  funds,
noninterest-bearing accounts and other highly rated investments. Whenever possible, the Company selects investment grade counterparties
and rated money market funds in order to mitigate its counterparty risk. At times, cash balances may be in excess of FDIC insurance limits.
See  Note  17  -  Derivative  Instruments  and  Hedging  Activities  for  a  discussion  of  the  Company’s  use  of  derivative  instruments  and
management of credit risk inherent in derivative instruments.

Allowance for Expected Credit Losses - The Company evaluates the collectability of credit card and trade receivables based on historical loss
experience  by  risk  pool  and  records  periodic  adjustments  for  factors  such  as  deterioration  of  economic  conditions,  specific  customer
circumstances and changes in the aging of accounts receivable balances. Losses are charged off in the period in which they are determined to
be uncollectible. See Note 20 - Allowance for Expected Credit Losses for a discussion of the Company’s allowance for expected credit losses.

The  Company  assigned  its  interest,  and  is  contingently  liable,  under  certain  real  estate  leases,  primarily  related  to  divested  restaurant
properties. Contingent lease liabilities related to these guarantees are calculated based on management’s estimate of exposure to losses which
includes  historical  analysis  of  credit  losses,  including  known  instances  of  default,  and  existing  economic  conditions.  See  Note  22  -
Commitments and Contingencies for a discussion of the Company’s contingent lease liabilities.

In instances where there is no established loss history, S&P speculative-grade default rates are utilized as an estimated expected credit loss
rate.

Fair Value - Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction
between market participants on the measurement date. Fair value is categorized into one of the following three levels based on the lowest
level of significant input:

Level 1
Level 2
Level 3

Unadjusted quoted market prices in active markets for identical assets or liabilities
Observable inputs available at measurement date other than quoted prices included in Level 1
Unobservable inputs that cannot be corroborated by observable market data

Inventories - Inventories consist of food and beverages and are stated at the lower of cost (first-in, first-out) or net realizable value.

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Restricted Cash - From time to time, the Company may have short-term restricted cash balances consisting of amounts pledged for settlement
of deferred compensation plan obligations.

Property,  Fixtures  and  Equipment  -  Property,  fixtures  and  equipment  are  stated  at  cost,  net  of  accumulated  depreciation.  Depreciation  is
computed on the straight-line method over the estimated useful life of the assets. Estimated useful lives by major asset category are generally
as follows:

Buildings (1)
Furniture and fixtures
Equipment
Computer equipment and software

5 to 30 years
5 to 7 years
2 to 7 years
3 to 7 years

____________________
(1)

Includes  improvements  to  leased  properties  which  are  depreciated  over  the  shorter  of  their  useful  life  or  the  reasonably  certain  lease  term,  including  renewal
periods that are reasonably certain.

Repair  and  maintenance  costs  that  maintain  the  appearance  and  functionality  of  the  restaurant,  but  do  not  extend  the  useful  life  of  any
restaurant asset are expensed as incurred. The Company suspends depreciation and amortization for assets held for sale. The cost and related
accumulated depreciation of assets sold or disposed of are removed from the Company’s Consolidated Balance Sheets, and any resulting gain
or  loss  is  generally  recognized  in  Other  restaurant  operating  expense  in  its  Consolidated  Statements  of  Operations  and  Comprehensive
Income (Loss).

The  Company  capitalizes  direct  and  indirect  internal  costs  associated  with  the  acquisition,  development,  design  and  construction  of
Company-owned  restaurant  locations  as  these  costs  have  a  future  benefit  to  the  Company.  Upon  restaurant  opening,  these  costs  are
depreciated  and  charged  to  depreciation  and  amortization  expense.  Internal  costs  of  $3.7  million,  $2.7  million  and  $6.4  million  were
capitalized during 2021, 2020 and 2019, respectively.

For  2021  and  2020,  computer  equipment  and  software  costs  of  $3.4  million  and  $1.4  million,  respectively,  were  capitalized.  As  of
December 26, 2021 and December 27, 2020, there was $6.4 million and $8.8 million, respectively, of unamortized computer equipment and
software included in Property, fixtures and equipment, net on the Company’s Consolidated Balance Sheets.

Goodwill and Intangible Assets - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business
combinations and is assigned to the reporting unit in which the acquired business will operate. The Company’s indefinite-lived intangible
assets consist of trade names and are recorded at fair value as of the date of acquisition. Goodwill and indefinite-lived intangible assets are
tested for impairment annually, as of the first day of the second fiscal quarter, or whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable.

The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired.
If  the  qualitative  assessment  is  not  performed  or  if  the  Company  determines  that  it  is  not  more  likely  than  not  that  the  fair  value  of  the
reporting  unit  exceeds  the  carrying  value,  the  fair  value  of  the  reporting  unit  is  calculated.  The  carrying  value  of  the  reporting  unit  is
compared to its estimated fair value, with any excess of carrying value over fair value deemed to be an indicator of impairment.

Definite-lived intangible assets, which consist primarily of trademarks and reacquired franchise rights, are recorded at fair value as of the
date of acquisition, amortized over their estimated useful lives and tested for impairment, using the relief from royalty method, whenever
events or changes in circumstances indicate that the carrying value may not be recoverable.

Derivatives  -  The  Company  records  all  derivatives  on  the  balance  sheet  at  fair  value.  The  accounting  for  changes  in  the  fair  value  of
derivatives depends on the intended use of the derivative, whether the Company has elected to

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designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria
necessary to apply hedge accounting.

Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted
transactions, are considered cash flow hedges. If the derivative qualifies for hedge accounting treatment, any gain or loss on the derivative
instrument is recognized in equity as a change to Accumulated other comprehensive loss and reclassified into earnings in the same period or
periods during which the hedged transaction affects earnings.

The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting
does not apply or the Company elects not to apply hedge accounting. Derivatives not designated as hedges are not speculative and are used to
manage the Company’s exposure to interest rate movements, foreign currency exchange rate movements, changes in energy prices and other
identified  risks.  Changes  in  the  fair  value  of  derivatives  not  designated  in  hedging  relationships  are  recorded  directly  in  earnings.  The
Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement.

Deferred Debt Issuance Costs - For its revolving credit facility, the Company records deferred debt issuance costs related to the issuance of
debt obligations in Other assets, net on its Consolidated Balance Sheets. For fees associated with all other debt obligations, the Company
records deferred debt issuance costs as a reduction of Long-term debt, net.

The  Company  amortizes  deferred  debt  issuance  costs  to  interest  expense  over  the  term  of  the  respective  financing  arrangement,  primarily
using the effective interest method. The Company amortized deferred debt issuance costs of $4.5 million, $3.9 million and $2.5 million to
Interest expense, net for 2021, 2020 and 2019, respectively.

Liquor Licenses - The fees from obtaining non-transferable liquor licenses directly issued by local government agencies for nominal fees are
expensed  as  incurred.  The  costs  of  purchasing  transferable  liquor  licenses  through  open  markets  in  jurisdictions  with  a  limited  number  of
authorized  liquor  licenses  are  capitalized  as  indefinite-lived  intangible  assets  and  included  in  Other  assets,  net  on  the  Company’s
Consolidated Balance Sheets.

Insurance Reserves - The Company carries insurance programs with specific retention levels or high per-claim deductibles for a significant
portion of expected losses under its workers’ compensation, general or liquor liability, health, property and management liability insurance
programs. The Company records a liability for all unresolved claims and for an estimate of incurred but not reported claims at the anticipated
cost that falls below its specified retention levels or per-claim deductible amounts. In establishing reserves, the Company considers actuarial
assumptions  and  judgments  regarding  economic  conditions,  and  the  frequency  and  severity  of  claims.  Reserves  recorded  for  workers’
compensation and general liability claims are discounted using the average of the one-year and five-year risk-free rate of monetary assets that
have comparable maturities.

Share Repurchase - Shares repurchased are retired. The par value of the repurchased shares is deducted from common stock and the excess of
the purchase price over the par value of the shares is recorded to Accumulated deficit.

Revenue  Recognition  -  The  Company  records  food  and  beverage  revenues,  net  of  discounts  and  taxes,  upon  delivery  to  the  customer.
Franchise-related  revenues  are  included  in  Franchise  and  other  revenues  in  the  Company’s  Consolidated  Statements  of  Operations  and
Comprehensive  Income  (Loss).  Royalties,  which  are  a  percentage  of  net  sales  of  the  franchisee,  are  recognized  as  revenue  in  the  period
which the sales are reported to have occurred provided collectability is reasonably assured.

Proceeds from the sale of gift cards, which do not have expiration dates, are recorded as deferred revenue and recognized as revenue upon
redemption by the customer. The Company applies the portfolio approach practical

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

expedient  to  account  for  gift  card  contracts  and  performance  obligations.  Gift  card  breakage,  the  amount  of  gift  cards  which  will  not  be
redeemed,  is  recognized  using  estimates  based  on  historical  redemption  patterns.  If  actual  redemptions  vary  from  assumptions  used  to
estimate breakage, gift card breakage income may differ from the amount recorded. The Company periodically updates its estimates used for
breakage. Breakage revenue is recorded as a component of Restaurant sales in the Company’s Consolidated Statements of Operations and
Comprehensive  Income  (Loss).  Approximately  84%  of  deferred  gift  card  revenue  is  expected  to  be  recognized  within  12  months  of
inception.

Gift card sales commissions paid to third-party providers are capitalized and subsequently amortized to Other restaurant operating expense
based on historical gift card redemption patterns. See Note 4 - Revenue Recognition for rollforwards of deferred gift card sales commissions
and unearned gift card revenue.

Advertising  fees  charged  to  franchisees  are  recognized  in  Franchise  and  other  revenues  in  the  Company’s  Consolidated  Statements  of
Operations and Comprehensive Income (Loss) provided collectability is reasonably assured. Initial franchise and renewal fees are recognized
over the term of the franchise agreement and renewal period, respectively. The weighted average remaining term of franchise agreements and
renewal periods was approximately 12 years as of December 26, 2021.

The  Company  maintains  a  customer  loyalty  program,  Dine  Rewards,  in  the  U.S.,  where  customers  earn  a  reward  after  attaining  qualified
spend amounts. The Company’s estimate of the value of the reward is recorded as deferred revenue. Each reward must be redeemed within
specified  time  limits  of  earning  such  reward.  The  revenue  associated  with  the  fair  value  of  the  reward  is  recognized  upon  the  earlier  of
redemption  or  expiration  of  the  reward.  The  Company  applies  the  practical  expedient  to  exclude  disclosures  regarding  loyalty  program
remaining performance obligations, which have original expected durations of less than one year.

The  Company  collects  and  remits  sales,  food  and  beverage,  alcoholic  beverage  and  hospitality  taxes  on  transactions  with  customers  and
reports revenue net of taxes in its Consolidated Statements of Operations and Comprehensive Income (Loss).

Leases - The Company’s determination of whether an arrangement contains a lease is based on an evaluation of whether the arrangement
conveys  the  right  to  use  and  control  specific  property  or  equipment.  The  Company  leases  restaurant  and  office  facilities  and  certain
equipment under operating leases primarily having initial terms between one and 20 years. Restaurant facility leases generally have renewal
periods totaling five to 30 years, exercisable at the option of the Company. Contingent rentals represent payment of variable lease obligations
based on a percentage of gross revenues, as defined by the terms of the applicable lease agreement for certain restaurant facility leases. The
Company also has certain leases, which reset periodically based on a specified index. Such leases are recorded using the index that existed at
lease commencement. Subsequent changes in the index are recorded as variable rental payments. Variable rental payments are expensed as
incurred in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) and future variable rent obligations are
not included within the lease liabilities on the Consolidated Balance Sheets. The depreciable life of lease assets and leasehold improvements
are limited by the expected lease term. None of the Company’s leases contain any material residual value guarantees or restrictive covenants.

The Company accounts for fixed lease and non-lease components of a restaurant facility lease as a single lease component. Additionally, for
certain equipment leases, the Company applies a portfolio approach to account for the lease assets and liabilities. Leases with an initial term
of  12  months  or  less  are  not  recorded  on  its  Consolidated  Balance  Sheets  and  are  recognized  on  a  straight-line  basis  over  the  lease  term
within Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).

Rent expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease and may include rent
holidays, is recorded on a straight-line basis over the initial lease term and those renewal periods that are reasonably certain. Rent expense is
recorded in Other restaurant operating in the Company’s

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Consolidated  Statements  of  Operations  and  Comprehensive  Income  (Loss).  Payments  received  from  landlords  as  incentives  for  leasehold
improvements  are  recorded  as  a  reduction  of  the  right-of-use  asset  and  amortized  on  a  straight-line  basis  over  the  term  of  the  lease  as  a
reduction of rent expense.

In  April  2020,  the  FASB  issued  a  question-and-answer  document  focused  on  the  application  of  lease  accounting  guidance  to  lease
concessions provided as a result of COVID-19 (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the
option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total
cash  flows  resulting  from  the  modified  lease  are  substantially  similar  to  the  cash  flows  in  the  original  lease.  The  Company  elected  this
practical expedient for COVID-19-related rent concessions, primarily rent deferrals or rent abatements, and has elected not to remeasure the
related  lease  liability  and  right-of-use  asset  for  those  leases.  Rent  deferrals  are  accrued  with  no  impact  to  straight-line  rent  expense.  Rent
abatements  are  recognized  as  a  reduction  of  variable  rent  expense  in  the  month  they  occur.  This  election  will  continue  while  these
concessions are in effect.

Pre-Opening  Expenses  -  Non-capital  expenditures  associated  with  opening  new  restaurants  are  expensed  as  incurred  and  are  included  in
Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).

Consideration Received from Vendors - The Company receives consideration for a variety of vendor-sponsored programs, such as volume
rebates, promotions and advertising allowances. Advertising allowances are intended to offset the Company’s costs of promoting and selling
menu  items  in  its  restaurants.  Vendor  consideration  is  recorded  as  a  reduction  of  Food  and  beverage  costs  or  Other  restaurant  operating
expense when recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).

Impairment of Long-Lived Assets and Costs Associated with Exit Activities - Long-lived assets are reviewed for impairment whenever events
or  changes  in  circumstances  indicate  that  the  carrying  value  may  not  be  recoverable.  The  evaluation  is  performed  at  the  lowest  level  of
identifiable cash flows independent of other assets. For long-lived assets deployed at its restaurants, the Company reviews for impairment at
the  individual  restaurant  level.  When  evaluating  for  impairment,  the  total  future  undiscounted  cash  flows  expected  to  be  generated  by  the
asset  are  compared  to  the  carrying  amount.  If  the  total  future  undiscounted  cash  flows  of  the  asset  are  less  than  its  carrying  amount,
recoverability is measured by comparing the fair value of the assets to the carrying amount. An impairment loss is recognized in earnings
when the asset’s carrying value exceeds its estimated fair value. Fair value is generally estimated using a discounted cash flow model.

Restaurant  closure  costs,  including  lease  termination  fees,  are  expensed  as  incurred.  When  the  Company  ceases  using  the  property  rights
under a non-cancelable operating lease, it records a liability for the net present value of any remaining non-rent lease-related obligations, less
the estimated subtenant cost recovery that can reasonably be obtained for the property. Any subsequent adjustment to that liability as a result
of  lease  termination  or  changes  in  estimates  of  cost  recovery  is  recorded  in  the  period  incurred.  The  associated  expense  is  recorded  in
Provision for impaired assets and restaurant closings in the Company’s Consolidated Statements of Operations and Comprehensive Income
(Loss).

Restaurant sites and certain other assets to be sold are included in assets held for sale when certain criteria are met, including the requirement
that the likelihood of selling the assets within one year is probable.

Advertising Costs - Advertising production costs are expensed in the period when the advertising first occurs. All other advertising costs are
expensed  in  the  period  in  which  the  costs  are  incurred.  Advertising  expense  of  $59.7  million,  $67.3  million  and  $146.1  million  for  2021,
2020 and 2019, respectively, was recorded in Other restaurant operating expense in the Company’s Consolidated Statements of Operations
and Comprehensive Income (Loss).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Legal Costs - Settlement costs are accrued when they are deemed probable and reasonably estimable. Legal fees are recognized as incurred
and are reported in General and administrative expense in the Company’s Consolidated Statements of Operations and Comprehensive Income
(Loss).

Research  and  Development  Expenses  (“R&D”)  -  R&D  is  expensed  as  incurred  in  General  and  administrative  expense  in  the  Company’s
Consolidated Statements of Operations and Comprehensive Income (Loss). R&D primarily consists of payroll and benefit costs. R&D was
$2.6 million, $2.4 million and $3.4 million for 2021, 2020 and 2019, respectively.

Partner  Compensation  -  In  addition  to  base  salary,  Area  Operating  Partners,  Restaurant  Managing  Partners  and  Chef  Partners  generally
receive performance-based bonuses for providing management and supervisory services to their restaurants, certain of which may be based
on a percentage of their restaurants’ monthly operating results or cash flows and/or total controllable income (“Monthly Payments”).

Certain  Restaurant  Managing  Partners  and  Chef  Partners  in  the  U.S.  (“U.S.  Partners”)  may  also  participate  in  deferred  compensation
programs and other performance-based compensation programs. The Company may invest in corporate-owned life insurance policies, which
are  held  within  an  irrevocable  grantor  or  “rabbi”  trust  account  for  settlement  of  certain  of  the  Company’s  obligations  under  the  deferred
compensation plans.

Many  of  the  Company’s  international  Restaurant  Managing  Partners  are  given  the  option  to  purchase  participation  interests  in  the  cash
distributions of the restaurants they manage. The amount, terms and availability vary by country.

The Company estimates future bonuses and deferred compensation obligations to U.S. Partners and Area Operating Partners, using current
and historical information on restaurant performance and records the long-term portion of partner obligations in Other long-term liabilities,
net on its Consolidated Balance Sheets. Monthly Payments and deferred compensation expenses for U.S. Partners are included in Labor and
other  related  expenses  and  Monthly  Payments  and  bonus  expense  for  Area  Operating  Partners  are  included  in  General  and  administrative
expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).

Stock-based Compensation - Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting
or service periods. Stock-based compensation expense is recognized only for those awards expected to vest. The expense, net of forfeitures,
is recognized using the straight-line method. Forfeitures of share-based compensation awards are recognized as they occur.

During 2021, the Company issued performance-based share units (“PSUs”) that included a relative total shareholder return (“Relative TSR”)
modifier to the final payout outcome, which can adjust the payout percentage based on the achieved performance metric. The Relative TSR is
measured by comparing the Company’s Relative TSR to that of the constituents of the S&P 1500 Restaurants index.

Basic and Diluted Earnings (Loss) per Share - The Company computes basic earnings (loss) per share based on the weighted average number
of common shares that were outstanding during the period. Except where the result would be antidilutive, diluted earnings per share includes
the  dilutive  effect  of  common  stock  equivalents,  consisting  of  stock  options,  restricted  stock  units  and  performance-based  share  units,
measured using the treasury stock method, and the Company’s convertible senior notes and related warrants, measured using the if-converted
method. Performance-based share units are considered dilutive when the related performance criterion has been met.

The  Company  has  provided  the  trustee  of  the  2025  Notes  notice  of  its  irrevocable  election  under  the  2025  Notes  indenture  to  settle  the
principal portion of the 2025 Notes upon conversion in cash and any excess in shares. As a result, only the amounts in excess of the principal
amount, if applicable, are considered in diluted earnings per share.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Foreign Currency Translation and Transactions - For non-U.S. operations, the functional currency is the local currency. Foreign currency
denominated  assets  and  liabilities  are  translated  into  U.S.  dollars  using  the  exchange  rates  in  effect  at  the  balance  sheet  date  with  the
translation  adjustments  recorded  in  Accumulated  other  comprehensive  loss  in  the  Company’s  Consolidated  Statements  of  Changes  in
Stockholders’  Equity.  Results  of  operations  are  translated  using  the  average  exchange  rates  for  the  reporting  period.  Foreign  currency
exchange transaction losses are recorded in General and administrative expense in the Company’s Consolidated Statements of Operations and
Comprehensive Income (Loss).

Income Taxes - Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the  financial  statement  carrying  amounts  of  existing  assets  and  liabilities  and  their  respective  tax  basis.  Deferred  income  tax  assets  and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in the tax rate is recognized in income
in the period that includes the enactment date of the rate change. A valuation allowance may reduce deferred income tax assets to the amount
that is more likely than not to be realized.

The Company records a tax benefit for an uncertain tax position using the highest cumulative tax benefit that is more likely than not to be
realized. The Company adjusts its liability for unrecognized tax benefits in the period in which it determines the issue is effectively settled,
the statute of limitations expires or when more information becomes available. Liabilities for unrecognized tax benefits, including penalties
and interest, are recorded in Accrued and other current liabilities and Other long-term liabilities, net on the Company’s Consolidated Balance
Sheets.

Recently Adopted Financial Accounting Standards - On December 28, 2020, the Company adopted Accounting Standards Update (“ASU”)
No. 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own
Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” (“ASU No. 2020-06”) which
removes the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion
feature. ASU No. 2020-06 also requires the application of the if-converted method for calculating diluted earnings per share and the treasury
stock method is no longer available. The Company adopted ASU No. 2020-06 using the modified retrospective approach which resulted in a
cumulative-effect adjustment that increased (decreased) the following Consolidated Balance Sheet accounts during the first quarter of 2021:

ADJUSTMENT

CONSOLIDATED BALANCE SHEET CLASSIFICATION

Deferred tax impact of cumulative-effect adjustment
Debt discount reclassification
Equity issuance costs reclassification
Debt discount amortization reclassification, net of tax
Reversal of separated equity component, net of tax

Deferred income tax assets, net
Long-term debt, net
Long-term debt, net
Accumulated deficit
Additional paid-in capital

AMOUNT 
(in millions)

14.9 
59.9 
(2.1)
4.4 
(47.3)

$
$
$
$
$

After adopting ASU No. 2020-06, the Company’s convertible senior notes due 2025 (the “2025 Notes”) are reflected entirely as a liability
since the embedded conversion feature is no longer separately presented within stockholders’ equity. During 2020, the Company recognized
debt discount amortization of $6.3 million within Interest expense, net related to its 2025 Notes.

On December 31, 2018, the Company adopted ASU No. 2016-02: Leases (Topic 842) (“ASU No. 2016-02”), ASU No. 2018-01, “Leases
(Topic  842):  Land  Easement  Practical  Expedient  for  Transitioning  to  Topic  842,”  (“ASU  No.  2018-01”)  and  ASU  No.  2018-11:  Leases
(Topic 842): Targeted Improvements (“ASU No. 2018-11”). ASU No. 2016-02 requires the lease rights and obligations arising from lease
contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU No. 2018-01 allows
an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Company’s adoption of ASU No. 2016-02. ASU No. 2018-11 allows for an additional transition method, which permits use of the effective
date of adoption as the date of initial application of ASU No. 2016-02 without restating comparative period financial statements and provides
entities with a practical expedient that allows entities to elect not to separate lease and non-lease components when certain conditions are
met.

The  Company  adopted  ASU  No.  2016-02  using  December  31,  2018  as  the  date  of  initial  application  and  recorded  a  reduction  in
Accumulated deficit of $141.3 million primarily related to the derecognition of deferred gains on sale-leaseback transactions, net of related
deferred tax assets. Consequently, financial information and the disclosures required under the new standard were not provided for dates and
periods  before  December  31,  2018.  The  Company  also  elected  a  transition  package  including  practical  expedients  that  permitted  it  not  to
reassess the classification and initial direct costs of expired or existing contracts and leases, to not separate lease and non-lease components
of restaurant facility leases executed subsequent to adoption, and to not evaluate land easements that exist or expired before the adoption. In
preparation for adoption, the Company implemented a new lease accounting system.

Reclassifications  -  The  Company  reclassified  certain  items  in  the  accompanying  consolidated  financial  statements  for  prior  periods  to  be
comparable with the classification for the current period. These reclassifications had no effect on previously reported net income.

3.    2020 COVID-19 Charges

Following is a summary of the charges recorded in connection with the COVID-19 pandemic for the period indicated (dollars in thousands):

CHARGES

Inventory obsolescence and spoilage
Compensation for idle employees (1)
Other operating charges
Lease guarantee contingent liabilities (2)
Allowance for expected credit losses (3)
Other charges
Right-of-use asset impairment (4)
Fixed asset impairment (4)
Goodwill and other impairment (5)

CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) CLASSIFICATION

FISCAL YEAR

2020

Food and beverage costs
Labor and other related
Other restaurant operating
General and administrative
General and administrative
General and administrative
Provision for impaired assets and restaurant closings
Provision for impaired assets and restaurant closings
Provision for impaired assets and restaurant closings

$

$

10,450 
29,993 
3,219 
4,188 
3,334 
2,719 
32,992 
34,423 
3,190 
124,508 

________________
(1)
(2)

Represents relief pay for hourly employees impacted by the closure of dining rooms, net of $14.9 million of employee retention tax credits earned.
Represents additional contingent liabilities recorded for lease guarantees related to certain former restaurant locations now operated by franchisees or other third
parties.
Includes additional reserves to reflect an increase in expected credit losses, primarily related to franchise receivables.
Includes impairments resulting from the remeasurement of assets utilizing projected future cash flows revised for then-current economic conditions, restructuring
charges, the closure of certain restaurants and in connection with the Out West Resolution Agreement. See Note 5 - Impairments, Exit Costs and Disposals and
Note 4 - Revenue Recognition, for details regarding COVID-19 Restructuring costs and the Out West Resolution Agreement, respectively.
Includes impairment of goodwill for the Company’s Hong Kong subsidiary. See Note 10 - Goodwill and Intangible Assets, Net for details regarding impairment of
goodwill.

(3)
(4)

(5)

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4.    Revenue Recognition

BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The  following  table  includes  the  categories  of  revenue  included  in  the  Company’s  Consolidated  Statements  of  Operations  and
Comprehensive Income (Loss) for the periods indicated:

(dollars in thousands)
Revenues

Restaurant sales
Franchise and other revenues
Franchise revenues
Other revenues (1)

Total Franchise and other revenues

Total revenues

2021

FISCAL YEAR

2020

2019

$

$

4,061,093  $

3,144,636  $

4,075,014 

45,520 
15,772 
61,292 

21,195 
4,730 
25,925 

52,147 
12,228 
64,375 

4,122,385  $

3,170,561  $

4,139,389 

________________
(1)

For 2021, includes a $3.1 million benefit from the recognition of recoverable Program of Social Integration (“PIS”) and Contribution for the Financing of Social
Security (“COFINS”) taxes within other revenues in connection with favorable court rulings in Brazil regarding the calculation methodology and taxable base. The
amount recognized primarily represents refundable PIS and COFINS taxes for prior years, including accrued interest, and will be recovered by offsetting future
PIS and COFINS taxes due.

The  following  table  includes  the  disaggregation  of  Restaurant  sales  and  franchise  revenues,  by  restaurant  concept  and  major  international
market, for the periods indicated:

(dollars in thousands)
U.S.

$

Outback Steakhouse
Carrabba’s Italian Grill
Bonefish Grill
Fleming’s Prime Steakhouse & Wine Bar
Other
U.S. total
International

Outback Steakhouse Brazil
Other (1)

International total

Total

2021

FISCAL YEAR

2020

2019

RESTAURANT
SALES

FRANCHISE
REVENUES

RESTAURANT
SALES

FRANCHISE
REVENUES

RESTAURANT
SALES

FRANCHISE
REVENUES

2,175,909  $
653,231 
544,068 
332,607 
9,033 
3,714,848 

258,997 
87,248 
346,245 

29,725  $
2,439 
641 
— 
9 
32,814 

— 
12,706 
12,706 

1,760,071  $
497,212 
396,193 
209,564 
6,507 
2,869,547 

206,280 
68,809 
275,089 

9,898  $
1,309 
346 
— 
— 
11,553 

— 
9,642 
9,642 

2,135,776  $
613,031 
574,004 
307,199 
4,658 
3,634,668 

355,837 
84,509 
440,346 

$

4,061,093  $

45,520  $

3,144,636  $

21,195  $

4,075,014  $

38,614 
2,112 
787 
— 
— 
41,513 

— 
10,634 
10,634 

52,147 

____________________
(1)

Includes Restaurant sales for the Company’s Abbraccio concept in Brazil.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table includes a detail of assets and liabilities from contracts with customers included on the Company’s Consolidated Balance
Sheets as of the periods indicated:

(dollars in thousands)
Other current assets, net

Deferred gift card sales commissions

Unearned revenue

Deferred gift card revenue
Deferred loyalty revenue
Deferred franchise fees - current
Other

Total Unearned revenue

Other long-term liabilities, net

Deferred franchise fees - non-current

DECEMBER 26, 2021

DECEMBER 27, 2020

17,793  $

19,300 

387,945  $
9,386 
443 
1,021 
398,795  $

373,048 
8,026 
469 
73 
381,616 

4,280  $

4,301 

$

$

$

$

The following table is a rollforward of deferred gift card sales commissions for the periods indicated:

(dollars in thousands)
Balance, beginning of period

Deferred gift card sales commissions amortization
Deferred gift card sales commissions capitalization
Other

Balance, end of period

2021

FISCAL YEAR

2020

2019

$

$

19,300  $
(26,012)
26,625 
(2,120)
17,793  $

18,554  $
(20,927)
22,923 
(1,250)
19,300  $

16,431 
(26,094)
29,894 
(1,677)
18,554 

The following table is a rollforward of unearned gift card revenue for the periods indicated:

(dollars in thousands)
Balance, beginning of period

Gift card sales
Gift card redemptions
Gift card breakage

Balance, end of period

2021

FISCAL YEAR

2020

2019

$

$

373,048  $
330,841 
(298,397)
(17,547)
387,945  $

358,757  $
306,016 
(277,675)
(14,050)
373,048  $

333,794 
420,229 
(376,477)
(18,789)
358,757 

Franchisee Deferred Payment Agreement - On December 27, 2020, the Company entered into an agreement (the “Resolution Agreement”)
with  Cerca  Trova  Southwest  Restaurant  Group,  LLC  (d/b/a  Out  West  Restaurant  Group)  and  certain  of  its  affiliates  (collectively,  “Out
West”), who currently franchises approximately 80 Outback Steakhouse restaurants in the western United States, primarily in California. The
Resolution  Agreement  ends  on  December  31,  2023  or  upon  the  earlier  occurrence  of  certain  specified  events,  including  the  sale  of  all  or
substantially all of the assets or equity of Out West, bankruptcy or a liquidation event (“Qualifying Event”) (the “Forbearance Period”). Prior
to  the  Resolution  Agreement,  Out  West  was  in  default  of  its  franchise  agreements  for  nonpayment  of  certain  amounts  due,  and
simultaneously in default of its credit agreement with its lenders primarily due to the significant impact of the COVID-19 pandemic. Under
the terms of the Resolution Agreement, the Company agreed to:

•
•
•

not call upon any previous default under the existing franchise agreements during the Forbearance Period;
reduce future advertising fees to 2.25% of gross sales during the Forbearance Period;
permanently waive unpaid royalty and advertising fees for the period of February 24, 2020 to July 26, 2020;

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

•
•

•

•

allow for closure of four restaurants and certain sublease modifications (the “Property Concessions”);
allow for closure of up to ten additional restaurants during the first 12 months of the Resolution Agreement, without imposition of
any penalties or accelerated royalties;
defer all non-waived past due royalties and advertising fees through November 22, 2020, and for certain permitted restaurant closings
in connection with the Property Concessions, defer accelerated rent and royalties that otherwise would have been due under the terms
and conditions of the respective franchise agreements and leases or subleases (the “Initial Deferred Balance”); and
defer all past due rents through December 27, 2020 on subleased properties totaling $3.6 million until April 2021 when the balance
will be repaid over an 18-month period.

In connection with the Property Concessions, the Company recognized $4.7 million of lease right-of-use asset impairment during the thirteen
weeks ended December 27, 2020, within the U.S. segment.

At the time of the Resolution Agreement, no deferred or previously waived amounts had been recorded as revenue, with the exception of a
$3.1 million receivable balance that had been previously fully reserved. Collections of deferred amounts, and any future amounts due under
the  Resolution  Agreement  or  the  Company’s  franchise  agreements  after  November  22,  2020,  will  be  recognized  when  collectability  is
reasonably assured.

Out  West  also  entered  into  a  Forbearance  Agreement  and  Second  Amendment  to  Credit  and  Guaranty  Agreement  (“Forbearance
Agreement”)  with  its  lenders  that,  in  conjunction  with  the  Resolution  Agreement,  provides,  among  other  things,  for  a  pre-determined
calculation of available monthly cash (“Available Cash”) that Out West may use to settle its obligations due to the Company and its lenders.
Available  Cash  is  calculated  net  of  operating  expenses,  including  local  marketing  expenditures  required  under  the  Resolution  Agreement.
Under the Resolution Agreement, if Out West is unable to satisfy monthly royalty or advertising fees with Available Cash, such amounts will
automatically increase the Initial Deferred Balance. The entire deferred balance will become collectible upon any Qualifying Event. If the
Qualifying  Event  is  the  sale  of  all  or  substantially  all  of  the  assets  or  equity  of  Out  West,  the  sale  proceeds  will  be  applied,  between  the
Company  and  Out  West’s  lenders,  in  accordance  with  the  payment  priority  established  in  the  Resolution  Agreement  and  Forbearance
Agreement;  if  the  sales  proceeds  are  insufficient  to  satisfy  the  deferred  balance  due  to  the  Company,  then  the  Company  agreed  to
permanently waive any remaining deferred balance due to the Company.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

5.     Impairments, Exit Costs and Disposals

The components of Provision for impaired assets and restaurant closings are as follows for the periods indicated:

(dollars in thousands)
Impairment losses

U.S. (1)
International (1)(2)
Corporate (3)

Total impairment losses
Restaurant closure charges (benefits)

U.S. (1)
International (1)

Total restaurant closure charges (benefits)

Provision for impaired assets and restaurant closings

2021

FISCAL YEAR

2020

2019

$

$

11,945  $
1,186 
270 
13,401 

422 
(86)

336 
13,737  $

65,129  $
3,468 
6,226 
74,823 

1,358 
173 

1,531 
76,354  $

6,381 
2,026 
727 
9,134 

(105)
56 

(49)
9,085 

____________________
(1)

U.S.  and  international  impairment  and  closure  charges  during  2020  primarily  relate  to  the  COVID-19  pandemic,  including  charges  related  to  the  COVID-19
Restructuring discussed below and the Out West Resolution Agreement. See Note 3 - 2020 COVID-19 Charges for details regarding the impact of the COVID-19
pandemic on the Company’s financial results.
Includes  goodwill  impairment  charges  of  $2.0  million  during  2020.  See  Note  10  -  Goodwill  and  Intangible  Assets,  Net  for  details  regarding  impairment  of
goodwill.
Corporate impairment charges during 2020 primarily relate to transformational initiatives.

(2)

(3)

COVID-19  Restructuring  -  During  2020,  the  Company  recognized  pre-tax  asset  impairments  and  closure  charges  in  connection  with  the
closure of 22 U.S. restaurants and from the update of certain cash flow assumptions, including lease renewal considerations (the “COVID-19
Restructuring”). Following is a summary of the COVID-19 Restructuring charges recognized in the Consolidated Statements of Operations
and Comprehensive Income (Loss) for the period indicated (dollars in thousands):

DESCRIPTION

CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) CLASSIFICATION

FISCAL YEAR
2020

Property, fixtures and equipment impairments
Lease right-of-use asset impairments and closure charges
Severance and other expenses

Provision for impaired assets and restaurant closings
Provision for impaired assets and restaurant closings
General and administrative

$

$

18,766 
5,003 
1,097 

24,866 

The  remaining  impairment  and  closure  charges  during  the  periods  presented  resulted  primarily  from  locations  identified  for  closure  or
relocation.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Accrued Facility Closure and Other Costs Rollforward - The following table is a rollforward of the Company’s closed facility lease liabilities
and other accrued costs associated with closure and restructuring initiatives for the period indicated:

(dollars in thousands)
Beginning of the year

Cash payments
Accretion
Adjustments

End of the year (1)

FISCAL YEAR
2021

12,879 
(4,739)
906 
(561)

8,485 

$

$

________________
(1)

As of December 26, 2021, the Company had exit-related accruals associated with closure and restructuring initiatives of $2.9 million recorded in Accrued and
other current liabilities and $5.6 million recorded in Non-current operating lease liabilities on its Consolidated Balance Sheet.

Surplus Property Disposals - During 2019,  the  Company  completed  the  sale  of  five  of  its  U.S.  surplus  properties  to  a  franchisee  for  cash
proceeds of $12.7 million, net of certain purchase price adjustments. The transaction resulted in a net gain of $3.6 million, recorded within
Other restaurant operating expense in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).

Refranchising - During 2019, the Company completed the sale of 18 of its existing U.S. Company-owned Carrabba’s Italian Grill restaurants
to an existing franchisee for cash proceeds of $3.6 million, net of certain purchase price adjustments. The  Company  remains  contingently
liable on certain real estate lease agreements assigned to the buyer.

6.         Earnings (Loss) Per Share

The dilutive effect of the 2025 Notes is calculated using the if-converted method. To the extent the Company has ability to settle its 2025
Notes in shares of its common stock, the principal and conversion spread on the 2025 Notes will have a dilutive impact on diluted earnings
per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of $11.89 per share
of common stock. In February 2021, the Company provided the trustee of its 2025 Notes notice of the Company’s irrevocable election to
settle the principal portion of the 2025 Notes in cash and any excess in shares. As a result, subsequent to the election, only the amounts in
excess of the principal amount are considered in diluted earnings per share under the if-converted method.

In  connection  with  the  offering  of  the  2025  Notes,  the  Company  entered  into  the  Convertible  Note  Hedge  Transactions  and  Warrant
Transactions described in Note 14 - Convertible Senior Notes. However, the Convertible Note Hedge Transactions are not considered when
calculating  dilutive  shares  given  their  anti-dilutive  impact  as  an  offset  to  dilution  of  shares  underlying  the  2025  Notes.  The  Warrant
Transactions have a dilutive effect on the Company’s common stock to the extent the price of its common stock exceeds the $16.64 strike
price of the Warrant Transactions. See Note 14 - Convertible Senior Notes for additional information regarding the 2025 Notes, Convertible
Note Hedge Transactions and Warrant Transactions.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The  following  table  presents  the  computation  of  basic  and  diluted  earnings  (loss)  per  share  attributable  to  common  stockholders  for  the
periods indicated:

(in thousands, except per share data)
Net income (loss) attributable to Bloomin’ Brands

Redemption of preferred stock in excess of carrying value (1)

Net income (loss) attributable to common stockholders

Convertible senior notes if-converted method interest adjustment, net of tax (2)

Diluted net income (loss) attributable to common stockholders

Basic weighted average common shares outstanding

Effect of dilutive securities:

Stock options
Nonvested restricted stock units
Nonvested performance-based share units
Convertible senior notes (2)(3)
Warrants (3)

Diluted weighted average common shares outstanding

Basic earnings (loss) per share attributable to common stockholders
Diluted earnings (loss) per share attributable to common stockholders

2021

FISCAL YEAR

2020

2019

215,555  $
— 

215,555 

345 
215,900  $

(158,715) $
(3,496)

(162,211)

— 

(162,211) $

130,573 
— 

130,573 

— 
130,573 

88,981 

87,468 

88,839 

779 
355 
61 
11,377 
6,250 
107,803 

— 
— 
— 
— 
— 
87,468 

2.42  $
2.00  $

(1.85) $
(1.85) $

571 
295 
72 
— 
— 
89,777 

1.47 
1.45 

$

$

$
$

________________
(1)

(2)

(3)

Consideration  paid  in  excess  of  carrying  value  for  the  redemption  of  its  Abbraccio  preferred  stock  is  considered  a  deemed  dividend  and,  for  purposes  of
calculating earnings per share, reduces net income attributable to common stockholders. See Note 16 - Stockholders’ Equity for additional details.
Adjustment for interest related to the 2025 Notes weighted for the portion of the period prior to the Company’s election under the 2025 Notes indenture to settle
the principal portion of its 2025 Notes in cash. Effective with the Company’s election, there will be no further numerator adjustments for interest or denominator
adjustments for shares required to settle the principal portion.
Due to the Company’s net loss during 2020, dilutive excess shares, if applicable, and warrants were excluded from the computation of diluted earnings per share as
their effect would be antidilutive.

Share-based compensation-related weighted average securities outstanding not included in the computation of net earnings (loss) per share
attributable to common stockholders because their effect was antidilutive were as follows, for the periods indicated:

(shares in thousands)
Stock options
Nonvested restricted stock units
Nonvested performance-based share units

2021

FISCAL YEAR

2020

2019

751 
128 
377 

5,155 
682 
514 

4,003 
158 
277 

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

7.           Stock-based and Deferred Compensation Plans

Stock-based Compensation Plans

The Company recognized stock-based compensation expense as follows for the periods indicated:

(dollars in thousands)
Stock options
Restricted stock units
Performance-based share units (1)

2021

FISCAL YEAR

2020

2019

$

$

2,286  $
8,184 
13,821 
24,291  $

3,743  $
8,559 
2,414 
14,716  $

5,270 
8,949 
5,471 
19,690 

________________
(1)

For 2021, includes a cumulative life-to-date adjustment for PSUs granted in fiscal years 2019, 2020 and 2021 based on revised Company performance projections
of performance criteria set forth in the award agreements.

Stock Options  -  Stock  options  generally  vest  and  become  exercisable  over  a  period  of  four  years  in  an  equal  number  of  shares  each  year.
Stock options have an exercisable life of no more than ten years from the date of grant. The Company settles stock option exercises with
authorized but unissued shares of the Company’s common stock.

The following table presents a summary of the Company’s stock option activity:

(in thousands, except exercise price and contractual life)
Outstanding as of December 27, 2020

OPTIONS

Exercised
Forfeited or expired

Outstanding as of December 26, 2021

Exercisable as of December 26, 2021

WEIGHTED
AVERAGE
EXERCISE
PRICE

WEIGHTED
AVERAGE
REMAINING
CONTRACTUAL
LIFE (YEARS)

AGGREGATE
INTRINSIC
VALUE

5,422  $
(936) $
(210) $
4,276  $
3,905  $

19.76 
15.98 
23.34 

20.42 

20.36 

5.1 $

6,575 

4.7 $

4.4 $

7,304 

7,032 

Assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted were as follows
for the period indicated:

Assumptions:

Risk-free interest rate (1)
Dividend yield (2)
Expected term (3)
Weighted average volatility (4)

FISCAL YEAR
2019

2.34 %
1.94 %
4.8 years
31.05 %

Weighted average grant date fair value per option

$

5.07 

________________
(1)
(2)
(3)

(4)

Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option.
Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option.
Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise
experience for its stock options.
Based on the historical volatility of the Company’s stock.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following represents stock option compensation information for the periods indicated:

(dollars in thousands)
Intrinsic value of options exercised
Cash received from option exercises, net of tax withholding
Fair value of stock options vested
Tax benefits for stock option compensation expense

Unrecognized stock option expense
Remaining weighted average vesting period

2021

FISCAL YEAR

2020

2019

$
$
$
$

$

8,419  $
14,951  $
19,246  $
1,942  $

525 
0.6 years

2,201  $
4,609  $
16,468  $
535  $

7,929 
6,501 
18,136 
1,932 

Restricted Stock Units - Beginning in 2019, restricted stock units granted generally vest over a period of three years and restricted stock units
granted  prior  to  2019  generally  vest  over  a  period  of  four  years,  in  an  equal  number  of  shares  each  year.  Following  is  a  summary  of  the
Company’s restricted stock unit activity:

(shares in thousands)
Outstanding as of December 27, 2020

Granted
Vested
Forfeited

Outstanding as of December 26, 2021

NUMBER OF
RESTRICTED STOCK
UNIT AWARDS

WEIGHTED
AVERAGE
GRANT DATE
FAIR VALUE PER
AWARD

1,034  $
319  $
(508) $
(115) $
730  $

18.12 
25.93 
18.57 
18.47 

21.16 

The following represents restricted stock unit compensation information for the periods indicated:

(dollars in thousands)
Fair value of restricted stock vested
Tax benefits for restricted stock compensation expense

Unrecognized restricted stock expense
Remaining weighted average vesting period

2021

FISCAL YEAR

2020

9,434  $
1,592  $

8,973  $
1,614  $

2019

8,200 
1,672 

9,315 
1.8 years

$
$

$

Performance-based Share Units - The number of PSUs that vest is determined for each year based on the achievement of certain performance
criteria as set forth in the award agreement and may range from zero to 200% of the annual target grant. The PSUs are settled in shares of
common stock, with holders receiving one share of common stock for each performance-based share unit that vests. The fair value of PSUs is
based on the closing price of the Company’s common stock on the grant date. Compensation expense for PSUs is recognized over the vesting
period when it is probable the performance criteria will be achieved.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table presents a summary of the Company’s PSU activity:

(shares in thousands)
Outstanding as of December 27, 2020

Granted
Vested
Forfeited

Outstanding as of December 26, 2021

PERFORMANCE-
BASED SHARE UNITS

WEIGHTED
AVERAGE
GRANT DATE
FAIR VALUE PER
AWARD

673  $
328  $
(147) $
(95) $
759  $

20.37 
28.98 
23.05 
24.11 

23.11 

In  February  2021,  the  Company  granted  0.3  million  PSUs  with  a  three-year  cliff  vesting  period  and  adjusted  diluted  earnings  per  share
performance metric. These grants include a Relative TSR modifier to the final payout outcome, which can adjust the payout by 75%, 100%
or  125%  of  the  achieved  performance  metric,  with  the  overall  payout  capped  at  200%  of  the  annual  target  grant.  The  fair  value  of  PSUs
granted  was  estimated  using  the  Monte  Carlo  simulation  model.  The  Monte  Carlo  simulation  model  utilizes  multiple  input  variables  to
estimate the probability that the market conditions will be achieved and is applied to the trading price of the Company’s common stock on the
date of the grant.

Assumptions  used  in  the  Monte  Carlo  simulation  model  and  the  grant  date  fair  value  of  PSUs  granted  were  as  follows  for  the  period
indicated:

Assumptions:

Risk-free interest rate (1)
Volatility (2)

Grant date fair value per unit (3)

________________
(1)
(2)
(3)

Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit.
Based on the historical volatility of the Company’s stock over the last seven years.
Represents a 14.3% premium above the per share value of the Company’s common stock as of the grant date.

The following represents PSU compensation information for the periods indicated:

FISCAL YEAR
2021

0.20 %
48.45 %

29.73 

$

(dollars in thousands)
Tax benefits for PSU compensation expense

Unrecognized PSU expense
Remaining weighted average vesting period (1)

________________
(1)

PSUs typically vest after three years.

FISCAL YEAR

2021

2020

2019

134  $

1,570  $

857 

16,522 
1.4 years

$

$

As of December 26, 2021, the maximum number of shares of common stock available for issuance for equity instruments pursuant to the
2020 Omnibus Incentive Compensation Plan was 8,910,835.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Deferred Compensation Plans

U.S. Partner Deferred Compensations Plans - Certain U.S. Partners may participate in deferred compensation programs that are subject to
the rules of Section 409A of the Internal Revenue Code. The Company may invest in corporate-owned life insurance policies, which are held
within an irrevocable grantor or rabbi trust account for settlement of certain of the obligations under the deferred compensation plans. The
deferred compensation obligation due to U.S. Partners under these plans was $15.5 million and $28.1 million as of December 26, 2021 and
December  27,  2020,  respectively.  The  rabbi  trust  is  funded  through  the  Company’s  voluntary  contributions  and  was  fully  funded  as  of
December 26, 2021.

401(k) Plan - The Company has a qualified defined contribution plan that qualifies under Section 401(k) of the Internal Revenue Code of
1986,  as  amended.  The  Company  incurred  contribution  costs  of  $6.1  million,  $5.5  million  and  $5.4  million  for  the  401(k)  Plan  for  2021,
2020 and 2019, respectively.

Highly Compensated Employee Plan - The Company provides a deferred compensation plan for its highly compensated employees who are
not eligible to participate in the 401(k) Plan. The deferred compensation plan allows these employees to contribute a percentage of their base
salary  and  cash  bonus  on  a  pre-tax  basis.  The  deferred  compensation  plan  is  unsecured  and  funded  through  the  Company’s  voluntary
contributions.

8.           Other Current Assets, Net

Other current assets, net, consisted of the following as of the periods indicated:

(dollars in thousands)
Prepaid expenses
Accounts receivable - gift cards, net (1)
Accounts receivable - vendors, net (1)
Accounts receivable - franchisees, net (1)
Accounts receivable - other, net (1)
Deferred gift card sales commissions
Assets held for sale
Other current assets, net

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

21,194  $
91,248 
11,793 
1,701 
18,353 
17,793 
100 
22,441 
184,623  $

12,148 
76,808 
8,886 
1,007 
16,782 
19,300 
3,831 
12,756 
151,518 

________________
(1)

See Note 20 - Allowance for Expected Credit Losses for a rollforward of the related allowance for expected credit losses.

9.     Property, Fixtures and Equipment, Net

Property, fixtures and equipment, net, consisted of the following as of the periods indicated:

(dollars in thousands)
Land
Buildings
Furniture and fixtures
Equipment
Construction in progress
Less: accumulated depreciation

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

38,417  $

1,167,811 
460,768 
641,715 
47,822 
(1,514,521)

842,012  $

40,498 
1,158,257 
450,508 
623,982 
27,102 
(1,412,660)
887,687 

Surplus Properties - The  Company  owns  certain  U.S.  restaurant  properties  and  assets  that  are  no  longer  utilized  to  operate  its  restaurants
(“surplus properties”). Surplus properties primarily consist of closed properties, which include land and a building, and liquor licenses no
longer needed for operations. Surplus properties may be

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

classified on the Consolidated Balance Sheets as assets held for sale or as assets held and used when the Company does not expect to sell
these  assets  within  the  next  12  months.  Following  is  a  summary  of  the  carrying  value  and  number  of  surplus  properties  as  of  the  periods
indicated:

(dollars in thousands)
Surplus properties - assets held for sale
Surplus properties - assets held and used

Total surplus properties

Number of surplus properties owned

CONSOLIDATED BALANCE SHEET
CLASSIFICATION

Other current assets, net
Property, fixtures and equipment, net

$

$

DECEMBER 26, 2021

DECEMBER 27, 2020

100  $

4,505 

4,605  $

6 

3,831 
7,955 

11,786 

12 

Depreciation and repair and maintenance expense are as follows for the periods indicated:

(dollars in thousands)
Depreciation expense
Repair and maintenance expense

10.     Goodwill and Intangible Assets, Net

Goodwill - The following table is a rollforward of goodwill:

(dollars in thousands)
Balance as of December 29, 2019

Translation adjustments
Impairment charges

Balance as of December 27, 2020

Translation adjustments

Balance as of December 26, 2021

2021

FISCAL YEAR

2020

$
$

157,386  $
104,209  $

173,342  $
88,829  $

2019

188,190 
106,943 

U.S.

INTERNATIONAL

CONSOLIDATED

$

$

170,657  $
— 
— 

170,657 
— 
170,657  $

117,782  $
(15,302)
(1,973)

100,507 
(2,720)
97,787  $

288,439 
(15,302)
(1,973)

271,164 
(2,720)
268,444 

The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated:

DECEMBER 26, 2021

DECEMBER 27, 2020

DECEMBER 29, 2019

(dollars in thousands)
U.S.
International

Total goodwill

GROSS CARRYING
AMOUNT

ACCUMULATED
IMPAIRMENTS

GROSS CARRYING
AMOUNT

ACCUMULATED
IMPAIRMENTS

GROSS CARRYING
AMOUNT

ACCUMULATED
IMPAIRMENTS

$

$

838,827  $
217,670 
1,056,497  $

(668,170) $
(119,883)
(788,053) $

838,827  $
220,390 
1,059,217  $

(668,170) $
(119,883)
(788,053) $

838,827  $
235,692 
1,074,519  $

(668,170)
(117,910)
(786,080)

The COVID-19 outbreak was considered a triggering event during the first quarter of 2020, indicating that the carrying amount of goodwill
may not be recoverable. As a result, the Company performed a quantitative assessment for its four U.S. and three international reporting units
to determine whether a reporting unit was impaired. Based on this assessment, which utilized a discounted cash flow analysis, the Company
recorded full impairment of goodwill related to its Hong Kong reporting unit of $2.0 million, within the international segment, during the
first quarter of 2020. Impairment was not recorded for any of the Company’s other reporting units as a result of the quantitative assessment.

The Company performs its annual assessment for impairment of goodwill and other indefinite-lived intangible assets each year during the
second quarter. The Company’s 2021 and 2019 assessments utilized a qualitative

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

approach. As a result of these assessments, the Company did not record any goodwill asset impairment charges during 2021 or 2019. Since
the Company performed a quantitative assessment on the last day of the first quarter of 2020, as described above, the Company utilized the
same  assumptions  and  analysis  in  performing  a  quantitative  annual  assessment  in  its  second  quarter  and  concluded  that  no  additional
impairment was required.

Intangible Assets, net - Intangible assets, net, consisted of the following as of the periods indicated:

WEIGHTED
AVERAGE
REMAINING
AMORTIZATION
PERIOD
(IN YEARS)

Indefinite
7
0

9

8

(dollars in thousands)
Trade names
Trademarks
Franchise agreements
Reacquired franchise
rights

Total intangible
assets

GROSS
CARRYING
VALUE

$

414,716 
81,951  $
— 

DECEMBER 26, 2021

ACCUMULATED
AMORTIZATION

NET
CARRYING
VALUE

GROSS
CARRYING
VALUE

DECEMBER 27, 2020

ACCUMULATED
AMORTIZATION

NET
CARRYING
VALUE

$

(55,736)
— 

414,716  $
26,215 
— 

414,716 
81,951  $
14,881 

$

(51,797)
(14,881)

414,716 
30,154 
— 

31,944 

(19,463)

12,481 

33,520 

(18,407)

15,113 

$

528,611  $

(75,199) $

453,412  $

545,068  $

(85,085) $

459,983 

The Company did not record any indefinite-lived intangible asset impairment charges during the periods presented.

Definite-lived  intangible  assets  are  amortized  on  a  straight-line  basis.  The  following  table  presents  the  aggregate  expense  related  to  the
amortization of the Company’s trademarks, franchise agreements and reacquired franchise rights for the periods indicated:

(dollars in thousands)
Amortization expense

2021

FISCAL YEAR

2020

2019

$

6,005  $

6,919  $

8,621 

The following table presents expected annual amortization of intangible assets as of December 26, 2021:

(dollars in thousands)
2022
2023
2024
2025
2026

11.           Other Assets, Net

$
$
$
$
$

5,807 
5,741 
5,613 
5,378 
5,294 

Other assets, net, consisted of the following as of the periods indicated:

(dollars in thousands)
Company-owned life insurance (1)
Deferred debt issuance costs (2)
Liquor licenses
Other assets

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

30,970  $
5,861 
23,266 
18,573 

78,670  $

44,814 
4,694 
24,250 
18,868 

92,626 

________________
(1)
(2)

During 2021, the Company withdrew $9.1 million from its Company-owned life insurance policies to pay deferred compensation obligations.
Net of accumulated amortization of $8.5 million and $9.0 million as of December 26, 2021 and December 27, 2020, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

12.           Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following as of the periods indicated:

(dollars in thousands)
Accrued rent and current operating lease liabilities
Accrued payroll and other compensation (1)
Accrued insurance
Other current liabilities

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

181,636  $
105,095 
22,017 
98,146 

406,894  $

192,369 
79,291 
20,648 
96,013 

388,321 

________________
(1)

During 2021, accrued payroll and other compensation increased primarily due to an increase in incentive compensation as a result of increased restaurant sales in
2021 due to the impact of COVID-19 during 2020.

13.           Long-term Debt, Net

Following is a summary of outstanding long-term debt, as of the periods indicated:

(dollars in thousands)
Senior Secured Credit Facility:
Term loan A (1)
Revolving credit facility (2)

Total Senior Secured Credit Facility

Former Credit Facility:
Term loan A (1)
Revolving credit facility (1)

Total Former Credit Facility

2025 Notes (3)
2029 Notes
Finance lease liabilities
Less: unamortized debt discount and issuance costs (4)
Less: finance lease interest

Total debt, net

Less: current portion of long-term debt

Long-term debt, net

DECEMBER 26, 2021

DECEMBER 27, 2020

OUTSTANDING
BALANCE

INTEREST RATE

OUTSTANDING
BALANCE

INTEREST RATE

$

$

195,000 
80,000 

275,000 

— 
— 
— 

230,000 
300,000 
2,376 
(14,157)
(154)
793,065 
(10,958)
782,107 

1.60 % $
3.75 %

5.00 %
5.13 %

$

— 
— 

— 

425,000 
447,000 
872,000 

230,000 
— 
2,405 
(67,704)
(221)
1,036,480 
(38,710)
997,770 

2.88 %
2.88 %

5.00 %

________________
(1)
(2)

Interest rate represents the weighted average interest rate as of the respective periods.
Interest  rate  represents  the  Base  Rate  option  elected  in  anticipation  of  impending  repayment.  Subsequent  to  December  26,  2021,  the  Company  repaid  the
remaining $80.0 million balance on its revolving credit facility.
See Note 14 - Convertible Senior Notes for details regarding the 2025 Notes and related hedge and warrant transactions.
In  connection  with  the  adoption  of  ASU  No.  2020-06,  debt  discount  of  $59.9  million  related  to  the  2025  Notes  was  derecognized  and  $2.1  million  of  equity
issuance costs were reclassified as debt issuance costs during 2021.

(3)
(4)

Bloomin’ Brands, Inc. is a holding company and conducts its operations through its subsidiaries, certain of which have incurred indebtedness
as described below.

2029 Notes - On April 16, 2021, the Company and its wholly-owned subsidiary OSI, as co-issuers, issued $300.0 million aggregate principal
amount of senior unsecured notes due 2029 (the “2029 Notes”).

The 2029 Notes were issued pursuant to an Indenture, dated April 16, 2021 (the “Indenture”), by and among the Company, the guarantors
named therein, and Wells Fargo Bank, National Association, as trustee. The 2029 Notes

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

are  guaranteed  by  each  of  the  Company’s  existing  and  future  domestic  restricted  subsidiaries  (other  than  OSI)  that  are  guarantors  or
borrowers  under  its  Senior  Secured  Credit  Facility  (as  defined  below)  or  certain  other  indebtedness.  The  2029  Notes  mature  on  April  15,
2029, unless earlier redeemed or purchased by the Company. The 2029 Notes bear cash interest at an annual rate of 5.125% payable semi-
annually in arrears on April 15 and October 15 of each year.

The Company may redeem some or all of the 2029 Notes at any time on or after April 15, 2024, at the redemption prices set forth in the
Indenture, plus accrued and unpaid interest. The Company may also redeem up to 40% of the 2029 Notes in an amount not greater than the
proceeds  of  certain  equity  offerings  completed  before  April  15,  2024,  at  a  redemption  price  equal  to  105.125%  of  the  principal  amount
thereof, plus accrued and unpaid interest. In addition, at any time prior to April 15, 2024, the Company may redeem some or all of the 2029
Notes at a price equal to 100% of the principal amount, plus a make-whole premium, plus accrued and unpaid interest.

The Indenture contains restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur
additional indebtedness or issue certain preferred stock; pay dividends, redeem stock or make other distributions; make certain investments;
create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company; create
certain liens; transfer or sell certain assets; merge or consolidate; enter into certain transactions with the Company’s affiliates; and designate
subsidiaries  as  unrestricted  subsidiaries.  These  covenants  are  subject  to  a  number  of  exceptions  and  qualifications  as  set  forth  in  the
Indenture.

The Indenture contains customary events of default, including, without limitation, failure to make required payments, failure to comply with
certain agreements or covenants, cross-acceleration to certain other indebtedness in excess of specified amounts, certain events of bankruptcy
and insolvency, and failure to pay certain judgments.

The net proceeds from the 2029 Notes offering were approximately $294.5 million, after deducting the initial purchaser’s discount and the
Company’s offering expenses. The net proceeds were used to repay a portion of the Company’s outstanding Term loan A and revolving credit
facility in conjunction with the refinancing of its Former Credit Facility.

Credit  Agreement  -  On  April  16,  2021,  the  Company  and  OSI,  as  co-borrowers,  entered  into  the  Second  Amended  and  Restated  Credit
Agreement (the “Credit Agreement”), which provides for senior secured financing of up to $1.0 billion consisting of a $200.0 million Term
loan A and an $800.0 million revolving credit facility (the “Senior Secured Credit Facility”). The Senior Secured Credit Facility matures on
April 16, 2026 and replaced the Company’s prior senior secured financing of up to $1.5 billion (the “Former Credit Facility”).

The commitments under the Senior Secured Credit Facility may be increased in an aggregate principal amount of up to: (i) $425.0 million or
(ii) at the Company’s option, up to an unlimited amount of incremental facilities, so long as the Consolidated Senior Secured Net Leverage
Ratio (“CSSNLR”), as defined in the Credit Agreement, is no more than 3.00 to 1.00 as of the last day of the most recent period of four
consecutive fiscal quarters ended.

The Company may elect an interest rate at each reset period based on the Base Rate or the Eurocurrency Rate, plus an applicable spread. The
Base Rate option is the highest of: (i) the prime rate of Wells Fargo Bank, National Association, (ii) the federal funds effective rate plus 0.5
of 1.0% or (iii) the Eurocurrency rate with a one-month interest period plus 1.0% (the “Base Rate”). The Eurocurrency Rate option is the
seven, 30, 60, 90 or 180-day Eurocurrency rate, subject to a 0% floor (the “Eurocurrency Rate”). The interest rates are as follows:

Term loan A and revolving credit facility

50 to 150 basis points over the Base Rate

150 to 250 basis points over the Eurocurrency Rate

BASE RATE ELECTION

EUROCURRENCY RATE ELECTION

Fees on letters of credit and daily unused availability under the revolving credit facility are 150 to 250 basis points and 25 to 40 basis points,
respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following is a summary of required quarterly amortization payments for the Term loan A (dollars in thousands):

SCHEDULED QUARTERLY PAYMENT DATES

March 27, 2022 through June 30, 2024
September 29, 2024 through June 29, 2025
September 28, 2025 and December 28, 2025

TERM LOAN A

$
$
$

2,500 
3,750 
5,000 

The  Senior  Secured  Credit  Facility  contains  mandatory  prepayment  requirements  for  the  Term  loan  A,  including  the  requirement  that  the
Company  prepay  outstanding  amounts  under  these  loans  with  50%  of  its  annual  excess  cash  flow,  as  defined  in  the  Credit  Agreement,
commencing with the fiscal year ending December 25, 2022. The amount of outstanding loans required to be prepaid in accordance with the
debt covenants may vary based on the Company’s CSSNLR and year end results.

Total Net Leverage Ratio (“TNLR”) is the ratio of Consolidated Total Debt (Current portion of long-term debt and Long-term debt, net of
cash, excluding the 2025 Notes) to Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization and certain other
adjustments as defined in the Credit Agreement). The Credit Agreement requires a TNLR not to exceed 4.50 to 1.00.

The  Credit  Agreement  limits,  subject  to  certain  exceptions,  the  Company’s  ability  and  the  ability  of  its  subsidiaries  to:  incur  additional
indebtedness; make significant payments; sell assets; pay dividends and other restricted payments; make certain investments; acquire certain
assets;  effect  mergers  and  similar  transactions;  and  effect  certain  other  transactions  with  affiliates.  The  Company  was  also  limited  to
$200.0 million of aggregate capital expenditures during the year ended December 26, 2021.

As of December 26, 2021 and December 27, 2020, the Company was in compliance with its debt covenants.

Maturities - Following is a summary of principal payments of the Company’s total consolidated debt outstanding as of the period indicated:

(dollars in thousands)
2022
2023
2024
2025
2026
Thereafter

Total payments

Less: unamortized debt discount and issuance costs
Less: finance lease interest

Total principal payments

DECEMBER 26, 2021

10,976 
10,739 
12,944 
247,674 
225,043 
300,000 
807,376 
(14,157)
(154)

793,065 

$

$

Debt Issuance Costs - During 2021, the Company deferred $5.5 million and $5.9 million of financing costs incurred in connection with the
2029 Notes and Credit Agreement, respectively. Debt issuance costs of $3.7 million associated with the revolving credit facility portion of
the Credit Agreement were recorded in Other assets, net and all other debt issuance costs were recorded in Long-term debt, net.

14.    Convertible Senior Notes

2025  Notes  -  In  May  2020,  the  Company  completed  a  $230.0  million  principal  amount  private  offering  of  5.00%  convertible  senior
unsecured  notes  due  in  2025.  The  2025  Notes  are  governed  by  the  terms  of  an  indenture  between  the  Company  and  Wells  Fargo  Bank,
National Association, as the Trustee. The 2025 Notes mature on May 1, 2025,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

unless  earlier  converted,  redeemed  or  purchased  by  the  Company.  The  2025  Notes  bear  cash  interest  at  an  annual  rate  of  5.00%,  payable
semi-annually in arrears on May 1 and November 1 of each year. Net proceeds from the 2025 Notes offering were approximately $221.6
million, after deducting the initial purchaser’s discounts and commissions and the Company’s offering expenses.

The initial conversion rate applicable to the 2025 Notes is 84.122 shares of common stock per $1,000 principal amount of 2025 Notes, or a
total  of  approximately  19.348  million  shares  for  the  total  $230.0  million  principal  amount.  This  initial  conversion  rate  is  equivalent  to  an
initial  conversion  price  of  approximately  $11.89  per  share.  The  conversion  rate  is  subject  to  adjustment  upon  the  occurrence  of  certain
specified events.

Prior to the close of business on the business day immediately preceding November 1, 2024, holders may convert all or a portion of their
2025 Notes under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30,
2020, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20
trading  days  during  the  30  consecutive  trading  days  ending  on,  and  including,  the  last  trading  day  of  the  immediately  preceding  calendar
quarter; (ii) during the five consecutive business days immediately after any five consecutive trading day period (the “measurement period”)
in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of
the product of the last reported sale price per share of the Company’s common stock and the conversion rate on each such trading day; (iii)
upon the occurrence of specified corporate events or distributions on the Company’s common stock; (iv) if the Company calls the 2025 Notes
for redemption, and (v) at any time from, and including November 1, 2024 until the close of business on the second scheduled trading day
immediately before the maturity date.

th

The 2025 Notes will be redeemable by the Company, in whole or in part, at the Company’s option at any time, and from time to time, on or
after May 1, 2023 and on or before the 40  scheduled trading day immediately before the maturity date, at a cash redemption price equal to
the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest, but only if the last reported sale price per share of
the  Company’s  common  stock  exceeds  130%  of  the  conversion  price  on:  (i)  each  of  at  least  20  trading  days,  whether  or  not  consecutive,
during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related
redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any of the 2025
Notes for redemption will constitute a make-whole fundamental change with respect to that note, in which case the conversion rate applicable
to the conversion of the 2025 Notes will be increased in certain circumstances if it is converted after it is called for redemption.

If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2025 Notes
for cash at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest. Holders of
2025 Notes who convert their 2025 Notes in connection with a notice of a redemption or a make-whole fundamental change may be entitled
to a premium in the form of an increase in the conversion rate of the 2025 Notes.

Based on the daily closing prices of the Company’s stock during the quarter ended December 26, 2021, holders of the 2025 Notes are eligible
to convert their 2025 Notes during the first quarter of 2022. The Company has provided the trustee of the 2025 Notes notice of its irrevocable
election under the 2025 Notes indenture to settle the principal portion of the 2025 Notes upon conversion in cash and any excess in shares.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated:

(dollars in thousands)
Long-term debt, net

Principal
Less: debt discount (1)
Less: debt issuance costs (1)(2)

Net carrying amount

Equity component (1)

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

$

230,000  $
— 
(5,898)

224,102  $

—  $

230,000 
(59,862)
(5,427)

164,711 

64,367 

________________
(1)

In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were derecognized and $2.1 million of issuance
costs that were previously allocated to the equity component were reclassified as debt issuance costs during 2021.
Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life.

(2)

Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated:

(dollars in thousands)
Coupon interest
Deferred discount amortization
Deferred issuance cost amortization

Total interest expense (1)

FISCAL YEAR

2021

2020

$

$

11,500  $
— 
1,557 
13,057  $

7,443 
6,275 
569 
14,287 

________________
(1)

The effective rate of the 2025 Notes over their expected life was 5.85% and 13.73% for 2021 and 2020, respectively.

Convertible Note Hedge and Warrant Transactions - In connection with the offering of the 2025 Notes, the Company entered into convertible
note  hedge  transactions  (the  “Convertible  Note  Hedge  Transactions”)  with  certain  of  the  initial  purchasers  of  the  2025 Notes  and/or  their
respective  affiliates  and  other  financial  institutions  (in  this  capacity,  the  “Hedge  Counterparties”).  Concurrently  with  the  Company’s  entry
into the Convertible Note Hedge Transactions, the Company also entered into separate, warrant transactions with the Hedge Counterparties
collectively relating to the same number of shares of the Company’s common stock, subject to customary anti-dilution adjustments, and for
which the Company received proceeds that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “Warrant
Transactions”).

The  Convertible  Note  Hedge  Transactions  cover,  subject  to  customary  anti-dilution  adjustments,  the  number  of  shares  of  the  Company’s
common  stock  that  initially  underlie  the  2025  Notes,  and  are  expected  generally  to  reduce  the  potential  equity  dilution  in  excess  of  the
principal amount due upon conversion of the 2025 Notes. The Warrant Transactions have a dilutive effect on the Company’s common stock
to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions. The strike price is initially $16.64 per
share and is subject to certain adjustments under the terms of the Warrant Transactions.

The portion of the net proceeds to the Company from the offering of the 2025 Notes that was used to pay the premium on the Convertible
Note  Hedge  Transactions,  net  of  the  proceeds  to  the  Company  from  the  Warrant  Transactions,  was  approximately  $19.6  million.  The  net
costs  incurred  in  connection  with  the  Convertible  Note  Hedge  Transactions  and  Warrant  Transactions  were  recorded  as  a  reduction  to
Additional paid-in capital on the Company’s Consolidated Balance Sheet during 2020.

The  Convertible  Note  Hedge  Transactions  are  exercisable  upon  conversion  of  the  2025 Notes.  The  Convertible  Note  Hedge  Transactions
expire upon maturity of the 2025 Notes. The Warrant Transactions are exercisable on the expiration dates included in the related forms of
confirmation.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

15.     Other Long-term Liabilities, Net

Other long-term liabilities, net, consisted of the following as of the periods indicated:

(dollars in thousands)
Accrued insurance liability
Chef and Restaurant Managing Partner deferred compensation obligations
Deferred payroll tax liabilities (1)
Other long-term liabilities (2)

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

31,517  $
13,971 
27,302 
52,452 

125,242  $

32,128 
32,306 
55,204 
65,717 

185,355 

_______________
(1)
(2)

During 2021, the Company made a payment of $27.3 million related to payroll taxes deferred under the Coronavirus, Aid, Relief and Economic Security Act.
The Company’s hedge liability decreased by $15.6 million during 2021 primarily from the termination of certain interest rate swaps. See Note 17 - Derivative
Instruments and Hedging Activities for additional details.

16.         Stockholders’ Equity

Share Repurchases - On February 8, 2022, the Company’s Board of Directors (the “Board”) approved a share repurchase program (the “2022
Share Repurchase Program”) under which the Company was authorized to repurchase up to $125.0 million of its outstanding common stock.
The 2022 Share Repurchase Program will expire on August 9, 2023.

Dividends - The Company declared and paid dividends per share during the period presented as follows:

(dollars in thousands, except per share data)
First fiscal quarter

FISCAL YEAR
2020

DIVIDENDS PER
SHARE

AMOUNT

$

0.20  $

17,480 

In February 2022, the Board declared a quarterly cash dividend of $0.14 per share, payable on March 16, 2022 to shareholders of record at
the close of business on March 2, 2022.

Redeemable  Preferred  Stock  -  In  connection  with  the  development  of  its  Abbraccio  Cucina  Italiana  (“Abbraccio”)  concept  in  2015,  the
Company sold preferred shares of its Abbraccio concept (“Abbraccio Shares”) to certain investors. During 2020, the Company exercised a
call option to purchase all outstanding Abbraccio Shares for $1.0 million and recorded a reduction to Accumulated deficit and an increase in
Net loss applicable to common stockholders of $3.5 million for the consideration paid in excess of the Abbraccio Shares’ carrying value.

Accumulated Other Comprehensive Loss (“AOCL”) - Following are the components of AOCL as of the periods indicated:

(dollars in thousands)
Foreign currency translation adjustment
Unrealized loss on derivatives, net of tax

Accumulated other comprehensive loss

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

(195,480) $
(10,509)

(205,989) $

(188,883)
(22,563)

(211,446)

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Following are the components of Other comprehensive income (loss) attributable to Bloomin’ Brands for the periods indicated:

(dollars in thousands)
Bloomin’ Brands:
Foreign currency translation adjustment

Unrealized gain (loss) on derivatives, net of tax (1)
Reclassification of adjustments for loss on derivatives included in Net income (loss), net of tax (2)
Amortization of terminated interest rate swaps, net of tax

Total unrealized gain (loss) on derivatives, net of tax

Other comprehensive income (loss) attributable to Bloomin’ Brands

FISCAL YEAR

2021

2020

2019

$

$

(6,597) $

(36,852) $

(16,882)

86 
7,392 
4,576 
12,054 

(14,741)
9,923 
— 
(4,818)

5,457  $

(41,670) $

(11,944)
1,805 
— 
(10,139)

(27,021)

________________
(1)
(2)

Unrealized loss on derivatives is net of tax of $5.1 million and $4.1 million for 2020 and 2019, respectively.
Reclassifications  of  adjustments  for  loss  on  derivatives  are  net  of  tax.  See  Note  17  -  Derivative  Instruments  and  Hedging  Activities  for  the  tax  impact  of
reclassifications.

17.           Derivative Instruments and Hedging Activities

Interest Rate Risk - The Company manages economic risks, including interest rate variability, primarily by managing the amount, sources and
duration  of  its  debt  funding  and  through  the  use  of  derivative  financial  instruments.  The  Company’s  objectives  in  using  interest  rate
derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps.

Designated Hedges

Cash Flow Hedges of Interest Rate Risk - In October 2018, the Company entered into variable-to-fixed interest rate swap agreements with 12
counterparties  to  hedge  a  portion  of  the  cash  flows  of  the  Company’s  variable  rate  debt  (the  “2018  Swap  Agreements”).  The  2018  Swap
Agreements have an aggregate notional amount of $550.0 million and mature on November 30, 2022. Under the terms of the 2018 Swap
Agreements,  the  Company  pays  a  weighted  average  fixed  rate  of  3.04%  on  the  notional  amount  and  receives  payments  from  the
counterparties based on the one-month London Inter-Bank Offered Rate (“LIBOR”) rate.

In connection with the refinancing of its Former Credit Facility, on April 16, 2021 the Company terminated its variable-to-fixed interest rate
swap agreements with seven counterparties having an aggregate notional amount of $275.0 million for a payment of approximately $13.3
million,  including  accrued  interest.  Following  these  terminations,  $13.4  million  of  unrealized  losses  related  to  the  terminated  swap
agreements  included  in  AOCL  will  be  amortized  on  a  straight-line  basis  to  Interest  expense,  net  over  the  remaining  original  term  of  the
terminated swaps.

As a result of the Company’s anticipated decrease in variable rate debt balances due to significant voluntary debt payments, on December 9,
2021  the  Company  terminated  its  variable-to-fixed  interest  rate  swap  agreements  with  three  counterparties  having  an  aggregate  notional
amount of $150.0 million for a payment of approximately $4.1 million, including accrued interest. Following these terminations, $4.1 million
of unrealized losses related to the terminated swap agreements included in AOCL will be amortized to Interest expense, net during 2022.

The Company’s swap agreements have been designated and qualify as cash flow hedges, are recognized on its Consolidated Balance Sheets
at fair value and are classified based on the instruments’ maturity dates. As of December 26, 2021, the Company estimated $14.4 million will
be  reclassified  to  Interest  expense,  net  through  the  November  2022  maturity  date  of  the  swaps,  including  interest  expense  related  to  the
terminated swap agreements discussed above.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table presents the fair value and classification of the Company’s swap agreements, as of the periods indicated:

(dollars in thousands)
Interest rate swaps - liability
Interest rate swaps - liability

$

Total fair value of derivative instruments - liabilities (1) $

Accrued interest

$

DECEMBER 26, 2021

3,056  $
— 
3,056  $

276  $

DECEMBER 27, 2020

CONSOLIDATED BALANCE SHEET
CLASSIFICATION
14,855  Accrued and other current liabilities
15,640  Other long-term liabilities, net
30,495 

1,237  Accrued and other current liabilities

____________________
(1)    See Note 19 - Fair Value Measurements for fair value discussion of the interest rate swaps.

The following table summarizes the effects of the swap agreements on Net income (loss) for the periods indicated:

(dollars in thousands)
Interest rate swap expense recognized in Interest expense, net
Income tax benefit recognized in Provision (benefit) for income taxes

Total effects on Net income (loss)

2021

FISCAL YEAR

2020

$

$

(9,951) $
2,559 

(7,392) $

(13,370) $
3,447 

(9,923) $

2019

(2,436)
631 

(1,805)

The Company records its derivatives on its Consolidated Balance Sheets on a gross balance basis. The Company’s interest rate swaps are
subject to master netting arrangements. As of December 26, 2021, the Company did not have more than one derivative between the same
counterparties and as such, there was no netting.

By utilizing the interest rate swaps, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under
the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based
upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of December 26, 2021
and December 27, 2020, all counterparties to the interest rate swaps had performed in accordance with their contractual obligations.

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in
default on its derivative obligations if the repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default
on indebtedness.

As  of  December  26,  2021  and  December  27,  2020,  the  fair  value  of  the  Company’s  interest  rate  swaps  was  in  a  net  liability  position,
including  accrued  interest  but  excluding  any  adjustment  for  nonperformance  risk,  of  $3.3  million  and  $32.2  million,  respectively.  As  of
December 26, 2021 and December 27, 2020, the Company has not posted any collateral related to these agreements. If the Company had
breached any of these provisions as of December 26, 2021 and December 27, 2020, it could have been required to settle its obligations under
the agreements at their termination value of $3.3 million and $32.2 million, respectively.

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18.    Leases

BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods
indicated:

(dollars in thousands)
Operating lease right-of-use assets
Finance lease right-of-use assets (1)

Total lease assets, net

Current operating lease liabilities (2)
Current finance lease liabilities
Non-current operating lease liabilities (3)
Non-current finance lease liabilities

Total lease liabilities

CONSOLIDATED BALANCE SHEET
CLASSIFICATION

Operating lease right-of-use assets
Property, fixtures and equipment, net

Accrued and other current liabilities
Current portion of long-term debt
Non-current operating lease liabilities
Long-term debt, net

$

$

$

$

DECEMBER 26, 2021

DECEMBER 27, 2020

1,130,873  $
2,074 
1,132,947  $

177,028  $
958 
1,178,998 
1,264 
1,358,248  $

1,172,910 
1,947 
1,174,857 

176,791 
1,210 
1,216,666 
974 
1,395,641 

________________
(1)
(2)

Net of accumulated amortization of $3.3 million and $2.3 million as December 26, 2021 and December 27, 2020, respectively.
Excludes COVID-19-related deferred rent accruals of $1.1 million and $12.8 million as of December 26, 2021 and December 27, 2020, respectively, and accrued
contingent percentage rent of $3.5 million and $2.7 million, as of December 26, 2021 and December 27, 2020, respectively.
Excludes COVID-19-related non-current deferred rent accruals of $0.4 million and $1.2 million as of December 26, 2021 and December 27, 2020, respectively.

(3)

Following  is  a  summary  of  expenses  and  income  related  to  leases  recognized  in  the  Consolidated  Statements  of  Operations  and
Comprehensive Income (Loss) for the periods indicated:

(dollars in thousands)
Operating leases (1)
Variable lease cost (2)
Finance leases:

Amortization of leased assets
Interest on lease liabilities

Sublease revenue

Lease costs, net

CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) CLASSIFICATION

2021

FISCAL YEAR

2020

2019

Other restaurant operating
Other restaurant operating

Depreciation and amortization
Interest expense, net
Franchise and other revenues

$

$

178,733  $
4,350 

1,079 
129 
(9,396)
174,895  $

178,740  $
(2,326)

1,248 
160 
(3,121)
174,701  $

181,397 
3,504 

1,400 
264 
(6,542)
180,023 

________________
(1)

Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.9 million, $13.8 million and $14.6 million for 2021, 2020
and 2019, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in
Food and beverage costs.
Includes COVID-19-related rent abatements for 2021 and 2020.

(2)

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

As of December 26, 2021, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:

(dollars in thousands)
2022 (2)
2023
2024
2025
2026
Thereafter

Total minimum lease payments (receipts) (3)

Less: Interest

Present value of future lease payments

OPERATING
LEASES (1)

FINANCE
LEASES

SUBLEASE
REVENUES

$

$

185,093  $
189,010 
183,170 
171,317 
164,111 
1,490,634 

2,383,335 

(1,025,773)
1,357,562  $

976  $
739 
444 
174 
43 
— 
2,376  $
(154)
2,222 

(5,130)
(5,212)
(5,182)
(4,983)
(4,971)
(42,823)
(68,301)

____________________
(1)
(2)
(3)

Includes COVID-19-related current and non-current deferred rent accruals of $1.1 million and $0.4 million, respectively, as of December 26, 2021.
Net of operating lease prepaid rent of $5.6 million.
Includes $1.0 billion related to lease renewal options that are reasonably certain of exercise and excludes $80.9 million of signed operating leases that have not yet
commenced.

The  following  table  is  a  summary  of  the  weighted  average  remaining  lease  terms  and  weighted  average  discount  rates  of  the  Company’s
leases as of the periods indicated:

Weighted average remaining lease term (1):

Operating leases
Finance leases

Weighted average discount rate (2):

Operating leases
Finance leases

____________________
(1)
(2)

Includes lease renewal options that are reasonably certain of exercise.
Based on the Company’s incremental borrowing rate at lease commencement.

DECEMBER 26, 2021

DECEMBER 27, 2020

13.7 years
2.8 years

8.42 %
5.01 %

14.0 years
2.7 years

8.54 %
7.21 %

The following table is a summary of other impacts to the Company’s Consolidated Financial Statements related to its leases for the periods
indicated:

(dollars in thousands)
Cash flows from operating activities:

2021

FISCAL YEAR

2020

2019

Cash paid for amounts included in the measurement of operating lease liabilities

$

205,253  $

177,961 

$

191,855 

Properties Leased to Third Parties - The Company leases certain owned land and buildings to third parties, generally related to closed or
refranchised restaurants. The following table is a summary of assets leased to third parties as of the periods indicated:

(dollars in thousands)

Land

Buildings
Less: accumulated depreciation

Buildings, net

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

$

5,021  $

4,987  $
(3,746)

1,241  $

9,341 

10,172 
(6,181)

3,991 

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

19.           Fair Value Measurements

Fair Value Measurements on a Recurring Basis - The following table summarizes the Company’s financial assets and liabilities measured at
fair value by hierarchy level on a recurring basis as of the periods indicated:

(dollars in thousands)
Assets:

Cash equivalents:

Fixed income funds
Money market funds

Restricted cash equivalents:

Money market funds

Total asset recurring fair value measurements

Liabilities:

Accrued and other current liabilities:

Derivative instruments - interest rate swaps

Other long-term liabilities:

Derivative instruments - interest rate swaps

Total liability recurring fair value measurements

$

$

$

$

DECEMBER 26, 2021

DECEMBER 27, 2020

TOTAL

LEVEL 1

LEVEL 2

TOTAL

LEVEL 1

LEVEL 2

6,714  $
9,039 

6,714  $
9,039 

1,472 
17,225  $

1,472 
17,225  $

—  $
— 

— 
—  $

15,404  $
16,494 

15,404  $
16,494 

428 
32,326  $

428 
32,326  $

— 
— 

— 
— 

3,056  $

—  $

3,056  $

14,855  $

—  $

14,855 

— 

3,056  $

— 

—  $

— 

15,640 

3,056  $

30,495  $

— 

—  $

15,640 

30,495 

Fair value of each class of financial instrument is determined based on the following:

FINANCIAL INSTRUMENT

METHODS AND ASSUMPTIONS

Fixed income funds and
Money market funds
Derivative instruments

Carrying value approximates fair value because maturities are less than three months.

The Company’s derivative instruments include interest rate swaps. Fair value measurements are based on the contractual terms of the
derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the
expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. The Company also
considers its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As of
December 26, 2021 and December 27, 2020, the Company has determined that the credit valuation adjustments are not significant to
the overall valuation of its derivatives.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Fair  Value  Measurements  on  a  Nonrecurring  Basis  -  Assets  and  liabilities  that  are  measured  at  fair  value  on  a  nonrecurring  basis  relate
primarily to property, fixtures and equipment, operating lease right-of-use assets, goodwill and other intangible assets, which are remeasured
when  carrying  value  exceeds  fair  value.  Carrying  value  after  impairment  approximates  fair  value.  The  following  table  summarizes  the
Company’s assets measured at fair value by hierarchy level on a nonrecurring basis, for the periods indicated:

(dollars in thousands)
Assets held for sale (1)
Operating lease right-of-use assets (2)
Property, fixtures and equipment (3)
Goodwill and other assets (4)

2021

2020

2019

REMAINING
CARRYING
VALUE

TOTAL
IMPAIRMENT

REMAINING
CARRYING
VALUE

TOTAL
IMPAIRMENT

REMAINING
CARRYING
VALUE

TOTAL
IMPAIRMENT

$

$

—  $

—  $

8,647 
11,647 
— 

3,950 
8,445 
1,006 

1,934  $
72,615 
26,311 
748 

123  $

30,940 
41,077 
2,683 

2,049  $
6,597 
3,915 
— 

20,294  $

13,401  $

101,608  $

74,823  $

12,561  $

315 
4,284 
4,535 
— 

9,134 

________________
(1)

Carrying values measured using Level 3 inputs to estimate fair value totaled $1.2 million during 2020. All other assets were valued using Level 2 inputs. Third-
party market appraisals or executed sales contracts (Level 2) and discounted cash flow models (Level 3) were used to estimate fair value.
Carrying values measured using Level 2 inputs to estimate fair value totaled $0.2 million during 2019. All other assets were valued using Level 3 inputs. Third-
party  market  appraisals  (Level  2)  and  discounted  cash  flow  models  (Level  3)  were  used  to  estimate  fair  value.  Refer  to  Note  5  -  Impairments, Exit Costs and
Disposals for a more detailed discussion of impairments.
Carrying values measured using Level 2 inputs to estimate fair value totaled $1.4 million, $2.2 million and $2.3 million for 2021, 2020 and 2019, respectively. All
other assets were valued using Level 3 inputs. Third-party market appraisals (Level 2) and discounted cash flow models (Level 3) were used to estimate the fair
value. Refer to Note 5 - Impairments, Exit Costs and Disposals for a more detailed discussion of impairments.
Other assets generally measured using the quoted market value of comparable assets (Level 2).

(2)

(3)

(4)

See Note 5 - Impairments, Exit Costs and Disposals for information regarding impairment charges resulting from the fair value measurement
performed on a nonrecurring basis during 2020. Projected future cash flows, including discount rate and growth rate assumptions, are derived
from  then-current  economic  conditions,  expectations  of  management  and  projected  trends  of  current  operating  results.  As  a  result,  the
Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs that fall
within Level 3 of the fair value hierarchy.

In  assessment  of  impairment  for  operating  locations,  the  Company  determined  the  fair  values  of  individual  operating  locations  using  an
income  approach,  which  required  discounting  projected  future  cash  flows.  When  determining  the  stream  of  projected  future  cash  flows
associated with an individual operating location, management made assumptions, including highest and best use and inputs from restaurant
operations,  where  necessary,  and  about  key  variables  including  the  following  unobservable  inputs:  revenue  growth  rates,  controllable  and
uncontrollable expenses, and asset residual values. In order to calculate the present value of those future cash flows, the Company discounted
cash flow estimates at its weighted average cost of capital applicable to the country in which the measured assets reside.

The  following  table  presents  quantitative  information  related  to  certain  unobservable  inputs  used  in  the  Company’s  Level  3  fair  value
measurements  of  Operating  lease  right-of-use  assets  and  Property,  fixtures  and  equipment  for  the  impairment  losses  incurred  during  the
period indicated:

UNOBSERVABLE INPUTS

Weighted average cost of capital
Long-term growth rate

FISCAL YEAR
2020

10.4%
1.5%

to
to

11.3%
2.0%

Fair Value of Financial Instruments - The Company’s non-derivative financial instruments as of December 26, 2021 and December 27, 2020
consist of cash equivalents, accounts receivable, accounts payable and current and

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

long-term debt. The fair values of cash equivalents, accounts receivable and accounts payable approximate their carrying amounts reported
on its Consolidated Balance Sheets due to their short duration.

Debt  is  carried  at  amortized  cost;  however,  the  Company  estimates  the  fair  value  of  debt  for  disclosure  purposes.  The  following  table
includes the carrying value and fair value of the Company’s debt by hierarchy level as of the periods indicated:

(dollars in thousands)
Senior Secured Credit Facility:

Term loan A
Revolving credit facility

Former Credit Facility:

Term loan A
Revolving credit facility

2025 Notes
2029 Notes

20.    Allowance for Expected Credit Losses

DECEMBER 26, 2021

DECEMBER 27, 2020

CARRYING
VALUE

FAIR VALUE LEVEL
2

CARRYING
VALUE

FAIR VALUE LEVEL 2

$
$

$
$
$
$

195,000  $
80,000  $

—  $
—  $
230,000  $
300,000  $

190,125  $
76,926  $

—  $
—  $
447,615  $
304,395  $

—  $
—  $

425,000  $
447,000  $
230,000  $
—  $

The following table is a rollforward of the Company’s trade receivables allowance for expected credit losses for the periods indicated:

(dollars in thousands)
Allowance for expected credit losses, beginning of period

Adjustment for adoption of ASU No. 2016-13
Provision for expected credit losses (1)
Charge-off of accounts

Allowance for expected credit losses, end of period

FISCAL YEAR

2021

2020

$

$

4,095  $
— 
64 
(109)
4,050  $

________________
(1)

In  March  2020,  the  Company  fully  reserved  substantially  all  of  its  outstanding  franchise  receivables  in  response  to  the  economic  impact  of  the  COVID-19
pandemic. See Note 3 - 2020 COVID-19 Charges for details regarding the impact of the COVID-19 pandemic on the Company’s financial results.

The Company is also exposed to credit losses from off-balance sheet lease guarantees primarily related to the divestiture of certain formerly
Company-owned restaurant sites. See Note 22 - Commitments and Contingencies for details regarding these lease guarantees.

21.           Income Taxes

The  following  table  presents  the  domestic  and  foreign  components  of  Income  (loss)  before  provision  (benefit)  for  income  taxes  for  the
periods indicated:

(dollars in thousands)
Domestic
Foreign

2021

258,202  $
(8,905)
249,297  $

$

$

FISCAL YEAR

2020

(206,941) $
(32,580)
(239,521) $

2019

129,826 
11,864 
141,690 

103

— 
— 

412,250 
419,612 
413,818 
— 

199 
1,018 
3,472 
(594)
4,095 

 
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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Provision (benefit) for income taxes consisted of the following for the periods indicated:

(dollars in thousands)
Current provision:
Federal
State
Foreign

Deferred (benefit) provision:

Federal
State
Foreign

Provision (benefit) for income taxes

2021

FISCAL YEAR

2020

2019

$

$

16,951  $
10,917 
1,862 
29,730 

(2,057)
1,194 
(2,483)

(3,346)
26,384  $

2,606  $
2,301 
2,623 
7,530 

(66,498)
(12,527)
(9,231)

(88,256)
(80,726) $

13,265 
9,696 
10,502 
33,463 

(21,407)
(1,986)
(2,497)

(25,890)
7,573 

Effective Income Tax Rate - The reconciliation of income taxes calculated at the United States federal tax statutory rate to the Company’s
effective income tax rate is as follows for the periods indicated:

Income taxes at federal statutory rate
State and local income taxes, net of federal benefit
Employment-related credits, net
Tax settlements and related adjustments
Net changes in deferred tax valuation allowances
Foreign tax rate differential
Nondeductible expenses
Other, net
Total

2021

FISCAL YEAR

2020 (1)

2019

21.0 %
3.8 
(13.2)
(1.7)
(0.7)
(0.2)
2.3 
(0.7)
10.6 %

21.0 %
3.3 
9.9 
0.1 
(0.6)
1.1 
(1.4)
0.3 
33.7 %

21.0 %
4.4 
(24.7)
— 
(1.6)
3.2 
3.9 
(0.9)
5.3 %

________________
(1)

Due  to  the  pre-tax  book  loss,  a  positive  percentage  change  in  the  effective  income  tax  rate  table  reflects  a  favorable  income  tax  benefit,  whereas  a  negative
percentage change in the effective income tax rate table reflects an unfavorable income tax expense.

The net decrease in the effective income tax rate in 2021 as compared to 2020 was primarily due to the benefit of FICA tax credits on certain
employees’ tips reducing the effective income tax rate in 2021 as a result of pre-tax book income as compared to increasing the effective
income tax rate in 2020 as a result of pre-tax book loss.

The net increase in the effective income tax rate in 2020 as compared to 2019 was primarily due to the benefit of the tax credits for FICA
taxes on certain employees’ tips in 2020 and the 2020 pre-tax book loss.

The Company has a blended federal and state statutory rate of approximately 26%. The effective income tax rate for 2021 was lower than the
blended federal and state statutory rate primarily due to the benefit of tax credits for FICA taxes on certain employees’ tips. The effective
income tax rate for 2020 was higher than the blended federal and state statutory rate primarily due to the benefit of tax credits for FICA taxes
on certain employees’ tips.

On  December  28,  2021,  the  U.S.  Treasury  and  the  Internal  Revenue  Service  released  final  regulations  that,  among  other  things,  provide
guidance on several aspects of the foreign tax credit rules. These regulations are applicable for years beginning on or after December 28,
2021 and were issued after the Company’s 52-53 week year end. The impact, if any, of these highly technical regulations is being evaluated
and will be reflected in the Company’s 2022 tax provision.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Deferred Tax Assets and Liabilities - The income tax effects of temporary differences that give rise to significant portions of deferred income
tax assets and liabilities are as follows as of the periods indicated:

(dollars in thousands)
Deferred income tax assets:

Operating lease liabilities
Insurance reserves
Unearned revenue
Deferred compensation
Net operating loss carryforwards
Federal tax credit carryforwards
Other, net (1)

Gross deferred income tax assets

Less: valuation allowance

Deferred income tax assets, net of valuation allowance

Deferred income tax liabilities:

Less: operating lease right-of-use asset basis differences
Less: property, fixtures and equipment basis differences
Less: intangible asset basis differences

Deferred income tax assets, net

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

352,041  $
14,329 
50,284 
25,164 
18,227 
146,734 
21,222 
628,001 
(16,998)

611,003 

(290,697)
(48,284)
(103,954)
168,068  $

360,690 
13,695 
44,039 
32,779 
19,285 
142,055 
28,241 
640,784 
(18,509)

622,275 

(300,387)
(54,725)
(113,280)
153,883 

________________
(1)

As of December 26, 2021 and December 27, 2020, the Company maintained deferred tax liabilities for state income taxes on historical earnings of $0.2 million.

As of December 26, 2021, valuation allowances against deferred tax assets in the U.S. and in certain foreign jurisdictions totaled $3.2 million
and $13.8 million, respectively. The Company will maintain the valuation allowances in each applicable tax jurisdiction until it determines it
is more likely than not the deferred tax assets will be realized. The net change in the deferred tax valuation allowance in 2021 is primarily
attributable to net operating loss carryforwards in certain foreign jurisdictions with full valuation allowances recorded that expired or are no
longer available to the Company.

The Company has considered the impact of the COVID-19 pandemic on the Company’s Brazilian operating subsidiary, including assessing
the  realizability  of  Brazilian  deferred  tax  assets.  As  part  of  the  Company’s  evaluation  of  positive  and  negative  evidence,  management
considered whether there has been cumulative income or loss in the past three years, the impact of non-deductible amounts, the scheduled
reversal  of  deferred  tax  assets  and  liabilities,  projected  future  taxable  income  and  the  state  of  the  Company’s  business  in  Brazil.  As  of
December  26,  2021,  the  Company  has  concluded  that  no  valuation  allowance  is  required  against  the  deferred  tax  assets  of  its  Brazilian
operating  subsidiary.  Although  management  uses  the  best  information  available,  it  is  reasonably  possible  that  the  estimates  used  by  the
Company  could  be  materially  different  from  the  actual  results.  These  differences  could  result  in  a  material  adjustment  to  the  Company’s
valuation allowance in a future reporting period.

Undistributed  Earnings  -  As  of  December  26,  2021,  the  Company  had  aggregate  accumulated  foreign  earnings  of  approximately  $28.8
million. This amount consisted primarily of historical earnings from 2017 and prior that were previously taxed in the U.S. under the Tax Cuts
and Jobs Act and post-2017 foreign earnings, which the Company may repatriate to the U.S. without additional material U.S. federal income
taxes. These amounts are no longer considered indefinitely reinvested in the Company’s foreign subsidiaries.

The Company has not recorded a deferred tax liability on the financial statement carrying amount over the tax basis of its investments in
foreign  subsidiaries  because  the  Company  continues  to  assert  that  it  is  indefinitely  reinvested  in  its  underlying  investments  in  foreign
subsidiaries. The determination of any unrecorded deferred tax liability on this amount is not practicable due to the uncertainty of how these
investments would be recovered.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Tax Carryforwards - The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 26, 2021 are as
follows:

(dollars in thousands)
Federal tax credit carryforwards
Foreign loss carryforwards
Foreign credit carryforwards

EXPIRATION DATE

AMOUNT

2026 - 2041
2022 -

Indefinite

Indefinite

$
$
$

158,878 
71,724 
864 

As of December 26, 2021, the Company had $155.7 million in general business tax credit carryforwards, which have a 20-year carryforward
period and are utilized on a first-in, first-out basis. The Company currently expects to utilize these tax credit carryforwards within a 10-year
period. However, the Company’s ability to utilize these tax credits could be adversely impacted by, among other items, a future “ownership
change” as defined under Section 382 of the Internal Revenue Code.

Unrecognized Tax Benefits - As of December 26, 2021 and December 27, 2020, the liability for unrecognized tax benefits was $19.2 million
and $25.5 million, respectively. Of the total amount of unrecognized tax benefits, including accrued interest and penalties, $18.8 million and
$25.5 million, respectively, if recognized, would impact the Company’s effective income tax rate.

The following table summarizes the activity related to the Company’s unrecognized tax benefits for the periods indicated:

(dollars in thousands)
Balance as of beginning of year

Additions for tax positions taken during a prior period
Reductions for tax positions taken during a prior period
Additions for tax positions taken during the current period
Settlements with taxing authorities
Lapses in the applicable statutes of limitations
Translation adjustments

Balance as of end of year

2021

FISCAL YEAR

2020

2019

$

$

25,524  $
166 
(4,209)
1,292 
(2,674)
(854)
(7)

19,238  $

27,201  $
1,061 
(324)
762 
(1,290)
(1,857)
(29)

25,524  $

25,190 
869 
(255)
2,237 
(44)
(749)
(47)

27,201 

The Company had approximately $0.9 million and $1.9 million accrued for the payment of interest and penalties as of December 26, 2021
and  December  27,  2020,  respectively.  The  Company  recognized  immaterial  interest  and  penalties  related  to  uncertain  tax  positions  in  the
Provision (benefit) for income taxes, for all periods presented.

In  many  cases,  the  Company’s  uncertain  tax  positions  are  related  to  tax  years  that  remain  subject  to  examination  by  relevant  taxable
authorities. Based on the outcome of these examinations, or a result of the expiration of the statute of limitations for specific jurisdictions, it
is reasonably possible that the related recorded unrecognized tax benefits for tax positions taken on previously filed tax returns will change
by approximately $1.0 million to $2.0 million within the next 12 months.

Open Tax Years - Following is a summary of the open audit years by jurisdiction as of December 26, 2021:

United States - federal
United States - state
Foreign

OPEN AUDIT YEARS

2007 - 2020
2009 - 2020
2015 - 2020

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

22.           Commitments and Contingencies

Lease Guarantees - The Company assigned its interest, and is contingently liable, under certain real estate leases. These leases have varying
terms, the latest of which expires in 2032. As of December 26, 2021, the undiscounted payments the Company could be required to make in
the event of non-payment by the primary lessees was approximately $25.1 million. The present value of these potential payments discounted
at  the  Company’s  incremental  borrowing  rate  as  of  December  26,  2021  was  approximately  $21.2  million.  In  the  event  of  default,  the
indemnity  clauses  in  the  Company’s  purchase  and  sale  agreements  govern  its  ability  to  pursue  and  recover  damages  incurred.  As  of
December  26,  2021  and  December  27,  2020,  the  Company’s  recorded  contingent  lease  liability  was  $8.7  million  and  $9.6  million,
respectively,

Purchase  Obligations  -  Purchase  obligations  were  $206.6  million  and  $230.6  million  as  of  December  26,  2021  and  December  27,  2020,
respectively.  These  purchase  obligations  are  primarily  due  within  five  years,  however,  commitments  with  various  vendors  extend  through
December  2030.  Outstanding  commitments  consist  primarily  of  food  and  beverage  products  related  to  normal  business  operations,
technology, restaurant-level service contracts and advertising. In 2021, the Company purchased more than 90% of its U.S. beef raw materials
from four beef suppliers that represent more than 80% of the total beef marketplace in the U.S.

Litigation and Other Matters - The Company is subject to legal proceedings, claims and liabilities, such as liquor liability, slip and fall cases,
wage-and-hour and other employment-related litigation, which arise in the ordinary course of business. A reserve is recorded when it is both:
(i) probable that a loss has occurred and (ii) the amount of loss can be reasonably estimated. There may be instances in which an exposure to
loss  exceeds  the  recorded  reserve.  The  Company  evaluates,  on  a  quarterly  basis,  developments  in  legal  proceedings  that  could  cause  an
increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible
losses, as applicable.

The  Company’s  legal  proceedings  range  from  cases  brought  by  a  single  plaintiff  to  threatened  class  actions  with  many  putative  class
members. While some matters pending against the Company specify the damages claimed by the plaintiff or class, many seek unspecified
amounts  or  are  at  very  early  stages  of  the  legal  process.  Even  when  the  amount  of  damages  claimed  against  the  Company  are  stated,  the
claimed  amount  may  be  exaggerated,  unsupported  or  unrelated  to  possible  outcomes,  and  as  such,  are  not  meaningful  indicators  of  the
Company’s  potential  liability  or  financial  exposure.  As  a  result,  some  matters  have  not  yet  progressed  sufficiently  through  discovery  or
development of important factual information and legal issues to enable the Company to estimate an amount of loss or a range of possible
loss.

The Company recorded reserves of $7.1 million and $4.6 million for certain of its outstanding legal proceedings as of December 26, 2021
and December 27, 2020, respectively, within Accrued and other current liabilities and Other long-term liabilities on its Consolidated Balance
Sheets. While the Company believes that additional losses beyond these accruals are reasonably possible, it cannot estimate a possible loss
contingency or range of reasonably possible loss contingencies beyond these accruals. During 2021, 2020 and 2019, the Company recognized
$5.4 million, $2.3 million and $1.3 million, respectively, in Other restaurant operating expense in the Company’s Consolidated Statements of
Operations and Comprehensive Income (Loss) for certain legal settlements.

The Company intends to defend itself in legal matters. Some of these matters may be covered, at least in part, by insurance if they exceed
specified  retention  or  deductible  amounts.  However,  it  is  possible  that  claims  may  be  denied  by  the  Company’s  insurance  carriers,  the
Company may be required by its insurance carriers to contribute to the payment of claims, or the Company’s insurance coverage may not
continue  to  be  available  on  acceptable  terms  or  in  sufficient  amounts.  The  Company  records  receivables  from  third  party  insurers  when
recovery  has  been  determined  to  be  probable.  The  Company  believes  that  the  ultimate  determination  of  liability  in  connection  with  legal
claims pending against the Company, if any, in excess of amounts already provided for such matters in the consolidated financial statements,
will not have a material adverse effect on its business, annual results of operations, liquidity or financial position. However, it is possible that
the Company’s business, results of operations,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

liquidity, or financial condition could be materially affected in a particular future reporting period by the unfavorable resolution of one or
more matters or contingencies during such period.

Royalty  Termination  -  On  August  2,  2021,  wholly-owned  subsidiaries  of  the  Company  entered  into  the  Purchase  and  Sale  of  Royalty
Payment Stream and Termination of Royalty Agreement (the “Royalty Termination Agreement”) with the Carrabba’s Italian Grill founders
(the “Carrabba’s Founders”), pursuant to which the Company’s obligation to pay future royalties on U.S. Carrabba’s Italian Grill restaurant
sales  and  lump  sum  royalty  fees  on  Carrabba’s  Italian  Grill  (and  Abbraccio)  restaurants  opened  outside  the  U.S.  was  terminated.  Upon
execution of the Royalty Termination Agreement, the Company made a cash payment of $61.9 million to the Carrabba’s Founders, which
was recorded in Other restaurant operating expense in its Consolidated Statements of Operations and Comprehensive Income (Loss) during
2021.

Insurance - As of December 26, 2021, the future undiscounted payments the Company expects for workers’ compensation, general liability
and health insurance claims are as follows:

(dollars in thousands)
2022
2023
2024
2025
2026
Thereafter

$

$

22,071 
10,819 
6,759 
3,486 
1,838 
9,691 

54,664 

The following is a reconciliation of the expected aggregate undiscounted reserves to the discounted reserves for insurance claims recognized
on the Company’s Consolidated Balance Sheets as of the periods indicated:

(dollars in thousands)
Undiscounted reserves
Discount (1)

Discounted reserves

Discounted reserves recognized on the Company’s Consolidated Balance Sheets:

Accrued and other current liabilities
Other long-term liabilities, net

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

$

$

54,664  $
(1,130)
53,534  $

22,017  $
31,517 
53,534  $

53,217 
(441)
52,776 

20,648 
32,128 
52,776 

____________________
(1)     Discount rates of 0.69% and 0.26% were used for December 26, 2021 and December 27, 2020, respectively.

23.    Segment Reporting

The Company considers its restaurant concepts and international markets as operating segments, which reflects how the Company manages
its business, reviews operating performance and allocates resources. Resources are allocated and performance is assessed by the Company’s
Chief  Executive  Officer,  whom  the  Company  has  determined  to  be  its  Chief  Operating  Decision  Maker.  The  Company  aggregates  its
operating  segments  into  two  reportable  segments,  U.S.  and  international.  The  U.S.  segment  includes  all  restaurants  operating  in  the  U.S.
while restaurants operating outside the U.S. are included in the international segment.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following is a summary of reporting segments as of December 26, 2021:

REPORTABLE SEGMENT (1)

CONCEPT

GEOGRAPHIC LOCATION

U.S.

International

_________________
(1)

Includes franchise locations.

Outback Steakhouse

Carrabba’s Italian Grill

Bonefish Grill

Fleming’s Prime Steakhouse & Wine Bar

Outback Steakhouse

Carrabba’s Italian Grill (Abbraccio)

United States of America

Brazil, Hong Kong/China

Brazil

Segment  accounting  policies  are  the  same  as  those  described  in  Note  2  -  Summary  of  Significant  Accounting  Policies.  Revenues  for  all
segments  include  only  transactions  with  customers  and  exclude  intersegment  revenues.  Excluded  from  Income  (loss)  from  operations  for
U.S.  and  international  are  certain  legal  and  corporate  costs  not  directly  related  to  the  performance  of  the  segments,  most  stock-based
compensation expenses and certain bonus expenses.

The following table is a summary of Total revenues by segment, for the periods indicated:

(dollars in thousands)
Total revenues

U.S.
International

Total revenues

2021

FISCAL YEAR

2020

2019

$

$

3,759,981  $
362,404 

4,122,385  $

2,885,542  $
285,019 

3,170,561  $

3,687,918 
451,471 

4,139,389 

The following table is a reconciliation of segment income (loss) from operations to Income (loss) before provision (benefit) for income taxes,
for the periods indicated:

(dollars in thousands)
Segment income (loss) from operations

U.S.
International

Total segment income (loss) from operations

Unallocated corporate operating expense (1)
Total income (loss) from operations

Loss on extinguishment and modification of debt
Other income (expense), net
Interest expense, net

Income (loss) before provision (benefit) for income taxes

2021

FISCAL YEAR

2020

2019

$

$

443,887  $
16,657 

(1,630) $
(13,479)

460,544 
(151,586)

308,958 
(2,073)
26 
(57,614)

(15,109)
(159,864)

(174,973)
(237)
131 
(64,442)

249,297  $

(239,521) $

311,666 
44,428 

356,094 
(165,004)

191,090 
— 
(143)
(49,257)

141,690 

____________________
(1)

Includes $32.4 million of charges for 2020 that were not allocated to the Company’s segments related to its transformational initiatives, primarily recorded within
General and administrative expense and Provision for impaired assets and restaurant closings.

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BLOOMIN’ BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table is a summary of Depreciation and amortization expense by segment for the periods indicated:

(dollars in thousands)
Depreciation and amortization

U.S.
International
Corporate

Total depreciation and amortization

2021

FISCAL YEAR

2020

2019

$

$

134,243  $
22,649 
6,499 
163,391  $

144,298  $
23,723 
12,240 
180,261  $

152,881 
27,491 
16,439 
196,811 

The following table is a summary of capital expenditures by segment for the periods indicated:

(dollars in thousands)
Capital expenditures

U.S.
International
Corporate

Total capital expenditures

The following table sets forth Total assets by segment as of the periods indicated:

(dollars in thousands)
Assets
U.S.
International
Corporate

Total assets

2021

FISCAL YEAR

2020

2019

$

$

103,303  $
14,074 
9,035 
126,412  $

64,516  $
18,542 
5,936 
88,994  $

121,646 
28,496 
8,885 
159,027 

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

2,626,808  $
383,075 
284,388 
3,294,271  $

2,672,778 
410,322 
279,007 
3,362,107 

Geographic areas — International assets are defined as assets residing in a country other than the U.S. The following table details long-lived
assets, excluding goodwill, operating lease right-of-use assets, intangible assets and deferred tax assets, by major geographic area as of the
periods indicated:

(dollars in thousands)
U.S.
International

Brazil
Other

Total assets

DECEMBER 26, 2021

DECEMBER 27, 2020

$

$

831,634  $

73,706 
15,342 

920,682  $

879,392 

83,041 
17,880 

980,313 

International  revenues  are  defined  as  revenues  generated  from  restaurant  sales  originating  in  a  country  other  than  the  U.S.  The  following
table details Total revenues by major geographic area for the periods indicated:

(dollars in thousands)
U.S.
International
Brazil
Other

Total revenues

FISCAL YEAR

2021

2020

2019

3,759,981  $

2,885,542  $

3,687,918 

297,167 
65,237 

222,283 
62,736 

393,700 
57,771 

4,122,385  $

3,170,561  $

4,139,389 

$

$

110

Table of Contents

BLOOMIN’ BRANDS, INC.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We have established and maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by
us  in  the  reports  that  we  file  or  submit  under  the  Securities  Exchange  Act  of  1934,  as  amended,  is  recorded,  processed,  summarized,  and
reported  within  the  time  periods  specified  in  the  Securities  and  Exchange  Commission’s  rules  and  forms,  and  that  such  information  is
accumulated  and  communicated  to  our  management,  including  our  Chief  Executive  Officer  and  Chief  Financial  Officer,  as  appropriate  to
allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our
management,  including  our  Chief  Executive  Officer  and  Chief  Financial  Officer,  of  the  effectiveness  of  our  disclosure  controls  and
procedures  as  of  the  end  of  the  period  covered  by  this  report.  Based  on  that  evaluation,  the  Chief  Executive  Officer  and  Chief  Financial
Officer concluded that our disclosure controls and procedures were effective as of December 26, 2021.

Management’s Annual Report on Internal Control over Financial Reporting

Management’s  report  on  our  internal  control  over  financial  reporting  and  the  attestation  report  of  PricewaterhouseCoopers  LLP,  our
independent  registered  certified  public  accounting  firm,  on  our  internal  control  over  financial  reporting  are  included  in  Item  8,  Financial
Statements and Supplementary Data, of this Annual Report on Form 10-K.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our most recent quarter ended December 26, 2021 that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

Amendment to CEO Employment Agreement

On February 21, 2022, the Company entered into the Second Amendment to Amended and Restated Officer Employment Agreement (the
“Second Amendment”) with David J. Deno, the Company’s Chief Executive Officer. Pursuant to the Second Amendment, effective February
21, 2022, Mr. Deno’s annual base salary was increased to One Million Dollars ($1,000,000) and his long-term incentive award target was
increased to 4.35 times his annual base salary (collectively, the “Market Adjustment”). The increase to Mr. Deno’s annual base salary and
related annual incentive compensation target will be pro-rated for 2022.

The Market Adjustment was reviewed and approved by the Company’s Compensation Committee after consultation with Frederic W. Cook
&  Co.,  Inc.,  the  Compensation  Committee’s  independent  compensation  consultant  and  brings  Mr.  Deno’s  total  target  compensation  level
more in-line with the Company’s peer group benchmark.

The  foregoing  summary  of  the  Second  Amendment  does  not  purport  to  be  complete  and  is  qualified  in  its  entirety  by  the  full  text  of  the
Second Amendment, a copy of which is filed as Exhibit 10.48 to this Annual Report on Form 10-K and incorporated herein by reference.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.

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PART III

BLOOMIN’ BRANDS, INC.

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this item relating to our directors and nominees will be included under the captions “Proposal No.1: Election of
Directors—Nominees for Election at this Annual Meeting” and “—Directors Continuing in Office” in our definitive Proxy Statement for the
2022 Annual Meeting of Stockholders (“Definitive Proxy Statement”) and is incorporated herein by reference.

The  information  required  by  this  item  relating  to  our  executive  officers  is  included  under  the  caption  “Information  About  Our  Executive
Officers” in Part I of this Report on Form 10-K.

The  information  required  by  this  item  regarding  compliance  with  Section  16(a)  of  the  Securities  Act  of  1934  will  be  included  under  the
caption  “Executive  Compensation  and  Related  Information—Delinquent  Section  16(a)  Reports”  in  our  Definitive  Proxy  Statement  and  is
incorporated herein by reference.

We have adopted a Code of Conduct that applies to all employees. A copy of our Code of Conduct is available on our website, free of charge.
The Internet address for our website is www.bloominbrands.com, and the Code of Conduct may be found on our main webpage by clicking
first on “Investors” and then on “Governance—Governance Documents” and next on “Code of Conduct.”

We intend to satisfy any disclosure requirement under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, a provision of this
code of ethics by posting such information on our website, on the Governance Documents webpage, as specified above.

The  information  required  by  this  item  regarding  our  Audit  Committee  will  be  included  under  the  caption  “Proposal  No.1:  Election  of
Directors—Board Committees and Meetings” in our Definitive Proxy Statement and is incorporated herein by reference.

Item 11. Executive Compensation

The information required by this item will be included under the captions “Proposal No.1: Election of Directors—Director Compensation”
and “Executive Compensation and Related Information” in our Definitive Proxy Statement and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item will be included under the caption “Ownership of Securities” in our Definitive Proxy Statement and is
incorporated herein by reference.

The  information  relating  to  securities  authorized  for  issuance  under  equity  compensation  plans  is  included  under  the  caption  “Securities
Authorized for Issuance Under Equity Compensation Plans” in Item 5 of this Report on Form 10-K.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item relating to transactions with related persons will be included under the caption “Certain Relationships
and  Related  Party  Transactions,”  and  the  information  required  by  this  item  relating  to  director  independence  will  be  included  under  the
caption “Proposal No.1: Election of Directors—Independent Directors,” in each case in our Definitive Proxy Statement, and is incorporated
herein by reference.

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BLOOMIN’ BRANDS, INC.

Item 14. Principal Accounting Fees and Services

The information required by this item will be included under the captions “Proposal No.2: Ratification of Independent Registered Certified
Public  Accounting  Firm—Principal  Accountant  Fees  and  Services”  and  “—Policy  on  Audit  Committee  Pre-Approval  of  Audit  and
Permissible Non-Audit Services of Independent Auditor” in our Definitive Proxy Statement and is incorporated herein by reference.

113

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PART IV

BLOOMIN’ BRANDS, INC.

Item 15. Exhibits and Financial Statement Schedules

(a)(1) LISTING OF FINANCIAL STATEMENTS

The following consolidated financial statements of the Company and subsidiaries are included in Item 8 of this Report:

• Consolidated Balance Sheets – December 26, 2021 and December 27, 2020
• Consolidated Statements of Operations and Comprehensive Income (Loss) – Fiscal years 2021, 2020 and 2019
• Consolidated Statements of Changes in Stockholders’ Equity – Fiscal years 2021, 2020 and 2019
• Consolidated Statements of Cash Flows – Fiscal years 2021, 2020 and 2019
• Notes to Consolidated Financial Statements

(a)(2) FINANCIAL STATEMENT SCHEDULES

All financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to
require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto
included in this Report.

(a)(3) EXHIBITS

EXHIBIT
NUMBER

DESCRIPTION OF EXHIBITS

3.1

3.2

4.1

4.2

4.3

4.4

4.5

Third Amended and Restated Certificate of Incorporation of Bloomin’ Brands,
Inc.

Third Amended and Restated Bylaws of Bloomin’ Brands, Inc.

Form of Common Stock Certificate

Description of Common Stock

Indenture, dated as of May 8, 2020, between Bloomin’ Brands, Inc. and Wells
Fargo Bank, National Association

Form of 5.00% Convertible Senior Notes due 2025

Indenture, dated as of April 16, 2021, by and among Bloomin’ Brands, Inc., OSI
Restaurant  Partners,  LLC,  the  guarantors  party  thereto,  and  Wells  Fargo  Bank,
National Association, as trustee

4.6

Form of 5.125% Senior Notes due 2029

10.1

Second Amended and Restated Credit Agreement, dated April 16, 2021, by and
among Bloomin’ Brands, Inc., OSI Restaurant Partners, LLC, the guarantors
party thereto, the lenders party thereto, and Wells Fargo Bank, National
Association, as administrative Agent

FILINGS REFERENCED FOR
 INCORPORATION BY REFERENCE

May 19, 2021 Form 8-K, Exhibit 3.1

December 7, 2018 Form 8-K, Exhibit 3.1

Amendment No. 4 to Registration
Statement on Form S-1, File No. 333-
180615, filed on July 18, 2012, Exhibit 4.1

December 29, 2019 Form 10-K, Exhibit 4.2

May 11, 2020 Form 8-K, Exhibit 4.1

May 11, 2020 Form 8-K, Included as
Exhibit A to Exhibit 4.1

April 20, 2021 Form 8-K, Exhibit 4.1

April 20, 2021 Form 8-K, Included as
Exhibit A to Exhibit 4.1

April 20, 2021 Form 8-K, Exhibit 10.1

114

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EXHIBIT
NUMBER

10.2

10.3

10.4

10.5

10.6

BLOOMIN’ BRANDS, INC.

DESCRIPTION OF EXHIBITS

Royalty Agreement dated April 1995 among Carrabba’s Italian Grill, Inc.,
Outback Steakhouse, Inc., Mangia Beve, Inc., Carrabba, Inc., Carrabba
Woodway, Inc., John C. Carrabba, III, Damian C. Mandola, and John C.
Carrabba, Jr., as amended by First Amendment to Royalty Agreement dated
January 1997 and Second Amendment to Royalty Agreement made and entered
into effective April 7, 2010 by and among Carrabba’s Italian Grill, LLC, OSI
Restaurant Partners, LLC, Mangia Beve, Inc., Mangia Beve II, Inc., Original,
Inc., Voss, Inc., John C. Carrabba, III, Damian C. Mandola, and John C.
Carrabba, Jr.

Third Amendment to Royalty Agreement made and entered into effective June
1, 2014, by and among Carrabba’s Italian Grill, LLC, OSI Restaurant Partners,
LLC, Mangia Beve, Inc., Mangia Beve II, Inc., Original, Inc., Voss, Inc., John C.
Carrabba, III, Damian C. Mandola, and John C. Carrabba, Jr.

Fourth Amendment to Royalty Agreement made and entered into effective May
1, 2017, by and among Carrabba’s Italian Grill, LLC, OSI Restaurant Partners,
LLC, Mangia Beve, Inc., Mangia Beve II, Inc., Original, Inc., Voss, Inc., John C.
Carrabba, III, Damian C. Mandola, and John C. Carrabba, Jr.

Purchase and Sale of Royalty Payment Stream and Termination of Royalty
Agreement dated August 2, 2021 by and among Carrabba’s Italian Grill, LLC,
OSI Restaurant Partners, LLC Mangia Beve, Inc., Mangia Beve II, Inc.,
Original, Inc., Voss, Inc., John C. Carrabba, III, Damian C. Mandola and John C.
Carrabba, Jr.

Amended and Restated Operating Agreement for OSI/Fleming’s, LLC made as
of June 4, 2010 by and among OS Prime, LLC, a wholly-owned subsidiary of
OSI Restaurant Partners, LLC, FPSH Limited Partnership and AWA III
Steakhouses, Inc.

10.7*

OSI Restaurant Partners, LLC HCE Deferred Compensation Plan effective
October 1, 2007

10.8*

Kangaroo Holdings, Inc. 2007 Equity Incentive Plan, as amended

10.9*

Form of Option Agreement for Options under the Kangaroo Holdings, Inc. 2007
Equity Incentive Plan

10.10*

Bloomin’ Brands, Inc. 2012 Incentive Award Plan

FILINGS REFERENCED FOR
 INCORPORATION BY REFERENCE

Registration Statement on Form S-1, File
No. 333-180615, filed on April 6, 2012,
Exhibit 10.6

June 29, 2014 Form 10-Q, Exhibit 10.6

June 25, 2017 Form 10-Q, Exhibit 10.1

August 5, 2021 Form 10-Q, Exhibit 10.2

Registration Statement on Form S-1, File
No. 333-180615, filed on April 6, 2012,
Exhibit 10.8

Registration Statement on Form S-1, File
No. 333-180615, filed on April 6, 2012,
Exhibit 10.46

Registration Statement on Form S-1, File
No. 333-180615, filed on April 6, 2012,
Exhibit 10.1

Registration Statement on Form S-1, File
No. 333-180615, filed on April 6, 2012,
Exhibit 10.42

Amendment No. 4 to Registration
Statement on Form S-1, File No. 333-
180615, filed on July 18, 2012, Exhibit
10.2

10.11*

Form of Nonqualified Stock Option Award Agreement for options granted under
the Bloomin’ Brands, Inc. 2012 Incentive Award Plan

December 7, 2012 Form 8-K, Exhibit 10.2

10.12*

Form of Restricted Stock Award Agreement for restricted stock granted to
directors under the Bloomin’ Brands, Inc. 2012 Incentive Award Plan

December 7, 2012 Form 8-K, Exhibit 10.3

115

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EXHIBIT
NUMBER

10.13*

10.14*

10.15*

10.16*

10.17*

10.18*

10.19*

10.20*

10.21*

10.22*

10.23*

10.24*

10.25*

10.26*

10.27*

10.28*

BLOOMIN’ BRANDS, INC.

DESCRIPTION OF EXHIBITS

Form of Restricted Stock Award Agreement for restricted stock granted to
employees and consultants under the Bloomin’ Brands, Inc. 2012 Incentive
Award Plan

FILINGS REFERENCED FOR
 INCORPORATION BY REFERENCE

December 7, 2012 Form 8-K, Exhibit 10.4

Form of Restricted Stock Unit Award Agreement for restricted stock granted to
directors under the Bloomin’ Brands, Inc. 2012 Incentive Award Plan

September 30, 2013 Form 10-Q, Exhibit
10.1

Form of Restricted Stock Unit Award Agreement for restricted stock granted to
employees and consultants under the Bloomin’ Brands, Inc. 2012 Incentive
Award Plan

Form of Performance Unit Award Agreement for performance units granted
under the Bloomin’ Brands, Inc. 2012 Incentive Award Plan

Form of Bloomin’ Brands, Inc. Indemnification Agreement by and between
Bloomin’ Brands, Inc. and each member of its Board of Directors and each of its
executive officers

September 30, 2013 Form 10-Q, Exhibit
10.2

December 7, 2012 Form 8-K, Exhibit 10.5

Amendment No. 4 to Registration
Statement on Form S-1, File No. 333-
180615, filed on July 18, 2012, Exhibit
10.39

Bloomin’ Brands, Inc. 2016 Omnibus Incentive Compensation Plan

March 11, 2016 Definitive Proxy Statement

Form of Nonqualified Stock Option Award Agreement for options granted to
executive management under the Bloomin’ Brands, Inc. 2016 Omnibus
Incentive Compensation Plan

Form of Restricted Stock Unit Award Agreement for restricted stock granted to
directors under the Bloomin’ Brands, Inc. 2016 Omnibus Incentive
Compensation Plan

Form of Restricted Stock Unit Award Agreement for restricted stock granted to
executive management under the Bloomin’ Brands, Inc. 2016 Omnibus
Incentive Compensation Plan

June 26, 2016 Form 10-Q, Exhibit 10.2

June 26, 2016 Form 10-Q, Exhibit 10.3

June 26, 2016 Form 10-Q, Exhibit 10.4

Form of Performance Award Agreement for performance units granted under the
Bloomin’ Brands, Inc. 2016 Omnibus Incentive Compensation Plan

June 26, 2016 Form 10-Q, Exhibit 10.5

Form of Restricted Cash Award Agreement for cash awards granted under the
Bloomin’ Brands, Inc. 2016 Omnibus Incentive Compensation Plan

March 26, 2017 Form 10-Q, Exhibit 10.1

Bloomin’ Brands, Inc. 2020 Omnibus Incentive Compensation Plan

April 9, 2020 Definitive Proxy Statement

Form of Restricted Stock Unit Award Agreement for restricted stock granted to
directors under the Bloomin’ Brands, Inc. 2020 Omnibus Incentive
Compensation Plan

Form of Nonqualified Stock Option Award Agreement for options granted to
executive management under the Bloomin’ Brands, Inc. 2020 Omnibus
Incentive Compensation Plan

Form of Restricted Stock Unit Award Agreement for restricted stock granted to
executive management under the Bloomin’ Brands, Inc. 2020 Omnibus
Incentive Compensation Plan

Form of Performance Award Agreement for performance units granted to
executive management under the Bloomin’ Brands, Inc. 2020 Omnibus
Incentive Compensation Plan

May 29, 2020 Form 8-K, Exhibit 10.2

May 29, 2020 Form 8-K, Exhibit 10.3

May 29, 2020 Form 8-K, Exhibit 10.4

May 29, 2020 Form 8-K, Exhibit 10.5

116

Table of Contents

EXHIBIT
NUMBER

10.29*

10.30*

10.31*

10.32*

10.33*

10.34*

10.35*

10.36*

10.37*

10.38*

10.39*

10.40*

10.41*

10.42*

10.43

10.44

10.45*

10.46*

10.47*

BLOOMIN’ BRANDS, INC.

DESCRIPTION OF EXHIBITS

Form of Restricted Cash Award Agreement for cash awards granted to executive
management under the Bloomin’ Brands, Inc. 2020 Omnibus Incentive
Compensation Plan

Amended Form of Performance Award Agreement for performance units
granted to executive management under the Bloomin’ Brands, Inc. 2020
Omnibus Incentive Compensation Plan

Amended Form of Performance Award Agreement with adapted service criteria
for performance units granted to executive management under the Bloomin’
Brands, Inc. 2020 Omnibus Incentive Compensation Plan

Form of Restricted Stock Unit Award Agreement with adapted service criteria
for restricted stock units granted to executive management under the Bloomin’
Brands, Inc. 2020 Omnibus Incentive Compensation Plan

FILINGS REFERENCED FOR
 INCORPORATION BY REFERENCE

May 29, 2020 Form 8-K, Exhibit 10.6

December 27, 2020 Form 10-K, Exhibit
10.48

December 27, 2020 Form 10-K, Exhibit
10.49

December 27, 2020 Form 10-K, Exhibit
10.50

Bloomin’ Brands, Inc. Executive Change in Control Plan, effective December 6,
2012

December 7, 2012 Form 8-K, Exhibit 10.1

Second Amended and Restated Employment Agreement, effective April 1, 2019,
by and between Elizabeth A. Smith and Bloomin’ Brands, Inc.

Amended and Restated Officer Employment Agreement, effective April 1, 2019,
by and between David J. Deno and Bloomin’ Brands, Inc.

March 31, 2019 Form 10-Q, Exhibit 10.2

March 31, 2019 Form 10-Q, Exhibit 10.3

Employment Offer Letter Agreement, dated as of July 29, 2016, between
Bloomin’ Brands, Inc. and Gregg Scarlett

September 25, 2016 Form 10-Q, Exhibit
10.2

Employment Offer Letter Agreement, dated as of March 7, 2019, between
Bloomin’ Brands, Inc. and Christopher Meyer

March 31, 2019 Form 10-Q, Exhibit 10.4

Employment Offer Letter Agreement, dated as of May 1, 2019, between Michael
Stutts and Bloomin’ Brands, Inc.

June 30, 2019 Form 10-Q, Exhibit 10.3

Employment Offer Letter Agreement, dated as of May 1, 2019, between Kelly
Lefferts and Bloomin’ Brands, Inc.

June 30, 2019 Form 10-Q, Exhibit 10.4

Resignation Agreement, effective March 6, 2020, by and between Elizabeth A.
Smith and Bloomin’ Brands, Inc.

December 29, 2019 Form 10-K, Exhibit
10.39

Employment Offer Letter Agreement, dated as of February 14, 2020, between
Bloomin’ Brands, Inc. and Gregg Scarlett

December 29, 2019 Form 10-K, Exhibit
10.40

Amendment to Officer Employment Agreement, dated as of April 6, 2020,
between Bloomin’ Brands, Inc. and David J. Deno

March 29, 2020 Form 10-Q, Exhibit 10.4

Form of Convertible Note Hedge Transactions confirmation

Form of Warrant Transactions confirmation

May 11, 2020 Form 8-K, Exhibit 10.1

May 11, 2020 Form 8-K, Exhibit 10.2

Separation Agreement, dated as of December 20, 2021, by and between Michael
Stutts and Bloomin’ Brands, Inc.

Filed herewith

Employment Offer Letter Agreement, dated as of February 10, 2021, between
Patrick Murtha and Bloomin’ Brands, Inc.

Employment Offer Letter Agreement, dated as of April 14, 2021, between
Patrick Murtha and Bloomin’ Brands, Inc.

Filed herewith

Filed herewith

117

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EXHIBIT
NUMBER

10.48*

21.1

23.1

31.1

31.2

32.1

32.2

BLOOMIN’ BRANDS, INC.

DESCRIPTION OF EXHIBITS

FILINGS REFERENCED FOR
 INCORPORATION BY REFERENCE

Second Amendment to Officer Employment Agreement, dated as of February
21,2022, between Bloomin’ Brands, Inc. and David J. Deno

List of Subsidiaries

Consent of PricewaterhouseCoopers LLP

Certification of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002

Filed herewith

Filed herewith

Filed herewith

Filed herewith

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002

Filed herewith

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
1
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Filed herewith

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
1
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

Inline XBRL Instance Document

101.SCH Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as inline XBRL and contained in
Exhibit 101)

*Management contract or compensatory plan or arrangement required to be filed as an exhibit.

Filed herewith

Filed herewith

Filed herewith

Filed herewith

Filed herewith

Filed herewith

Filed herewith

Filed herewith

1
These certifications are not deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that
section. These certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act,
except to the extent that the registrant specifically incorporates them by reference.

Item 16. Form 10-K Summary

None.

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BLOOMIN’ BRANDS, INC.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Date:

February 23, 2022

Bloomin’ Brands, Inc.

By: /s/ David J. Deno
David J. Deno
Chief Executive Officer
(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

Signature

Title

Date

/s/ David J. Deno
David J. Deno

/s/ Christopher Meyer
Christopher Meyer

/s/ James R. Craigie
James R. Craigie

/s/ Wendy A. Beck
Wendy A. Beck

/s/ David R. Fitzjohn
David R. Fitzjohn

/s/ John Gainor
John Gainor

/s/ Lawrence Jackson
Lawrence Jackson

/s/ Tara Walpert Levy
Tara Walpert Levy

/s/ John J. Mahoney
John J. Mahoney

/s/ R. Michael Mohan
R. Michael Mohan

/s/ Elizabeth A. Smith
Elizabeth A. Smith

Chief Executive Officer and Director
(Principal Executive Officer)

Executive Vice President and Chief Financial Officer 
(Principal Financial and Accounting Officer)

February 23, 2022

February 23, 2022

Chairman of the Board and Director

February 23, 2022

Director

Director

Director

Director

Director

Director

Director

Director

February 23, 2022

February 23, 2022

February 23, 2022

February 23, 2022

February 23, 2022

February 23, 2022

February 23, 2022

February 23, 2022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 10.45

SEPARATION AGREEMENT AND GENERAL RELEASE

THIS SEPARATION AGREEMENT AND GENERAL RELEASE (“Release”) is made and entered into by and between
MICHAEL  STUTTS  (“Stutts”)  and  OS  MANAGEMENT,  INC.  (“Company”  or  “Employer”).  The  parties  desire  to  settle  all
disputes between them, on terms that are mutually agreeable. Accordingly, Employer and Stutts agree as follows:

1.

2.

3.

4.

Employer will provide Stutts with good and valuable consideration in return for Stutts’s execution of this Release, which
is intended to fully resolve all matters between Employer and Stutts, whether actual or potential.

By  entering  this  Release,  Employer  does  not  admit  any  underlying  liability  to  Stutts.  Neither  Employer  nor  Stutts  is
entering this Release because of any wrongful acts of any kind.

Stutts agrees that his employment with Company will be separated effective December 20, 2021 (“Separation Date”).

Stutts promises and obligates himself to perform the following covenants under this Release:

a.)

Acting for himself, his heirs, personal representatives, administrators, and anyone claiming by or through him or
them, Stutts unconditionally and irrevocably releases, acquits, and discharges Employer and its Releasees from all
Claims (as defined below) that Stutts (or any person or entity claiming through Stutts) may have against Employer
or its Releasees as of the date of this Release.

i)

ii)

The phrases “Employer” or “Employer and its Releasees” shall mean OS Management, Inc. and all of its
direct  and  indirect  parents,  (including  but  not  limited  to  Bloomin’  Brands,  Inc.  and  OSI  Restaurant
Partners, LLC), direct and indirect affiliates (including but not limited to Outback Steakhouse of Florida,
LLC,  Bonefish  Grill,  LLC,  Carrabba’s  Italian  Grill,  LLC,  OS  Prime,  LLC,  OS  Pacific,  LLC,  DoorSide,
LLC,  OSI/Fleming’s,  LLC,  OSI  International,  LLC,  Outback  Steakhouse  International,  LLC,  and  OS
Restaurant  Services,  LLC),  and  all  of  the  past  and  present  directors,  officers,  partners,  shareholders,
supervisors,  employees,  representatives,  successors,  assigns,  subsidiaries,  parents,  and  insurers  of  OS
Management, Inc. and its parents and affiliates.

The  term  “Claims”  shall  include  lawsuits,  causes  of  action,  liabilities,  losses,  damages,  debts,  demands,
controversies, agreements, duties, obligations, promises and rights of every kind. The term “Claims” shall
include  Claims  arising  from  any  source,  including  but  not  limited  to  contracts,  statutes,  regulations,
ordinances, codes, or the common law, including claims arising under Title VII of the Civil Rights Act of
1964 (42 U.S.C. § 2000e et seq., as amended), the Americans with Disabilities Act of 1990 (42 U.S.C. §
12101 et seq., as amended), the Family Medical Leave Act of 1993 (29 U.S.C. §2601, et seq., as amended),
the Fair Labor Standards Act of 1938 (29 U.S.C. §201et seq., as amended), the

Page 1 of 8

Initials: /s/ MS

Occupational Safety and Health Act (29 U.S.C. §651 et seq.), the Genetic Information Nondiscrimination
Act  of  2008,  the  Pregnancy  Discrimination  Act  of  1978  (as  amended),  the  Uniformed  Servicemembers
Employment  and  Reemployment  Rights  Act  38  U.S.C.  §4301  et  seq.,  as  amended),  the  Employee
Retirement Income Security Act of 1974 (ERISA) (29 U.S.C. §1001et seq., as amended), 42 U.S.C. §1981,
the Age Discrimination in Employment Act of 1967 (29 U.S.C. §621 et seq., as amended) (see also Older
Workers  Benefits  Protection  Act  Disclosure  attached  as  Exhibit  1), the  Florida  Civil  Rights  Act  of  1992
(F.S.  §760.01et  seq.,  as  amended),  the  Florida  Whistle  Blower  Act  (F.S.  §448.102  et  seq.,),  the  Florida
Workers’ Compensation Retaliation Statute (F.S. §440.205 et seq.), and all other federal, state, and local
laws  dealing  with  discrimination,  retaliation,  wages,  leave,  benefits,  or  workplace  policies,  as  well  as
claims  for  unpaid  wages  or  overtime,  unpaid  commissions,  breach  of  contract,  wrongful  termination,
retaliation,  intentional  infliction  of  emotional  distress,  negligent  hiring,  invasion  of  privacy,  defamation,
slander,  assault,  battery,  or  any  other  tort  arising  out  of  or  connected  in  any  way  to  the  employment
relationship. The term “Claims” shall include injuries or damage of any nature, regardless of whether such
injuries or damage arise from accident, illness, occupational disease, negligence, intentional act, or some
other  origin.  The  term  “Claims”  specifically  includes  third-party  claims  for  indemnity  or  contribution
against Employer or its Releasees. The term “Claims” shall be construed to include all Claims meeting the
definitions in this subparagraph without regard to whether those Claims are asserted or unasserted, known
or unknown, ripe or unripe, direct or indirect, conditional, or unconditional.

b.)

c.)

d.)

Stutts  waives  and  relinquishes  any  rights  that  Stutts  may  have  to  claim  reimbursement  from  Employer  and  its
Releasees for attorney’s fees, costs, or expenses that Stutts may have incurred while obtaining legal advice on any
matter related to Employer, except as expressly provided for below.

Stutts waives and refuses any right to any damages, compensation, or other personal relief that may be recovered
at  any  time  after  the  execution  of  this  Release  because  of  any  proceeding  arising  out  of  or  related  to  the
employment relationship that is brought under the jurisdiction or authority of the Equal Employment Opportunity
Commission,  the  Florida  Commission  on  Human  Relations,  the  U.S.  Department  of  Labor,  or  any  other  local,
state, or federal court or agency. If any such agency or court assumes jurisdiction of or files any complaint, charge,
or proceeding against Employer or its Releasees, Stutts shall request such agency or court to dismiss or withdraw
from the matter. Further, Stutts agrees never to sue Employer on any claim arising out of his employment with
Employer.

Stutts agrees that he will not at any time, disclose, use, or communicate to any person or entity, whether directly
or  indirectly,  any  Confidential  Information  obtained  by  Stutts  during  the  term  of  Stutts's  employment  with
Employer, unless (i) such disclosure or communication is compelled by law, or (ii) Stutts has received specific
written  authorization  in  advance  from  Employer  prior  to  the  disclosure,  use,  or  communication.  Confidential
Information shall mean any information regarding, affecting, or relating to the customers, clients, operations, or
business of Employer

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that  is  treated  as  confidential  by  Employer  and  that  is  not  generally  known  by  or  otherwise  available  to  third
parties.

Stutts agrees, for a two-year period following the Separation Date, except as is the result of a broad solicitation
that is not targeting employees of Employer or any of its franchisees or affiliates, not to offer employment to, or
hire, any employee of Employer or any of its affiliates, or otherwise directly or indirectly solicit or induce any
employee of Employer or any of their franchisees or affiliates to terminate his or her employment with Employer
or any of its franchisees or affiliates; nor shall Stutts act as an officer, director, employee, partner, independent
contractor,  consultant,  principal,  agent,  proprietor,  owner  or  part  owner,  or  in  any  other  capacity,  of  or  for  any
person or entity that solicits or otherwise induces any employee of Employer or any of its franchisees or affiliates
to terminate his or her employment with Employer or any of its franchisees or affiliates.

Stutts  agrees  that  he  will  not  disparage  Employer  or  its  Releasees  in  any  way  to  any  person  or  entity.
Notwithstanding this provision, in the unlikely event that Stutts is subpoenaed as part of a government entity’s
investigation  of  Employer,  Stutts  may  provide  truthful  information  about  his  employment  to  the  government
entity  without  violating  this  Release  as  long  as  he  has  first  provided  notice  to  the  employer  by  emailing  the
subpoena to subpoenas@BloominBrands.com within two business days of receipt of the subpoena.

Stutts  will  submit  all  requests  for  reimbursement  no  later  one  week  after  the  Separation  Date.  Reimbursement
eligibility will be determined consistent with Employer’s usual policies and procedures.

Stutts  agrees  to  direct  any  requests  for  employment  verification  or  reference  to  www.theworknumber.com.
Prospective employers can obtain his dates of employment and positions held with Employer by furnishing his
identifying information and company code 13799.

e.)

f.)

g.)

h.)

i.)

Stutts shall comply with all other terms of this Release as provided for herein.

5. On December 15, 2021, the Employer informed Stutts of what he had a right to receive upon separation of employment
and explained that, in addition, the Employer will do the following in consideration of the promises made by Stutts in this
Release:

a.)

b.)

c.)

Employer  shall  provide  Stutts  severance  in  the  gross  amount  of  $1,600,000,  less  ordinary  deductions  and
withholdings.

Employer  shall  also  provide  Stutts  a  net  amount  of  $5,547  which  represents  the  cost  of  twelve  (12)  months  of
premiums for continuing medical, dental and vision coverage for Stutts.

Notification  of  Stutts’s  rights  under  COBRA  (Consolidated  Omnibus  Budget  Reconciliation  Act)  will  be
forthcoming from The Wex Company under separate cover.

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d.)

e.)

f.)

g.)

h.)

i.)

Employer shall report the payments outlined in this paragraph to governmental tax authorities on an IRS (Internal
Revenue Service) Form W-2.

Employer  shall  send  the  payments  described  above  to  Stutts’s  home  address  within  ten  (10)  days  after  the
expiration of the Revocation Period referenced in paragraph 7 below.

As  additional  consideration  for  this  Release,  Employer  will  provide  Stutts  with  outplacement  services  with
Challenger, Gray & Christmas for a period of up to twelve (12) months, to be used consecutively, beginning after
the expiration of the Revocation Period.

Employer will not contest any claim for unemployment benefits related to Stutts’s employment with Employer.

Stutts agrees that he is of sound mind and body and has sufficient education and experience to make choices that
may  affect  his  legal  rights,  has  full  legal  capacity  to  make  decisions  for  himself,  is  aware  that  this  Release  has
significant legal consequences, has been advised to consulted with an attorney, decided to sign this Release of his
own free will, and is not executing this Release because of any duress or coercion.

Stutts acknowledges that he has not compromised any claim for unpaid wages under the Fair Labor Standards Act
as he has received full compensation for all days worked at the appropriate rate of pay.

Stutts  shall  have  a  period  of  twenty-one  (21)  calendar  days  (the  “Consideration  Period”)  from  December  15,  2021,  to
consider the Release’s terms and consequences before executing the Release. The offer made by Employer in this Release
will expire if not accepted by January 5, 2022.

Stutts and Employer agree that Stutts may revoke the Release for any reason at any time during the seven (7) calendar
days immediately following Stutts’s execution of the Release (the “Revocation Period”). To revoke this Release, Stutts
must  cause  written  notice  of  his 
to  Heather  Brock  at
HeatherBrock@BloominBrands.com. This Release shall not become effective or enforceable until the Revocation Period
has expired without such notice having been delivered to Employer in the specified manner.

to  be  delivered 

this  Release 

to  revoke 

intent 

Stutts  represents  that  he  has  not  sold,  transferred,  or  assigned  to  a  third  party  any  claims  that  he  may  have  against
Employer and its Releasees. Stutts represents that any claims that he may have against Employer and its Releasees are
unencumbered and otherwise within his power to dispose of. Stutts represents that he does not have any pending lawsuits,
claims,  or  actions  against  Employer  and  its  Releasees.  Stutts  further  represents  that  he  has  not  suffered  any  injuries,
illnesses, or accidents in the course of his employment other than those he has previously disclosed to Employer, and that
any  previously  disclosed  injuries,  illnesses,  or  accidents  are  included  within  the  scope  of  the  claims  settled  by  this
Release.

Page 4 of 8

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6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

Stutts agrees that he is solely responsible for all federal, state and/or local tax liabilities and consequences that he may
incur because of the payments made under this Release, and that Employer and Releasees shall bear no responsibility for
any such liabilities or consequences. Stutts agrees to defend, indemnify and hold harmless Employer and Releasees from
liability for tax payments, required tax withholdings, penalties, additions to tax and/or interest that they are obligated to
pay because of Stutts’s failure to pay his portion of taxes associated with the payments identified above.

The Employer may deduct or withhold from any compensation or benefits any applicable federal, state, or local tax or
employment  with  holdings  or  deductions  resulting  from  any  payments  or  benefits  provided  under  this  Release.  In
addition, it is the employer's intention that all payments or benefits provided under this release comply with section 409A
of the Internal Revenue Code of 1986, as amended (“Code”). The Employer does not guarantee the tax treatment of any
payments or benefits under this release including without limitation under the Code or federal, state, local or foreign tax
law and regulations.

All prior understandings or agreements between Stutts and Employer with respect to the subject matter of this Release are
merged into this Release, which fully and completely expresses the entire agreement and understanding of the parties with
respect  to  the  subject  matter  hereof.  Notwithstanding  this  provision,  this  Release  shall  not  in  any  way  diminish  any
obligation, duty or undertaking owed by Stutts to Employer because of any other contract or agreement or law. The rights
and releases given to Employer in this Release will be in addition to, and not in place of, all other rights held by Employer
by  virtue  of  any  other  contract,  agreement  or  undertaking,  and  to  that  extent,  the  obligations  of  Stutts  survive  the
execution of this Release.

This Release cannot be orally amended, modified, or changed. No change, amendment, or modification to the terms of
this  Release  shall  be  valid  unless  such  change,  amendment,  or  modification  is  memorialized  in  a  written  agreement
between  the  parties  that  expressly  references  this  Release  and  is  signed  by  Stutts  and  by  a  duly  authorized  officer  or
representative of Employer.

This Release is made and entered into in the state of Florida, and shall be interpreted, enforced, and governed under the
laws  of  Florida.  In  the  event  of  a  breach  of  this  Release  by  either  party,  the  other  party  shall  be  entitled  to  seek
enforcement of this Release exclusively before a court of competent jurisdiction located in Hillsborough County, Florida
which shall be deemed to have exclusive jurisdiction and venue over any litigation related to or arising from this Release.
This  Release  shall  not  be  construed  to  waive  any  right  of  removal  that  may  apply  to  any  action  filed  in  state  court  by
either party to this Release. However, the parties waive any right to a jury trial for any dispute or controversy arising out
of this Release.

At the conclusion of any litigation or dispute arising out of or related to this Release, the prevailing party may recover, in
addition to damages, the costs and fees (including attorney's fees, paralegal fees, and expert fees) reasonably incurred in
connection with the litigation or dispute.

The language of all parts of this Release shall in all cases be construed as a whole, according to its fair meaning, and not
strictly for or against any of the parties. As used in

Page 5 of 8

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this Release, the singular or plural shall be deemed to include the other whenever the context so indicates or requires.

16.

17.

Should  any  provision  of  this  Release  be  declared  or  be  determined  by  any  court  to  be  illegal  or  invalid,  the  remaining
parts, terms or provisions shall remain valid unless declared otherwise by the court.

The parties agree that a true copy of this Release may be used in any legal proceeding in place of the original and that any
such true copy shall have the same effect as the original.

PLEASE READ CAREFULLY. THIS GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS.

Executed on

December 20, 2021.

Executed on

December 20, 2021.

Sign:

/s/ Michael Stutts
Michael Stutts

OS Management, Inc.
Sign:
Title:

/s/ Kelly Lefferts
EVP, Chief Legal Officer, Secretary

Page 6 of 8

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Stock Options

Exhibit 1 to Michael Stutts Release

a.) Stutts  was  granted  the  option  to  purchase  50,000  shares  of  the  common  stock  of  BBI  (the  “2019  Options”)
pursuant to that certain Option Agreement with a grant date of July 1, 2019 (the “2019 Option Agreement”). Stutts
agrees 33,333 shares of the 2019 Options are vested and unexercised and shall remain vested and exercisable for
365  calendar  days  following  the  Separation  Date.  Stutts  agrees  that  16,667  shares  are  unvested  and  hereby
forfeited, canceled terminated, and deemed null and void ab initio. Stutts agrees that as of 12:01 a.m. (Tampa time)
on  the  365th  calendar  day  immediately  following  the  Separation  Date,  the  2019  Option  Agreement  is  hereby
cancelled, terminated and deemed null and void ab initio.

Performance Units

a.) Stutts was awarded 24,178 Bloomin’ Brands, Inc. performance share units (the "2020 Performance Share Units")
pursuant  to  that  certain  Agreement  with  a  grant  date  of  February  20,  2020  (the  "2020  Performance  Share
Agreement").  Stutts  agrees  none  of  the  2020  Performance  Share  Units  are  vested  and  all  are  hereby  forfeited,
cancelled,  terminated  and  deemed  null  and  void  ab  initio.  The  2020  Performance  Share  Agreement  is  hereby
forfeited, cancelled, terminated and deemed null and void ab initio.

b.) Stutts was awarded 12,334 Bloomin’ Brands, Inc. performance share units (the "2021 Performance Share Units")
pursuant  to  that  certain  Agreement  with  a  grant  date  of  February  22,  2021  (the  "2021  Performance  Share
Agreement").  Stutts  agrees  none  of  the  2021  Performance  Share  Units  are  vested  and  all  are  hereby  forfeited,
cancelled,  terminated  and  deemed  null  and  void  ab  initio.  The  2021  Performance  Share  Agreement  is  hereby
forfeited, cancelled, terminated and deemed null and void ab initio.

Restricted Stock Units

a.) Stutts was awarded 50,000 Bloomin’ Brands, Inc. restricted stock units (the "2019 Restricted Stock") pursuant to
that  certain  Restricted  Stock  Agreement  with  a  grant  date  of  July  1,  2019  (the  "2019  Restricted  Stock
Agreement").  Stutts  agrees  33,333  of  the  2020  Restricted  Stock  units  were  previously  vested  and  distributed.
Stutts  agrees  16,667  of  the  2019  Restricted  Stock  units  are  unvested  and  hereby  forfeited,  canceled  terminated,
and  deemed  null  and  void  ab  initio.  The  2019  Restricted  Stock  Agreement  is  hereby  forfeited,  cancelled,
terminated and deemed null and void ab initio.

b.) Stutts was awarded 12,089 Bloomin’ Brands, Inc. restricted stock units (the "2020 Restricted Stock") pursuant to
that  certain  Restricted  Stock  Agreement  with  a  grant  date  of  February  20,  2020  (the  "2020  Restricted  Stock
Agreement"). Stutts agrees 4,029 of the 2020 Restricted Stock units were previously vested and distributed. Stutts
agrees  8,060  of  the  2020  Restricted  Stock  units  are  unvested  and  hereby  forfeited,  canceled  terminated,  and
deemed null and void ab initio. The 2020

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Restricted Stock Agreement is hereby forfeited, cancelled, terminated and deemed null and void ab initio.

c.) Stutts was awarded 7,052 Bloomin’ Brands, Inc. restricted stock units (the "2021 Restricted Stock") pursuant to
that  certain  Restricted  Stock  Agreement  with  a  grant  date  of  February  22,  2021  (the  "2021  Restricted  Stock
Agreement"). Stutts agrees none of the 2021 Restricted Stock are vested and all are hereby forfeited, cancelled,
terminated  and  deemed  null  and  void  ab  initio.  The  2021  Restricted  Stock  Agreement  is  hereby  cancelled,
forfeited, terminated and deemed null and void ab initio.

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Exhibit 10.46

February 10, 2021

Patrick Murtha

Dear Patrick,

This  letter  agreement  confirms  the  verbal  offer  extended  to  you  by  Bloomin’  Brands,  Inc.  (the  “Company”)  to  serve  as  Executive  Vice
President, Human Resources reporting to David Deno, Chief Executive Officer. Your effective date will be February 8, 2021. The terms of
your employment will be:

You  will  be  employed  by  a  subsidiary  of  the  Company  (the  “Employer”)  and  will  be  paid  an  annual  base  salary  of  $500,000  effective
February 8, 2021 payable in equal bi-weekly installments.

You will be eligible to participate in the Company’s annual bonus program and effective for 2021, your bonus target will be fixed at 85% of
your $500,000 base salary, without proration. Actual bonus payments shall be based on both Company performance against objectives as set
forth in the Company bonus program and individual performance. You must remain continuously employed through the bonus payment date
to remain eligible for this bonus payment.

In addition to your annual bonus, you will be eligible for an annual long-term incentive grant commencing in 2021. Per the current long-term
incentive  plan,  you  will  be  eligible  for  a  target  up  to  100%  of  your  base  salary,  which  will  be  subject  to  Company  and  individual
performance.

You will be eligible to participate in the following benefits as applicable and in accordance with the terms of Company policy:

• Medical Benefits Plan
Salaried Short-Term Disability Insurance
•
Salaried Long-Term Disability Insurance
•
• Company Paid Group Term Life Insurance
• Company Paid Accidental Death and Dismemberment Insurance
• Dental Benefits Plan
• Vision Benefits Plan
• Non-Qualified Deferred Compensation Plan
• Restaurant Support Center (RSC) Paid Time Off (PTO)

In the ordinary course of business, pay and benefit plans continue to evolve as business needs and laws change. To the extent the
Company or the Employer determines it to be necessary or desirable to change or eliminate any of the plans or programs in which
you participate, such changes will apply to you as they do to other similarly situated employees.

As a condition of your employment, please note the following:

While  it  is  our  sincere  hope  and  belief  that  our  relationship  will  be  mutually  beneficial,  the  Company  and  the  Employer  do  not  offer
employment  for  a  specified  term. Any  statements  made  to  you  in  this  letter  and  in  meetings  should  not  be  construed  in  any  manner  as  a
proposed contract for any such term. Both you and

the  Employer  may  terminate  employment  at  any  time,  with  or  without  prior  notice,  for  any  or  no  reason,  and  with  or  without  Cause  (as
defined on Schedule 1).

As a further condition of your employment, you agree to the following:

1. Restrictive Covenant - Non-competition

A. During Employment. You will devote one hundred percent (100%) of your full business time, attention, energies, and effort to the
business affairs of the Employer and the Company. Except with the prior written consent of the Employer, during your employment with the
Company or the Employer, you shall not, individually or jointly with others, directly or indirectly, whether for your own account or for that
of any other person or entity, engage in or own or hold any ownership interest in any person or entity engaged in a full service restaurant
business, and you shall not act as an officer, director, employee, partner, independent contractor, consultant, principal, agent, proprietor or in
any other capacity for, nor lend any assistance (financial or otherwise) or cooperation to, any such person or entity. You shall not serve on the
board  of  directors  or  advisory  committee  of  any  other  company  without  the  prior  consent  of  the  Employer,  which  consent  shall  not  be
unreasonably withheld.

B.  Post  Term.  Commencing  on  termination  your  employment  with  the  Employer,  you  shall  not,  individually  or  jointly  with  others,
directly or indirectly, whether for your own account or for that of any other person or entity, engage in or own or hold any ownership interest
in any person or entity engaged in a full table service restaurant business and that is located or intended to be located anywhere within a
radius of thirty (30) miles of any full table service restaurant owned or operated by the Company or the Employer, or any proposed full table
service restaurant to be owned or operated by the Company or the Employer, and you shall not act as an officer, director, employee, partner,
independent contractor, consultant, principal, agent, proprietor or in any other capacity for, nor lend any assistance (financial or otherwise) or
cooperation to, any such person or entity for the time period specified below:

(i) If  your  employment  with  Employer  ends  as  a  result  of  a  termination  without  Cause  by  the  Employer,  then  for  a  continuous
period equal to the period of time used for calculating the amount of severance paid to you upon termination, if any; or

(ii) If your employment with the Employer ends as a result of your voluntary resignation or termination by the Employer for Cause,
for a continuous period of one (1) year.

For purposes of this non-competition clause, restaurants owned or operated by the Company or the Employer shall include all restaurants
owned or operated by the Company, the Employer, their subsidiaries, franchisees or affiliates and any successor entity to the Company, the
Employer, their subsidiaries, franchisees or affiliates, and any entity in which the Company or the Employer, its subsidiaries or any of their
affiliates has an interest, including but not limited to, an interest as a franchisor. The term “proposed restaurant” shall include all locations for
which the Company, the Employer, or their franchisees or affiliates is conducting active, bona fide negotiations to secure a fee or leasehold
interest with the intention of establishing a restaurant thereon.

C. Limitation. It shall not be a violation of this Non-competition clause for Employee to own a one percent (1%) or smaller interest in
any corporation required to file periodic reports with the Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934, as amended, or successor statute.

2. Restrictive Covenant - Non-disclosure; Non-solicitation; Non-piracy

    
A. Except in the performance of your duties hereunder, at no time during your employment with the Company or the Employer, or at
any time thereafter, shall you, individually or jointly with others, for your benefit of or for the benefit of any third party, publish, disclose, use
or authorize anyone else to publish, disclose or use any secret or confidential material or information relating to any aspect of the business or
operations  of  the  Employer,  the  Company  or  any  of  their  affiliates,  including,  without  limitation,  any  secret  or  confidential  information
relating to the business, customers, trade or industrial practices, trade secrets, technology, recipes, product specifications, restaurant operating
techniques and procedures, marketing techniques and procedures, financial data, processes, vendors and other information or know-how of
the  Employer,  the  Company  or  any  of  their  affiliates,  except  (i)  to  the  extent  required  by  law,  regulation  or  valid  subpoena,  or  (ii)  to  the
extent that such information or material becomes publicly known or available through no fault of your own.

B.  Moreover,  during  your  employment  with  the  Employer  and  for  two  (2)  years  thereafter,  except  as  is  the  result  of  a  broad
solicitation  that  is  not  targeting  employees  of  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates,  you  shall  not  offer
employment  to,  or  hire,  any  employee  of  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates,  or  otherwise  directly  or
indirectly  solicit  or  induce  any  employee  of  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates  to  terminate  his  or  her
employment  with  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates;  nor  shall  you  act  as  an  officer,  director,  employee,
partner, independent contractor, consultant, principal, agent, proprietor, owner or part owner, or in any other capacity, of or for any person or
entity that solicits or otherwise induces any employee of the Employer, the Company or any of their franchisees or affiliates to terminate his
or her employment with the Employer, the Company or any of their franchisees or affiliates.

3. Restrictive Covenant - Company and Employer Property: Duty to Return. All Employer and Company property and assets,
including but not limited to products, recipes, product specifications, training materials, employee selection and testing materials, marketing
and  advertising  materials,  special  event,  charitable  and  community  activity  materials,  customer  correspondence,  internal  memoranda,
products  and  designs,  sales  information,  project  files,  price  lists,  customer  and  vendor  lists,  prospectus  reports,  customer  or  vendor
information, sales literature, territory printouts, call books, notebooks, textbooks, and all other like information or products, including but not
limited to all copies, duplications, replications, and derivatives of such information or products, now in your possession or acquired by you
while in the employ of the Employer shall be the exclusive property of the Employer and shall be returned to the Employer no later than the
date of your last day of work with the Employer.

4. Restrictive Covenant - Inventions, Ideas, Processes, and Designs. All inventions, ideas, recipes, processes, programs, software
and designs (including all improvements) related to the business of the Employer or the Company shall be disclosed in writing promptly to
the Employer, and shall be the sole and exclusive property of the Employer, if either (i) conceived, made or used by you during the course of
the your employment with the Employer (whether or not actually conceived during regular business hours) or (ii) made or used by you for a
period  of  six  (6)  months  subsequent  to  the  termination  or  expiration  of  such  employment.  Any  invention,  idea,  recipe,  process,  program,
software or design (including an improvement) shall be deemed “related to the business of the Employer or the Company” if (i) it was made
with  equipment,  facilities  or  confidential  information  of  the  Employer  or  the  Company,  (ii)  results  from  work  performed  by  you  for  the
Employer or the Company or (iii) pertains to the current business or demonstrably anticipated research or development work of the Employer
or the Company. You shall cooperate with the Employer and its attorneys in the preparation of patent and copyright applications for such
developments  and,  upon  request,  shall  promptly  assign  all  such  inventions,  ideas,  recipes,  processes  and  designs  to  the  Employer.  The
decision  to  file  for  patent  or  copyright  protection  or  to  maintain  such  development  as  a  trade  secret  shall  be  in  the  sole  discretion  of  the
Employer, and you shall be bound by such decision. You shall provide, on the back of this Agreement, a complete list of all inventions, ideas,
recipes, processes and designs if any, patented or unpatented, copyrighted or non-copyrighted, including a brief description, that

    
you made or conceived prior to your employment with the Employer, and that, therefore, are excluded from the scope of the employment
with the Employer.

The restrictive covenants contained in this agreement are given and made by you to induce the Employer to employ you and to enter into this
Agreement  with  you,  and  you  hereby  acknowledge  that  employment  with  the  Employer  is  sufficient  consideration  for  these  restrictive
covenants.  The  restrictive  covenants  shall  be  construed  as  agreements  independent  of  any  other  provision  in  this  Agreement,  and  the
existence of any claim or cause of action you may have against the Employer or the Company, whether predicated upon this Agreement or
otherwise,  shall  not  constitute  a  defense  to  the  enforcement  of  any  restrictive  covenant.  The  refusal  or  failure  of  the  Employer  or  the
Company to enforce any restrictive covenant of this agreement (or any similar agreement) against any other employee, agent, or independent
contractor,  for  any  reason,  shall  not  constitute  a  defense  to  the  enforcement  by  the  Employer  or  the  Company  of  any  such  restrictive
covenant, nor shall it give rise to any claim or cause of action by you against the Employer or the Company.

You agree that a breach of any of the restrictive covenants contained in this Agreement will cause irreparable injury to the Employer and the
Company  for  which  the  remedy  at  law  will  be  inadequate  and  would  be  difficult  to  ascertain  and  therefore,  in  the  event  of  the  breach  or
threatened breach of any such covenants, the Employer and the Company shall be entitled, in addition to any other rights and remedies it may
have at law or in equity, to obtain an injunction to restrain you from any threatened or actual activities in violation of any such covenants.
You hereby consent and agree that temporary and permanent injunctive relief may be granted in any proceedings that might be brought to
enforce any such covenants without the necessity of proof of actual damages, and in the event the Employer or the Company does apply for
such an injunction, you shall not raise as a defense thereto that the Employer or the Company has an adequate remedy at law.

For  the  avoidance  of  doubt,  the  termination  of  this  agreement  for  any  reason,  shall  not  extinguish  your  obligations  specified  in  these
restrictive covenants.

ALL PARTIES TO THIS AGREEMENT KNOW AND UNDERSTAND THAT THEY HAVE A CONSTITUTIONAL RIGHT TO A JURY
TRIAL.  THE  PARTIES  ACKNOWLEDGE  THAT  ANY  DISPUTE  OR  CONTROVERSY  THAT  MAY  ARISE  OUT  OF  THIS
AGREEMENT WILL INVOLVE COMPLICATED AND DIFFICULT FACTUAL AND LEGAL ISSUES.

THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO
THIS  AGREEMENT  OR  ANY  OF  THE  CONTEMPLATED  TRANSACTIONS,  WHETHER  NOW  EXISTING  OR  HEREAFTER
ARISING,  AND  WHETHER  SOUNDING  IN  CONTRACT,  TORT  OR  OTHERWISE.  THE  PARTIES  AGREE  THAT  ANY  OF  THEM
MAY  FILE  A  COPY  OF  THIS  PARAGRAPH  WITH  ANY  COURT  AS  WRITTEN  EVIDENCE  OF  THE  KNOWING,  VOLUNTARY
AND  BARGAINED-FOR  AGREEMENT  AMONG  THE  PARTIES  IRREVOCABLY  TO  WAIVE  TRIAL  BY  JURY  AND  THAT  ANY
PROCEEDING  WHATSOEVER  BETWEEN  THEM  RELATING  TO  THIS  AGREEMENT  OR  ANY  OF  THE  CONTEMPLATED
TRANSACTIONS SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT
A JURY.

THE  PARTIES  INTEND  THAT  THIS  WAIVER  OF  THE  RIGHT  TO  A  JURY  TRIAL  BE  AS  BROAD  AS  POSSIBLE.  BY  THEIR
SIGNATURES BELOW, THE PARTIES PROMISE, WARRANT AND REPRESENT THAT THEY WILL NOT PLEAD FOR, REQUEST
OR  OTHERWISE  SEEK  TO  HAVE  A  JURY  TO  RESOLVE  ANY  AND  ALL  DISPUTES  THAT  MAY  ARISE  BY,  BETWEEN  OR
AMONG THEM.

    
You shall be responsible for the payment of all taxes applicable to payments or benefits received from the Employer or the Company. It is the
intent of the Employer and the Company that the provisions of this agreement and all other plans and programs sponsored by the Employer
and  the  Company  be  interpreted  to  comply  in  all  respects  with  Internal  Revenue  Code  Section  409A,  however,  the  Employer  and  the
Company shall have no liability to you, or any of your successors or beneficiaries, in the event taxes, penalties or excise taxes may ultimately
be determined to be applicable to any payment or benefit received by you or your successors or beneficiaries.

The validity, interpretation, and performance of this agreement shall be governed, interpreted, and construed in accordance with the laws of
the State of Florida without giving effect to the principles of comity or conflicts of laws thereof.

This  letter  constitutes  the  full  commitments  which  have  been  extended  to  you  and  shall  supersede  any  prior  agreements  whether  oral  or
written. However, this does not constitute a contract of employment for any period of time. Should you have any questions regarding these
commitments or your ability to conform to Company policies and procedures, please let me know immediately.

By signing this offer, you indicate your acceptance of our offer. Please keep one original copy of this offer letter for your personal files.

We look forward to having you join us as a member of our team.

Sincerely,

/s/ David Deno

David Deno
Chief Executive Officer
Bloomin’ Brands, Inc.

I accept the above offer of employment and I understand the terms as set forth above.

/s/ Patrick Murtha
Patrick Murtha

2/12/21
Date

    
"Cause" shall be defined as:

Schedule 1

1. Your failure to perform the material duties required of you in a manner satisfactory to the Employer, in its reasonable discretion after
the Employer follows the following procedures: (a) the Employer gives you a written notice (''Notice of Deficiency") which shall
specify the deficiencies in your performance of duties; (b) you shall have a period of thirty (30) days, commencing on receipt of the
Notice of Deficiency, in which to cure the deficiencies contained in the Notice of Deficiency; and (c) in the event you do not cure the
deficiencies  to  the  satisfaction  of  the  Employer,  in  its  reasonable discretion,  within  such  thirty  (30)  day  period  (or  if  during  such
thirty (30) day period the Employer determines that you are not making reasonable, good faith efforts to cure the deficiencies to the
reasonable satisfaction of the Employer), the Employer shall have the right to immediately terminate your employment for Cause.
The provisions of this paragraph (1) may be invoked by the Employer any number of times and cure of deficiencies contained in any
Notice of Deficiency shall not be construed as a waiver of this paragraph (1) nor prevent the Employer from issuing any subsequent
Notices of Deficiency; or

2. Any  willful  dishonesty  by  you  in  your  dealings  with  the  Company,  the  Employer  or  their  affiliates;  your  commission  of  fraud,
negligence  in  the  performance  of  your  duties;  insubordination;  willful  misconduct;  or  your  conviction  (or  plea  of  guilty  or  nolo
contendere), indictment or charge with respect to, any felony, or any other crime involving dishonesty or moral turpitude; or

3. Any material violation of the restrictive covenants of this agreement; or

4. Any material violation of any current or future material published policy of the Employer or its Affiliates (material published policies
include,  but  are  not  limited  to,  the  Employer's  Employment  Non-Discrimination  and  Harassment  Policy,  Confidential  Information
Policy,  Disclosure  and  Communications  Policy,  Social  Media  Policy,  Responsible  Alcohol  Policy,  Insider  Trading  Policy,  Stock
Ownership Guidelines Policy, Code of Conduct and Information Technology Security Policy); or

5. For  all  purposes  of  this  Agreement,  termination  for  Cause  shall  be  deemed  to  have  occurred  in  the  event  of  the  Employee's

resignation when, because of existing facts and circumstances, subsequent termination for Cause can be reasonably foreseen.

    
Exhibit 10.47

April 14, 2021

Patrick Murtha

Dear Patrick,

This  letter  agreement  confirms  the  verbal  offer  extended  to  you  by  Bloomin’  Brands,  Inc.  (the  “Company”)  to  serve  as  Executive  Vice
President,  Flemings,  International  and  Human  Resources  reporting  to  me.  Your  effective  date  will  be  April  9,  2021.  The  terms  of  your
employment will be:

You will be employed by a subsidiary of the Company (the “Employer”) and your annual base salary will remain $500,000 payable in equal
bi-weekly installments.

You will remain eligible to participate in the Company’s annual bonus program and effective for 2021, your bonus target remains fixed at
85%  of  your  $500,000  base  salary,  without  proration.  Actual  bonus  payments  shall  be  based  on  both  Company  performance  against
objectives  as  set  forth  in  the  Company  bonus  program  and  individual  performance.  You  must  remain  continuously  employed  through  the
bonus payment date to remain eligible for this bonus payment.

In addition to your annual bonus, you will remain eligible for an annual long-term incentive grant commencing in 2021. Per the current long-
term incentive plan, you will remain eligible for a target up to 100% of your base salary, which will be subject to Company and individual
performance.

You will be eligible to participate in the following benefits as applicable and in accordance with the terms of Company policy:

• Medical Benefits Plan
Salaried Short-Term Disability Insurance
•
Salaried Long-Term Disability Insurance
•
• Company Paid Group Term Life Insurance
• Company Paid Accidental Death and Dismemberment Insurance
• Dental Benefits Plan
• Vision Benefits Plan
• Non-Qualified Deferred Compensation Plan
• Restaurant Support Center (RSC) Paid Time Off (PTO)

In the ordinary course of business, pay and benefit plans continue to evolve as business needs and laws change. To the extent the
Company or the Employer determines it to be necessary or desirable to change or eliminate any of the plans or programs in which
you participate, such changes will apply to you as they do to other similarly situated employees.

As a condition of your employment, please note the following:

While  it  is  our  sincere  hope  and  belief  that  our  relationship  will  be  mutually  beneficial,  the  Company  and  the  Employer  do  not  offer
employment  for  a  specified  term. Any  statements  made  to  you  in  this  letter  and  in  meetings  should  not  be  construed  in  any  manner  as  a
proposed contract for any such term. Both you and

the  Employer  may  terminate  employment  at  any  time,  with  or  without  prior  notice,  for  any  or  no  reason,  and  with  or  without  Cause  (as
defined on Schedule 1).

As a further condition of your employment, you agree to the following:

1. Restrictive Covenant - Non-competition

A. During Employment. You will devote one hundred percent (100%) of your full business time, attention, energies, and effort to the
business affairs of the Employer and the Company. Except with the prior written consent of the Employer, during your employment with the
Company or the Employer, you shall not, individually or jointly with others, directly or indirectly, whether for your own account or for that
of any other person or entity, engage in or own or hold any ownership interest in any person or entity engaged in a full service restaurant
business, and you shall not act as an officer, director, employee, partner, independent contractor, consultant, principal, agent, proprietor or in
any other capacity for, nor lend any assistance (financial or otherwise) or cooperation to, any such person or entity. You shall not serve on the
board  of  directors  or  advisory  committee  of  any  other  company  without  the  prior  consent  of  the  Employer,  which  consent  shall  not  be
unreasonably withheld.

B.  Post  Term.  Commencing  on  termination  your  employment  with  the  Employer,  you  shall  not,  individually  or  jointly  with  others,
directly or indirectly, whether for your own account or for that of any other person or entity, engage in or own or hold any ownership interest
in any person or entity engaged in a full table service restaurant business and that is located or intended to be located anywhere within a
radius of thirty (30) miles of any full table service restaurant owned or operated by the Company or the Employer, or any proposed full table
service restaurant to be owned or operated by the Company or the Employer, and you shall not act as an officer, director, employee, partner,
independent contractor, consultant, principal, agent, proprietor or in any other capacity for, nor lend any assistance (financial or otherwise) or
cooperation to, any such person or entity for the time period specified below:

(i) If  your  employment  with  Employer  ends  as  a  result  of  a  termination  without  Cause  by  the  Employer,  then  for  a  continuous
period equal to the period of time used for calculating the amount of severance paid to you upon termination, if any; or

(ii) If your employment with the Employer ends as a result of your voluntary resignation or termination by the Employer for Cause,
for a continuous period of one (1) year.

For purposes of this non-competition clause, restaurants owned or operated by the Company or the Employer shall include all restaurants
owned or operated by the Company, the Employer, their subsidiaries, franchisees or affiliates and any successor entity to the Company, the
Employer, their subsidiaries, franchisees or affiliates, and any entity in which the Company or the Employer, its subsidiaries or any of their
affiliates has an interest, including but not limited to, an interest as a franchisor. The term “proposed restaurant” shall include all locations for
which the Company, the Employer, or their franchisees or affiliates is conducting active, bona fide negotiations to secure a fee or leasehold
interest with the intention of establishing a restaurant thereon.

C. Limitation. It shall not be a violation of this Non-competition clause for Employee to own a one percent (1%) or smaller interest in
any corporation required to file periodic reports with the Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934, as amended, or successor statute.

2. Restrictive Covenant - Non-disclosure; Non-solicitation; Non-piracy

    
A. Except in the performance of your duties hereunder, at no time during your employment with the Company or the Employer, or at
any time thereafter, shall you, individually or jointly with others, for your benefit of or for the benefit of any third party, publish, disclose, use
or authorize anyone else to publish, disclose or use any secret or confidential material or information relating to any aspect of the business or
operations  of  the  Employer,  the  Company  or  any  of  their  affiliates,  including,  without  limitation,  any  secret  or  confidential  information
relating to the business, customers, trade or industrial practices, trade secrets, technology, recipes, product specifications, restaurant operating
techniques and procedures, marketing techniques and procedures, financial data, processes, vendors and other information or know-how of
the  Employer,  the  Company  or  any  of  their  affiliates,  except  (i)  to  the  extent  required  by  law,  regulation  or  valid  subpoena,  or  (ii)  to  the
extent that such information or material becomes publicly known or available through no fault of your own.

B.  Moreover,  during  your  employment  with  the  Employer  and  for  two  (2)  years  thereafter,  except  as  is  the  result  of  a  broad
solicitation  that  is  not  targeting  employees  of  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates,  you  shall  not  offer
employment  to,  or  hire,  any  employee  of  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates,  or  otherwise  directly  or
indirectly  solicit  or  induce  any  employee  of  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates  to  terminate  his  or  her
employment  with  the  Employer,  the  Company  or  any  of  their  franchisees  or  affiliates;  nor  shall  you  act  as  an  officer,  director,  employee,
partner, independent contractor, consultant, principal, agent, proprietor, owner or part owner, or in any other capacity, of or for any person or
entity that solicits or otherwise induces any employee of the Employer, the Company or any of their franchisees or affiliates to terminate his
or her employment with the Employer, the Company or any of their franchisees or affiliates.

3. Restrictive Covenant - Company and Employer Property: Duty to Return. All Employer and Company property and assets,
including but not limited to products, recipes, product specifications, training materials, employee selection and testing materials, marketing
and  advertising  materials,  special  event,  charitable  and  community  activity  materials,  customer  correspondence,  internal  memoranda,
products  and  designs,  sales  information,  project  files,  price  lists,  customer  and  vendor  lists,  prospectus  reports,  customer  or  vendor
information, sales literature, territory printouts, call books, notebooks, textbooks, and all other like information or products, including but not
limited to all copies, duplications, replications, and derivatives of such information or products, now in your possession or acquired by you
while in the employ of the Employer shall be the exclusive property of the Employer and shall be returned to the Employer no later than the
date of your last day of work with the Employer.

4. Restrictive Covenant - Inventions, Ideas, Processes, and Designs. All inventions, ideas, recipes, processes, programs, software
and designs (including all improvements) related to the business of the Employer or the Company shall be disclosed in writing promptly to
the Employer, and shall be the sole and exclusive property of the Employer, if either (i) conceived, made or used by you during the course of
the your employment with the Employer (whether or not actually conceived during regular business hours) or (ii) made or used by you for a
period  of  six  (6)  months  subsequent  to  the  termination  or  expiration  of  such  employment.  Any  invention,  idea,  recipe,  process,  program,
software or design (including an improvement) shall be deemed “related to the business of the Employer or the Company” if (i) it was made
with  equipment,  facilities  or  confidential  information  of  the  Employer  or  the  Company,  (ii)  results  from  work  performed  by  you  for  the
Employer or the Company or (iii) pertains to the current business or demonstrably anticipated research or development work of the Employer
or the Company. You shall cooperate with the Employer and its attorneys in the preparation of patent and copyright applications for such
developments  and,  upon  request,  shall  promptly  assign  all  such  inventions,  ideas,  recipes,  processes  and  designs  to  the  Employer.  The
decision  to  file  for  patent  or  copyright  protection  or  to  maintain  such  development  as  a  trade  secret  shall  be  in  the  sole  discretion  of  the
Employer, and you shall be bound by such decision. You shall provide, on the back of this Agreement, a complete list of all inventions, ideas,
recipes, processes and designs if any, patented or unpatented, copyrighted or non-copyrighted, including a brief description, that

    
you made or conceived prior to your employment with the Employer, and that, therefore, are excluded from the scope of the employment
with the Employer.

The restrictive covenants contained in this agreement are given and made by you to induce the Employer to employ you and to enter into this
Agreement  with  you,  and  you  hereby  acknowledge  that  employment  with  the  Employer  is  sufficient  consideration  for  these  restrictive
covenants.  The  restrictive  covenants  shall  be  construed  as  agreements  independent  of  any  other  provision  in  this  Agreement,  and  the
existence of any claim or cause of action you may have against the Employer or the Company, whether predicated upon this Agreement or
otherwise,  shall  not  constitute  a  defense  to  the  enforcement  of  any  restrictive  covenant.  The  refusal  or  failure  of  the  Employer  or  the
Company to enforce any restrictive covenant of this agreement (or any similar agreement) against any other employee, agent, or independent
contractor,  for  any  reason,  shall  not  constitute  a  defense  to  the  enforcement  by  the  Employer  or  the  Company  of  any  such  restrictive
covenant, nor shall it give rise to any claim or cause of action by you against the Employer or the Company.

You agree that a breach of any of the restrictive covenants contained in this Agreement will cause irreparable injury to the Employer and the
Company  for  which  the  remedy  at  law  will  be  inadequate  and  would  be  difficult  to  ascertain  and  therefore,  in  the  event  of  the  breach  or
threatened breach of any such covenants, the Employer and the Company shall be entitled, in addition to any other rights and remedies it may
have at law or in equity, to obtain an injunction to restrain you from any threatened or actual activities in violation of any such covenants.
You hereby consent and agree that temporary and permanent injunctive relief may be granted in any proceedings that might be brought to
enforce any such covenants without the necessity of proof of actual damages, and in the event the Employer or the Company does apply for
such an injunction, you shall not raise as a defense thereto that the Employer or the Company has an adequate remedy at law.

For  the  avoidance  of  doubt,  the  termination  of  this  agreement  for  any  reason,  shall  not  extinguish  your  obligations  specified  in  these
restrictive covenants.

ALL PARTIES TO THIS AGREEMENT KNOW AND UNDERSTAND THAT THEY HAVE A CONSTITUTIONAL RIGHT TO A JURY
TRIAL.  THE  PARTIES  ACKNOWLEDGE  THAT  ANY  DISPUTE  OR  CONTROVERSY  THAT  MAY  ARISE  OUT  OF  THIS
AGREEMENT WILL INVOLVE COMPLICATED AND DIFFICULT FACTUAL AND LEGAL ISSUES.

THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO
THIS  AGREEMENT  OR  ANY  OF  THE  CONTEMPLATED  TRANSACTIONS,  WHETHER  NOW  EXISTING  OR  HEREAFTER
ARISING,  AND  WHETHER  SOUNDING  IN  CONTRACT,  TORT  OR  OTHERWISE.  THE  PARTIES  AGREE  THAT  ANY  OF  THEM
MAY  FILE  A  COPY  OF  THIS  PARAGRAPH  WITH  ANY  COURT  AS  WRITTEN  EVIDENCE  OF  THE  KNOWING,  VOLUNTARY
AND  BARGAINED-FOR  AGREEMENT  AMONG  THE  PARTIES  IRREVOCABLY  TO  WAIVE  TRIAL  BY  JURY  AND  THAT  ANY
PROCEEDING  WHATSOEVER  BETWEEN  THEM  RELATING  TO  THIS  AGREEMENT  OR  ANY  OF  THE  CONTEMPLATED
TRANSACTIONS SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT
A JURY.

THE  PARTIES  INTEND  THAT  THIS  WAIVER  OF  THE  RIGHT  TO  A  JURY  TRIAL  BE  AS  BROAD  AS  POSSIBLE.  BY  THEIR
SIGNATURES BELOW, THE PARTIES PROMISE, WARRANT AND REPRESENT THAT THEY WILL NOT PLEAD FOR, REQUEST
OR  OTHERWISE  SEEK  TO  HAVE  A  JURY  TO  RESOLVE  ANY  AND  ALL  DISPUTES  THAT  MAY  ARISE  BY,  BETWEEN  OR
AMONG THEM.

    
You shall be responsible for the payment of all taxes applicable to payments or benefits received from the Employer or the Company. It is the
intent of the Employer and the Company that the provisions of this agreement and all other plans and programs sponsored by the Employer
and  the  Company  be  interpreted  to  comply  in  all  respects  with  Internal  Revenue  Code  Section  409A,  however,  the  Employer  and  the
Company shall have no liability to you, or any of your successors or beneficiaries, in the event taxes, penalties or excise taxes may ultimately
be determined to be applicable to any payment or benefit received by you or your successors or beneficiaries.

The validity, interpretation, and performance of this agreement shall be governed, interpreted, and construed in accordance with the laws of
the State of Florida without giving effect to the principles of comity or conflicts of laws thereof.

This  letter  constitutes  the  full  commitments  which  have  been  extended  to  you  and  shall  supersede  any  prior  agreements  whether  oral  or
written. However, this does not constitute a contract of employment for any period of time. Should you have any questions regarding these
commitments or your ability to conform to Company policies and procedures, please let me know immediately.

By signing this offer, you indicate your acceptance of our offer. Please keep one original copy of this offer letter for your personal files.

Congratulations!

Sincerely,

/s/ David Deno

David Deno
Chief Executive Officer
Bloomin’ Brands, Inc.

I accept the above offer of employment and I understand the terms as set forth above.

/s/ Patrick Murtha
Patrick Murtha

4/14/21
Date

    
"Cause" shall be defined as:

Schedule 1

1. Your failure to perform the material duties required of you in a manner satisfactory to the Employer, in its reasonable discretion after
the Employer follows the following procedures: (a) the Employer gives you a written notice (''Notice of Deficiency") which shall
specify the deficiencies in your performance of duties; (b) you shall have a period of thirty (30) days, commencing on receipt of the
Notice of Deficiency, in which to cure the deficiencies contained in the Notice of Deficiency; and (c) in the event you do not cure the
deficiencies  to  the  satisfaction  of  the  Employer,  in  its  reasonable discretion,  within  such  thirty  (30)  day  period  (or  if  during  such
thirty (30) day period the Employer determines that you are not making reasonable, good faith efforts to cure the deficiencies to the
reasonable satisfaction of the Employer), the Employer shall have the right to immediately terminate your employment for Cause.
The provisions of this paragraph (1) may be invoked by the Employer any number of times and cure of deficiencies contained in any
Notice of Deficiency shall not be construed as a waiver of this paragraph (1) nor prevent the Employer from issuing any subsequent
Notices of Deficiency; or

2. Any  willful  dishonesty  by  you  in  your  dealings  with  the  Company,  the  Employer  or  their  affiliates;  your  commission  of  fraud,
negligence  in  the  performance  of  your  duties;  insubordination;  willful  misconduct;  or  your  conviction  (or  plea  of  guilty  or  nolo
contendere), indictment or charge with respect to, any felony, or any other crime involving dishonesty or moral turpitude; or

3. Any material violation of the restrictive covenants of this agreement; or

4. Any material violation of any current or future material published policy of the Employer or its Affiliates (material published policies
include,  but  are  not  limited  to,  the  Employer's  Employment  Non-Discrimination  and  Harassment  Policy,  Confidential  Information
Policy,  Disclosure  and  Communications  Policy,  Social  Media  Policy,  Responsible  Alcohol  Policy,  Insider  Trading  Policy,  Stock
Ownership Guidelines Policy, Code of Conduct and Information Technology Security Policy); or

5. For  all  purposes  of  this  Agreement,  termination  for  Cause  shall  be  deemed  to  have  occurred  in  the  event  of  the  Employee's

resignation when, because of existing facts and circumstances, subsequent termination for Cause can be reasonably foreseen.

    
Exhibit 10.48

SECOND AMENDMENT TO
AMENDED AND RESTATED OFFICER EMPLOYMENT AGREEMENT

This Second Amendment to the Amended and Restated Officer Employment Agreement (the “Second Amendment”) is
made and entered into effective February 21, 2022 (the “Effective Date”), by and between Bloomin’ Brands, Inc., a Delaware
corporation (the “Company”) and David J. Deno (the “Executive”).

WHEREAS, the Company and the Executive are parties to the Amended and Restated Officer Employment Agreement
dated April 1, 2019, as amended by the First Amendment to Amended and Restated Officer Employment Agreement effective
April 6, 2020 (the “Employment Agreement”);

WHEREAS,  the  Compensation  Committee  (the  “Committee”)  of  the  Board  of  Directors  of  the  Company  reviews  the
Executive’s  compensation  arrangements  annually  based  on  an  analysis  conducted  by  Frederic  W.  Cook  &  Co.,  Inc.,  the
Committee’s independent compensation consultant (“FWC”);

WHEREAS, FWC’s analysis and benchmarking data, presented to the Committee on February 7, 2022, indicated that the

Executive’s total target compensation level was below the 25  percentile of the Company’s peer group benchmark;

th

WHEREAS,  as  a  result  of  FWC’s  analysis  and  benchmarking  data,  and  after  discussion  and  consideration  by  the
Committee,  the  Committee  approved  an  increase  to  the  Executive’s  base  salary  and  annual  long-term  incentive  target  as
described herein; and

WHEREAS,  the  Company  wishes  to  implement  the  market  adjustment  approved  by  the  Committee,  the  Executive
wishes  to  accept  the  market  adjustment,  and  the  parties  mutually  desire  to  enter  into  this  Second  Amendment  to  reflect  the
parties’ agreement with respect to the market adjustment.

NOW,  THEREFORE,  in  consideration  of  the  foregoing  premises  and  the  mutual  promises,  terms,  provision  and
condition set forth in this Second Amendment, the parties hereby agree that the Employment Agreement is hereby amended, as of
the Effective Date, as follows:

1.

Section 5(a) of the Employment Agreement is hereby amended and restated in its entirety to read as follows:

“a.    Base Salary. During the Term of Employment, the Executive shall be entitled to an annual base salary equal to One
Million Dollars ($1,000,000), payable in biweekly installments by the Company, subject to annual review for increase, but not
decrease, in the discretion of the Board or the Compensation Committee of the Board (the “Compensation Committee”).”

2.

Section 5(c) of the Employment Agreement is hereby amended and restated in its entirety to read as follows:

“c.    Equity-Based Compensation. With respect to each calendar year during the term of this Agreement beginning in
2022, subject to the Executive’s continuous employment through the date of grant, at or about the time that the Company makes
annual grants generally to its senior officers, the Company shall award the Executive a long-term incentive award under its 2020
Omnibus Incentive Compensation Plan (or successor plan, the “Plan”) and the award agreements thereunder having a target fair
market value at the time of grant of 4.35 times base salary in accordance with applicable guidelines established by the Board or
the Compensation Committee from time to time, in the sole discretion of, and in a form and amount determined by, the Board or
the  Compensation  Committee.  All  equity  awards  shall  be  subject  to  the  receipt  of  any  required  stockholder,  Board  or
Compensation Committee approvals, the terms of the Company’s equity incentive plan as then in effect and the award agreement
evidencing such award, and the attainment and Compensation Committee certification of any applicable performance goals.”

3.

Effect of Amendment.  The  amendments  set  forth  in  this  Second  Amendment  shall  become  effective  as  of  the
Effective Date, and any direct or indirect modification to the Executive’s base salary or annual bonus shall be on a pro-rated basis
for fiscal year 2022 based on the Effective Date. Except as expressly amended by this Second Amendment, all other terms and
conditions of the Employment Agreement shall remain unmodified and in full force and effect.

4.

Governing  Law.  The  validity,  interpretation  and  performance  of  this  Second  Amendment  shall  be  governed,
interpreted, and construed in accordance with the laws of the State of Florida without giving effect to the principles of comity or
conflicts of laws thereof.

5.

Entire Agreement; Counterparts. This Second Amendment constitutes the entire agreement between the parties
hereto  concerning  the  subject  matter  hereof,  and  supersedes  all  prior  memoranda,  correspondence,  conversations,  negotiations
and  agreements,  whether  written  or  oral,  with  respect  thereto.  This  Second  Amendment  may  be  executed  in  several  identical
counterparts  that  together  shall  constitute  but  one  and  the  same  Second  Amendment.  Signatures  of  the  parties  transmitted  by
facsimile,  PDF  transmission  or  other  electronic  means  shall  be  deemed  to  be  their  original  signatures  for  all  legal  and  other
purposes.

[Signature Page Follows]

IN WITNESS WHEREOF, the undersigned have executed this Second Amendment as of the date first written above.

COMPANY

BLOOMIN’ BRANDS, INC.

By:

/s/ Kelly Lefferts
Kelly Lefferts
Chief Legal Officer

EXECUTIVE

 /s/ David J. Deno
David J. Deno

[Signature Page to Second Amendment]

 /s/ Lori Miklavic
Witness Name:

Lori Miklavic

 /s/ Shannon Campbell
Witness Name:

Shannon Campbell

SUBSIDIARY NAME

Annapolis Outback, Inc.
BBI International Holdings, Inc.
BBI Ristorante Italiano, LLC
Bel Air Outback, Inc.
BFG Nebraska, Inc.
BFG New Jersey Services, Limited Partnership
BFG Oklahoma, Inc.
BFG Pennsylvania Services, Ltd
BFG/FPS of Marlton Partnership
Bloom Brands Holdings I C.V.
Bloom Brands Holdings II C.V.
Bloom Group Holdings B.V.
Bloom Group Restaurants, LLC
Bloom No.1 Limited
Bloom Participações, Ltda.
Bloomin’ Brands Gift Card Services, LLC
Bloomin’ Brands International, LLC
Bloomin Puerto Rico L.P.
Bonefish Baltimore County, LLC
Bonefish Beverages, LLC
Bonefish Brandywine, LLC
Bonefish Designated Partner, LLC
Bonefish Grill International, LLC
Bonefish Grill, LLC
Bonefish Holdings, LLC
Bonefish Kansas LLC
Bonefish of Bel Air, LLC
Bonefish of Gaithersburg, Inc.
Bonefish/Anne Arundel, LLC
Bonefish/Asheville, Limited Partnership
Bonefish/Carolinas, Limited Partnership
Bonefish/Centreville, Limited Partnership
Bonefish/Columbus-I, Limited Partnership
Bonefish/Crescent Springs, Limited Partnership
Bonefish/Fredericksburg, Limited Partnership
Bonefish/Glen Burnie, LLC
Bonefish/Greensboro, Limited Partnership
Bonefish/Hyde Park, Limited Partnership
Bonefish/Newport News, Limited Partnership
Bonefish/Richmond, Limited Partnership
Bonefish/Southern Virginia, Limited Partnership
Bonefish/Virginia, Limited Partnership
Carrabba’s Designated Partner, LLC
Carrabba’s Italian Grill of Howard County, Inc.
Carrabba’s Italian Grill of Overlea, Inc.
Carrabba’s Italian Grill, LLC
Carrabba’s Kansas LLC
Carrabba’s of Bowie, LLC
Carrabba’s of Germantown, Inc.
Carrabba’s of Ocean City, Inc.
Carrabba’s of Pasadena, Inc.
Carrabba’s of Waldorf, Inc.
Carrabba’s/Birmingham 280, Limited Partnership
Carrabba’s/DC-I, Limited Partnership

STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION

Exhibit 21.1

MD
FL
FL
MD
FL
FL
FL
FL
FL
NL
NL
NL
FL
HK
BR
FL
FL
CI
MD
TX
MD
DE
FL
FL
TX
KS
MD
MD
MD
FL
FL
FL
FL
FL
FL
MD
FL
FL
FL
FL
FL
FL
DE
MD
MD
FL
KS
MD
MD
MD
MD
MD
FL
FL

SUBSIDIARY NAME

CIGI Beverages of Texas, LLC
CIGI Florida Services, Ltd
CIGI Holdings, LLC
CIGI Oklahoma, Inc.
CIGI/BFG of East Brunswick Partnership
DoorSide, LLC
Dutch Holdings I, LLC
Fleming’s Beverages, LLC
Fleming’s International, LLC
Fleming’s of Baltimore, LLC
Fleming’s/Outback Holdings, LLC
FPS NEBRASKA, INC.
FPS Oklahoma, Inc.
Frederick Outback, Inc.
Hagerstown Outback, Inc.
New Private Restaurant Properties, LLC
OBTex Holdings, LLC
Ocean City Outback, Inc.
OS Management, Inc.
OS Niagara Falls, LLC
OS Prime, LLC
OS Realty, LLC
OS Restaurant Services, LLC
OSF Florida Services, Ltd
OSF Nebraska, Inc.
OSF New Jersey Services, Limited Partnership
OSF New York Services, Limited Partnership
OSF Oklahoma, Inc.
OSF Pennsylvania Services, Ltd
OSF Virginia Services, Limited Partnership
OSF/BFG of Deptford Partnership
OSF/BFG of Lawrenceville Partnership
OSF/CIGI of Evesham Partnership
OSI HoldCo, Inc.
OSI HoldCo I, Inc.
OSI HoldCo II, Inc.
OSI International, LLC
OSI Restaurant Partners, LLC
OSI/Fleming’s, LLC
Outback & Carrabba’s of New Mexico, Inc.
Outback Alabama, Inc.
Outback Beverages of Texas, LLC
Outback Designated Partner, LLC
Outback Kansas LLC
Outback of Aspen Hill, Inc.
Outback of Calvert County, Inc.
Outback of Conway, Inc.
Outback of Germantown, Inc.
Outback of La Plata, Inc.
Outback of Laurel, LLC
Outback of Waldorf, Inc.
Outback Philippines Development Holdings Corporation
Outback Puerto Rico Designated Partner, LLC
Outback Steakhouse International Investments, Co.

STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION

TX
FL
TX
FL
FL
FL
FL
TX
FL
MD
TX
FL
FL
MD
MD
DE
TX
MD
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
DE
DE
DE
FL
DE
DE
NM
AL
TX
DE
KS
MD
MD
AR
MD
MD
MD
MD
PI
DE
CI

SUBSIDIARY NAME

STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION

Outback Steakhouse International, L.P.
Outback Steakhouse International, LLC
Outback Steakhouse of Bowie, Inc.
Outback Steakhouse of Canton, Inc.
Outback Steakhouse of Florida, LLC
Outback Steakhouse of Howard County, Inc.
Outback Steakhouse of Jonesboro, Inc.
Outback Steakhouse of Salisbury, Inc.
Outback Steakhouse of St. Mary’s County, Inc.
Outback Steakhouse Restaurantes Brasil, S.A. (f/k/a Bloom Holdco)
Outback Steakhouse West Virginia, Inc.
Outback/Carrabba’s Partnership
Outback/Fleming’s Designated Partner, LLC
Outback/Hampton, Limited Partnership
Outback/Stone-II, Limited Partnership
Outback-Carrabba’s of Hunt Valley, Inc.
Owings Mills Incorporated
Perry Hall Outback, Inc.
Prince George’s County Outback, Inc.
Private Restaurant Master Lessee, LLC
Williamsburg Square Joint Venture
Xuanmei Food and Beverage (Shanghai) Co., Ltd.

GA
FL
MD
MD
FL
MD
AR
MD
MD
BR
WV
FL
DE
FL
FL
MD
MD
MD
MD
DE
PA
CN

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We  hereby  consent  to  the  incorporation  by  reference  in  the  Registration  Statements  on  Form  S-8  (Nos.  333-183270,  333-187035,  333-
194261, 333-202259, 333-209691, 333-210868 and 333-238805) of Bloomin’ Brands, Inc. of our report dated February 23, 2022 relating to
the financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Tampa, Florida
February 23, 2022

Exhibit 31.1

I, David J. Deno, certify that:

CERTIFICATION

1.

2.

3.

4.

I have reviewed this Annual Report on Form 10-K of Bloomin’ Brands, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects  the  financial  condition,  results  of  operations  and  cash  flows  of  the  registrant  as  of,  and  for,  the  periods  presented  in  this
report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over  financial  reporting  to  be
designed  under  our  supervision,  to  provide  reasonable  assurance  regarding  the  reliability  of  financial  reporting  and  the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and

(d) Disclosed  in  this  report  any  change  in  the  registrant’s  internal  control  over  financial  reporting  that  occurred  during  the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial
reporting,  to  the  registrant’s  auditors  and  the  audit  committee  of  the  registrant’s  board  of  directors  (or  persons  performing  the
equivalent functions):

(a) All  significant  deficiencies  and  material  weaknesses  in  the  design  or  operation  of  internal  control  over  financial  reporting
which  are  reasonably  likely  to  adversely  affect  the  registrant’s  ability  to  record,  process,  summarize  and  report  financial
information; and

(b) Any  fraud,  whether  or  not  material,  that  involves  management  or  other  employees  who  have  a  significant  role  in  the

registrant’s internal control over financial reporting. 

Date: February 23, 2022

/s/ David J. Deno
David J. Deno
Chief Executive Officer
(Principal Executive Officer)

Exhibit 31.2

I, Christopher Meyer, certify that:

CERTIFICATION

1.

2.

3.

4.

I have reviewed this Annual Report on Form 10-K of Bloomin’ Brands, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects  the  financial  condition,  results  of  operations  and  cash  flows  of  the  registrant  as  of,  and  for,  the  periods  presented  in  this
report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed  such  internal  control  over  financial  reporting,  or  caused  such  internal  control  over  financial  reporting  to  be
designed  under  our  supervision,  to  provide  reasonable  assurance  regarding  the  reliability  of  financial  reporting  and  the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and

(d) Disclosed  in  this  report  any  change  in  the  registrant’s  internal  control  over  financial  reporting  that  occurred  during  the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial
reporting,  to  the  registrant’s  auditors  and  the  audit  committee  of  the  registrant’s  board  of  directors  (or  persons  performing  the
equivalent functions):

(a) All  significant  deficiencies  and  material  weaknesses  in  the  design  or  operation  of  internal  control  over  financial  reporting
which  are  reasonably  likely  to  adversely  affect  the  registrant’s  ability  to  record,  process,  summarize  and  report  financial
information; and

(b) Any  fraud,  whether  or  not  material,  that  involves  management  or  other  employees  who  have  a  significant  role  in  the

registrant’s internal control over financial reporting. 

Date: February 23, 2022

/s/ Christopher Meyer
Christopher Meyer
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Bloomin’ Brands, Inc. (the “Company”) on Form 10-K for the year ended December 26, 2021 as
filed  with  the  Securities  and  Exchange  Commission  on  the  date  hereof  (the  “Report”),  I,  David  J.  Deno,  Chief  Executive  Officer  of  the
Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the
best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of

the Company for the dates and periods covered by the Report.

Date: February 23, 2022

/s/ David J. Deno
David J. Deno
Chief Executive Officer
(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to, and will be retained by, Bloomin’ Brands, Inc. and
furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Bloomin’ Brands, Inc. (the “Company”) on Form 10-K for the year ended December 26, 2021 as
filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher Meyer, Executive Vice President and
Chief  Financial  Officer  of  the  Company,  hereby  certify,  pursuant  to  18  U.S.C.  Section  1350,  as  adopted  pursuant  to  Section  906  of  the
Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of

the Company for the dates and periods covered by the Report.

Date: February 23, 2022

/s/ Christopher Meyer
Christopher Meyer
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to, and will be retained by, Bloomin’ Brands, Inc. and
furnished to the Securities and Exchange Commission or its staff upon request.