Bloomin' Brands (subsidiary issuer): 5.125s still look like a prime cut; maintain Overweight

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Bloomin' Brands (subsidiary issuer): 5.125s still look like a prime cut; maintain Overweight

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Bloomin' Brands (subsidiary issuer)

5.125s still look like a prime cut; maintain

Overweight

Earnings Review

Still see bonds as cheap 29 June 2026

Despite the 5.125s having appreciated 6 points since early May, we continue to believe High Yield Credit

that they represent attractive relative value and maintain our Overweight rating. The United States

yield-to-4/15/28 (one year in advance of maturity) is 7.8%, which is 50 bps wide of the Restaurants

Single B Index. In addition, net leverage remained low at 2.2x at the end of 1Q26 and we

expect it ends the year at 2.1x. We expect solid results and net leverage being WilliamResearchM.AnalystReuter

maintained at low levels will allow spreads to tighten. BofAS

+1 646 855 6363

william.m.reuter@bofa.com

1Q results show continued stabilization Michael DeRienzo

1Q26 Adj EBITDA was flat at $106 million as revenue growth was offset by commodity Research Analyst

BofAS

inflation of 5% and labor inflation of 3%. Total revenue increased 1% to $1.06 billion. +1 646 855 7973

Comparable sales increased 1%, driven by average check +3% and traffic -2%. michael.derienzo@bofa.com

Comparable sales by concept (US): Outback flat; Carrabba’s +1%; Bonefish +6%; and

Fleming’s +1%. 1Q26 Adj EBITDA was flat year-over-year at $106 million. Based upon Bloomin' Brands Inc / OSI

debt of $766 million and cash of $71 million, net leverage was 2.2x at the end of the Restaurant (BLMN)

Key Data 1Q2025A 1Q2026A LTM

quarter.

Operating (US$ mm)

FY26 guidance affirmed; increasing our estimates Revenues 1,050 1,060 3,966

Bloomin’ affirmed its FY26 guidance that includes: (1) US comparable sales +0.5% to Adj EBITDA 106 106 316

Cash from ops 71 75 281