Shares of Bloomin' Brands (BLMN 1.88%) have fallen today, down by 7% as of 12:30 p.m. EDT, after the company reported preliminary first-quarter results. The restaurant chain operator also announced a proposed private offering of convertible notes.
Preliminary comparable-restaurant sales in the first quarter at Outback Steakhouse, Bloomin's largest chain, fell 9.5%. Carabba's saw comps decline 8.7%, Bonefish Grill comps dropped 13.9%, and Fleming's comps fell 13.2%. Comps at most of the chains have continued to show steady improvement each week since the quarter ended. Adjusted earnings per share are expected to be $0.14, which is shy of the $0.20 per share in adjusted profits that analysts are expecting.
The restaurant company has also amended a credit agreement to waive compliance of the net leverage ratio covenant for the rest of the fiscal year.
Bloomin' noted that it had $270 million in cash on hand as of yesterday, and the company has reduced its weekly cash burn rate to $6 million to $8 million as off-premises sales recover. Bloomin' was previously burning $8 million to $10 million in cash per week. Dining rooms are slowly starting to reopen across the country as various states start easing lockdown restrictions prompted by the COVID-19 pandemic.
The company also said it was looking to raise $200 million in convertible senior notes due 2025 through a private offering to qualified institutional investors. Terms of those notes have not yet been finalized.
"Once we have successfully navigated the ongoing crisis, we believe that we will be well positioned to build on our early 2020 success and emerge a stronger company," CEO David Deno said in a statement.