Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced a business update related to COVID-19 as well as recent sales results and details on cash utilization and liquidity. Should JANA Partners find a suitable buyer for Bloomin’ Brands, shares could soar higher. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. My thesis does not depend on profits growing as I explain in the valuation section of this report. Bloomin’ Brands’ current economic book value is $17/share – a 70% upside. You can see all the adjustments made to Bloomin’ Brands’ income statement here. We operate successfully with negative working capital because cash collected on Restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. The company generated positive FCF in five of the past 7 years and a cumulative $773 million (86% of market cap) in FCF over the past five years. Bloomin' Brands Inc. is showing promising signs of future growth even as the novel coronavirus pandemic rages on. During the twenty-six weeks ended June 28, 2020, we issued $230.0 million of senior convertible notes. Represents consideration paid in excess of the carrying value for the redemption of preferred stock of our Abbraccio subsidiary. Recently, there has been a significant increase in reported COVID cases in certain states, including Florida and Texas, where we have a total of 286 company-owned locations. TAMPA, Fla.--(BUSINESS WIRE)--Jul. Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced additional information resulting from the dynamic environment caused by COVID-19. Balance Sheet: I made $1.2 billion of adjustments to calculate invested capital with a net increase of $425 million. Statement Relates to severance costs incurred as a result of restructuring activities. As of June 11, 2020, the firm had $493 million of available liquidity. For comparison, Bloomin’ Brands has grown NOPAT by 14% compounded annually over the past two years and 3% compounded annually over the past five years. As coronavirus lockdowns hit the U.S. in March, Bloomin' Brands CEO David Deno called an emergency meeting for his 12-member executive team. 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 Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans. The pandemic is also encouraging a new way for consumers to enjoy the firm’s food and service. This week I’ve identified a third. Since the stock market crash in March caused by coronavirus, Bloomin' Brands's share price has had significant negative movement. Photographer: Daniel Acker/Bloomberg News. Relates to severance and other costs incurred as a result of transformational and restructuring activities. In a move the company says is unrelated to the coronavirus, the jobs will be outsourced to another firm. These days, fewer investors focus on finding quality capital allocators with shareholder friendly corporate governance. See Figure 7 for more details. Average check per person includes the impact of menu pricing changes, product mix and discounts. Our priorities remain unchanged as we continue to address these challenging times. TAMPA, Fla.--(BUSINESS WIRE)-- Bloomin’ Brands, Inc. today announced a business update related to COVID-19 as well as second quarter 2020 financial results. One of these locations was included within Company-owned Other and the remaining 10 were included in Franchised Outback Steakhouse - South Korea. See all adjustments to Bloomin’ Brands’ valuation here. Bloomin’ Brands Gets a Jolt of COVID-19 Recovery Hope. See our client testimonials. Prior to the suspension, the firm had increased its dividend in five consecutive years. I conservatively assume this capital will be used to cover operating expenses and do not treat it as excess cash. Here’s a quick summary of what noise traders are missing: The Yield Is on Hold, but Should Come Back. Statement from David Deno, Chief Executive Officer. Our priorities remain unchanged as we continue to address these challenging times. New Constructs provides unrivaled insights into the fundamentals and valuation of private & public businesses. Bloomin’ Brands’ improved capability to generate revenue in shelter-in-place conditions provides additional support for the firm’s already strong cash position. This investment management company has a history of taking similar sized stakes in companies such as PetSmart, Whole Foods, and Pinnacle Foods while actively pursuing buyers. More recently, Bloomin’ Brands has grown core earnings by 5% compounded annually since 2017, per Figure 1. 24, 2020-- Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced a business update related to COVID-19 as well as second quarter 2020 financial results. Operations, Total segment (loss) income from operations. Bloomin’ Brands Provides Update on Sales and Cash, Describes COVID-19 Effects Sales appear to be recovering gradually moving into April. Note: Numerical figures included in this release have been subject to rounding adjustments. How one fast casual is re-thinking its menu for the COVID era; Grubhub reveals top food orders of 2020; How First Watch’s Shane Schaibly is evolving and energizing the menu for 2021 ; Food Line extensions blossom from Outback’s iconic Bloomin’ Onion The chain’s signature appetizer inspired a riff on ribs and chicken. This adjustment represents 1% of Bloomin’ Brands’ market cap. 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 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. Although this is a developing situation, to this point these capacity reductions have had a minimal impact on our overall sales trends. Bloomin’ Brands has obviously felt the effects of the COVID-19 pandemic. Seeking Alpha 24d. A study in late March conducted by the National Restaurant Association found that 11% of restaurant owners and operators anticipated they would permanently close within the next 30 days. This has resulted in some local governments responding by taking additional measures, including implementing a further reduction of in-restaurant capacity in certain locations. Statement from David Deno, Chief Executive Officer. Our decision to not furlough any employees during this pandemic has allowed us to quickly prepare our restaurants to re-open dining rooms in a safe and efficient manner. As investors focus more on fundamental research, research automation technology is needed to analyze all the critical financial details in financial filings as shown in the Harvard Business School and MIT Sloan paper, "Core Earnings: New Data and Evidence”. Its last market close was $16.75, which is 28.60% down on its pre-crash value of $23.46 and 268.94% up on the lowest point reached during the March crash when the shares fell as low as $4.54. Represents income tax effect of the adjustments for the periods presented. 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