Bloomin' Brands, Inc.BLMN

Bloomin' Brands, Inc. Leases Disclosure

10-KFiled Feb 25, 20263 min read
Leases
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)CONSOLIDATED BALANCE SHEETS CLASSIFICATIONDECEMBER 28, 2025DECEMBER 29, 2024
Operating lease right-of-use assetsOperating lease right-of-use assets$979,270 $1,012,857 
Finance lease right-of-use assets (1)Property, fixtures and equipment, net9,296 10,058 
Total lease assets, net$988,566 $1,022,915 
Current operating lease liabilitiesCurrent operating lease liabilities$176,268 $158,806 
Current finance lease liabilitiesAccrued and other current liabilities3,389 2,618 
Non-current operating lease liabilitiesNon-current operating lease liabilities1,046,380 1,088,518 
Non-current finance lease liabilitiesOther long-term liabilities, net7,890 8,359 
Total lease liabilities$1,233,927 $1,258,301 
________________
(1)Net of accumulated amortization of $5.4 million and $4.0 million as December 28, 2025 and December 29, 2024, respectively.
Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods indicated:
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) CLASSIFICATIONFISCAL YEAR
(dollars in thousands)202520242023
Operating lease cost (1)Other restaurant operating$169,867 $169,661 $171,248 
Variable lease costOther restaurant operating4,437 3,878 2,930 
Finance lease costs:
Amortization of leased assetsDepreciation and amortization2,872 2,032 1,975 
Interest on lease liabilitiesInterest expense, net976 710 667 
Sublease revenueFranchise and other revenues(6,764)(7,060)(7,614)
Lease costs, net$171,388 $169,221 $169,206 
________________
(1)Excludes rent expense for office facilities and closed or subleased properties of $13.4 million, $14.3 million and $12.1 million for 2025, 2024 and 2023, respectively, which is included in General and administrative expense.

As of December 28, 2025, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands)OPERATING LEASESFINANCE LEASES
SUBLEASE REVENUES
2026 (1)$182,917 $3,498 $(5,248)
2027179,718 3,184 (5,661)
2028172,905 2,348 (5,717)
2029166,933 2,258 (5,594)
2030159,641 568 (5,352)
Thereafter1,245,593 1,467 (24,088)
Total minimum lease payments (receipts) (2)2,107,707 13,323 $(51,660)
Less: Interest(885,059)(2,044)
Present value of future lease payments$1,222,648 $11,279 
____________________
(1)Net of prepaid rent of $3.4 million.
(2)Includes $945.6 million related to lease renewal options that are reasonably certain of exercise and excludes $38.1 million of signed 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:
FINANCE LEASESOPERATING LEASES
DECEMBER 28, 2025DECEMBER 29, 2024DECEMBER 28, 2025DECEMBER 29, 2024
Weighted average remaining lease term (1):4.6 years9.1 years13.2 years13.4 years
Weighted average discount rate (2):7.25 %7.70 %8.16 %8.22 %
____________________
(1)Includes lease renewal options that are reasonably certain of exercise. For finance leases, the decrease is primarily due to store closures during 2025.
(2)Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement.
The following table is a summary of cash flow impacts from the Company’s Consolidated Financial Statements related to its leases for the periods indicated:
FISCAL YEAR
(dollars in thousands)202520242023
Cash flows from operating activities:
Cash paid for amounts included in the measurement of operating lease liabilities$183,358 $184,969 $185,861 
Leased assets obtained in exchange for new operating lease liabilities$57,211 $91,305 $74,539 
Leased assets obtained in exchange for new finance lease liabilities$3,386 $4,038 $6,480 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 24, 2021
2019Feb 26, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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