Bloomin’ Brands International
Bloomin’ Brands International segment contributed about 13% to the company’s revenue in 2014. This total includes revenues from all company-owned and franchise restaurants outside the US.
In the chart above, you can see that there were a total of 167 company-owned restaurants and 55 franchised restaurants for Bloomin’ Brands in 2014.
With a company-owned restaurant, the company takes ownership of the restaurant location’s operation. The company uses its own financial resources to get the location ready for business, which includes purchasing or leasing the land or building, hiring the staff, and purchasing kitchen equipment, furniture, signs, inventory, and restaurant supplies. This means the company takes on the risk of litigation—a risk that companies under the franchise model may not have to face.
Access to the full company’s resources
The company has local management in countries with company-owned restaurants in order to grow and support Bloomin’ Brands (BLMN) presence. According to the company’s filings, these restaurants still enjoy “enterprise-wide capabilities, including marketing, finance, real estate, information technology, legal, supply chain management and productivity.”
Interestingly, now serving as the executive vice president of Bloomin’ Brands International, Patrick Murtha served as the chief operating officer at Pizza Hut, under Yum! Brands (YUM). between 2006 and 2013. Yum! Brands has a significant presence internationally.
Several companies—such as McDonald’s (MCD), Wendy’s (WEN), and the restaurant stocks included in the Consumer Discretionary Select SPDR ETF (XLY)—are looking outside the United States to expand their revenues.
In the next part of this series, we’ll look at how Bloomin’ Brands’ revenue has performed over the years.