In April 2013, the Company decided to accelerate its restaurant relocation plan primarily related to the Outback Steakhouse brand. This decision was based on meaningful sales increases experienced at test locations that were relocated in 2012. This will be a multi-year program with approximately 10 to 20 restaurants targeted for relocation in 2013. We expect that some of these restaurants will not be completed until 2014 and that the additional expenses would be in the range of approximately $4.0 million to $8.0 million in the current year.Fiscal 2013 Financial Outlook The Company is updating the following expectations for the full-year 2013:
- Comparable restaurant sales growth of at least 2.0% with positive traffic.
- Adjusted net income attributable to Bloomin' Brands, Inc. from at least $136.0 million to at least $141.0 million and GAAP net income attributable to Bloomin' Brands, Inc. from at least $136.0 million to at least $165.0 million. The GAAP net income attributable to Bloomin' Brands, Inc. assumes the potential release of the valuation allowance on deferred tax assets of at least $40.0 million during 2013 and a $14.0 million to $17.0 million charge associated with the repricing of the Company's senior secured term loan B facility.
- Based on the revised expectations for Adjusted and GAAP net income attributable to Bloomin' Brands, Inc., Adjusted diluted earnings per share from at least $1.06 to at least $1.10 and GAAP diluted earnings per share from at least $1.06 to at least $1.28.
- Incorporated in the increase in full-year Adjusted diluted earnings per share guidance of at least $1.10 is a second quarter estimate for Adjusted diluted earnings per share of at least $0.21.
- For the full-year 2013, the adjusted effective income tax rate is expected to range from 20.0% to 22.0%. The tax rate favorability in the first quarter was due to timing that is expected to reverse in the second quarter of 2013.
- Additional expenses associated with the restaurant relocation plan would be in the range of approximately $4.0 million to $8.0 million for 2013.
- Full-year 2013 interest expense of approximately $74.0 million which is approximately $9.0 million less than previously anticipated.