BLMN - Bloomin' Brands gains amid activist speculation after 13F filing

2023-08-15 11:24:51 ET

Bloomin' Brands ( NASDAQ: BLMN ) rose 3.3% amid speculation of potential activist involvement after a 13F filing.

Morgan Stanley was a big buyer of Bloomin' Brands in Q2 and ended the quarter as one of the top 5 biggest holders of the owner of Outback Steakhouse, Gordon Haskett's Don Bilson highlighted in a note on Tuesday.

The purchase is noteworthy because prime brokerages sometimes act as counterparties for activist swap positions. The Morgan Stanley buy is also interesting after Jeff Smith of activist fund Starboard told CNBC last month that he sees opportunities in the restaurant space. Starboard has used Morgan Stanley in the past for options/swaps, according to Bilson.

"There are interesting opportunities, and we'll see," Smith told the business network last month. "It depends whether things come into our strike zone."

Starboard has previously been involved in a proxy fight with Darden Restaurants ( DRI ), which owns the Olive Garden chain, where the activist replaced the company's entire board. The fund has previously run an activist campaign with pizza chain Papa John's ( PZZA ).

Bloomin' Brands ( BLMN ) short interest is 13%.

More on Bloomin' Brands

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• Bloomin' Brands: Valuation Is Attractive At 8x Forward Earnings
• Bloomin' Brands falls with Brazil taxes ahead

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