BLMN - Bloomin' Brands: Starboard's Involvement Signals Potential For Increased Shareholder Value

2024-01-23 11:57:29 ET

Summary

• Bloomin’ Brands looks undervalued compared to its, likely, two closest peers.
• Starboard Value’s very large stake in the company shows it sees a real opportunity there.
• The recently announced Cooperation Agreement kickstarts Starboard’s involvement in the company’s management and has great potential to increase shareholder's value.

Although on January 2, 2024, the company entered into a Cooperation Agreement with Starboard Value (“Starboard”), which I see as a very positive development, as of the close of trading on January 22, 2024, shares of Bloomin’ Brands ( BLMN ) are down 6.5% this year. Last year, on Friday, August 18, Bloomin’ Brands stock jumped 8.7% following a report that Starboard accumulated 9.9% of the company’s shares. Being undervalued to start with, and now having Starboard stepping in and becoming part of management, I see a fantastic opportunity for a significant boost to shareholder value in the medium-term....

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