BLMN - Outback Steakhouse's Owner Puts Itself on Sale and Shares Spike
Bloomin' Brands (NASDAQ: BLMN) -- familiar to most people under the name of its biggest restaurant brand, Outback Steakhouse -- is a restaurant company struggling with the contrary pressures of rising profits and sinking revenues. This uncertain picture has kept share value relatively low despite its seemingly successful push into delivery services and other positive indicators. Over the past few months, investors signaled through share price that they want Bloomin' to sell itself. Now, with activist investment company JANA Partners involved, there's a possibility Bloomin's sale could lead to even tastier outcomes for those investing in restaurant stocks.
Offering atmosphere and cuisine meant to evoke the Australian wilderness, Outback Steakhouse is Bloomin's biggest chain, with 726 locations in the USA, 99 in Brazil, and 70 in South Korea. Its portfolio contains four other restaurant brands, including Carrabba's Italian Grill (225 outlets), Bonefish Grill (197 outlets), Fleming's Prime Steakhouse (69 restaurants), and Aussie Grill.
Outback Steakhouse's relative success has not been mirrored in other principal chains under the Bloomin' umbrella. According to Bloomin's Q3 report, sales are dropping fast at Bonefish Grill.