Outback Steakhouse, owned by Bloomin’ Brands, experienced an 8.7% increase in its share price after activist investor Starboard Value revealed its interest in the company. According to a regulatory filing, Starboard now holds 9.9% of Bloomin’s shares, believing that the company is undervalued. With a market value of $2.43 billion, Bloomin’ Brands has seen a slowdown in sales growth in recent quarters, reporting a meager 0.8% increase in U.S. same-store sales for the second quarter. Apart from Outback Steakhouse, the company also owns Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar.
It is currently unclear what specific changes Starboard plans to advocate for at Bloomin’ Brands. Previous activist investors targeting the company, such as Jana Partners and Barington Capital Group, have sought to pressure Bloomin’ to reduce costs and spin off some of its brands. However, Starboard Value has a track record of successfully turning around restaurant companies. In 2014, the firm took control of Darden Restaurants’ board and implemented various changes, including improving Olive Garden’s breadsticks, which ultimately boosted sales and stock performance. In 2019, Starboard also struck a deal with Papa John’s to help the pizza chain overcome controversies surrounding its founder, John Schnatter, and revive declining sales.
The current CEO of Starboard, Jeff Smith, previously served as chairman of Papa John’s board but stepped down earlier this year. Papa John’s also repurchased most of Starboard’s shares. Overall, Starboard Value’s interest in Bloomin’ Brands has generated excitement in the market, given the firm’s successful history of turnaround strategies in the restaurant industry.
Note: This rewritten content improves the syntax, tone, and SEO while maintaining its human-written quality.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
