TAMPA Fla. OSI Restaurant Partners LLC, parent of the 970-unit Outback Steakhouse chain, said Friday it would sell a controlling interest in its Cheeseburger in Paradise brand for $2 million to the chain's president, Steve Overholt.
OSI has marketed the concept for sale for some time as part of its strategy to divest its smaller brands, including Roy’s. In November 2008, OSI sold its six-unit Lee Roy Selmon’s chain to a group that included Outback founders Chris Sullivan and Bob Basham.
Aletter of intent to sell the 36-unit Cheeseburger in Paradise chain was executed this month, according to the company's filings with the Securities and Exchange Commission.
OSI, which went private in a buyout in 2007, filed its quarterly results with the SEC on Friday because the company holds publicly traded debt.
In its latest quarterly report, OSI said it swung to a profit of $82.3 million, mainly on a gain from the extinguishment of debt. A year ago, it had posted a loss of $9.7 million. For the latest quarter ended March 31 the company's interest expense was cut by $20.8 million to $27.0 million.
OSI's revenues fell nearly 10 percent to $964.4 million. Systemwide same-store sales fell 8.6 percent at Outback Steakhouse, 7.3 percent at Carraba's Italian Grill, 10.0 percent at Bonefish Grill and 19.9 percent Fleming's Prime Steakhouse and Wine Bar.