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Outback trims 2Q net loss to $88.1 million

TAMPA Fla. OSI Restaurant Partners, parent of the 972-unit Outback Steakhouse chain, on Friday reported a second-quarter net loss of $88.1 million as same-store sales at its four concepts fell.

The company trimmed losses in the second quarter, which ended June 30, from the same period a year ago, when it reported a net loss of $177.4 million.

Revenue for the second quarter fell 10.9 percent, to $905.8 million, from $1 billion in the same quarter last year, according to filings with the Securities and Exchange Commission, which OSI must make even as a privately held company because of debt obligations.

The company said customer traffic was up slightly in the quarter, but comparable store sales fell 22.4 percent at its high-end Fleming’s Prime Steakhouse, 10.4 percent at Outback, 8.2 percent at Bonefish Grill and 5.9 percent at Carrabba’s Italian Grill. Sales comparisons for the Roy’s concept were not filed in the SEC documents.

The company said it benefited from cost savings and reductions in the price of beef and dairy.

The company recorded a $46 million second-quarter impairment charge related to the planned sale of its Cheeseburger in Paradise concept for $2 million to an entity controlled by the president of the concept, Steve Overholt.

OSI said it is conducting a national search to replace Paul Avery, who in June left as president of Outback. Outback accounts for more than half of the company’s 1,477 stores.

Tampa-based OSI was taken private in June 2007 by an investor group that included Bain Capital Partners LLC, Catterton Partners and management.


Contact Ron Ruggless at [email protected]

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