Bloomin’ Brands Inc. is considering “strategic alternatives” including a possible sale, the company said in a release announcing its third-quarter earnings.
“The Company plans to proceed in a timely manner, but has not set a definitive timetable for completion of this process,” according to the news release. “There can be no assurance that this review will result in a transaction or other strategic alternative of any kind.”
Comparable restaurant sales were basically flat for Outback Steakhouse, the company’s largest brand. Bloomin’ also owns Carrabba’s Italian Kitchen, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. For the third quarter, net income totaled $9.2 million. Revenue was $967.1 million, up from $965.0 million for the third quarter last year.
“Over the past few years, Bloomin’ Brands has made significant progress towards its long-term objectives to elevate the customer experience, capitalize on the emerging off-premises segment, expand the rapidly growing international business, and improve operating margins. These efforts have created significant market share gains and enhanced profitability,” said David Deno, CEO of Bloomin’ Brands.
“However, despite this continued progress, we believe the current stock price does not reflect the value of the Company. That is why the time is right to explore strategic alternatives that have the potential to maximize value for our shareholders. Our Board of Directors is committed to fully evaluating appropriate strategic alternatives while simultaneously supporting the Company’s ongoing progress against our business plan.”