According to a regulatory filing, Starboard Value now owns 9.9% of Bloomin’s shares. “Starboard believes Bloomin’ is undervalued,” Sara Eisen, a financial news anchor at CNBC, reported, citing sources.
The Outback Steakhouse cited a market value of $2.43 billion, as of its previous week’s close.
Earlier this month, the company reported that its U.S. same-store sales climbed 0.8% in the second quarter as traffic to its restaurants declined.
Additionally, Bloomin’s sales growth has downshifted in recent quarters.
Including Outback Steakhouse, Bloomin’ also owns Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar.
At this time, it’s unclear what adjustments Starboard intends to advocate for at Bloomin’ Brands. Activist investors such as Jana Partners and Barington Capital Group have already tried to compel Bloomin’ to slash costs and spin off some of its businesses.
Starboard Value has a proven track record of successful turnarounds at restaurant companies lately. Earlier in 2014, Starboard took control of Darden Restaurants’ board and implemented a number of changes, like improving Olive Garden’s breadsticks, that helped boost the stocks and sales.
More recently, the company struck an enhancing deal with Papa John’s in 2019 as the pizza chain sought to end a feud with disgraced founder John Schnatter and revive sinking sales caused by his scandals. Earlier this year, Jeff Smith, CEO at Starboard, stepped down as chairman of Papa John’s board, while the company bought back most of the shares of investment firms.
- Published By Team Genuine Reporter