New York
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Outback Steakhouse abruptly closed 21 restaurants in October because it begins a “comprehensive turnaround strategy” to maintain up with its trendier competitors.
Bloomin’ Brands, Outback’s dad or mum firm, disclosed in its earnings report Thursday that along with these closures, a further 22 places won’t have their leases renewed and can shutter over the subsequent 4 years.
Outback has 670 US places remaining, in accordance with its web site. That’s roughly 10% fewer than a decade in the past, when it had about 750 locations.
Bloomin’ Brands additionally introduced that it’s going to take a $33 million impairment cost for the closures and suspended its shareholder dividend to assist pay for the turnaround plan.
Part of that initiative contains “service enhancements to deliver an exceptional guest experience,” reviving the 37-year-old model to herald extra repeat clients, and increasing restaurant remodels, in accordance with a press launch.
(*21*) mentioned Bloomin’ Brands CEO Mike Spanos.
Outback has been struggling for the previous two years and hasn’t posted same-store gross sales till this quarter, when gross sales rose a meager 0.4%.
Meanwhile, Darden-owned LongHorn Steakhouse posted a 5.5% rise and Texas Roadhouse generate a 5.8% leap in gross sales of their most up-to-date earnings stories.
Diners have gotten choosier with their {dollars} when going out, and should not spending cash at chains that they don’t understand nearly as good worth. That’s helped Outback’s rivals, which serve heaping parts; and different chains, like Chili’s and Applebee’s which are focused on value and deals.
Bloomin’ Brands (BLMN) inventory rose greater than 3% in premarket buying and selling.