In the United States, only 157 of the company's 1,157 restaurants are franchised. Selling these restaurants at a 10x EBITDA multiple could garner an additional $750 million, or they could franchise them for less money but an ongoing royalty. These are all company-owned with a strong management team and are among the most popular restaurants in the country with 2- to 3-hour wait times. But a better opportunity might be their hidden gem in the 150 Outback restaurants in Brazil. At similar EBITDA multiples, Fleming's could go for $500 million. There has been a lot of M&A in the high-end steakhouse space: Ruth's Chris was recently acquired by Darden for 10x EBITDA Del Frisco's was acquired for 11-12x EBITDA and Fogo De Chao was bought in a private transaction for a reported $1.1 billion. Bloomin' would get more value in selling some of its undervalued assets, such as Fleming's, its upscale steakhouse business. There are also very compelling strategic opportunities to create shareholder value. Getting Starboard involved with fresh eyes on the board would also go a long way toward restoring management's lost credibility in the market. If there is anyone with the experience to do this, it is Starboard's Jeff Smith, who led significant shareholder value creation at both Darden and Papa John's. This can largely be accomplished by restoring Outback to its former family-friendly steakhouse glory and shifting away from the more complex and competitive 'bar and grill' model. The primary opportunity here is to improve operations, mainly from a top line level but also by cutting costs. This has driven away many of their original, longstanding customers, in comparison to LongHorn Steakhouse and Texas Roadhouse, which have stayed true to what they are. Not only is that much more operationally complex, but it has them operating in the lower price and more competitive bar and grill space. Traditionally, Outback had been a family-friendly steakhouse, but recently the company has tried to pivot to a 'bar and grill' model with bigger menus and more affordable items – trying to become all things to all people. Personal Loans for 670 Credit Score or Lowerĭespite having great brands, Bloomin' has lost the confidence of the market and fallen behind on various operational metrics, but its main problem is lagging same store sales and issues generating traffic due to somewhat of an identity crisis in how it operates the Outback restaurants. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

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