Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, August 25, 2023

Article Excerpt

BLOOMIN’ BRANDS INC., $26.75, symbol BLMN on Nasdaq, owns and franchises more than 1,475 restaurants in 47 states and 13 countries. Its restaurant brands include Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill. The Tampa Bay, Florida-based company owns about 80% of those restaurants, with the rest franchised. On August 18, 2023, activist investor Starboard Value filed documents with the U.S. Securities and Exchange Commission stating that it had acquired 9.9% of Bloomin’ Brands. Starboard is known for replacing board members who it feels are under-contributing. For instance, in 2014, it replaced the entire board of directors of Darden Restaurants (symbol DRI on New York). Meanwhile, in 2019 struggling pizza company Papa John’s turned to Starboard to help it engineer a turnaround. The chain named Starboard CEO Jeff Smith as its chairman. Starboard now intends to push hard for changes at Bloomin’ Brands. However, so far, it hasn’t been specific about the changes it wants to see.In the three months ended June 25,…