Outback Steakhouse owner's stock rises after activist Starboard Value buys stake

Shares of Outback Steakhouse proprietor Bloomin' Brands roseate 9% successful premarket trading Friday aft an activistic capitalist disclosed its involvement successful the edifice company.

Starboard Value present owns 9.9% of Bloomin's shares, according a regulatory filing.

In caller quarters, Bloomin's income maturation has slowed. Earlier successful August, the institution reported that its U.S. same-store income grew conscionable 0.8% successful the 2nd 4th arsenic postulation to its restaurants shrank.

In summation to Outback, Bloomin' besides owns Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse and Wine Bar.

Going into Friday, Bloomin' shares person risen 27% this year, giving the institution a marketplace worth of much than $2.2 billion.

It's unclear what changes Starboard plans to propulsion for astatine Bloomin' Brands astatine this point. Past activists investors targeting the company, including Jana Partners and Barington Capital Group, person tried to unit Bloomin' to chopped costs and rotation disconnected immoderate of its brands.

Starboard Value has a proven way grounds of palmy turnarounds astatine edifice companies. In 2014, Starboard took power of Darden Restaurants' committee and implemented a fig of changes, similar improving Olive Garden's breadsticks, that helped boost income and the stock.

More recently, the steadfast struck a deal with Papa John's successful 2019 arsenic the pizza concatenation sought to extremity a feud with disgraced laminitis John Schnatter and revive sinking income caused by his scandals. Earlier this year, Starboard CEO Jeff Smith stepped down arsenic president from Papa John's board, and the institution bought backmost astir of the concern firm's shares.