Two restaurant companies are scheduled to make a return to the public stock markets this week: casual-dining giant Bloomin’ Brands Inc., the parent to the Outback Steakhouse chain; and CKE Restaurants Inc., which owns the Carl’s Jr. and Hardee’s quick-service brands.
Both are formerly public companies that had been taken private in recent years by private-equity-backed leveraged buyouts. Between the two companies, more than $500 million is expected to be raised.
Tampa-based Bloomin’ Brands, formerly known as OSI Restaurant Partners Inc., aims to raise $300 million with 21 million shares listed on the Nasdaq Stock Market at between $13 and $15 per share. The stock is expected to list Wednesday under the “BLMN” ticker symbol.
CKE, based in Carpinteria, Calif., hopes to raise as much as $230 million on the New York Stock Exchange, starting Friday, with the offering of 13.3 million shares of common stock priced between $14 and $16 per share. The ticker symbol is expected to be “CK.”
The IPOs by Bloomin’ Brands and CKE follow a number of others in the restaurant space. Last month, Chuy’s Holdings Inc. and Del Frisco’s Restaurant Group made their respective debuts on the public market, and Ignite Restaurant Group went public in May.
Take a look at the details provided in Bloomin’ Brands and CKE’s offerings, according to respective filings with the U.S. Securities and Exchange Commission:
The company that owns the Outback Steakhouse chain and sister brands Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s was taken private for about $3.2 billion in mid-2007 by a group including private-equity firms Bain Capital and Catterton Partners.
Bloomin’ Brands, as the parent company was dubbed earlier this year, owns and operates 1,247 restaurants. Another 195 restaurants are operated under franchise agreements or joint venture management. The company operates across all 49 states, as well as 21 countries or territories globally.
The cornerstone of Bloomin’ Brands’ is Outback Steakhouse, which totals 967 locations worldwide, including 780 company-owned units. The chain is known as an affordable steakhouse with a relaxed, Australian, “throw-a-shrimp-on-the-barbie” décor. The chain’s average check totaled about $20 in 2011, and the concept accounted for about 50 percent of Bloomin’ Brands’ systemwide sales in 2011.
Italian-themed Carrabba’s, with 230 company-owned and one franchise location, has an average check of about $21. The upscale-casual seafood concept Bonefish Grill, with 151 company-owned and seven franchised restaurants, has an average check of $23; and the premium steakhouse Fleming’s, with 64 company-owned locations, has an average check of about $68. The company owns the 22 Pacific Rim-themed Roy’s restaurants as a 50-percent joint venture.
In 2010, Bloomin’ Brands launched a new strategic plan and operating model that helped build sales, improve margins and build market share, the company said.
Continued from page 1
Menus were enhanced to add lighter dishes and lower-priced options, and bar and happy hour offerings were expanded. Marketing focused on traffic-generating messages about food quality, value and limited-time offers. And the company amped up its emphasis on service to improve the overall dining experience.
Outback also began a remodel program, and the company expects 450 restaurants will be refreshed before the end of 2013. Carrabba’s is also on deck for a remodel initiative with a new design under development.
Preliminary results for the quarter ended June 30 indicate net income between $15.5 million and $17.5 million, compared with $14 million the same quarter last year, the company said.
Revenue for the quarter totaled $980.9 million, compared with $955.5 million a year ago. Blended domestic same-store sales rose 2.4 percent, which reflected a 2.3-percent increase at Outback.
Unit growth is also in the plans. Bloomin’ Brands expects to open 30 company-owned and five joint venture locations in 2012 — mostly locations of Bonefish Grill, which the company said it can double in unit count within five to seven years. An estimated 14 to 17 new Carrabba’s are planned over the next two years.
After the offering is completed, the company said investment funds advised by Bain Capital will continue to hold a controlling interest, and Catterton will hold about 10 percent to 11 percent of outstanding common stock.
CKE operates or franchises 3,263 restaurants under the Carl’s Jr. and Hardee’s brands, across 42 states and in 25 foreign countries.
The quick-service operator and franchisor was a public company for 29 years before being taken private by Apollo Management LP in a $700 million deal in 2010.
At the end of the latest quarter, CKE operated 424 Carl’s Jr. restaurants and franchised another 694 units domestically and 204 units internationally. In addition, CKE operates 468 Hardee’s, and franchises another 1,227 locations in the U.S., and 237 locations in international locations.
Carl’s Jr. is found mostly in the Western United States, primarily in California, with a growing presence in Texas. Roughly half of the chain’s domestic locations are dual-branded with Green Burrito, a Mexican-themed quick-service concept offering tacos and burritos.
Hardee’s restaurants are primarily located in the Southeast and Midwest, and about half of domestic locations are dual-branded with Red Burrito, which has a menu similar to Green Burrito.
For its first quarter ended May 21, CKE reported net income of $9.5 million, compared with a loss of $2.6 million a year ago. Revenue rose 3 percent to $412 million, and blended same-store sales for company-owned locations increased 2.6 percent — the seventh consecutive quarter of positive same-store sales results for both brands combined.
Editor's note: Outback Steakhouse accounted for about 50 percent of Bloomin’ Brands' revenues in 2011, not 15 percent, as stated in an earlier version of this story.