TAMPA Fla. OSI Restaurant Partners LLC reduced its third-quarter loss by nearly a half from the same quarter last year and said that lower-priced deals at its Outback Steakhouse chain were attracting more customers.
OSI reported a loss of $20.2 million for the quarter ended Sept. 30, compared with a loss of $46.6 million in the same quarter a year ago. Latest-quarter revenue fell 11.3 percent to $841.8 million. OSI operates or franchises 1,478 restaurants under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
Systemwide quarterly same-store sales fell 11.1 percent at Outback percent, 7.5 percent at Carrabba’s, 5.8 percent at Bonefish Grill and 18 percent Fleming’s.
This summer, Outback Steakhouse introduced $9.95 meal offers, which officials said had helped drive traffic.
“Our main focus in this economy is to appropriately position the brands to be more attractive in the new-consumer mindset and to grow our share of traffic,” Dirk Montgomery, OSI’s chief financial officer, said during a conference call with investors.
OSI also has been adding chicken, beef and pork dishes to the menu at the seafood-oriented Bonefish, which it said has helped trim same-store sales declines.
At the end of the quarter, OSI owned or franchised 971 Outbacks, 233 Carrabba’s, 152 Bonefish units and 64 Flemings as well as 58 other restaurants.
OSI in September completed the sale of its 34-unit Cheeseburger in Paradise concept to Paradise Restaurant Group LLC, a company controlled by former division president Steve Overholt. OSI maintains an interest in the company. OSI also reiterated its plans to exit the Roy’s brand.
This week, Elizabeth Smith, a former president of Avon Products, assumed her post as OSI’s newest chief executive, succeeding Bill Allen, who now serves as chairman.
Contact Ron Ruggless at [email protected].
