Casual dining takes another hit as Bloomin Brands, the parent company of Outback Steakhouse has announced the closing of 43 restaurants according to this CBS report.
After a decline in sales, Bloomin’ brands – parent company of Outback Steakhouse – announced Friday they will be closing 43 restaurants.
Reported earnings show a loss of $4.3 million late last year. In 2015, the company brought in a net income of $17.7 million. The dining industry has been facing some financial challenges, because more customers are opting for takeout and delivery options.
According to Bloomin Brands press release:
“Although 2016 was a challenging year for both Bloomin’ Brands and the industry, we made real progress on our strategy to reallocate spending away from discounting toward investments to strengthen brand health, ” said Liz Smith, CEO. “We are pleased with how our brands are performing so far in 2017, particularly at Outback where we believe our investments are beginning to gain traction.”
On February 15, 2017, we decided to close 43 underperforming restaurants. In connection with these closures, we recognized pre-tax asset impairments of $46.5 million during Q4 2016, which includes three restaurants that closed in the fourth quarter. We expect to incur charges between $16 million to $19 million in fiscal year 2017 with the majority of these expenses occurring in the first quarter.