Bloomin’ Brands Inc launches IPO

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Deal Participants:
IPO Company: Bloomin’ Brands Inc View Profile Charts Homepage
Deal Financials:
Stock Offer Price: $11.00 per share
Number of Shares Offered:
16 million
Total Cash Raised : $176 million

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Announced/Filed: Aug 07, 2012
Launched: Aug 08, 2012


The operator of Outback Steakhouse sharply scaled back its IPO Tuesday night by more than 40%, selling fewer shares at a price below its expected range.

Bloomin' Brands Inc., which operates five casual dining chains, including Outback and Carrabba's Italian Grill, was aiming to sell 21 million shares at a price between $13 and $15. Instead, it sold 16 million shares at $11 apiece, 44% below the highest end of its range.

The stock is scheduled to trade on the Nasdaq Wednesday under the symbol BLMN.

The company also operates the Bonefish Grill, Fleming's Prime Steakhouse, and a joint venture in Roy's, which features Pacific rim cuisine. All together, Bloomin' Brands owns 1,247 restaurants and has 195 more operating under franchise or joint ventures.

Outback holds the No. 1 U.S. market position in the steak category, while Carrabba's and Bonefish Grill each holds the No. 2 spot in their respective categories--Italian and seafood--based on 2011 calendar year sales, according to Technomic Inc.

In the first quarter, restaurant sales at Bloomin' Brands rose 5.3% to $1.05 billion on higher customer traffic and menu prices, and it reported net income of $50 million, down from $55 million in the same period a year earlier. Comparable restaurant sales at its four core domestic restaurants--excluding its joint venture in Roy's--rose 5.2%.

In 2011, the company's sales rose 0.6% to $3.8 billion as its four core brands reported 4.9% same-restaurant sales growth in the U.S., and net income nearly doubled to $100 million compared to 2010.

Bloomin' Brands offering will be the third restaurant IPO in as many weeks. Budget Tex-Mex chain Chuy's Holdings Inc. (CHUY) rose 15.8% during its debut, while high-end steakhouse Del Frisco's Restaurant Group (DFRG) ended its first day flat. Chuy's has continued to rise since its debut, closing Tuesday up 47% from its IPO price, while Del Frisco's closed at $13.10, up less than 1% from its IPO price.

Also expected later this week is another restaurant offering, from CKE Inc, which operates and franchises more than 3,200 Hardee's and Carl's Jr. outlets. The company, which wants to raise $213 million on the New York Stock Exchange under the symbol "CK," is expected to trade Friday.

Deal Links:
Wall Street Journal
Banking Representation:
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IPO Co-Lead Underwriter: BoA Merrill Lynch, Morgan Stanley and J.P. Morgan
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Edit History:
Aug 08 '12
This version submitted by howmania