Earlier this week, Bloomin’ released an announcement. It reported its fourth quarter earnings report. And also the fact that it will be closing down over 40 restaurants.
Bloomin’ Brands, Inc., also known as just Bloomin’, is a hospitality industry company. It is based in Tampa, Florida and was established in 1987. Bloomin’ operates and owns several casual dining restaurant chains.
As of 2015, it is in charge of four such chains. These are as follows. Bonefish Grill and Carrabba’s Italian Grill. And also Outback Steakhouse and Fleming’s Prime Steakhouse & Wine Bar.
On February 17, Bloomin’ released its fourth quarter earnings call. Which reported a loss when compared to the same period, in 2015. The company also announced that it will be closing down over 40 restaurants.
Bloomin’ offered details on both the announcements. As such, it stated that the over 40 restaurants are underperformers. And it also revealed its full Q4 report.
The company registered a loss of around $4.3 million in 2016’s Q4. In 2015’s fourth quarter, the company reported a net income of $17.7 million.
According to the report, the company marked an overall decrease in Q4 2016 when compared to the same fiscal period in 2015. As such, this same trend was detected in their overall profit. For fiscal 2016, Bloomin’ reported a $41.7 million such value. In fiscal 2015, the company reached a $123.7 million overall profit.
Market reports did offer a potential explanation for this marked drop. The casual dining industry as a whole has been facing challenges. Over these past few years, it has been competing with delivery and takeout options. Grocers too have started having a more marked presence in the area.
Following its quarter reports, Bloomin’ also presented its decision to close down these more than 40 restaurants. To be more exact, it will be shuttering 43 stores in 2017. They were chosen due to their underperforming results.
Reportedly, three such stores have already been closed. They were shuttered down sometime during 2016’s fourth fiscal quarter. It remains to be seen when the remaining stores will be closed down. For the moment, Bloomin’ has yet to reveal their exact locations.
According to reports, some of the closures may target a Minneapolis-based Bonefish Grill. And also a Charlotte, North Carolina-based Carrabba’s Italian Grill.
Overall, Bloomin’ United States-based same-store sales saw a 3.5 percent decline. This was the valued registered for 2016’s fourth quarter.
Outback Steakhouse restaurants registered the biggest decline. Their same-store sales fell by 4.8 percent. Carrabba’s Italian Grill was next with a 2.3 percent drop. Bonefish Grill same-store sales decreased by 1.9 percent.
In contrast, Fleming’s Prime Steakhouse and Wine Bar same-store sales saw an increase. The slight rise was registered to be of about 0.2 percent.
On the international plane, Outback Steakhouse reported better reports. Its Brazil-based same-store sales number increased by 6.1 percent.
For fiscal 2016, Bloomin’ same-store sales across all its brands fell by 6.1 percent. In contrast, in Brazil, for fiscal 2016, they rose by 6.7 percent.
Although Bloomin’ will be closing down over 40 of its US-based restaurants, it will also be opening up some new locations. In fiscal 2017, the company is planning on opening 40 restaurants systemwide. Or even 50.
As with the restaurants that are about to be closed, Bloomin’ also has yet to reveal their exact locations.
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