1. Bloomin' Brands closed 21 Outback restaurants to cut costs. 2. Company plans 22 additional closures as leases expire over next four years. 3. Stock price dropped over 40% this year due to shrinking margins. 4. Outback has positive same-store sales growth, but rivals outperform. 5. Dividends suspended to focus on debt payment and service improvement.
The significant stock price drop over 40% indicates eroded investor confidence. Historical patterns show drastic closures often lead to negative stock sentiment as seen with other chains undergoing retrenchment.
The article provides direct insights into BLMN's operational shifts and financial health, which are crucial for investor decisions.
The focus on turnarounds may take time to bear fruit. Acknowledging the delayed effects of strategic changes, as proven with other restaurant refurbishments.