The parent company of Outback Steakhouse said this morning that it lost $11.4 million in the third quarter despite a 10 percent rise in revenues, to $1.07 billion, because of problems with overseas operations and internal changes.
Bloomin’ Brands took an $11.6 million pre-tax impairment charge to cover the closing of 34 restaurants in South Korea and the shuttering of two more stores outside of the U.S. The company said it expects to earmark as much as another $29 million against its fourth quarter and early 2015 revenues to cover the closings.
For the third quarter, Bloomin’ also recorded a pre-tax impairment charge of $6.1 million for the sale of its Roy’s high-end Asian chain; a $10.8-million charge to cover the possible sale of the company’s two private airplanes; and a $5.4 million charge for severance and other expenses related to an internal reorganization of the company’s development and supply-chain departments.
CEO Liz Smith characterized the quarter as strong one for Bloomin’s domestic operations. Comparable store sales for U.S. restaurants rose 3.3 percent year-over-year, lifted by a traffic increase of 0.6 percent. The star performer was Outback, Bloomin’s largest holding by far, which generated a 4.8-percent rise in same-store sales.
Smith noted in particular an improvement in dinner sales for the company’s brands.
In addition to Outback and Roy’s, the company operates the Carrabba’s, Bonefish Grill and Fleming’s chains.