Restaurant IPOs on tap: Bloomin' Brands, CKE set to trade this week
Two restaurant companies are scheduled to make a return to the public stock markets this week: casual-dining giant Bloomin’ Brands Inc., the parent to the Outback Steakhouse chain; and CKE Restaurants Inc., which owns the Carl’s Jr. and Hardee’s quick-service brands.
Both are formerly public companies that had been taken private in recent years by private-equity-backed leveraged buyouts. Between the two companies, more than $500 million is expected to be raised.
Tampa-based Bloomin’ Brands, formerly known as OSI Restaurant Partners Inc., aims to raise $300 million with 21 million shares listed on the Nasdaq Stock Market at between $13 and $15 per share. The stock is expected to list Wednesday under the “BLMN” ticker symbol.
CKE, based in Carpinteria, Calif., hopes to raise as much as $230 million on the New York Stock Exchange, starting Friday, with the offering of 13.3 million shares of common stock priced between $14 and $16 per share. The ticker symbol is expected to be “CK.”
The IPOs by Bloomin’ Brands and CKE follow a number of others in the restaurant space. Last month, Chuy’s Holdings Inc. and Del Frisco’s Restaurant Group made their respective debuts on the public market, and Ignite Restaurant Group went public in May.
Take a look at the details provided in Bloomin’ Brands and CKE’s offerings, according to respective filings with the U.S. Securities and Exchange Commission:
The company that owns the Outback Steakhouse chain and sister brands Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s was taken private for about $3.2 billion in mid-2007 by a group including private-equity firms Bain Capital and Catterton Partners.
Bloomin’ Brands, as the parent company was dubbed earlier this year, owns and operates 1,247 restaurants. Another 195 restaurants are operated under franchise agreements or joint venture management. The company operates across all 49 states, as well as 21 countries or territories globally.
The cornerstone of Bloomin’ Brands’ is Outback Steakhouse, which totals 967 locations worldwide, including 780 company-owned units. The chain is known as an affordable steakhouse with a relaxed, Australian, “throw-a-shrimp-on-the-barbie” décor. The chain’s average check totaled about $20 in 2011, and the concept accounted for about 15 percent of Bloomin’ Brands’ systemwide sales in 2011.
Italian-themed Carrabba’s, with 230 company-owned and one franchise location, has an average check of about $21. The upscale-casual seafood concept Bonefish Grill, with 151 company-owned and seven franchised restaurants, has an average check of $23; and the premium steakhouse Fleming’s, with 64 company-owned locations, has an average check of about $68. The company owns the 22 Pacific Rim-themed Roy’s restaurants as a 50-percent joint venture.
In 2010, Bloomin’ Brands launched a new strategic plan and operating model that helped build sales, improve margins and build market share, the company said.