Restaurant IPOs on tap: Bloomin' Brands, CKE set to trade this week


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Menus were enhanced to add lighter dishes and lower-priced options, and bar and happy hour offerings were expanded. Marketing focused on traffic-generating messages about food quality, value and limited-time offers. And the company amped up its emphasis on service to improve the overall dining experience.

Outback also began a remodel program, and the company expects 450 restaurants will be refreshed before the end of 2013. Carrabba’s is also on deck for a remodel initiative with a new design under development.

Preliminary results for the quarter ended June 30 indicate net income between $15.5 million and $17.5 million, compared with $14 million the same quarter last year, the company said.

Revenue for the quarter totaled $980.9 million, compared with $955.5 million a year ago. Blended domestic same-store sales rose 2.4 percent, which reflected a 2.3-percent increase at Outback.

Unit growth is also in the plans. Bloomin’ Brands expects to open 30 company-owned and five joint venture locations in 2012 — mostly locations of Bonefish Grill, which the company said it can double in unit count within five to seven years. An estimated 14 to 17 new Carrabba’s are planned over the next two years.

After the offering is completed, the company said investment funds advised by Bain Capital will continue to hold a controlling interest, and Catterton will hold about 10 percent to 11 percent of outstanding common stock.

CKE Restaurants

CKE operates or franchises 3,263 restaurants under the Carl’s Jr. and Hardee’s brands, across 42 states and in 25 foreign countries.

The quick-service operator and franchisor was a public company for 29 years before being taken private by Apollo Management LP in a $700 million deal in 2010.

At the end of the latest quarter, CKE operated 424 Carl’s Jr. restaurants and franchised another 694 units domestically and 204 units internationally. In addition, CKE operates 468 Hardee’s, and franchises another 1,227 locations in the U.S., and 237 locations in international locations.

Carl’s Jr. is found mostly in the Western United States, primarily in California, with a growing presence in Texas. Roughly half of the chain’s domestic locations are dual-branded with Green Burrito, a Mexican-themed quick-service concept offering tacos and burritos.

Hardee’s restaurants are primarily located in the Southeast and Midwest, and about half of domestic locations are dual-branded with Red Burrito, which has a menu similar to Green Burrito.

For its first quarter ended May 21, CKE reported net income of $9.5 million, compared with a loss of $2.6 million a year ago. Revenue rose 3 percent to $412 million, and blended same-store sales for company-owned locations increased 2.6 percent — the seventh consecutive quarter of positive same-store sales results for both brands combined.

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