Thursday, May 24, 2018
Business

Bloomin' Brands IPO raises less money than expected but stock proves tasty

Bloomin' Brands, which operates Outback Steakhouse and other restaurant chains, raised less money than expected in its initial public offering on Wednesday but proved a tasty treat for investors.

The Tampa-based company sold 16 million shares at $11 apiece late Tuesday, raising $176 million. That was below its initial target of 21 million shares for $13 to $15 each, which would have raised about $300 million.

"It was really downsized in both size and price so it would be an easily digestible offering for individual investors,'' said Sam Hamadeh, CEO of PrivCo, a research firm that follows the privately held company.

Shares rose to a high of $13.08 in the stock's first day of trading on the Nasdaq but closed at $12.41, giving Bloomin' Brands a market value of $1.46 billion. The stock is trading under the ticker BLMN.

"I think it has done well because of the pricing being so low," Morningstar analyst James Krapfel said.

The company said it plans to use proceeds to pay down debt and for working capital and general corporate purposes. The parent of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and other chains, Bloomin' operates more than 1,400 restaurants in 48 states and 20 countries.

The company, which used to be called OSI Restaurant Partners, was public until 2007, when private equity firms Bain Capital Partners and Catterton Management Co. bought it for $41.15 a share in cash in a deal worth $3.24 billion.

The offering comes amid a rush of restaurant IPOs, and Bloomin' Brands' offerings fit right in the middle of the previous two — low-budget Mexican chain Chuy's Holdings which jumped 16 percent on its debut and is now up 47 percent, and New York's expensive steak house Del Frisco's Restaurant Group, which was flat.

Wedbush Securities restaurant analyst Nick Setyan said he sees investors more excited about fast-casual restaurant concepts, especially in this economy. The average check at Bloomin' restaurants is in the mid-teens and up, higher than many value-oriented, fast-casual chains.

"This is another example of one of these older, mature brands being passed over for more newer, exciting chain concepts,'' he said. "I think there's more appetite for restaurants that are going to grow quite a bit.''

The Bloomin' Brands IPO was the biggest market debut since Facebook's disappointing entry in May chilled the market. Other companies scheduled to go public this week include Carl's Jr. owner CKE Inc. and British soccer club Manchester United. The team is owned by the Malcolm Glazer family that controls the Tampa Bay Buccaneers.

Comments
Behind the deal: $52 million boutique hotel coming to Ybor City started with cafe con leche at La Tropicana Cafe

Behind the deal: $52 million boutique hotel coming to Ybor City started with cafe con leche at La Tropicana Cafe

TAMPA ó Joe Capitano Sr. invested in the 1400 block of E Seventh Avenue in 1985, never doubting the huge potential of the property for Ybor City.But the deal to build a $52 million boutique hotel on the site didnít start to come together until six ye...
Updated: 3 hours ago
Sprouts Farmers Market to open new store in Riverview

Sprouts Farmers Market to open new store in Riverview

RIVERVIEW ó Sprouts Farmers Market is opening a new location in Riverview, the chain announced Thursday. The new store will be located at Summerfield Crossing Shopping Center, though Sprouts did not have a specific opening date.The announcement comes...
Updated: 9 hours ago
Tampa Electric to shut down Big Bend coal unit that killed 5

Tampa Electric to shut down Big Bend coal unit that killed 5

APOLLO BEACH ó Tampa Electric Co. is taking a big step away from coal. The Tampa-based utility is spending $853 million to convert its coal-fired Unit 1 at its Big Bend Power Station to natural gas and retire coal-fired Unit 2 in 2021.Five workers di...
Updated: 9 hours ago
Hooper: More than a restaurant, Lee Roy Selmonís was a meeting place

Hooper: More than a restaurant, Lee Roy Selmonís was a meeting place

Itís where former Tampa Bay Buccaneers quarterback Doug Williams had lunch with current Bucs quarterback Jameis Winston.Itís where University of South Florida fans often gathered to watch the programís biggest road games.Itís where folks showed up in...
Updated: 11 hours ago
An Amazon Echo recorded a familyís conversation, then sent it to a random person in their contacts, report says

An Amazon Echo recorded a familyís conversation, then sent it to a random person in their contacts, report says

A family in Portland, Oregon, received a nightmarish phone call two weeks ago."Unplug your Alexa devices right now," a voice on the other line said. "Youíre being hacked."Apparently, one of Amazon.comís Alexa-powered Echo devices in their house had s...
Updated: 12 hours ago
As home sale prices rise, a lack of homes makes it tough on buyers

As home sale prices rise, a lack of homes makes it tough on buyers

Home sale prices continued to rise both nationally and statewide in April as a prolonged dearth of available homes on the market is making it tough on buyers. A total of 24,804 single-family homes changed hands across Florida last month, up 4.1 perce...
Published: 05/24/18
Brink: A 25-cent hike in the federal gas tax is a rotten idea for Florida

Brink: A 25-cent hike in the federal gas tax is a rotten idea for Florida

No matter your politics, the proposed 25-cent hike in the federal gas tax is a lousy idea.Itís regressive, burdening the poor and working class more than the rich.Federal interference with state transportation projects can raise costs, layer on regul...
Published: 05/24/18
Tutor looks to empower athletes in Wesley Chapel

Tutor looks to empower athletes in Wesley Chapel

Rashay Hudson operates a tutoring business in Wesley Chapel, and NaDorian Hudson has played basketball his entire life, including in college and the ABA. Now, the husband and wife duo are combining their areas of expertise with a new program for kids...
Published: 05/24/18
Bar builder finds solid success in Tampa

Bar builder finds solid success in Tampa

TAMPA ó Ever since he was a little boy, Chris Davenport loved to build things with Legos and erector sets. As he grew older, he spent time working with his dad, a carpenter, and then took welding classes in high school. While in college studying engi...
Published: 05/24/18
Metro Diner brings fare to South Tampa

Metro Diner brings fare to South Tampa

Metro Diner, having already established several locations across Florida, including St. Petersburg, now brings its large portion-sized comfort food options across the bay.The local diner is slated to open Tuesday (May 29) at 4011 W Kennedy Blvd and w...
Published: 05/24/18