Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TAMPA, FL-Faced with lagging sales, Outback Steakhouse executives outlined strategies yesterday during their quarterly conference call that they hope will energize its namesake chain. “We’re committed to reversing the sales trends that we have in this brand,” says Bill Allen, the company’s CEO.

During its Q3, which ended Sept. 30, year-over-year same-store sales for the 904-restaurant chain dropped 1.4%. Total sales inched up to $600 million from $585 million. Outback has been particularly weak as of late in the Midwest and Northeast executives say.

To boost the chain’s performance, the company will launch a new advertising campaign next year and has hired a new branding expert to tool with the restaurants’ image. Other initiatives executives are considering are value-priced menus and extensive renovations of existing units. “We think the strategy is going to drive traffic,” Allen says.

But besides Outback, the company’s other concepts performed well during the quarter. Same-store sales rose 6.4% at the 189 Carrabba’s Italian Grills, 13.4% at the 34 Fleming’s Prime Steakhouse and Wine Bars, 7.2% at the 82-unit Bonefish Grill chain and 9.1% at its 19 Roy’s restaurants.

For the entire company, net income during the quarter rose to $30.1 million from $27.3 million. Revenues increased 11.8%, to $872.4 million.

Outback executives plan 130 to 140 new restaurants in 2006, as well as a 1.5% to 2% same-store sales increase from this year. The new units include up to 20 to 23 domestic and 18 to 25 international Outbacks, 25 to 28 Carrabba’s, 33 to 35 Bonefish, eight to 10 Flemings and one to two Roy’s. The company also plans 18 Cheeseburger in Paradise restaurants (it now has 21), one to two Lee Roy Selmon’s units from the three it currently operates and one Paul Lee’s Chinese Kitchens, bringing its total to five.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.