Bloomin' Brands to cut $40M in costs, continues to mull sale
TAMPA, Fla. - Bloomin' Brands Inc. said it is targeting $40 million in cost cuts over the next two years and doubled its dividend, but is still considering a sale.
The parent company of Outback Steakhouse and Carrabba's Italian Grill said Tuesday it expects the cuts to be split about evenly over 2020 and 2021. In 2020, the moves should add 17 cents a share to its adjusted earnings.
For 2020, the company expects earnings in the range of $1.63 to $1.68 a share and adjusted earnings of $1.85 to $1.90 a share. Analysts polled by FactSet were expecting adjusted earnings of $1.72 a share.
The cost restructuring follows the company saying in November it was considering strategic alternatives, including a possible sale. The company said it is continuing to consider offers.
"We remain committed to evaluating all credible offers that have the potential to drive value," Chief Executive David Deno said.
The company also said that last week its board approved a 20 cent per share dividend, doubling what it paid shareholders in 2019.