Outback Steakhouse parent company narrows loss in third quarter
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OSI | Quote | Chart | News | PowerRating -- The parent company of Outback Steakhouse lost more than $20 million in its third quarter, although the Tampa-based company is encouraged by more customers walking through its doors.
OSI Restaurant Partners, which operates Outback, Carrabba's Italian Grill, Bonefish Grill and other brands, lost $20.6 million in the three months ended Sept. 30, the company said Monday. That compares with a loss of $46.6 million in the same three months of last year.
Meanwhile, sales at its restaurants fell by 11 percent over the year. OSI's revenues fell to $841.8 million in its third quarter from $948.5 million in the third quarter of last year.
Among the company's major restaurant chains, the high-end Fleming's Prime Steakhouse & Wine Bar is faring the worst this recession. Sales at company-owned Fleming's restaurants open for at least 18 months -- or comparable store sales -- fell by 18 percent compared with last year.
Comparable store sales fell by 10.7 percent at its flagship Outback brand, by 7.5 percent at Carrabba's and by 5.8 percent at Bonefish Grill.
Despite the continued financial losses, OSI's chief financial officer, Dirk Montgomery, sounded upbeat in a Monday morning conference call with bond analysts and investors. Montgomery said the company's sales are down because it has lowered its prices to make its restaurants more affordable.
For example, over the summer Outback offered three entrees for $9.95, including a much-publicized sirloin steak deal. Those offers helped to bring in customers and give Outback more share of the restaurant market, Montgomery said.
Earlier this month, OSI announced that Chief Executive Officer Bill Allen would retire from the company and be replaced by Elizabeth "Liz" Smith, a former president of Avon Products. Smith started with OSI today.
Reporter Michael Sasso can be reached at (813) 259-7865.
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