Outback Steakhouse overview
Outback Steakhouse is a full-service casual restaurant primarily serving steaks. The ambiance is set up to match “Australian décor.” The menu includes a variety of steaks, appetizers, chicken, ribs, chops, seafood, and desserts. The brand also offers a menu under 600 calories.
As of fiscal 2014, there were a total of 975 Outback Steakhouse restaurant units out of the total 1,490 restaurants in the system. Out of these restaurants, 815 were in the US and 160 were at international locations.
Outback Steakhouse is the most important brand for Bloomin’ Brands (BLMN), contributing to about half—$2.7 billion—of the company’s total revenue. The brand’s average check per person in 2014 was $21, of which about 89% was for food and non-alcoholic beverages, while the remaining 11% was for alcoholic beverages.
Same-store sales, an important measure of restaurant performance, grew 3.1% from 1.6% over the last 12 months, and the company recorded a net closure of 13 restaurants during the year 2014.
Other well-known steakhouses
Outback Steakhouse competes with LongHorn Steakhouse under the umbrella of Darden Restaurants (DRI), which has an American West ambiance, as well as Texas Roadhouse (TXRH), which has “southwestern lodge décor.” Outback also competes with several other standalone steakhouse and other casual dining restaurants such as Chili’s, under the umbrella of Brinker International (EAT), and Buffalo Wild Wings (BWLD).
Darden is also part of the Consumer Discretionary Select SPDR ETF (XLY), which invests about 10% of its holdings in restaurant stocks. In the next part of this series, we’ll look at Bloomin’ Brands’ second-most-important brand.