Raw Deal? Should Outback Split From Bloomin'

(RTTNews) - Activist investor Barington Capital is urging Bloomin' Brands to spin off its smaller restaurant brands into new company and to let the Outback Steakhouse chain to operate on its own.

Barington, in a statement, has asked Bloomin' Brands to spin off its smaller brands, which includes Bonefish Grill, Carrabba's and Fleming's into a new company. Barington also has asked to leave Outback Steakhouse to operate independently, in order to improve strategic focus and operating execution at each brand.

The company has urged Bloomin' Brands to enhance the guest experience to increase revenues and improve customer loyalty and reduce excessive expenses including advertising and corporate overhead.

Barington said it is convinced that the company's intrinsic value per share is well above its current market price and believes that if Bloomin' effectively executes its recommendations, the value of the company's stock could increase to about $41 per share.

Barington also called for improved corporate governance and changes in the composition of the Board of Directors.