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Why does the Outback owner want to leave Brazil and who could replace her?

Why does the Outback owner want to leave Brazil and who could replace her?

Operator Remote areas In Brazil, American company Bloomin’ Brands announced this week that it is evaluating the “potential sale” of its business in the country. When releasing this year’s first-quarter results, the company said it was “exploring and evaluating strategic alternatives” for operations of its largest business outside the United States.

The company’s global operations recorded a net loss of US$83.8 million (equivalent to R$425 million) in the first quarter, reflecting a profit of US$91.3 million compared to the previous year. Total revenues, in turn, amounted to 1.2 billion US dollars (or 6 billion Brazilian reals) – a decrease of 4% during this period.

Among the reasons for the decline, the company attributed the impact of value-added tax exemptions in Brazil in 2023. The Brazilian operation of the brand, which arrived in the country in 1997, represents 83% of global revenues, according to the Washington Post. “- The appropriate weight for group performance.

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Remote areas. Credit: Disclosure

In Brazil, outback comparable sales declined slightly by 0.7% in the first quarter, compared to the same period a year earlier. The company has 159 restaurants in remote areas of the country – four of which will open in 2023. Even the opening of new units did not guarantee higher revenues last year. The chain also operates 37 Abbraccio and Aussie Grill restaurants in the country.

BBI: Exit may lead to mergers and acquisitions

Bradesco BBI estimates that the potential departure of controlling shareholders could lead to new mergers and acquisitions in the Brazilian restaurant sector. The bank sees two potential buyers for the Australian network.

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“Alsea has exposure to quick service restaurants and restaurant brands in Mexico, with synergies in logistics and purchasing, and Zamp, the owner of Burger King in Brazil, can also see potential synergies in this sector,” BBI says. “At this time, we see no indication from Zamp management to pursue mergers and acquisitions in other restaurant sectors.”

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In March, Bloomberg reported that Mubadala Capital was targeting global food franchises struggling to turn a profit in Brazil. The company, part of Abu Dhabi’s sovereign wealth fund, recently took control of Zamp.

Bloomin is one of the largest networks Informal dinner In restaurants around the world, with 1,450 units in 13 countries, some of which are franchises. In addition to Outback Steakhouse, he also operates Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.

According to the group, there is still no specific timetable for completing the potential sale of the Outback in Brazil. According to Valor Economico newspaper, the group is considering leaving the country in 2022.