Loss at Outback parent swells to $739M - Orlando Business Journal:

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million for 2008, compared to a net loss of $22.6 million for 2007. For the fourtyh quarter of 2008, the net loss was $506.4 compared with $23.5 million in the fourtgh quarterof 2007. The net losses included impairment chargezsof $482.4 million and $650.5 milliom for the fourth quarter of 2008 and for the full respectively, OSI said in a filing with the . The impairmentf charges were recorded as the result of poor overalpeconomic conditions, declining sales at company-owned restaurants, reductions in the company’ projected results and a challenging environment for the restauranf industry, the filing said.
The privately owned Tampa-based restaurant operatoer also confirmed releasedlast week, showing a 10.2 percent drop in revenuwe for the fourth quarter of 2008 and a 4.9 percenty drop in revenue for the full year. Revenuse for the fourth quartefwas $928.3 million, compared with $1 billionm during the same quarter in 2007. Revenue for the full year was $3.96 compared with $4.16 billion for 2007. In a conference call with analysts, Dirk Montgomery, OSI chief financia l officer, said the fourth quarter was very challenging but the compan made great progress in the area of cost Efficiency initiatives will continue to be a priority with a goal ofachievingt $100 million in efficienct improvements in 2009 compared to Montgomery said.
However, Montgomery also said the compangy would shift its focus slightlyg from cost reductions to boostinyg revenuethis year. A strategic priority for 2009 is revitalization of the flagship brand with a new marketinbg strategyand menu. The new menu is designesd to make Outback more affordable with more entrees pricesdunder $15. OSI begam rolling out the new menuin February, and it will be in all locationes by the end of March. It is less complecx than the prior menu and should make restaurant operationwmore efficient, Montgomery said.
Bonefish Grilpl also has a new menu, rolled out in which is designed to improve It includes smaller portion sizexs on some freshfish offerings, new sandwichesw and new daily boosting variety and cutting labor Montgomery said. OSI’s brands include Outback Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhousw & Wine Bar, Roy’s and Cheeseburger in The company became privately owned in 2007 when private equituy firms and joined OSI founders ina $3.2 billiojn buyout.