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Outback Brasil executive denies sales operations in country after report suggests otherwise


Blooming’ Brands, responsible for Outback in Brazil, published a report saying it was evaluating the sale of the business


Summary

Pierre Berenstein, executive vice president of the company responsible for managing Outback in Brazil, denied rumors of a crisis in the country and reported that there are plans to continue expanding the chain with the opening of another 20 restaurants in 2024.




Pierre Berensteinexecutive vice president of global strategy at Blooming’ Brands, the company responsible for managing the Hinterland of Brazil, denied that there is any kind of crisis involving restaurants operating in the country. In a publication, Berenstein said there are “plans to continue expanding” the network in Brazil, even after a Relationship of Blooming brands suggest otherwise.

Earlier this month, the multinational released a report to investors on its financial results for the first quarter of 2024. In a note on Brazil, Blooming’ Brands said it is analyzing the possibility of selling operations.

“The Company also announced that it is exploring and evaluating strategic alternatives for the Company’s operations in Brazil that have the potential to maximize value for our shareholders, including, but not limited to, a possible sale of assets. The Board of Directors has selected BofA Securities, Inc. as financial advisor. The Company expects to proceed promptly, but has not established a definitive timeline for completing this process. There can be no assurance that this review will result in a transaction or other strategic alternative of any kind. The Company does not intend to make further public comments on the review unless it determines that disclosure is appropriate or necessary,” the report reads.

In his positioning, Pierre Berenstein goes in the opposite direction to that expressed by the company.

“Our restaurants remain open and we firmly believe they will continue to thrive. In 2023, adjusted operating income from operations outside the United States, including Brazil, was $84 million. Brazil represents a significant portion of this international result. In the first quarter of 2024, as of February 29, we reported 177 owned restaurants operating in Brazil (159 Outbacks, 16 Abbraccios and 2 Aussies).

According to Berenstein, another 20 restaurants are expected to open in 2024, with 11 already open by the second week of May. “We have an unwavering commitment to offering an exceptional and consistent experience to our customers. Through a solid strategy and tireless dedication, we are committed to keeping our operations running smoothly, further solidifying our presence and contribution to the Brazilian gastronomic scene “, he concluded.

OR Earth has reached out to Blooming’ Brands for an official position following Berenstein’s statement, and is awaiting feedback.

Source: Terra

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