Starboard Gains Footing In Bloomin' Brands Board, Adds Two Industry Veterans As Directors
Portfolio Pulse from Shivani Kumaresan
Bloomin' Brands, Inc (BLMN) has reached a cooperation agreement with Starboard Value LP, which holds about 9.7% of BLMN's common stock. As part of the agreement, BLMN appointed two new directors: Dave George, former COO of Darden Restaurants Inc (DRI), and Jon Sagal, Partner at Starboard. Additionally, BLMN formed an operating committee to identify opportunities for improvement. BLMN shares dropped 2.98% to close at $27.31.
January 03, 2024 | 2:02 pm
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NEGATIVE IMPACT
Bloomin' Brands appoints two new board members in cooperation with Starboard Value LP and forms an operating committee, signaling potential strategic changes. Shares fell 2.98%.
The appointment of new board members and the formation of an operating committee suggest that significant strategic changes may be on the horizon for BLMN, which could lead to uncertainty in the short term. The immediate negative reaction in share price reflects investor concerns about these changes.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Former Darden Restaurants COO Dave George joins the board of Bloomin' Brands, potentially bringing valuable industry experience.
While the appointment of Dave George to BLMN's board is a positive for Bloomin' Brands due to his industry experience, it does not directly impact Darden Restaurants' operations or strategic direction, thus the neutral score.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 20