Bloomin' Brands (BLMN) is somewhat of a hodgepodge of restaurant concepts all rolled into one. The company's primary restaurant is Outback Steakhouse, but BLMN also owns Bonefish Grill, Carrabba's, Fleming's, and an international unit of Outback. Yes, there are some synergies between the concepts, and scale does help with fixed costs, but I believe that it could be in the best interest of the company to divest the Carraba's concept for the following reasons:
- Using the proceeds of a transaction to reduce debt would reduce interest expense and put the company in a more "normal" debt-to-EBITDA position.
- The concept is not a high priority for the business. Divesting the unit would allow management to have greater focus on