Event-driven investment manager Jana Partners (Trades, Portfolio) dropped 59.9% of its active stake in Bloomin Brands Inc. (BLMN, Financial) on Tuesday, reducing its ownership in the Outback Steakhouse and Carrabba’s purveyor for the second time this month.
The firm, founded by managing partner Barry Rosenstein, sold 3,585,921 shares of Bloomin Brands, reducing the position from 7,929,638 shares, an 8.5% stake, to 2,398,045 shares, a 2.6% stake. The trading price on Tuesday averaged $23.68 a share.
Jana Partners (Trades, Portfolio) started buying Bloomin Brands in the third quarter when its stock cost $18.31 on average. It made one additional purchase in the following quarter and took no further action until the sales in April.
Using buy and sell data, GuruFocus estimates Jana Partners' (Trades, Portfolio)’ gain on the position at 28% as yet.
As an active investor, Jana effected change at Bloomin Brands, including the hiring of an independent director to its board. In February, it installed Wendy Beck, executive vice president and chief financial officer at Norwegian Cruise Line Holdings Ltd. and former executive at Domino’s Pizza.
Jana’s retreat this month suggests it will not seek to impose a sale of the company as it indicated it might when it started the stake.
The sales come as Jana faces low returns and a wave of client redemptions, causing assets to fall to $4.6 billion as of December from $11 billion in August, Bloomberg reported. The Jana Partners (Trades, Portfolio) Fund returned 5.6% in 2017 as the S&P 500 index gained 18.7%.
Shares of Bloomin Brands gained 2.68% since reporting first-quarter fiscal 2018 results Thursday. Revenues for the company declined 3.3% from a year earlier to $1.12 billion due to domestic refranchising and a one-week shift in the fiscal calendar.
Net income was $65.4 million, or 68 diluted cents per share, up from $48.63 million, or 46 cents per diluted share a year earlier.
Sales at comparable restaurants rose across its company-owned locations except Bonefish Grill, where sales declined 0.1%. Outback Steakhouse led growth, with revenue up 4.3% in the U.S. Combined U.S. comparable store sales rose 2.8%, while international growth totaled 1.1%.
Bloomin Brands reaffirmed full-year guidance of $1.38 to $1.45 in adjusted earnings per diluted share.
Up 0.5% Friday, Bloomin Brands closed the week at $24.11 a share.
