Tampa-based Bloomin’ Brands has agreed to bid $26.3 million for substantially all the assets of an independent Outback Steakhouse franchisee operating 61 restaurants across the western United States, a proposed acquisition that could place those locations under the direct ownership of the company behind the national steakhouse chain.
The potential acquisition comes nearly a year into Bloomin’s broader Outback turnaround, an ambitious effort to improve food quality, restaurant service and the overall dining experience following several difficult years for the casual-dining chain. Its November 2025 strategy called for substantial investment in existing restaurants, with the company suspending its shareholder dividend to direct more cash toward improvements and debt reduction.
In the second quarter of 2026, comparable sales at company-owned U.S. Outback restaurants were 1.4% higher than a year earlier, while Bloomin’s quarterly revenue reached $1.02 billion, a 1.3% increase. The company also raised its full-year earnings forecast, citing continued progress under CEO Mike Spanos as its restaurant turnaround moved further into 2026.
That improving financial picture provides the backdrop for Bloomin’s proposed acquisition of Out West Restaurant Group, the independent franchisee whose Chapter 11 bankruptcy filing Monday, Nov. 2, follows a troubled financial relationship dating back at least to 2023. Bloomin’, Out West and the franchisee’s lenders had reached an agreement that December addressing earlier payment defaults, with the latest bankruptcy placing those outstanding financial obligations under court supervision.
For Bloomin’, the potential ownership offers a more direct role in restaurant operations and a greater opportunity for improvements, advantages the company identified in its Nov. 2 filing with the Securities and Exchange Commission. Out West expects to maintain normal restaurant operations during bankruptcy, with the locations remaining open to customers while the potential sale proceeds.
To help maintain that continuity, Bloomin’ has also proposed up to $5.5 million in interest-free financing for ordinary operating expenses and bankruptcy-related costs when Out West’s available cash falls short. Any advances would require court approval, with repayment through a reduction in Bloomin’s purchase price or proceeds from a sale to another buyer.
The $26.3 million offer remains subject to financial adjustments and certain assumed liabilities, including future lease obligations, outstanding vendor debts and unredeemed gift cards. Bloomin’ would serve as the initial bidder under the agreement signed Nov. 1, with the acquisition still subject to court approval and potentially higher competing offers ahead of a Jan. 31, 2027, outside closing date.
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Dining and Cooking