American hedge fund Starboard Value has acquired a stake of more than 5% in Bloomin’ Brands, the owner of Outback Steakhouse, a US-based casual dining restaurant chain.

Financial details of the deal have not been disclosed.

With this acquisition, Starboard Value, which is said to have won all the seats on Darden Restaurants' board in 2014, now owns a 9.9% stake in Bloomin’ Brands.

Based in Tampa, Florida, Bloomin' Brands owns several American casual dining restaurant brands such as Outback, Carrabba's, Fleming's Prime, and Bonefish Grill.

It is said to be one of the largest casual-dining operators in the country with more than 1,000 locations.

With this acquisition, the private investment management company is expected to make changes in the leadership of Bloomin' Brands or make acquisitions or sales.

The move is aimed at further improving Bloomin’s performance and its share price.

Earlier this month, Bloomin’ reported a net income of $68.2m for the second quarter this year after reporting a loss of $63.6m last year.

However, the company’s total net revenues for the quarter ended 25 June 2023 declined to $1.15bn from $1.12bn in the same period a year ago.

Its revenue from restaurant sales was $1.14bn against the $1.11bn a year ago while the revenue from franchise and other streams declined to $15.36m from $16.24m during this period.

Bloomin’ Brands' total costs and expenses during the quarter were $1.06bn versus $1.04bn a year earlier.