Outbacks International Strategy

1
Outbacks International Strategy
Source Outback, website
2
Market development Takeout goes upscale
Source Outback website, Restaurant Hospitality,
Aug. 2000
3
Outback Steakhouse

• One of six public restaurant companies that
  outpaced the SP 500 Index, through the 90s.
• Third quarter sales depressed due to restaurant
  closings (Zazarac)
• Exploring other niches Bonefish Grill,
  Flemings, Carabbas, Roys and Lee Roy Selmon

Source Nations Restaurant News, 2000
4
Problems for Outback

• Greater international and niche development
  (higher pre-opening costs)
• Increased operational complexity due to specialty
  and niche concepts
• Tough domestic environment (rise in beef prices)

5
Earnings 2001 (first half)

• Total 1.3 billion system wide sales
• 1.15 billion Outback (703 units)
• 88 million Carabbas (88 units)
• 24 million (all others 17 units)
• Argument for focus increasing capital
  expenditures to develop marginal concepts

6
Food costs
Source Restaurants Institutions, 2000