Item 5. Other Events
Outback Steakhouse, Inc. (the "Company") announced that it expects
earnings for the quarter ending March 31, 1997 to fall short of analysts'
expectations of $0.40 to $.041 per share by ten to twelve percent by
issuing a press release on March 20, 1997.
Item 7. Financial Statements and Exhibits
Exhibit
Number Description
[S] [C]
99.1 Press release, dated March 20, 1997 (filed herewith)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
OUTBACK STEAKHOUSE, INC.
DATED: March 21, 1997 By:/s/ Joseph J. Kadow
Joseph J. Kadow, Vice President
NEWS . . . Contact: Robert S. Merritt
March 20, 1997 (813) 282-1225
FOR IMMEDIATE RELEASE
OUTBACK STEAKHOUSE, INC. EXPECTS
FIRST QUARTER EARNINGS SHORTFALL
Tampa, Florida, March 20, 1997 -- Outback Steakhouse, Inc.
(NASDAQ:OSSI) today announced that it expects earnings for the quarter
ending March 31 to fall short of analysts' expectations of $0.40 to $.041
per share by ten to twelve percent.
The shortfall can be attributed to soft sales in February and to date
in March in the Outback Steakhouse concept. Comparable store sales were
down 3.2% in February (4.8% before adjusting for leap year in 1996) and are
running down between 3% and 4% in March after being up 3.1% in January.
In making the announcement, Chris Sullivan, the Company's Chief Executive
Officer, stated, "While soft sales were expected for February and March
because of difficult comparisons and reduced trading days, results have
been worsened by a 2% decline in per-person averages and soft sales
throughout the state of Florida."
Sullivan attributed the decline in per person averages to the recent
addition of entree salads, hamburgers and sandwiches to the dinner menu.
"The strategy is to create broader appeal that will lead to increased
customer visits, especially during early and late evening hours. We
expected that this strategy would take some time to yield positive results
and expected some near term shift in sales. The extent of the shift has
been greater than anticipated resulting in a reduction in customer
expenditures." The Company attributes soft sales in Florida to the
unusually mild winter in the north.
The Company also noted that it has increased advertising expenditures
by .3% of sales that should provide long term benefits since it increases
the number of markets covered by TV and radio advertising and leaves only
10 markets with no support, down from 21 in 1996.
The Company also stated that the initial results in television
advertising for Carrabba's, which started in February, are positive. Sales
in West Central Florida are up 14 to 16% with average unit volumes
averaging $3.3 million, up from $2.8 million. Sales have increased 13% to
15% in the other advertised markets as well. Sullivan stated, "While
Carrabba's has not contributed to the profitability of the Company in the
first quarter, we are encouraged with the excellent results in the
advertising campaign. We feel the concept is gaining in strength and with
average unit volumes increasing, that this will lead to a more positive
result."
Sullivan also commented, "We are proud of the continued positive
results generated in our restaurants. Our partners and employees have
succeeded in exceeding our customers' expectations. We fully expect that
our sales and profits will continue to grow in a positive manner as a
result of their outstanding performance."
